Company Registration No. 06060110 (England and Wales)
CONLON HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
CONLON HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr M G Conlon
Ms M Boland
Mr G E Parker
Ms N L A Ng
Mr D S Lee
Secretary
Ms N L A Ng
Company number
06060110
Registered office
Charnley Fold Lane
Bamber Bridge
Preston
PR5 6BE
Auditor
Beever and Struthers
One Express
1 George Leigh Street
Manchester
M4 5DL
CONLON HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
CONLON HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

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

Review of the business

The directors report that the Group achieved turnover of £39.7m (2022: £36.7m). The dominant group activity was construction, at £38.2m (2022: £33.4m). Property rental income was £1.1m (2022: £1.3m). The glazing & facades business generated £0.43m of turnover (2022: £2.6m). The residential homes business generated nil income (2022: nil).

 

Operating profit for the year ended 31 October 2023 was £0.62m at 1.57% (2022: £1.71m at 4.7%). The decrease in operating profit was due to the closing down of the glazing & facades business in the year and the delayed sales of the residential homes site.

 

At the year end, the movement in the market value on the managed investment portfolio showed a decrease to give an unrealised loss of £0.079m (2022: £0.477m loss), with a market value of £4.06m (2022: £4.07m). During the year, the Group invested £6m into other capital investments, following the part disposal of the property portfolio.

 

The fair value gain on our land and property portfolio was £1.380m (2022: £1.085m). This net improvement can be attributed to the fair value increase on a piece of land, which was sold post year end.

 

Group net profit before tax was £1.98m (2022: £2.4m). Construction profits were £0.85m (2022: £1.0m). Operating profits from property rental were £0.45m (2022: £1.03m). The glazing & facades business showed a loss of £217k (2022: £88k loss). The residential homes business showed a combined loss of £440k (2022: £113k loss).

 

At the year end, the group’s net assets were £22.9m (2022: £21.1m) including profit and loss reserves of £22.4m (2022: £20.6m).

 

Gearing/cash reserves

Cash and current investments at the year-end increased to £21.3m (2022: £8.4m) due to the sale of part of the property portfolio. Current assets exceeded current liabilities by £15.9m (2022: £6.7m).

 

Gearing therefore, remains very low and our strong balance sheet would facilitate ready access to funding should business opportunities require it. The directors are pleased to report this strong financial position.

 

Forward plans

The directors are focused on continuing the policy to procure work where possible via negotiated and partnered activity. This strategy has served the company well so far and further framework opportunities will continue to be actively pursued as the preferred procurement method.

 

The focus for investment property in the short term will be to review the remaining portfolio, with a view to maximising its returns. The glazing & facades business having been affected by market conditions and delays in pre-construction was closed down in the year. The residential homes business is completing the sales of its remaining site.

 

The directors having reviewed the strategy, are now continuing the process of consolidation and realigning the business resources to the profitable and cash generating businesses.

CONLON HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Principal Risks and Uncertainties

The on-going War in Ukraine and civil unrest in the Middle East continues to affect materials, labour and energy. We are very aware of the impacts that this is having on our business and our stakeholders. We are committed to protecting our business operations and minimising risks wherever possible.

 

The Group embodies a risk aware strategy approach to all its activities in order to deliver a strong financial performance, enabling us to strengthen our strategic path and long-term sustainability of the business.

 

Construction risk

Risks are managed from initial enquiry onward via careful stage-by-stage review, re-appraisal and control, covering estimating, tender review, contract delivery and customer care.

 

Investment property risk

Risks in this sector include tenant covenants, the trend towards shorter lease periods and the availability of suitable funding, if required. The directors seek to mitigate these risks by careful appraisal of all property development opportunities in conjunction with professional agents, covering design, cost build up, tenant due diligence and funding providers where appropriate.

 

Residential homes risk

Our strategy of smaller scale developments is designed to minimise exposure to cashflow risk. Each development is comprehensively assessed prior to acquisition for factors such as relevant house types and market appetite.

Modern slavery

The company is aware of its obligations under the Modern Slavery Act and has reviewed and updated the Modern Slavery and Whistleblowing policies. These are publicised on our website - www.conlon-construction.co.uk - in offices and on sites to raise awareness amongst employees, supply chain members, clients and visitors. Posters have been designed and strategically placed to highlight the Modern Slavery telephone helpline numbers.

 

We have appointed ‘Unseen’ to assist us in preventing any potential contraventions of our Modern Slavery Policy within our supply chain and the manufacture of any materials specified on our projects. Unseen has also been chosen to be our annual ‘Charity of The Year’ for a second term for their work in providing safehouses and support in the community for survivors of trafficking and modern slavery. Our fundraising page is www.justgiving.co/page/conlon-construction-unseen.

 

Key performance indicators

Financial Key Performance Indicators are outlined in the ‘Review of the Business’ section above. They include Net Profit Before Tax and Net Current Assets.

 

Non-Financial Key Performance Indicators are measured on an annual basis via a “Customer Satisfaction - Analysis of Performance Questionnaire”. This process forms part of our ISO 9001:2015 accredited management system. Clients and/or End Users are asked to score the Conlon Construction business on 18 indicators, including Customer Satisfaction with the Product, Service, the Time it has taken to complete the works, Communication, Environment, Health & Safety, Project Team staff and After Care service. In the 2022/23 year, the business achieved an average score of 9.4 out of 10 compared to an industry average score of 8 out of 10. Any scores or client feedback that require improvement feature as agenda items at our regular Business Improvement days. As a result, we are continuously improving our performance and service.

 

Bidding

The company bids selectively for a large number of contracts between £500k and £20m. Each potential project is carefully appraised by senior commercial staff in accordance with our Quality Management Systems. Projects are assessed for risk, particularly in terms of design, buildability and programme; as well as checks on both client and supply chain credit ratings, as appropriate. Projects are taken through to a detailed estimate stage and are then placed before our tender review panel prior to final submission.

CONLON HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Delivery

Project delivery is managed through the infrastructure of Construction Operations. Each project is managed using approved procedures including regular and frequent reviews of build progress, cost control, supply chain management and client satisfaction, against a background of rigorous health and safety and environmental compliance. Any issues affecting project delivery are continuously monitored so that any operational or commercial matters can be addressed in a timely and efficient manner.

Directors statement of compliance with the duty to promote success of the company

This statement by the Board of Directors describes how they have approached the responsibilities under s172(1)(a) to (f) of the Companies Act 2006 in the financial year ending 31st October 2023. The Board considers that they have acted in good faith to promote the success of the group on behalf of its stakeholders who consist of; shareholders, employees, clients and the supply chain.

 

The Board monitors and reviews the strategic objectives against forward plans. Regular reviews are held across key business areas, including; health, safety & the environment, operational and financial performance, risks and opportunities. The group's performance is reviewed on a monthly basis.

 

The overriding principle in the governance of Conlon Holdings Limited is that of ensuring transparent conduct which reflects fairness in all dealings with employees, clients and the supply chain. A testament to this, is reflected in the length of service of our employees and senior management team.

 

The group has an Equal Opportunities and Diversity Policy relating to all aspects of employment. Employees are kept informed of matters of concern to them in a variety of ways, including business improvement days, newsletters, meetings and regular communications to staff. The aim of these communications is to ensure a high level of awareness among employees regarding the performance of the business.

 

The Board’s aim is to forge lasting business relationships with its stakeholders by conducting the business with honesty, integrity and professionalism.

 

The Board takes environmental matters into consideration as part of its decision-making process, in order to minimise the group's impact on the environment wherever possible. By communicating our aims to employees and our supply chain, we ensure that all parties are aware of their environmental responsibilities.

 

The Board’s intentions are to behave responsibly towards all stakeholders and to treat them fairly and equally, to ensure they all benefit from the long-term success of the group.

 

The directors have overall responsibility for determining the group's purpose, values and strategy and for ensuring high standards of governance. The primary aim of the directors is to promote the long-term sustainable success of the group, generating value for stakeholders. Throughout the next financial year, the directors will continue to review and challenge how the group can improve engagement with all stakeholders.

 

On behalf of the board

Mr M G Conlon
Director
7 June 2024
CONLON HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -

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

Principal activities

The principal activities of the group were those of construction and property development.

 

The principal activity of the company is that of a holding company of trading subsidiaries.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £725,000. The directors do not recommend payment of a further 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 M G Conlon
Ms M Boland
Mr G E Parker
Ms N L A Ng
Mr D S Lee
Financial instruments

The group and company finances its operations through a mixture of retained profits and where necessary to fund expansion or capital expenditure programmes, through bank borrowings.

 

The directors' objectives are to:

 

Hedge accounting is not used by the group.

 

Where appropriate funds are invested in short term variable rate deposit bank accounts, as well as instant access call accounts. The directors believe that this gives them the flexibility to release cash resources at short notice and also allows them to take advantage of changing conditions in the finance markets as they arise. All deposits are with UK institutions.

Auditor

The auditor, Beever and Struthers is deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

 

 

 

 

 

 

 

 

 

CONLON HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
Energy and carbon report
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
45,351
59,725
- Electricity purchased
20,644
45,658
- Fuel consumed for transport
463,531
501,145
529,526
606,528
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
9.00
11.90
- Fuel consumed for owned transport
7.00
22.00
16.00
33.90
Scope 2 - indirect emissions
- Electricity purchased
4.00
8.80
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
111.00
106.00
Total gross emissions
131.00
148.70
Intensity ratio
Tonnes CO2e per £1 turnover
3.28
4.03
Quantification and reporting methodology

We have calculated the carbon emissions and kWh figures using the UK Government’s 2022 Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m turnover, the recommended ratio for the sector.

CONLON HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
Measures taken to improve energy efficiency

Conlon remains committed to reducing carbon emissions as part of our Carbon Reduction Strategy.  Emissions from our transport account for a large proportion of our carbon footprint.  Improving their performance in this area is important in helping achieve their targeted emissions reduction levels over the coming years. 

The installation of a roof mounted solar PV system would reduce the demand-load as part of our sustainability plans along with the newly installed car-charging points.

 

Our Carbon Reduction Plan sets out our commitment to halving emissions by 2030 and achieving Net Zero emissions by 2050 as part our approach to decarbonisation. Our commitment is made independently in line with a 1.5oC limit to global warming and to delivering Net Zero within our own operations (Scope 1 and Scope 2) emissions earlier than 2050. We are committed to achieving Net Zero within our supply chain (Scope 3 emissions) by 2050. The following environmental management measures on projects have been implemented since the 2020/21 baseline. The carbon emission reduction achieved will be measured and the effects published upon completion of each project.

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 group 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 group is aware of that information.

Information referred to in the strategic report

The group has chosen in accordance with section 414C(1) Companies Act 2006 to set out in the group's Strategic Report information required by Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch 7 to be contained in the Directors' Report. It has done so in respect of future developments.

On behalf of the board
Mr M G Conlon
Director
7 June 2024
CONLON HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -

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.

CONLON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CONLON HOLDINGS LIMITED
- 8 -
Opinion

We have audited the financial statements of Conlon Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 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.

CONLON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONLON HOLDINGS LIMITED
- 9 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 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 auditor’s report.

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

 

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:

CONLON HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONLON HOLDINGS LIMITED
- 10 -

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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.

For and on behalf of Beever and Struthers, Statutory Auditor
Manchester, United Kingdom
7 June 2024
CONLON HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
2023
2022
Notes
£'000
£'000
Turnover
3
39,741
36,666
Cost of sales
(33,918)
(29,596)
Gross profit
5,823
7,070
Administrative expenses
(5,343)
(5,407)
Other operating income
143
44
Operating profit
4
623
1,707
Interest receivable and similar income
7
154
83
Interest payable and similar expenses
9
(99)
(16)
Gains/(losses) on financial instruments measured at fair value through profit and loss
(79)
(477)
Fair value gains and losses on investment properties
14
1,380
1,085
Profit before taxation
1,979
2,382
Tax on profit
10
514
(457)
Profit for the financial year
2,493
1,925
Other comprehensive income
Revaluation of tangible fixed assets
-
0
191
Total comprehensive income for the year
2,493
2,116
Profit 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 group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

CONLON HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 12 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
13
819
895
Investment property
14
6,430
14,935
7,249
15,830
Current assets
Stocks
18
5,458
3,195
Debtors falling due after more than one year
19
447
554
Debtors falling due within one year
19
5,378
5,068
Investments
20
4,061
4,068
Cash at bank and in hand
17,230
4,372
32,574
17,257
Creditors: amounts falling due within one year
21
(16,640)
(10,599)
Net current assets
15,934
6,658
Total assets less current liabilities
23,183
22,488
Creditors: amounts falling due after more than one year
22
(246)
(360)
Provisions for liabilities
Deferred tax liability
23
25
984
(25)
(984)
Net assets
22,912
21,144
Capital and reserves
Called up share capital
25
10
10
Revaluation reserve
516
528
Profit and loss reserves
22,386
20,606
Total equity
22,912
21,144
The financial statements were approved by the board of directors and authorised for issue on 7 June 2024 and are signed on its behalf by:
07 June 2024
Mr M G Conlon
Ms N L A Ng
Director
Director
Company registration number 06060110 (England and Wales)
CONLON HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 13 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Investment property
14
6,430
14,935
Investments
15
13
13
6,443
14,948
Current assets
Stocks
18
-
138
Debtors
19
4,590
1,994
Investments
20
4,061
4,068
Cash at bank and in hand
8,433
93
17,084
6,293
Creditors: amounts falling due within one year
21
(1,164)
(637)
Net current assets
15,920
5,656
Total assets less current liabilities
22,363
20,604
Creditors: amounts falling due after more than one year
22
(6,165)
(5,130)
Provisions for liabilities
Deferred tax liability
23
18
960
(18)
(960)
Net assets
16,180
14,514
Capital and reserves
Called up share capital
25
10
10
Profit and loss reserves
16,170
14,504
Total equity
16,180
14,514

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 £2,391,000 (2022: £1,799,000).

The financial statements were approved by the board of directors and authorised for issue on 7 June 2024 and are signed on its behalf by:
07 June 2024
Mr M G Conlon
Ms N L A Ng
Director
Director
Company registration number 06060110 (England and Wales)
CONLON HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
Balance at 1 November 2021
10
347
19,671
20,028
Year ended 31 October 2022:
Profit for the year
-
-
1,925
1,925
Other comprehensive income:
Revaluation of tangible fixed assets
-
191
-
191
Total comprehensive income
-
191
1,925
2,116
Dividends
11
-
-
(1,000)
(1,000)
Transfers
-
(10)
10
-
Balance at 31 October 2022
10
528
20,606
21,144
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
2,493
2,493
Dividends
11
-
-
(725)
(725)
Transfers
-
(12)
12
-
Balance at 31 October 2023
10
516
22,386
22,912
CONLON HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 1 November 2021
10
13,705
13,715
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
1,799
1,799
Dividends
11
-
(1,000)
(1,000)
Balance at 31 October 2022
10
14,504
14,514
Year ended 31 October 2023:
Profit and total comprehensive income
-
2,391
2,391
Dividends
11
-
(725)
(725)
Balance at 31 October 2023
10
16,170
16,180
CONLON HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
4,091
(1,755)
Interest paid
(99)
(16)
Income taxes paid
(532)
(32)
Net cash inflow/(outflow) from operating activities
3,460
(1,803)
Investing activities
Purchase of tangible fixed assets
(67)
(27)
Proceeds from disposal of tangible fixed assets
96
15
Purchase of investment property
(475)
-
Proceeds from disposal of investment property
10,487
2,273
Purchase of current asset investment
-
(1,000)
Interest received
82
2
Net cash generated from investing activities
10,123
1,263
Financing activities
Repayment of bank loans
-
(2,118)
Payment of finance leases obligations
-
(1)
Dividends paid to equity shareholders
(725)
(1,000)
Net cash used in financing activities
(725)
(3,119)
Net increase/(decrease) in cash and cash equivalents
12,858
(3,659)
Cash and cash equivalents at beginning of year
4,372
8,031
Cash and cash equivalents at end of year
17,230
4,372
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
1
Accounting policies
Company information

Conlon Holdings Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Charnley Fold Lane, Bamber Bridge, Preston, PR5 6BE.

 

The group consists of Conlon Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £'000.

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 where the parent of that group 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.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Conlon Holdings Limited 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 October 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

At the time of approving the financial statements and after making reference to financial projections, the directors have a reasonable expectation that the company has adequate cash resources to continue in operational existence for the foreseeable future, meeting all liabilities as they fall due for payment. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover comprises the value of work performed, goods sold and services provided excluding Value Added Tax.

 

Property rental income represents the value of all rental income during the period. Such income is recognised at the point at which the group has fulfilled its contractual obligations to its tenants.

 

Residential developments represents the fair value of consideration received or receivable in the normal course of the business. The fair value of the consideration takes into account discounts. Residential developments turnover is recognised when the significant risks and rewards have been transferred to the purchaser, which is at legal completion.

 

Amounts in respect of contracts included in turnover, net of payments received on account, are shown in debtors as gross amounts due from contract customers. Cash received in excess of the value of work done is shown in creditors as payments on account.

 

An appropriate proportion of the anticipated contract profit is recognised in the profit and loss account based on the stage of completion of the work and the expected end of life outcome. Provision is made for anticipated contract losses as soon as they are foreseen.

 

All other operating income is recognised only when the group becomes eligible to recognise it, namely when due service has been delivered or upon cash receipt.

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.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -

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:

Freehold land and buildings
Over 37 years
Leasehold land and buildings
Over period of lease
Plant and equipment
10% to 15% per annum on cost
Fixtures and fittings
10% to 15% per annum on cost
Computer equipment
33% per annum on cost
Motor vehicles
20% per annum on cost

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 measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

 

Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.

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 and associates 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.

 

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

All other group equity investments are initially stated at cost, less any impairment in value. This is due to the equity instruments in question not being publically traded and as a consequence whose fair value cannot be reliably measured.

1.9
Impairment of fixed assets

At each reporting 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 group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
1.10
Stocks

Development land is valued at the lower of cost and net realisable value after making due allowance for impairment.

 

Work in progress is valued at the lower of cost and net realisable value, after making due allowance for impairment. Cost includes all direct expenditure incurred along with an appropriate proportion of overheads.

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.

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 period 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 at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks 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.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 21 -
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.

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.

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 and loans from fellow group companies 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

All of the group's financial liabilities are basic financial instruments.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 22 -
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
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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

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

 

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

 

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

1.17
Retirement benefits

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

1.18
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 23 -
1.19

Borrowing costs

Borrowing costs directly attributable to the construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

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.

Critical judgements

The following judgements and areas of estimation uncertainty have had the most significant effect on amounts recognised in the financial statements.

Valuation of freehold land and buildings and investment properties

The narrative within the accounting policies relating to tangible fixed assets and investment properties, along with notes 14 and 15 to the financial statements provide further information in this area. The group engage the services of a suitably qualified external Surveyor to offer a considered opinion as to the valuation of relevant assets. The directors consider that this reduces the estimation uncertainty to an acceptable level.

Recognition of contract revenue and profit

This is a natural area of estimation uncertainty given the industry in which the group operates. The narrative within notes 1.5 and 1.11 to the financial statements provides further information.

 

The group uses suitably qualified Quantity Surveyors to assess the level of work done, associated revenue and thus profit recognition. These assessments are then reviewed by the group's finance team, providing an additional level of internal assurance that reduces the estimation uncertainty to an appropriate level.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
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.

Provision for irrecoverable trade debtors

At each balance sheet date, management undertake a review of the outstanding trade debtor balances and estimate the balance that should either be impaired or provided against.

 

This calculation is based on the financial position of the customers, the historical speed of payment and any ongoing discussions.

Recoverable value of fixed asset investments

At each balance sheet date management review the recoverable value of the group’s equity investments and of the loan notes it has granted. This review includes enquiries as to the latest trading and financial positions of the entities involved, alongside the evaluation of other information they are privy to.

 

The directors concluded last period that an impairment charge was required, as detailed within note 4 to the financial statements.

3
Turnover and other revenue

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

2023
2022
£'000
£'000
Turnover analysed by class of business
Construction and glazing
38,612
35,375
Property rental
1,129
1,291
39,741
36,666
2023
2022
£'000
£'000
Other revenue
Interest income
154
83
4
Operating profit
2023
2022
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
61
107
Impairment of owned tangible fixed assets
-
26
Profit on disposal of tangible fixed assets
(14)
-
Profit on disposal of investment property
(127)
(273)
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
14
12
Audit of the financial statements of the company's subsidiaries
38
31
52
43
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Site employees
23
31
-
-
Administration employees
54
56
-
-
Directors
5
5
-
-
Total
82
92
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Wages and salaries
3,829
4,098
-
0
-
0
Social security costs
520
495
-
-
Pension costs
659
645
-
0
-
0
5,008
5,238
-
0
-
0
7
Interest receivable and similar income
2023
2022
£'000
£'000
Interest income
Interest on bank deposits
43
3
Other interest income
111
80
Total interest revenue
154
83
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
8
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
610
606
Company pension contributions to defined contribution schemes
219
201
829
807

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£'000
£'000
Remuneration for qualifying services
166
141
Company pension contributions to defined contribution schemes
60
52

The remuneration for group key management personnel, who are also the directors, is detailed above.

9
Interest payable and similar expenses
2023
2022
£'000
£'000
Interest on bank overdrafts and loans
-
16
Other interest
99
-
Total finance costs
99
16
10
Taxation
2023
2022
£'000
£'000
Current tax
UK corporation tax on profits for the current period
460
304
Adjustments in respect of prior periods
(14)
(73)
Total current tax
446
231
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
10
Taxation
2023
2022
£'000
£'000
(Continued)
- 27 -
Deferred tax
Origination and reversal of timing differences
(858)
57
Changes in tax rates
(95)
19
Adjustment in respect of prior periods
(7)
150
Total deferred tax
(960)
226
Total tax (credit)/charge
(514)
457

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

2023
2022
£'000
£'000
Profit before taxation
1,979
2,382
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
446
453
Tax effect of expenses that are not deductible in determining taxable profit
(1)
(57)
Tax effect of income not taxable in determining taxable profit
(28)
-
0
Adjustments in respect of prior years
(13)
(72)
Effect of change in corporation tax rate
(95)
19
Under/(over) provided in prior years
(7)
-
0
Effect of revaluations of investment properties
(816)
114
Taxation (credit)/charge
(514)
457

In March 2021 the Chancellor confirmed, in the budget, an increase in the corporation tax rate from 19% to 25%. The Finance Bill 2021 had its third reading on 24 May 2021 and is now considered substantively enacted. The timing differences expected to reverse on or after 1 April 2023 have been accounted for at 25%.

11
Dividends
2023
2022
Recognised as distributions to equity holders:
£'000
£'000
Interim paid
725
1,000
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£'000
£'000
In respect of:
Property, plant and equipment
13
-
26
Recognised in:
Administrative expenses
-
26

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost or valuation
At 1 November 2022
750
116
284
220
495
70
1,935
Additions
-
0
-
0
-
0
35
32
-
0
67
Disposals
-
0
(116)
(284)
(60)
-
0
(27)
(487)
At 31 October 2023
750
-
0
-
0
195
527
43
1,515
Depreciation and impairment
At 1 November 2022
-
0
116
192
201
464
67
1,040
Depreciation charged in the year
19
-
0
10
10
19
3
61
Eliminated in respect of disposals
-
0
(116)
(202)
(60)
-
0
(27)
(405)
At 31 October 2023
19
-
0
-
0
151
483
43
696
Carrying amount
At 31 October 2023
731
-
0
-
0
44
44
-
0
819
At 31 October 2022
750
-
0
92
19
31
3
895
The company had no tangible fixed assets at 31 October 2023 or 31 October 2022.
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -

Included in freehold land and buildings is land valued at £140,000 (2022: £140,000) which is not depreciated.

 

Land and buildings with a carrying amount of £731,000 (2022: £750,000) was valued in October 2022 by Parker and Company Chartered Surveyors, who are not connected with the company.

 

All valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties.

 

If revalued assets were stated on an historical cost basis rather than at valuation, the total amounts included would have been as follows:

2023
2022
£'000
£'000
Group
Cost
379
379
Accumulated depreciation
(135)
(128)
Carrying value
244
251
14
Investment property
Group
Company
2023
2023
£'000
£'000
Fair value
At 1 November 2022
14,935
14,935
Additions through external acquisition
475
475
Disposals
(10,360)
(10,360)
Net gains or losses through fair value adjustments
1,380
1,380
At 31 October 2023
6,430
6,430

A fair value of the investment property was carried out in October 2022 by Parker and Company Chartered Surveyors, who are not connected with the company.

 

A valuation of all properties was carried out on 31 October 2023. This was undertaken by an employee of the company, who possesses appropriate professional qualifications and experience of such matters.

 

All valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
16
-
0
-
0
13
13
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 November 2022 and 31 October 2023
13
Carrying amount
At 31 October 2023
13
At 31 October 2022
13
16
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Architectural Glazing & Facades Limited
England & Wales
Ordinary
100.00
-
CLL (Ruskin Road) Limited
England & Wales
Ordinary
-
100.00
CLL (Whinney Lane) Limited
England & Wales
Ordinary
-
100.00
Conlon Construction Limited
England & Wales
Ordinary
100.00
-
Conlon Living Limited
England & Wales
Ordinary
100.00
-
National Facades Limited
England & Wales
Ordinary
100.00
-
CLL (Hollins Lane) Limited
England & Wales
Ordinary
-
100.00
CLL (Barton 1) Limited
England & Wales
Ordinary
-
100.00

The company and group also holds associate investments of £150 (2022: £150). The associates are accounted for using the equity accounting method for the purposes of the financial statements.

17
Financial instruments
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
4,061
4,068
4,061
4,068
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 32 -
18
Stocks
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Work in progress
4,959
2,558
-
-
Finished goods and goods for resale
499
637
-
0
138
5,458
3,195
-
138
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
1,183
1,067
7
103
Gross amounts owed by contract customers
3,999
3,709
-
0
-
0
Amounts owed by group undertakings
-
-
4,576
1,830
Other debtors
25
50
7
12
Prepayments and accrued income
171
242
-
0
49
5,378
5,068
4,590
1,994
Amounts falling due after more than one year:
Gross amounts owed by contract customers
447
554
-
0
-
0
Total debtors
5,825
5,622
4,590
1,994
20
Current asset investments
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Unlisted investments
4,061
4,068
4,061
4,068
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 33 -
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Trade creditors
7,283
5,039
157
76
Amounts owed to group undertakings
-
0
-
0
428
140
Corporation tax payable
41
128
(22)
61
Other taxation and social security
2,376
1,171
22
28
Other creditors
36
42
-
0
-
0
Accruals and deferred income
6,904
4,219
579
332
16,640
10,599
1,164
637
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Trade creditors
246
360
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
6,165
5,130
246
360
6,165
5,130
23
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
2023
2022
Group
£'000
£'000
ACAs
16
32
Tax losses
-
(1)
Investment property
18
961
Other short term timing differences
(9)
(8)
25
984
CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
23
Deferred taxation
(Continued)
- 34 -
Liabilities
Liabilities
2023
2022
Company
£'000
£'000
ACAs
-
(1)
Investment property
18
961
18
960
Group
Company
2023
2023
Movements in the year:
£'000
£'000
Liability at 1 November 2022
984
960
Credit to profit or loss
(865)
(848)
Effect of change in tax rate - profit or loss
(94)
(94)
Liability at 31 October 2023
25
18

The deferred tax liability set out above is expected to reverse after 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
659
645

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.

Outstanding contributions of £36,000 (2022: £33,000) at the year end are included within creditors falling due within one year.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10
10
26
Directors' transactions

During the year dividends totalling £52,200 (2022: £74,000) were paid to Directors of the group.

CONLON HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 35 -
27
Analysis of changes in net funds - group
1 November 2022
Cash flows
31 October 2023
£'000
£'000
£'000
Cash at bank and in hand
4,372
12,858
17,230
28
Cash generated from/(absorbed by) group operations
2023
2022
£'000
£'000
Profit for the year after tax
2,493
1,925
Adjustments for:
Taxation (credited)/charged
(514)
457
Finance costs
99
16
Investment income
(154)
(83)
Investment management fees
-
0
31
Gain on disposal of tangible fixed assets
(14)
-
Gain on disposal of investment property
(127)
(273)
Fair value gain on investment properties
(1,380)
(1,085)
(Gains)/losses on financial instruments measured at fair value through profit and loss
79
477
Depreciation and impairment of tangible fixed assets
61
133
Movements in working capital:
Increase in stocks
(2,263)
(2,230)
(Increase)/decrease in debtors
(203)
1,099
Increase/(decrease) in creditors
6,014
(2,222)
Cash generated from/(absorbed by) operations
4,091
(1,755)
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