REGISTERED NUMBER: |
VIDI CONSTRUCTION LTD |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
REGISTERED NUMBER: |
VIDI CONSTRUCTION LTD |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 8 |
Report of the Independent Auditors | 9 |
Income Statement | 13 |
Other Comprehensive Income | 14 |
Balance Sheet | 15 |
Statement of Changes in Equity | 16 |
Cash Flow Statement | 17 |
Notes to the Cash Flow Statement | 18 |
Notes to the Financial Statements | 20 |
VIDI CONSTRUCTION LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Certified Accountants |
& Statutory Auditors |
Cash's Business Centre |
1st Floor |
228 Widdrington Road |
Coventry |
West Midlands |
CV1 4PB |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The director presents his strategic report for the year ended 31 March 2023. |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
REVIEW OF BUSINESS |
The principal activity of the Company continues to be that of construction projects across a variety of sectors including residential, refurbishment and conversions. |
The operating profit on ordinary activities before interest and tax amounted to £589,647 (2022: 675,036). |
Trading conditions with the Company's construction sectors has shown an increase in turnover of 25.3% compared to 2022. Although we continue to operate in a competitive and very challenging market, the construction demand has continued to remain resilient and activity levels remain robust. |
The constraints on our profitability can be attributed to the following factors: |
- The impact of the COVID-19 pandemic continued to have a knock-on effect in the business and the sector as a whole. Post-pandemic effects included significant delays and disruption to contracts due to workforce challenges such as health and safety concerns, supply chain disruptions that led to shortages of construction materials and equipment, and an economic downturn that affected project timelines. Our projects suffered from ongoing prolongation costs and a disruption to our Lean Management processes that we have strived to embed within our construction projects. |
- The initial impact of BREXIT and global disruption was still being felt throughout the business with pressures on resource availability and procurement costs. Whilst we believe we have managed the inflationary pressures well; it has inevitably affected profitability. |
- As a result of COVID and BREXIT, the resilience within the industry is being challenged. We have seen the demise of a number of sub-contractors during the past year and this has presented further challenges in the completion of projects. |
- The unpredictable increase in the price of materials has had impact on the profitability of the project, and was exacerbated by the impacts of the Ukraine-Russian war which disrupted the trade routes with our suppliers leading to further delays and higher costs. |
-The cost of living and inflation led to increased costs of importing and exporting construction materials, increased labour costs and an overall negative impact on the housing market. Higher inflation erodes the consumer's purchasing power, reducing the demand for new builds or shifting their housing preferences. |
However, we strongly believe that the company is well placed to continue its growth and improve to profitability by maintaining its market reputation with a loyal client base. |
These are challenging times with the current market uncertainties, but our proactive approach and even stricter commercial controls give us the ability and confidence to take up the opportunities that are present. |
We have committed significant resources both in terms of capital and management time to develop business improvements throughout all our processes to ensure we deliver for our clients in the most cost effective and efficient manner. |
Financial key performance indicators |
The key performance indicators of the Company are as follows: |
2023 | 2022 |
£ | £ |
Turnover | 39,542,606 | 31,562,130 |
Gross profit margin | 10.69% | 9.85% |
Net profit margin | 1.49% | 2.05% |
Net assets | 3,552,460 | 3,064,030 |
Non-financial indicators |
Customer satisfaction is considered a non-performance indicator, with customers relaying feedback on the quality of work, communication and overall experience of the construction process |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
Building stronger supplier and sub-contractor relationships are considered key, as these can directly impact the project costs, timelines and quality. We are constantly monitoring factors such as payment terms, responsiveness, adherence to contracts and reliability to continue maintaining strong partnerships and minimize disruptions. |
The Director considers health and safety performance to be a primary non-financial indicator. The company has been independently certified as meeting health and safety best practice by achieving ISO 9001. |
Directors' statement of compliance with duty to promote the success of the Company |
The Directors of the Company must act in accordance with a set of general guidelines. These are detailed in Section 172(1) (a) to (f) of the UK Companies Act 2006, which is summarized below. |
-The likely consequences of any decisions in the long-term |
-The interest of the Company's employees; |
-The need to foster the Company's business relationships with suppliers, customers and others; |
-The impact of the Company's operations on the community and environment; |
-The desirability of the Company maintaining a reputation for high standards of business conduct; and |
-The need to act fairly as between shareholders of the Company |
The Directors consider that during the year, they have acted to promote the long-term success of the Company, that has generated value in the business, and to the wider community. |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Director regularly reviews risk and uncertainties that affect the Company. |
The principal risks that affect the Company are in relation to the ongoing business activity, in respect to both projects that are in progress and prospective work under tender. Potential delays to projects and risks are assessed prior to tender and are then revisited on an ongoing basis after work is awarded. |
The company actively monitors its own day to day working capital requirements and is in a very strong position to maintain a suitable level of self-financed liquidity within the business. It reinforces this ability by having a pre agreed bank finance facility in place. |
In the wider macro environment shortages of resources and skilled staff at all levels can provide a constraint on a buoyant construction industry, however, the company's excellent reputation amongst suppliers and subcontractors has so far had a minimal effect on the company's operations to date.The Company continues to foster strong relationships with its supply chain, working closely with them to identify and minimise potential risks. |
COVID-19 |
The Director has closely been monitoring the effects of COVID-19 on our business operations. Fortunately, the impact on our business is beginning to diminish, and as a society, we are learning to live with the impacts of COVID at a smaller scale. |
We continue to closely monitor and support our supply chain partners to ensure that they are not exposed to potential business failure as a result of the pandemic. |
Resource Availability |
The Director is aware that construction is perhaps one of the industries in the United Kingdom that is most likely to be adversely impacted, specifically in key areas of skill shortage, material availability and procurement costs. |
We continue to monitor market changes and the implications on our supply chain both in terms of materials and labour. We also take a proactive approach to ensure our contracts are constructed to mitigate against any uncertainty. |
We are working proactively with our supply chain to manage the supply of resource. We can pay for goods in advance and have storage facilities available to secure materials and ensure cost certainty. Furthermore, the way we work with our supply chain, means that we become their contractor of choice. |
Inflation |
The biggest risk to any construction business currently is the impact of an extremely volatile market in terms of inflation. |
We are in constant dialogue with our supply chain to manage this and mitigate the risk to our business. As mentioned previously, the early procurement of materials not only provides certainty regarding delivery but also controls the impact of rising costs. |
We are also working with our clients to assess and manage the risk. This is particularly challenging; however, we will not proceed with a project if the risk of the current market conditions is not shared equitably. |
Supply Chain Failure |
The construction industry is heavily reliant upon the performance and resilience of our supply chain. The business has an effective set of procedures to ensure our supply chain can meet our expectations in relation to competency, quality, and financial resilience. |
We anticipate further company failures throughout the construction industry over the coming months and years. Therefore, regular financial checks and engagement with our supply chain allows us to manage the risk of this impacting on our ability to deliver projects for our clients. |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
We continue to ensure that our supply chain is paid in a fair and prompt manner, and we will work with them to ensure that cashflow does not have an impact on their ability to trade. |
Market Risks |
The company's revenues are principally derived from the housing and construction markets. These markets, and therefore, company revenues, can be subject to variations in patterns of demand and largely influenced by economic growth and consumer growth. With the extremely volatile market, the company recognises the main uncertainties and risks to our workload and profitability in the short to medium term. |
As of August 2022, we have secured 25% as a preferred contractor status of our expected turnover for the financial year ending March 2023 with several projects currently being negotiated which we are hopeful of securing which feeds into our turnover for year ending March 2024 and beyond. |
Health and Safety |
The principal risk is failure to maintain a safe working environment to prevent major incidences. Potential impact include financial penalties from project delays, legal action and fines, a a failure to meet client expectations and increased incidences on site. |
The company takes its responsibility for these risks very seriously and continues to monitor and improve the performance on site. The safety of our staff, visitors and the wider environment is vitally important to the wider group. |
Through our inhouse Health and Safety Manager and an external verification body, we provide and implement effective procedures. All staff receive training, instructions, and supervision to enable them to safely perform their duties. Health and Safety is reviewed and discussed at senior management and board meetings on a monthly basis. |
Legislation and regulation |
The construction sector is subject to heightened scrutiny from stakeholder, requirements from revised legislation or regulation and oversight from regulators. |
Potential impact include reputational damage, penalties for failing to adhere and overall loss of the business. In order to mitigate this, relevant training and policy implementations are reviewed by the Directors, there is regular monitoring of the impact of new legislation and regulations and there is regular engagement with the Government with respect to the Company's continued compliance. |
People |
The main risk is a failure to attract and retain key employees. The construction industry as a whole is at risk of an ageing workforce and a lack of skilled workers. The business invests to enable staff to obtain the necessary skills and qualifications to perform their duties with a mixture of internal and external courses. This company is fortunate to have very loyal, committed and very hard working workforce. |
Cyber security |
The board have a mixture of robust procedures, IT infrastructure and insurance in place to help mitigate this risk, by protection of infrastructure from current conventional cyber/loss of data risks. |
Potential impact include reputational damage, regulatory fines/prosecutions and operational impacts such as loss of confidential data and key system outages. |
To mitigate this, there are mandatory staff trainings to raise awareness, system alerts and data loss prevention tools in place. |
Financial Risk Management |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The company's operations expose it to a variety of financial risks that include credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit adverse effects on its financial performance. |
Credit Risk |
The company undertakes credit checks on potential customers and supply chain partners prior to entering into contract. |
Liquidity Risk |
We have a rolling cash, profit and working capital forecasting regime which is review and discussed monthly basis at the management level. |
Strategy and objectives |
Our medium term strategy is to run a sustainable business adopting a model allowing for steady growth. Growth will come by ensuring that we maintain a pipeline of varied and profitable work achieved by constant delivery of outstanding construction projects. We enjoy an excellent reputation and continue to invest in improving our team and the processes by which we work. |
This report was approved by the board and signed on its behalf by: |
ON BEHALF OF THE BOARD: |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 MARCH 2023 |
The director presents his report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of construction projects across a variety of sectors including residential, refurbishment and conversions. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
No dividend was paid in the year (2022: £10,000) and the Director does not recommend a final dividend in respect of the year |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Shah & Co (Accountants) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
VIDI CONSTRUCTION LTD |
Opinion |
We have audited the financial statements of Vidi Construction Ltd (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
VIDI CONSTRUCTION LTD |
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 Report of the Director. |
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, 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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page eight, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
VIDI CONSTRUCTION LTD |
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. |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
· We obtained an understanding of laws and regulations that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the Companies Act 2006, tax legislation, health and safety legislation, and employment legislation. |
· We enquired of the Directors and reviewed correspondence and Director’s meeting minutes for evidence of |
non-compliance with relevant laws and regulations. We also reviewed controls the Directors have in place, where |
necessary, to ensure compliance. |
· We gained an understanding of the controls that the Directors have in place to prevent and detect fraud. |
· We enquired of the Directors about any incidences of fraud that had taken place during the accounting period. |
· The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and |
tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: |
laws related to the construction and provision of social housing, recognising the nature of the Company's activities and the regulated nature of the Company's activities. · We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above. |
· We enquired of the Directors about actual and potential litigation and claims. |
· We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of |
material misstatement due to fraud. |
· In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. |
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 |
VIDI CONSTRUCTION LTD |
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 |
Chartered Certified Accountants |
& Statutory Auditors |
Cash's Business Centre |
1st Floor |
228 Widdrington Road |
Coventry |
West Midlands |
CV1 4PB |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
543,854 | 662,658 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
589,647 | 675,036 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
BALANCE SHEET |
31 MARCH 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in this year | ( |
) | ( |
) |
New bank loan in this year | - | 250,000 |
Capital repayments in year | ( |
) |
Amount withdrawn by directors | (456 | ) | - |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,038,819 |
Cash and cash equivalents at end of year | 2 | 1,438,460 | 795,801 |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.23 | 31.3.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 69,828 | 29,421 |
Finance income | - | (419 | ) |
1,196,640 | 1,117,995 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 1,438,460 | 795,801 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 795,801 | 1,038,819 |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/4/22 | Cash flow | changes | At 31/3/23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 795,801 | 642,659 | 1,438,460 |
795,801 | 1,438,460 |
Debt |
Finance leases | (990,641 | ) | 792,822 | - | (857,056 | ) |
Debts falling due |
within 1 year | (69,444 | ) | (13,889 | ) | - | (83,333 | ) |
Debts falling due |
after 1 year | (180,556 | ) | 83,334 | - | (97,222 | ) |
(1,240,641 | ) | 862,267 | - | (1,037,611 | ) |
Total | (444,840 | ) | 1,504,926 | - | 400,849 |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Vidi Construction Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies. |
Going concern |
At the balance sheet date, the company is showing net current assets of £2,114,025 (2022: £2,849,086) and net assets of £3,552,460 (2022: £3,064,030). The directors have prepared financial projections which, on the basis of reasonable assumptions, the company can meet its liabilities as and when they fall due for a period of at least twelve months from the date of signing these financial statements. |
Despite the adverse impact of the Coronavirus pandemic on the construction industry, with restrictions eased and future projects confirmed and with the ongoing support of the suppliers, the directors believe the company is a going concern and have prepared these financial statements on this basis. |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
Preparation of the financial statements requires directors to make judgements, estimates and assumptions that affect the amounts reported of assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
The following judgements have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements: |
Turnover and costs |
The turnover and costs recognised under long term contracts have been individually assessed for each contract as at period end. Management have recognised revenue and cost based on the expected total profit margin for the contract and the amounts delivered and utilised by the customer as at period end. When a contract is expected to make a loss, the expected loss is recongised immediately where cost recovery is not probable. |
Impairment of tangible fixed assets |
In determining whether there are indicators of impairment of the company's tangible fixed assets, factors taken into consideration by the directors include the economic value in use and whether there are any expected future cash flows to be generated from such assets. |
Finance lease or operating lease |
In determining whether leases entered into by the company, either as a lessor or lessee, are operating or finance leases, the directors have assessed whether the risks and rewards of ownership have been transferred from the lessor to the lessee on an individual lease by lease basis. |
The following are key sources of estimation uncertainty: |
Impairment of receivables |
Trade debtors is reviewed annually at balance sheet for recoverability of the provision of service. If there is any evidence of impairment, the carrying value is reduced to its recoverable amount. The impairment loss is recognised immediately in the profit and loss account. |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised: |
Rendering of services |
Turnover 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 turnover can be reliably measured |
-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 reliably measured |
Revenue represents the value of work done during the financial period net of value added tax. The value of work done is calculated as certified work, plus the amount anticipated to be certified, adjusted for over and under measure. Revenue and costs are recognised by reference to the stage of completion, with reference to expected contract timescale and costs incurred to date. |
Where it is probably that contract costs will exceed total contract revenue, the expected future loss is recognised as an expense immediately and a provision for losses on contracts is recognised as a component of creditors. |
Amounts due to contracts at the year end are recognised to the extent they have been invoiced in trade debtors and any accrual for uncertified work is included in work in progress. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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. |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 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 |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Short term debtors and creditors |
Short term debtors and creditors with no stated interest rate or that are receivable or payable within one year are stated at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value. |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. Loans and borrowings that are receivable within one year are not discounted. If an arrangement constitutes a finance transaction it is measured at present value of future payments discounted at a market rate of interest for a similar loan. |
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 obligation. |
Provisions are charged as an expense to the 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. |
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, and loans to related parties. |
Share capital |
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. |
3. | EMPLOYEES AND DIRECTORS |
31.3.23 | 31.3.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.3.23 | 31.3.22 |
Employees |
31.3.23 | 31.3.22 |
£ | £ |
Director's remuneration |
Director's pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.3.23 | 31.3.22 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.23 | 31.3.22 |
£ | £ |
Bank interest |
Hire purchase |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax |
Tax on profit |
UK corporation tax was charged at 19%) in 2022. |
7. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
7. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Reclassification/transfer | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Reclassification/transfer | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
8. | STOCKS |
31.3.23 | 31.3.22 |
£ | £ |
Stocks & work in progress |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Trade debtors |
Intercompany loans | 682,068 | 617,709 |
VAT |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Hire purchase contracts (see note 13) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | - | 456 |
Accrued expenses |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans (see note 12) |
Hire purchase contracts (see note 13) |
12. | LOANS |
An analysis of the maturity of loans is given below: |
31.3.23 | 31.3.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
13. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.3.23 | 31.3.22 |
£ | £ |
Bank loans |
Hire purchase contracts | 857,056 | 990,641 |
The bank loan is secured by way of debenture on the assets of the company. |
Hire purchase agreements are secured on the respective assets. |
15. | PROVISIONS FOR LIABILITIES |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax | 348,410 | 317,021 |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Change in provision | 31,389 |
Balance at 31 March 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
Ordinary | £1 | 300 | 300 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the year |
At 31 March 2023 |
VIDI CONSTRUCTION LTD (REGISTERED NUMBER: 09961909) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
18. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 March 2023 and 31 March 2022: |
31.3.23 | 31.3.22 |
£ | £ |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
19. | RELATED PARTY DISCLOSURES |
During the year the company entered into transitions in the ordinary course of the business with companies in which Mr R Dinului-Mereantu had an interest and was a director: |
(i) The company provided construction services totalling £ 8,652,384 to KCH (Ashford) Ltd |
(ii) The company provided construction services totalling £ 740,070 to KCH (Birmingham JQ) Ltd |
(iii) The company provided construction services totalling £ 5,176,693 to KCH (Birmingham JQ Legge) Ltd |
(iv) The company provided construction services totalling £ 330,474 to Rugby 44 Ltd |
During the year total trade debtors outstanding at the balance sheet date including following this companies which Mr R Dinului-Mereantu had an interest. |
(i) KCH (Ashford) Ltd £ 748,898 |
(ii) KCH (Birmingham JQ) Ltd £ 300,267 |
(iii) KCH (Birmingham JQ Legge) Ltd £ 59,486 |
(iv) Rugby 44 Ltd £ 180,998 |
During the year the company provided loans to the companies in which Mr R Dinului-Mereantu had an interest and was a director. These loans are repayable on demand. The balances at the balance sheet date was: |
(i) RVD Building Ltd £ 254,422 |
(ii) Londonsbridge Ltd £ 205,872 |
(iii) KCH (Birmingham JQ) Ltd £ 157,415 |
The director consider there to be no key management personnel, other than the director, who has authority and responsibility for planning, directing and controlling the activities of the company. |
20. | ULTIMATE CONTROLLING PARTY |
The controlling party is Mr R Dinului-Mereantu. |