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Company No: 06977736 (England and Wales)

RED TREE BUILDING CONTRACTORS LIMITED

Unaudited Financial Statements
For the financial year ended 31 July 2023
Pages for filing with the registrar

RED TREE BUILDING CONTRACTORS LIMITED

Unaudited Financial Statements

For the financial year ended 31 July 2023

Contents

RED TREE BUILDING CONTRACTORS LIMITED

BALANCE SHEET

As at 31 July 2023
RED TREE BUILDING CONTRACTORS LIMITED

BALANCE SHEET (continued)

As at 31 July 2023
Note 2023 2022
£ £
Fixed assets
Tangible assets 3 679,299 572,682
679,299 572,682
Current assets
Debtors
- due within one year 4 1,691,098 1,580,437
- due after more than one year 4 785,281 806,105
Cash at bank and in hand 1,169,346 1,392,768
3,645,725 3,779,310
Creditors: amounts falling due within one year 5 ( 2,349,460) ( 1,979,818)
Net current assets 1,296,265 1,799,492
Total assets less current liabilities 1,975,564 2,372,174
Creditors: amounts falling due after more than one year 6 ( 24,165) ( 33,881)
Provision for liabilities ( 46,518) ( 24,643)
Net assets 1,904,881 2,313,650
Capital and reserves
Called-up share capital 7 200 200
Profit and loss account 1,904,681 2,313,450
Total shareholders' funds 1,904,881 2,313,650

For the financial year ending 31 July 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements of Red Tree Building Contractors Limited (registered number: 06977736) were approved and authorised for issue by the Board of Directors on 14 March 2024. They were signed on its behalf by:

T A Eccles
Director
RED TREE BUILDING CONTRACTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 July 2023
RED TREE BUILDING CONTRACTORS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 July 2023
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Red Tree Building Contractors Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is St Georges House, 71 Liverpool Road, Cadishead, Manchester, M44 5BG, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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 retentions, trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Construction contracts

Turnover from a contract to provide construction 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 turnover 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.

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Amounts recoverable on contracts are included in current assets and represent turnover recognised in excess of payments on account.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings not depreciated
Vehicles 25 % reducing balance
Computer equipment 4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Borrowing costs

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

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

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 creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

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.

2. Employees

2023 2022
Number Number
Monthly average number of persons employed by the Company during the year, including directors 40 30

3. Tangible assets

Land and buildings Vehicles Computer equipment Total
£ £ £ £
Cost
At 01 August 2022 473,370 183,036 32,576 688,982
Additions 0 156,230 2,054 158,284
Disposals 0 ( 13,795) 0 ( 13,795)
At 31 July 2023 473,370 325,471 34,630 833,471
Accumulated depreciation
At 01 August 2022 0 93,043 23,257 116,300
Charge for the financial year 0 44,881 4,945 49,826
Disposals 0 ( 11,954) 0 ( 11,954)
At 31 July 2023 0 125,970 28,202 154,172
Net book value
At 31 July 2023 473,370 199,501 6,428 679,299
At 31 July 2022 473,370 89,993 9,319 572,682
Leased assets included above:
Net book value
At 31 July 2023 0 59,992 0 59,992
At 31 July 2022 0 79,989 0 79,989

4. Debtors

2023 2022
£ £
Debtors: amounts falling due within one year
Trade debtors 1,653,403 1,554,412
Prepayments 37,695 26,025
1,691,098 1,580,437
Debtors: amounts falling due after more than one year
Amounts owed by associates 379,082 341,000
Amounts owed by directors 300,800 359,706
Other debtors 105,399 105,399
785,281 806,105

5. Creditors: amounts falling due within one year

2023 2022
£ £
Trade creditors 1,158,920 1,066,311
Amounts owed to directors 409,040 19,855
Accruals 30,065 33,676
Taxation and social security 360,994 604,813
Obligations under finance leases and hire purchase contracts 32,464 25,228
Other creditors 357,977 229,935
2,349,460 1,979,818

Net obligations under hire purchase contracts of £32,464 (2022: £25,228) are secured against the assets to which they relate.

6. Creditors: amounts falling due after more than one year

2023 2022
£ £
Obligations under finance leases and hire purchase contracts 24,165 33,881

Net obligations under hire purchase contracts of £24,165 (2022: £33,881) are secured against the assets to which they relate.

7. Called-up share capital

2023 2022
£ £
Allotted, called-up and fully-paid
50 A Ordinary shares of £ 1.00 each 50 50
45 B Ordinary shares of £ 1.00 each 45 45
40 C Ordinary shares of £ 1.00 each 40 40
35 D Ordinary shares of £ 1.00 each 35 35
20 E Ordinary shares of £ 1.00 each 20 20
10 F Ordinary shares of £ 1.00 each 10 10
200 200

All shares rank pari passu in all respects.

8. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

2023 2022
£ £
within one year 0 30,167

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

2023 2022
£ £
Unpaid contributions due to the fund (inc. in other creditors) 3,146 737

9. Related party transactions

Transactions with the entity's directors

Two of the directors have received loans from the company. At the year end, the amounts outstanding total £204,000 (2022: £243,950) and £96,800 (2022: £115,756) respectively.

The loans are repayable by annual installments over 15 years. Interest is being charged on the outstanding balances at a rate of 2.5%.

Other related party transactions

At the year end the company had loaned £379,082 (2022: £341,000) to an associated company which is included in amounts owed by associates. Interest is being charged on this loan at a rate of 2.5%.