Company registration number 01785514 (England and Wales)
P T CONTRACTORS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
P T CONTRACTORS LIMITED
COMPANY INFORMATION
Directors
P N Trant
P M Trant
S J Trant
(Appointed 5 December 2023)
P S Trant
(Appointed 5 December 2023)
Company number
01785514
Registered office
Unit 6 Imperial House
West Bay Road
Southampton
SO15 0RB
Auditor
Fiander Tovell Limited
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
P T CONTRACTORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

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

Principal activities

The principal activity of the company continued to be that of construction and engineering.

The Key Performance Indicators of the business are:

Financial

The board recognises that 2023 was another productive year and subsequently satisfactory year for the business in terms of the financial performance. Our turnover decreased by 14% to £6.6m as a number of substantial contracts were delayed but our margin improved as we focussed on working with favourable clients within the utilities supply industry and construction of sub stations within land development. We continued to invest in our people and skills to meet the future requirements of the business.

 

We will continue to implement a strategy whereby the primary focus is securing contracts of value and scope which are commensurate to our resources, capabilities and business model. The board are confident that this selective approach to pursuing and undertaking contracts across a balanced portfolio of clients will allow the business to release a satisfactory profit in the current year.

 

Health, Safety and the Environment.

 

The group recognises that it is the responsibility of the entire workforce to perform the company's health and safety policies, processes and comply with the management systems. The internal systems continue to be developed and digitalised year on year and implemented to the highest standards in providing a safe and secure place of work for our employees, clients, visitors, members of the public.

 

We continue to receive 3rd Party recognition from clients and governing UKAS approved accreditation bodies such as LRQA who audit and evaluate our ISO Standard Accreditations of 9001:2015 + 14001:2015 and 45001:2018 after successful completion our Surveillance 4 audits. We are planning for the certificate renewal certificate in December 2024; furthermore, we have maintained Gold status with Achilles UVDB audit process. Both LRQA and Achilles raised no nonconformities and only had positive feedback on the safety culture and performance. We have full integration of all three standards into our management system PIMS and completed the digitalisation of all operations functions both at site and office levels with the introduction of Work Wallet into our digital stack, demonstrating we remain an early adopter of technology and innovation to the highest recognised standards in health, safety and environmental culture and function. Further evidence of the continued successes in this direction has been recognised again by ROSPA who have awarded PTC with a 6th consecutive gold medal award for our sustained level of safety excellence.

 

Our harmonised and fully integrated management system (PIMS) has been successfully upgraded with further digitalisation, making use of and investment in several “best in class” software platforms (HandsHQ – Digital RAMS), (Work Wallet - Site/Project Management), (LUS - Legislation Registers and Management), (BrightHR - Digital HR Processes and Management). After finalising the onboarding of Work Wallet and training of staff in 2023 we can now operate at site level almost paperlessly, achieving our objective to bring modern processes and support continuous improvement. Our aim and core objective to mitigate all personal risks to stakeholders of the business, prevent injury, harm, or loss, continues, and is now in an even stronger position having implemented our digitalisation project. Furthermore, this supports our improving culture, focusing on leading Indicators in the absence of negative events; this is demonstrated with our continued excellent safety performance. Evidence of our successes and investment is paying off, demonstrated by current performance statistics, now nearing 7 years LTI free - Zero Environmental incidents for the same period, and zero RTA’s for 5 years. This indicates solid performance and further evidence the business continues to move and maintain the right course.

P T CONTRACTORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

Our management procedures, systems, and processes demand that these are audited internally and externally to ensure compliance, effectiveness and fulfil our continuous improvement. We maintain our active membership to British Safety Council, Achilles UVDB, ROSPA, Safe Contractor, Safe PQQ, Constructionline, SIPP, Safe Contractor (PAS91) and Safe PQQ. We are also members of Mates in Mind, Sabre and have Croner to support our staff with Mental health and Wellbeing, providing our EAP (Employee Assistance Program). We maintain in house mental health first aiders, suicide first aiders and provide mental health awareness courses for all managers. CHS provide our Occupational Health support services ongoing with Fit for Work medicals for all plant operators and annual medical health assessments for all staff.

 

Human Resources

 

The skills, qualifications, experience and competencies of our employees underpins the business; our investment in our people is unwavering as we implement annual training plans, matrices and programme for the growth of our employees’ compliance, skills, competencies and professional development (CPD). Training hours for the year amounted to 573 hours. The business is an equal opportunities employer, and all applications are fully and fairly considered in accordance with the aptitudes and abilities of the applicant.

 

It is widely documented that the industry continues facing some unique challenges on the employee front, with skill gaps and shortages of competent workers across almost every aspect of construction. We have developed our own strategy for a future workforce and fulfilling any future needs regarding employee resources; PTC maintains its apprentice program at CETC with 4 apprentices currently attending and more planned in the year ahead. We have also undertaken and completed the process in 2023 of becoming a Government Licenced Sponsor and Rated as A1 Employer; this has allowed us to look beyond the UK market for skilled workers like Site Managers that have both Civils and Electrical HV backgrounds, qualifications and experience. This will support our growth and demand for substation production for data centres and DNO networks. Our first and successful endeavour in this process to sponsor a new employee under the skilled worker visa - DCoS (UKVI). has seen a new employee (Site Manager) join our workforce on 2nd Jan 2024, it is hoped more will follow as and when the demand requires.

 

With regards to CETC and the investment made by PTC into this innovative and unique approach to an industry focussed apprenticeship programme for ground workers and civil engineers, we continue to recover that investment both financially, with heavily discounted training and apprenticeship fees, and in new staff resources as they successfully complete their apprenticeships and become qualified staff.

P T CONTRACTORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

Risk

Liquidity

 

The liquidity of the business is satisfactory and is reporting a year end acid test ratio of 1.31. The business continues to be funded adequately thereby eliminating credit risk to the creditors and stakeholders of the business.

 

Bidding risk

 

The company bids selectively for contracts throughout the year. The tender documents are compiled in accordance with the internal management and process of the business in order to identify the pertinent risks associated with the tender. The final quantitative and qualitative documents are subject to a final review from senior management.

 

Credit risk

 

There is currently no exposure to bad debts or foreign exchange risk. The business undertakes due diligence on existing and prospective clients to ensure credit risk are minimal.

 

The Future Outlook

 

Contracts secured for 2024 with a reported turnover of £6.7m will generate around 77% of our budgeted turnover for the year. We have a continued focus on substation work with selected clients. These jobs are repeatable and are well suited to the skills of the current workforce. There are risks associated with concentration of work, but we have other steady clients to support this. Clearly there are still potential risks availability of labour and supplies but to date our sector has been relatively less affected than many. Price pressures will continue to be a major issue in 2024.

 

The board are committed to pursuing opportunities that complement the resources of the business, the criteria of safe project delivery, enhanced profitability, and cash generation. This strategic focus will ensure sustainability of the business and the successful delivery of our client's projects.

 

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

P N Trant
P M Trant
S J Trant
(Appointed 5 December 2023)
P S Trant
(Appointed 5 December 2023)
Auditor

The auditor, Fiander Tovell Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

P T CONTRACTORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
P N Trant
Director
28 February 2024
P T CONTRACTORS LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 5 -
2023
2022
Notes
£
£
£
£
Current assets
Stocks
24,732
-
Debtors
5
1,328,471
1,622,230
Cash at bank and in hand
817,140
623,605
2,170,343
2,245,835
Creditors: amounts falling due within one year
6
(1,737,307)
(1,500,374)
Net current assets
433,036
745,461
Capital and reserves
Called up share capital
7
12,938
12,938
Profit and loss reserves
420,098
732,523
Total equity
433,036
745,461

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 28 February 2024 and are signed on its behalf by:
P N Trant
Director
Company registration number 01785514 (England and Wales)
P T CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
1
Accounting policies
Company information

P T Contractors Limited is a private company limited by shares, incorporated in England and Wales. The registered office is Unit 6 Imperial House, West Bay Road, Southampton, SO15 0RB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.3
Work in progress

Work in progress is valued at the lower of cost and net realisable value.

1.4
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

The stage of completion is measured by the proportion of revenue invoiced for work performed to date compared to the estimated total sales. The amount of total profit expected is applied to the current stage of completion to identify the proportion of total turnover earned.

1.5
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

P T CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 7 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

P T CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 8 -
1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Long term contracts

Recognition of revenue and profit is based on judgements made in respect of the ultimate profitability of a contract. Such judgements are arrived at through the use of estimates in relation to the costs and value of work performed to date and to be performed in bringing contracts to completion. These estimates are made by reference to recovery of pre-contract costs, surveys of progress against the construction programme, changes in work scope, the contractual terms under which the work is being performed, including the recoverability and any unratified income from variations and the likely outcome of discussions on claims, costs incurred and external certification of the work performed.

 

The company has appropriate control procedures to ensure that all estimates are determined on a consistent basis and subjected to the appropriate review and approval. The total value of accrued income recognised on contracts (including retentions) is £493,554 (2022 - £377,320). The total value of accrued costs on contracts is £864,906 (2022 - £692,063).

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
40
39
4
Construction contracts
2023
2022
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
493,554
377,320

At 31 October 2023, retentions held by customers for contract work amounted to £164,022 (2022 - £164,607).

P T CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
650,706
699,708
Amounts owed by group undertakings
125,924
525,983
Other debtors
526,120
331,134
1,302,750
1,556,825
2023
2022
Amounts falling due after more than one year:
£
£
Trade debtors
25,721
65,405
Total debtors
1,328,471
1,622,230
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
596,842
595,984
Corporation tax
52,807
16,752
Other taxation and social security
49,891
87,825
Other creditors
62,354
62,987
Accruals and deferred income
975,413
736,826
1,737,307
1,500,374

The overdraft facility is secured by a mortgage deed on the parent company's freehold investment property.

7
Called up share capital
2023
2022
£
£
Ordinary share capital
Allotted
15,600 'A' Ordinary shares of £1 each
15,600
15,600
Issued and fully paid
12,938 'A' Ordinary shares of £1 each
12,938
12,938
P T CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
8
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Mark Gregory ACA
Statutory Auditor:
Fiander Tovell Limited
Date of audit report:
28 February 2024
9
Related party transactions

The company has taken advantage of the exemption available in Section 33.1A of FRS102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

 

The company undertakes some of its work for third parties through an arrangement with an entity related by common directors. In such circumstances, the substance of the transaction is between the company and the third party, although the invoice to the third party is raised by the related entity and the company invoices them (rather than the third party) for the work done.

 

The accounts include turnover of £1 (2022 - £42,073) in respect of these transactions.

 

The accounts include expenses of £Nil (2022 - £4,037) in respect of these transactions.

 

At the balance sheet date, there are the following balances held with the related entity in respect of these transactions:

 

Debtors: £Nil (2022 - £39,044)

Creditors: £Nil (2022 - £Nil)

10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
168,432
22,749
11
Parent company

The ultimate parent company is P T (Holdings) Limited, a company registered in England and Wales.

 

Its registered office is Unit 6 Imperial House, West Bay Road, Southampton, SO15 0RB.

 

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