Company registration number 04464050 (England and Wales)
TRJ CYF LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
TRJ CYF LTD
COMPANY INFORMATION
Directors
Mr D H Jones
Mr O H Jones
Mr J Jones
(Appointed 12 June 2024)
Mr R Llewellyn
(Appointed 12 June 2024)
Secretary
Mr O H Jones
Company number
04464050
Registered office
Betws Industrial Park
Foundry Road
Betws
Ammanford
Dyfed
United Kingdom
SA18 2LS
Auditor
Azets Audit Services
Charter Court
Phoenix Way Enterprise Park
Swansea
United Kingdom
SA7 9FS
TRJ CYF LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
TRJ CYF LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The directors present the strategic report for the year ended 31 July 2023.

 

Review of the business and future strategy                

The business was started in 1935 by Mr T Richard Jones and was incorporated in 1971 as T.Richard Jones (Betws) Limited. When Mr T Richard Jones retired, the business was carried on by his two sons, Huw and David. The company is currently run by the third generation of the Jones family, Dafydd, Owain and John plus the only non family director, Richard Llewellyn.

The Group's headquarters are located in Ammanford but contracts with both public and private sector clients throughout South Wales.

Its main activities are the construction and development of commercial, industrial and residential property and civil engineering. In addition, it has a Waste Management division, operates a Haulage and Plant Hire division and has a Fabrication and Joinery division all geared up to support the construction activities.

The Group enjoys a number of competitive advantages, including strong brand recognition in its heartland trading region which enables the Group to obtain a number of high value contracts and maintain strong trading results in recent years. During 2023, turnover increased by 0.5% to £28,133,393. The margins achieved on delivering the fixed price sales contracts awarded in recent periods have been significantly impacted by global events, initially the effects of the Covid-19 restrictions and then by supply chain issues and price inflation on materials. During 2022, these increases in costs of contract delivery exceeded the costings which were utilised when reaching the original fixed price contract agreements and the result was that only marginal gross profits were achieved in the financial year of £310,053 (gross margin: 1.1%). In 2023, whilst results have still been impacted by on-going cost pressures, action taken on pricing of newer contracts awarded has seen an increase in gross profits achieved to £2,403,590 (gross margin: 8.5%). Moving into 2024, the Group order book is strong and with cost pressures being built into our future pricing strategy, profitability is forecast.

The asset register maintained by the Group is an important aspect of the business and the strategy is to proactively enhance and maintain its plant and machinery to facilitate the continued expansion of the Group’s activities. Total assets less current liabilities at the end of the year are £7,697,144 (2022: £7,446,161), and with a strong liquidity ratio at the year end of 1.72 (2022: 1.52), the company is well placed to continue the undertaking of large contracts and fund further acquisitions should such opportunities arise.

As a family run business our approach is personal and our ambitions are client led. Our advertised statement…"Building On A Firm Foundation”… reflects our history of stability and consistency in the past and our aspirations for the future. Our workload is testament to our business ethos as the majority of our work is from repeat custom. Undoubtedly the commitment and enthusiasm displayed by all our staff has contributed significantly to our success and we thank them all for their continued efforts. Our focus for the future is to maintain this culture of continuous development to the benefit of our customers, our Group and our employees.

            

Key Performance Indicators    

 

31 July 2023

31 July 2022

Variance

 

 

 

 

Turnover

£28,133,393

£27,987,115

0.5%

Gross Profit

£2,403,590

£310,053

675%

Gross Profit %

8.5%

1.1%

 

Profit/(Loss) before tax

£572,102

(£1,138,730)

150%

Profit/(Loss) before tax %

2.03%

(4.07%)

 

            

 

Environmental matters

The Group recognises the importance of its environmental responsibilities and accepts that concern for the environment and all employees is an integral and fundamental part of its corporate business strategy. The Group monitors its impact on the environment and endeavours to design and implement policies and processes to reduce any damage that might be caused by the Group's activities. Initiatives include the safe disposal of commercial waste, the minimisation of waste going to landfill, reducing energy consumption and the use of renewable natural resources where possible.

 

TRJ CYF LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
Principal risks and uncertainties

The principal risk facing the Group is the strength of the UK economy, which in recent periods and on-going has been impacted by Covid-19, the decision to leave the UK and the costs of living crisis, all of which can impact on the necessity and desire for continued new build projects. The Group's performance is heavily influenced by the competition it faces in acquiring new contracts. Given the Group's growing and excellent reputation to date, it has developed successful relationships within the region, which, in conjunction with a strong order book which extends beyond 12 months, to an extent mitigates against such risks.

 

Financial risk management objectives and policies

The Group operates a number of risk management policies designed to minimise its exposure to financial risk including key financial controls and targets implemented on every project which are reviewed monthly by the board to ensure that risk is mitigated and opportunities explored fully.                 

                

Liquidity and cash flow risk            

The Group produces detailed management accounts and forecasts, which enable the directors to monitor the cash position and to ensure that there is sufficient liquidity and cash flow to minimise the risk of the Group being unable to pay its debts as they fall due.

 

Interest rate risk                

The Group utilises a number of financial instruments including hire purchase contracts and finance lease obligations in order to finance its operations. The primary risk faced by the Group as a result of its use of these financial instruments is interest rate risk. The Group's hire purchase and finance lease borrowings, which are issued at fixed rates, expose the Group to fair value interest rate risk. These fixed rate borrowings arise on the acquisition of the Group's larger plant, machinery and vehicle purchases. As before, the directors actively manage this risk through prudent use of the Group's cash reserves, considering whether each acquisition should be financed or purchased outright.

        

Credit risk            

The Group operates a number of policies and controls to minimise credit risk. All customers are subject to a detailed credit review prior to any terms being agreed. Directors must authorise any larger value contracts and the Group will only conduct business with customers deemed to be credit-worthy.

                    

Price risk            

The Group actively manages price risk by agreeing terms with suppliers prior to entering into any transactions with customers. However, on-going cost pressures in the market and supply chain issues in recent periods increase risk in this area.

 

The directors have prepared updated and sensitised forecasts for the coming year and have taken steps to ensure the company has sufficient funding to bridge the period of disruption and to manage the Group’s cash flow requirements as appropriate during this period of uncertainty, thus enabling the Group to meet its obligations as they fall due.

On behalf of the board

Mr O H Jones
Director
30 July 2024
TRJ CYF LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 3 -

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

Principal activities

The principal activities of the group are that of building contractors and plant hire operators.

Results and dividends

The results for the year are set out on page 8.

The directors have not recommended a dividend.

Directors

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

Mr D H Jones
Mr O H Jones
Mr H Jones
(Resigned 29 November 2023)
Mr D Jones
(Resigned 31 May 2023)
Mr J Jones
(Appointed 12 June 2024)
Mr R Llewellyn
(Appointed 12 June 2024)
Future developments

The review of the business and future strategy for the Group is set out in the strategic report.

 

Going concern

The financial statements have been prepared on a going concern basis which assumes that the group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

 

The group meets its day to day working capital requirements from its cash reserves and banking facilities. At the date of signing the financial statements, whilst challenging market conditions remain, the group has returned to running under more normal operating conditions and is reporting results more in line with expected new budgeted levels. The group's forecasts and projections show that the group will generate positive future cashflows for a period of at least 12 months from the date these financial statements are signed, thus enabling the group to meet its obligations as they fall due from existing facilities.

 

The directors have considered the impact on the forecast cashflows of further disruption to its customer base or supply chain. The directors have a reasonable expectation that within the scenarios reviewed the group will be able to continue to operate. However, the extent of any future impact of global events is unclear and it is difficult to evaluate all the potential implications on the group’s trade, customers, suppliers and the wider economy.

 

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

TRJ CYF LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr O H Jones
Director
30 July 2024
TRJ CYF LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRJ CYF LTD
- 5 -
Opinion

We have audited the financial statements of TRJ CYF LTD (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

TRJ CYF LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRJ CYF LTD
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

TRJ CYF LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRJ CYF LTD
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Bowden (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
30 July 2024
Chartered Accountants
Statutory Auditor
Charter Court
Phoenix Way Enterprise Park
Swansea
United Kingdom
SA7 9FS
TRJ CYF LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
28,133,393
27,987,115
Cost of sales
(25,729,803)
(27,677,062)
Gross profit
2,403,590
310,053
Administrative expenses
(1,978,674)
(1,647,342)
Other operating income
127,488
220,883
Operating profit/(loss)
5
552,404
(1,116,406)
Interest receivable and similar income
7
55,601
6,659
Interest payable and similar expenses
9
(35,903)
(28,983)
Profit/(loss) before taxation
572,102
(1,138,730)
Tax on profit/(loss)
10
(173,029)
1,370
Profit/(loss) for the financial year
399,073
(1,137,360)
Other comprehensive income
Actuarial gain on defined benefit pension schemes
355,000
998,000
Tax relating to other comprehensive income
(34,430)
(135,800)
Total comprehensive income for the year
719,643
(275,160)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TRJ CYF LTD
GROUP BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,078,459
3,330,182
Investment property
12
191,600
191,600
Investments
13
15,000
15,000
3,285,059
3,536,782
Current assets
Stocks
17
1,550,718
1,557,266
Debtors
16
7,381,971
8,816,029
Cash at bank and in hand
1,601,111
1,066,517
10,533,800
11,439,812
Creditors: amounts falling due within one year
18
(6,121,715)
(7,530,433)
Net current assets
4,412,085
3,909,379
Total assets less current liabilities
7,697,144
7,446,161
Creditors: amounts falling due after more than one year
19
(44,654)
(104,694)
Provisions for liabilities
Deferred tax liability
22
247,508
297,128
(247,508)
(297,128)
Net assets excluding pension liability
7,404,982
7,044,339
Defined benefit pension liability
24
(563,000)
(922,000)
Net assets
6,841,982
6,122,339
Capital and reserves
Called up share capital
23
378
378
Capital redemption reserve
1,885,502
1,885,502
Profit and loss reserves
4,956,102
4,236,459
Total equity
6,841,982
6,122,339
The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
30 July 2024
Mr O H Jones
Director
Company registration number 04464050 (England and Wales)
TRJ CYF LTD
COMPANY BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
325,375
325,375
Current assets
Debtors
16
39,583
25,000
Cash at bank and in hand
4,725
1,788
44,308
26,788
Net current assets
44,308
26,788
Net assets
369,683
352,163
Capital and reserves
Called up share capital
23
378
378
Profit and loss reserves
369,305
351,785
Total equity
369,683
352,163

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £17,520 (2022 - £17,563 profit).

The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
30 July 2024
Mr O H Jones
Director
Company registration number 04464050 (England and Wales)
TRJ CYF LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 August 2021
378
1,885,502
4,511,619
6,397,499
Year ended 31 July 2022:
Loss for the year
-
-
(1,137,360)
(1,137,360)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
998,000
998,000
Tax relating to other comprehensive income
-
-
(135,800)
(135,800)
Total comprehensive income
-
-
(275,160)
(275,160)
Balance at 31 July 2022
378
1,885,502
4,236,459
6,122,339
Year ended 31 July 2023:
Profit for the year
-
-
399,073
399,073
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
355,000
355,000
Tax relating to other comprehensive income
-
-
(34,430)
(34,430)
Total comprehensive income
-
-
719,643
719,643
Balance at 31 July 2023
378
1,885,502
4,956,102
6,841,982
TRJ CYF LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2021
378
334,222
334,600
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
17,563
17,563
Balance at 31 July 2022
378
351,785
352,163
Year ended 31 July 2023:
Profit and total comprehensive income
-
17,520
17,520
Balance at 31 July 2023
378
369,305
369,683
TRJ CYF LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
475,641
(736,445)
Interest paid
(17,903)
(3,983)
Income taxes refunded
209,388
50,266
Net cash inflow/(outflow) from operating activities
667,126
(690,162)
Investing activities
Purchase of tangible fixed assets
(217,897)
(344,444)
Proceeds from disposal of tangible fixed assets
80,992
15,450
Interest received
55,601
6,659
Net cash used in investing activities
(81,304)
(322,335)
Financing activities
Proceeds from borrowings
-
1,856
Repayment of borrowings
(38,102)
-
Payment of finance leases obligations
(13,126)
(81,261)
Net cash used in financing activities
(51,228)
(79,405)
Net increase/(decrease) in cash and cash equivalents
534,594
(1,091,902)
Cash and cash equivalents at beginning of year
1,066,517
2,158,419
Cash and cash equivalents at end of year
1,601,111
1,066,517
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
1
Accounting policies
Company information

TRJ CYF LTD (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of TRJ CYF LTD and all of its subsidiaries.

1.1
Accounting convention

The consolidated financial statements are prepared under the historical cost convention.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group, and as a parent of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company TRJ CYF LTD together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The financial statements have been prepared on a going concern basis which assumes that the group will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

 

The group meets its day to day working capital requirements from its cash reserves and banking facilities. At the date of signing the financial statements, whilst challenging market conditions remain, the group has returned to running under more normal operating conditions and is reporting results more in line with expected new budgeted levels. The group's forecasts and projections show that the group will generate positive future cashflows for a period of at least 12 months from the date these financial statements are signed, thus enabling the group to meet its obligations as they fall due from existing facilities.

 

The directors have considered the impact on the forecast cashflows of further disruption to its customer base or supply chain. The directors have a reasonable expectation that within the scenarios reviewed the group will be able to continue to operate. However, the extent of any future impact of global events is unclear and it is difficult to evaluate all the potential implications on the group’s trade, customers, suppliers and the wider economy.

 

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

.

1.5
Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year for construction and building services, exclusive of Value Added Tax.

 

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 16 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
0% - 2%
Plant and machinery
10%
Fixtures, fittings & equipment
10% - 20%
Motor vehicles
20%

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 recognised in the profit and loss account.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks represent land, materials and construction consumables which are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

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.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
1.11
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.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.12
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 current liabilities.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.16
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end 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 group's accounts. 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 is not provided on timing differences arising from the revaluation of fixed assets where there is no commitment to sell the asset.

1.17
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.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 21 -
1.18
Retirement benefits

The group operates a defined contribution scheme for certain employees and directors. The assets of the scheme are held separately from those of the group. The annual contributions payable are charged to the profit and loss account.

 

The group also operates a defined benefit scheme for certain employees and directors, although this scheme was closed to new members on 30 June 2002. For the defined benefit scheme, an independent actuary completes a valuation every three years, and in accordance with their recommendations, contributions are paid to the scheme so as to secure the benefits as set out in the rules. The operating and financing costs of the scheme are recognised in the profit and loss account. The shortfall in the fair value of the plan assets as compared to the benefit obligation, adjusted for any unrecognised actuarial gains or losses, is provided in full in the balance sheet. The assets of the scheme are held separately from those of the group.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

1.20
Government grants

Deferred government grants in respect of capital expenditure are treated as deferred income and depending on the nature of the expenditure they are either credited to the profit and loss account over the estimated useful life of the asset or, in the case of investment properties, carried forward until all relevant terms and conditions have been fully satisfied.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 22 -
1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Amounts recoverable on contracts

During the year and at the balance sheet date the group task in house experienced quantity surveyors with quantifying the amounts recoverable on each contract in progress. Cost of work done to date including materials, subcontractors and staff is taking into consideration before arriving at a valuation by reference to the stage of completion. The group include provisions in their valuations for unforeseen costs based on their risk and likelihood of them occurring.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Contracting and Development Work
28,133,393
27,987,115
2023
2022
£
£
Turnover analysed by geographical market
UK
28,133,393
27,987,115
2023
2022
£
£
Other revenue
Interest income
55,601
6,659
Grants received
53,664
124,692
Rental income arising from investment properties
59,752
48,088
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 23 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,000
2,000
Audit of the financial statements of the company's subsidiaries
32,000
25,000
36,000
27,000
5
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Government grants
(53,664)
(124,692)
Depreciation of owned tangible fixed assets
400,214
441,647
Depreciation of tangible fixed assets held under finance leases
69,406
39,232
Profit on disposal of tangible fixed assets
(80,992)
(15,450)
6
Employees

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

2023
2022
Number
Number
All Staff
170
190

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,778,079
5,273,052
Social security costs
425,750
472,927
Pension costs
207,218
178,040
5,411,047
5,924,019
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
55,601
6,659
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 24 -
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
71,167
70,000
Company pension contributions to defined contribution schemes
3,148
2,301
74,315
72,301

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022: 2).

9
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
9,366
3,983
Net interest on the net defined benefit liability
18,000
25,000
Other interest
8,537
-
Total finance costs
35,903
28,983
10
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(121,434)
Deferred tax
Origination and reversal of timing differences
173,029
80,784
Adjustment in respect of prior periods
-
0
39,280
Total deferred tax
173,029
120,064
Total tax charge/(credit)
173,029
(1,370)
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
10
Taxation
(Continued)
- 25 -

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
572,102
(1,138,730)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
108,699
(216,359)
Tax effect of expenses that are not deductible in determining taxable profit
31,548
18,235
Tax effect of income not taxable in determining taxable profit
(4,835)
-
0
Effect of change in corporation tax rate
37,836
(65,853)
Land remediation claim
20
(268)
Enhanced capital allowances
(239)
(10,142)
Origination and reversal of timing differences
-
0
355,171
Adjustment in respect of prior years
-
0
(82,154)
Taxation charge/(credit)
173,029
(1,370)

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
34,430
135,800
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 26 -
11
Tangible fixed assets
Group
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2022
1,708,834
3,706,581
740,211
2,174,800
8,330,426
Additions
-
0
212,244
5,653
-
0
217,897
Disposals
-
0
(409,882)
(54,089)
(440,611)
(904,582)
At 31 July 2023
1,708,834
3,508,943
691,775
1,734,189
7,643,741
Depreciation and impairment
At 1 August 2022
136,577
2,493,144
574,517
1,796,006
5,000,244
Depreciation charged in the year
5,473
284,525
35,768
143,854
469,620
Eliminated in respect of disposals
-
0
(409,882)
(54,089)
(440,611)
(904,582)
At 31 July 2023
142,050
2,367,787
556,196
1,499,249
4,565,282
Carrying amount
At 31 July 2023
1,566,784
1,141,156
135,579
234,940
3,078,459
At 31 July 2022
1,572,257
1,213,437
165,694
378,794
3,330,182
The company had no tangible fixed assets at 31 July 2023 or 31 July 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
258,939
128,628
-
0
-
0

 

12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 August 2022 and 31 July 2023
191,600
-

Investment properties were valued by director Mr D H Jones based on their original cost, which in the opinion of Mr D H Jones was not materially different to their current market values.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
325,375
325,375
Unlisted investments
15,000
15,000
-
0
-
0
15,000
15,000
325,375
325,375
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 August 2022 and 31 July 2023
15,000
Carrying amount
At 31 July 2023
15,000
At 31 July 2022
15,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022 and 31 July 2023
325,375
Carrying amount
At 31 July 2023
325,375
At 31 July 2022
325,375
14
Subsidiaries

Details of the company's subsidiaries at 31 July 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
T Richard Jones (Betws) Limited
(i)
Ordinary
100

Registered office addresses (all UK unless otherwise indicated):

(i)
Betws Industrial Park, Foundry Road, Betws, Ammanford, Carmarthenshire.  SA18 2LS.
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 28 -
15
Construction contracts
Group
Company
2023
2022
2023
2022
£
£
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
2,131,460
2,355,835
-
0
-
0
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,302,401
2,477,471
-
0
-
0
Gross amounts owed by contract customers
2,131,460
2,355,835
-
0
-
0
Corporation tax recoverable
260,362
469,750
-
0
-
0
Other debtors
2,227,847
2,375,247
39,583
25,000
Prepayments and accrued income
72,831
355,546
-
0
-
0
6,994,901
8,033,849
39,583
25,000
Amounts falling due after more than one year:
Other debtors
69,139
207,170
-
0
-
0
Deferred tax asset (note 22)
317,931
575,010
-
0
-
0
387,070
782,180
-
-
Total debtors
7,381,971
8,816,029
39,583
25,000
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials
80,942
87,490
-
-
Redevelopment land and buildings
1,469,776
1,469,776
-
0
-
0
1,550,718
1,557,266
-
-
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 29 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
69,288
60,476
-
0
-
0
Trade creditors
2,967,004
3,119,485
-
0
-
0
Other taxation and social security
729,217
922,511
-
-
Deferred income
21
838,970
409,320
-
0
-
0
Other creditors
284,298
250,578
-
0
-
0
Accruals and deferred income
1,232,938
2,768,063
-
0
-
0
6,121,715
7,530,433
-
0
-
0

Included in other creditors are amounts owed to the directors of £188,160 (2022: £149,578). These amounts are unsecured, incur interest at 3.75% per annum, and no fixed terms for repayment.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
39,761
61,699
-
0
-
0
Other borrowings
4,893
42,995
-
0
-
0
44,654
104,694
-
-

Other borrowings consists of amounts owed to the spouses of directors Mr H Jones and Mr D Jones. These amounts are unsecured and incur interest at 3.75% per annum.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
69,288
60,476
-
0
-
0
In two to five years
39,761
61,699
-
0
-
0
109,049
122,175
-
-

Obligations under hire purchase agreements are secured against the assets to which they relate.

 

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2-4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 30 -
21
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from payments received on account
838,970
409,320
-
-
22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
247,508
297,128
-
-
Tax losses
-
-
177,181
344,510
Retirement benefit obligations
-
-
140,750
230,500
247,508
297,128
317,931
575,010
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(asset) at 1 August 2022
(277,882)
-
Charge to profit or loss
173,029
-
Charge to other comprehensive income
34,430
-
Liability/(asset) at 31 July 2023
(70,423)
-

The deferred tax asset set out above in respect of tax losses is expected to reverse after more than 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
378
378
378
378
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 31 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
207,218
178,040

The group operates a defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit schemes
Other information

The group previously operated a defined benefit scheme, which is now closed to new members. With effect from 1 July 2002 the defined contribution stakeholder pension plan was established and in-service members ceased to accrue benefits within the defined benefit section, although such members' pension benefits remain linked to their final salary at retirement and their length of service before 1 July 2002.

 

The disclosures outlined in this note refer only to the defined benefit section of the scheme, unless otherwise stated.

 

The last full actuarial valuation of the scheme was carried out by a qualified independent actuary as at 31 July 2021. The contributions made by the group during the year totalled £22,000 (2022: £0), net of administration charges.

 

The group expects to contribute £264,000 to its defined benefit pension scheme in the year ending 31 July 2024.

 

The company does not operate a defined benefit pension scheme. The below information relates to the group scheme.

2023
2022
Key assumptions
%
%
Discount rate
5.3
3.5
Expected rate of increase of pensions in payment
3.1
3.1
Inflation
3.2
3.2
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
21.6
20.8
- Females
24.1
22.8
Retiring in 20 years
- Males
23.5
22.1
- Females
26.1
24.3
TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
24
Retirement benefit schemes
(Continued)
- 32 -

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2023
2022
Group
£
£
Present value of defined benefit obligations
5,544,000
6,095,000
Fair value of plan assets
(4,981,000)
(5,173,000)
Deficit in scheme
563,000
922,000
The company had no post employment benefits at 31 July 2023 or 1 August 2022.
Group
2023
2022

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability/(asset)
18,000
25,000
Group
2023
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(162,000)
1,003,000
Less: calculated interest element
190,000
105,000
Return on scheme assets excluding interest income
28,000
1,108,000
Actuarial changes related to obligations
(383,000)
(2,106,000)
Total costs/(income)
(355,000)
(998,000)
Group
2023

Movements in the present value of defined benefit obligations

£
Liabilities at 1 August 2022
6,095,000
Benefits paid
(376,000)
Actuarial gains and losses
(383,000)
Interest cost
208,000
At 31 July 2023
5,544,000

The defined benefit obligations arise from plans which are wholly unfunded.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
24
Retirement benefit schemes
(Continued)
- 33 -
Group
2023

Movements in the fair value of plan assets

£
Fair value of assets at 1 August 2022
5,173,000
Interest income
190,000
Return on plan assets (excluding amounts included in net interest)
(28,000)
Benefits paid
(376,000)
Contributions by the employer
22,000
At 31 July 2023
4,981,000

The actual return on plan assets was £162,000 (2022: £1,003,000).

Fair value of plan assets at the reporting period end

Group
2023
2022
£
£
Equity instruments
1,861,000
2,682,000
Property
34,000
-
Bonds
718,000
1,089,000
Insured pensions
1,805,000
1,133,000
Cash
563,000
269,000
4,981,000
5,173,000
25
Related party transactions
Transactions with related parties

As at 31 July 2023, £976,636 (2022: £973,000) was receivable from companies related by virtue of common shareholders. These amounts are interest free, unsecured, with no fixed terms for repayment and are disclosed within debtors due within one year.

26
Controlling party

The directors do not consider there to be an ultimate controlling party of the company.

TRJ CYF LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 34 -
27
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit/(loss) for the year after tax
399,073
(1,137,360)
Adjustments for:
Taxation charged/(credited)
173,029
(1,370)
Finance costs
35,903
28,983
Investment income
(55,601)
(6,659)
Gain on disposal of tangible fixed assets
(80,992)
(15,450)
Depreciation and impairment of tangible fixed assets
469,620
480,879
Pension scheme non-cash movement
(22,000)
-
Movements in working capital:
Decrease/(increase) in stocks
6,548
(42,522)
Decrease/(increase) in debtors
967,591
(2,076,668)
(Decrease)/increase in creditors
(1,847,180)
2,546,405
Increase/(decrease) in deferred income
429,650
(512,683)
Cash generated from/(absorbed by) operations
475,641
(736,445)
28
Analysis of changes in net funds - group
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
1,066,517
534,594
1,601,111
Borrowings excluding overdrafts
(42,995)
38,102
(4,893)
Obligations under finance leases
(122,175)
13,126
(109,049)
901,347
585,822
1,487,169
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