Company registration number 08534898 (England and Wales)
RE-GEN (UK) CONSTRUCTION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 NOVEMBER 2023
11 De Grey Square
De Grey Road
Colchester
Essex
CO4 5YQ
RE-GEN (UK) CONSTRUCTION LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 25
RE-GEN (UK) CONSTRUCTION LIMITED
COMPANY INFORMATION
- 1 -
Directors
J P Hartland
A R Bloomfield
R Francis
Company number
08534898
Registered office
Unit 4
Guildprime Business Centre
Southend Road
Billericay
Essex
England
CM11 2PZ
Auditor
TC Group
11 De Grey Square
De Grey Road
Colchester
Essex
CO4 5YQ
RE-GEN (UK) CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

The directors present the strategic report for the year ended 30 November 2023.

Fair review of the business

The principal activity of the company continues to be refurbishment and construction.

 

The directors aim to present a report that is fair, balanced and understandable and should provide the information necessary for stakeholders to assess the entity's performance, business model and strategy.

 

The directors are pleased with the performance of the company for 2023 and believe that the financial results demonstrate a reaction to the current economic climate.

 

Our leadership team continue to focus on developing existing and new opportunities across the public and private sectors. Re-Gen UK sees the growth in these current sectors and ideally placed to exceed in these market sectors of construction.

 

Principal risks and uncertainties

Re-Gen UK has assessed the principle risks being government intervention, changes to public sector spending across our current markets and global external factors that have affected the material supply markets.

 

Other risks are changes to interest rates and inflation impacting unprecedented wage increases.

 

Key performance indicators

The directors monitor financial indicators during the year by regular reporting but there are no non-financial performance indicators that are individually key.

 

In respect of financial performance indicators they are the headline accounts figures of turnover, gross profit, net profit and bank balance.

On behalf of the board

J P Hartland
Director
30 July 2024
RE-GEN (UK) CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Results and dividends

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

Ordinary dividends were paid amounting to £600,000. The directors do not recommend payment of a final dividend

No preference dividends were paid.

Directors

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

J P Hartland
A R Bloomfield
R Francis
Auditor

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Statement of directors' responsibilities

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

 

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

 

 

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

Statement of disclosure to auditor

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

RE-GEN (UK) CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
On behalf of the board
J P Hartland
Director
30 July 2024
RE-GEN (UK) CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RE-GEN (UK) CONSTRUCTION LIMITED
- 5 -
Opinion

We have audited the financial statements of Re-Gen (UK) Construction Limited (the 'company') for the year ended 30 November 2023 which comprise the statement of income and retained earnings, the balance sheet, the 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 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 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.

RE-GEN (UK) CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RE-GEN (UK) CONSTRUCTION LIMITED
- 6 -

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 company and its 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 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 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

RE-GEN (UK) CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RE-GEN (UK) CONSTRUCTION LIMITED
- 7 -

We enquired of management concerning the company's policies and procedures relating to:

 

- The identification, evaluation and compliance with laws and regulations:

- The detection and response to the risks of fraud; and

- The establishment of internal controls to mitigate risks related to fraud and non-compliance with laws and regulations.

 

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS102 and the Companies Act 2006.

 

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety. We performed audit procedures to enquire of management whether the company is in compliance with these laws and regulations, reviewed legal expense accounts and completed searches for reportable incidents in the public domain.

 

The audit engagement team identified the risk of management override of controls and the risk of management bias when making accounting estimates as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to, testing journal entries, testing the accuracy of the directors' estimates of amounts recoverable on contracts, and reviewing the directors' provision against irrecoverable amounts.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s 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.

Jacqueline Frost ACA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
1 August 2024
Office: Colchester
RE-GEN (UK) CONSTRUCTION LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
23,308,975
18,451,120
Cost of sales
(18,687,585)
(15,370,196)
Gross profit
4,621,390
3,080,924
Administrative expenses
(2,018,443)
(1,390,303)
Other operating income
15,183
261,264
Operating profit
4
2,618,130
1,951,885
Interest receivable and similar income
7
5,567
100,123
Interest payable and similar expenses
8
(286)
-
0
Profit before taxation
2,623,411
2,052,008
Tax on profit
9
(624,926)
(338,124)
Profit for the financial year
1,998,485
1,713,884
Retained earnings brought forward
3,317,661
2,103,777
Dividends
10
(600,000)
(500,000)
Retained earnings carried forward
4,716,146
3,317,661
RE-GEN (UK) CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
122,175
256,710
Investments
13
5
5
122,180
256,715
Current assets
Debtors
16
6,128,800
3,923,303
Cash at bank and in hand
3,542,973
1,879,778
9,671,773
5,803,081
Creditors: amounts falling due within one year
17
(5,050,899)
(2,700,307)
Net current assets
4,620,874
3,102,774
Total assets less current liabilities
4,743,054
3,359,489
Provisions for liabilities
Deferred tax liability
19
26,758
41,678
(26,758)
(41,678)
Net assets
4,716,296
3,317,811
Capital and reserves
Called up share capital
21
150
150
Profit and loss reserves
4,716,146
3,317,661
Total equity
4,716,296
3,317,811
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:
J P Hartland
Director
Company Registration No. 08534898
RE-GEN (UK) CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
2,596,837
(491,352)
Interest paid
(286)
-
0
Income taxes paid
(332,099)
(126,658)
Net cash inflow/(outflow) from operating activities
2,264,452
(618,010)
Investing activities
Purchase of tangible fixed assets
(40,821)
(44,682)
Proceeds from disposal of tangible fixed assets
34,256
-
0
Interest received
5,567
123
Dividends received
-
0
100,000
Net cash (used in)/generated from investing activities
(998)
55,441
Financing activities
Repayment of bank loans
-
0
(540)
Payment of finance leases obligations
(259)
(5,980)
Dividends paid
(600,000)
(500,000)
Net cash used in financing activities
(600,259)
(506,520)
Net increase/(decrease) in cash and cash equivalents
1,663,195
(1,069,089)
Cash and cash equivalents at beginning of year
1,879,778
2,948,867
Cash and cash equivalents at end of year
3,542,973
1,879,778
RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
1
Accounting policies
Company information

Re-Gen (UK) Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4, Guildprime Business Centre, Southend Road, Billericay, Essex, England, CM11 2PZ.

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 £.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

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

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Amounts recoverable on contracts are included as turnover at the directors estimate of their market value at the balance sheet date.

 

Retentions are recognised as turnover to the extent that there is no reasonable expectation of not being recovered without incurring further costs.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 12 -

Amortisation 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:

Software
25% Straight Line
1.5
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.

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
not provided
Plant and equipment
20% Straight Line

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

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. 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 company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

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

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.7
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.

1.8
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.

1.9
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

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

 

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

 

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

1.10
Taxation

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

Current tax

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

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 when the company has 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.

1.11
Retirement benefits

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

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12
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 leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

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

 

 

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Investment in Re-Gen (M&E Services) Limited

The directors have determined that the company does not have control over the investee. In making this judgement the directors have considered the size of the company's shareholding, its ability to appoint or remove directors to the investee's board, and the absence of any management agreement giving the company power to govern the investee's financial and operating policies.

 

Re-Gen (M&E Services) Limited has therefore been treated as an associated company.

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
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.

Recognition of profit on professional services

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.

Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Construction services
23,308,975
18,451,120
2023
2022
£
£
Other revenue
Interest income
5,567
123
Dividends received
-
100,000
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
10,664
Depreciation of owned tangible fixed assets
60,276
61,584
Loss on disposal of tangible fixed assets
80,824
-
Amortisation of intangible assets
-
43,750
Operating lease charges
46,224
56,759
RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
5
Employees

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

2023
2022
Number
Number
Management
3
2
Construction
8
10
Administration
26
21
Total
37
33

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,542,437
1,303,015
Social security costs
166,446
140,882
Pension costs
77,325
73,919
1,786,208
1,517,816
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
256,095
166,368
Company pension contributions to defined contribution schemes
45,121
42,704
301,216
209,072

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 2).

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
78,452
78,292
Company pension contributions to defined contribution schemes
39,996
39,996
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
5,567
123
Income from fixed asset investments
Income from shares in group undertakings
-
0
100,000
Total income
5,567
100,123

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
5,567
123
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
286
-
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
639,846
331,332
RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
(14,920)
6,792
Total tax charge
624,926
338,124

The actual 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
£
£
Profit before taxation
2,623,411
2,052,008
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
655,853
389,882
Tax effect of expenses that are not deductible in determining taxable profit
1,066
1,294
Tax effect of income not taxable in determining taxable profit
-
0
(19,000)
Effect of change in corporation tax rate
(54,493)
-
0
Permanent capital allowances in excess of depreciation
-
0
(1,197)
Amortisation on assets not qualifying for tax allowances
22,500
8,313
Research and development tax credit
-
0
(51,171)
Deferred tax provided at higher corporation tax rate
-
0
10,003
Taxation charge for the year
624,926
338,124
10
Dividends
2023
2022
£
£
Interim paid
600,000
500,000
RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
11
Intangible fixed assets
Software
£
Cost
At 1 December 2022 and 30 November 2023
175,000
Amortisation and impairment
At 1 December 2022 and 30 November 2023
175,000
Carrying amount
At 30 November 2023
-
0
At 30 November 2022
-
0
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 December 2022
90,000
330,650
420,650
Additions
-
0
40,821
40,821
Disposals
(90,000)
(54,315)
(144,315)
At 30 November 2023
-
0
317,156
317,156
Depreciation and impairment
At 1 December 2022
-
0
163,940
163,940
Depreciation charged in the year
-
0
60,276
60,276
Eliminated in respect of disposals
-
0
(29,235)
(29,235)
At 30 November 2023
-
0
194,981
194,981
Carrying amount
At 30 November 2023
-
0
122,175
122,175
At 30 November 2022
90,000
166,710
256,710
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in associates
14
5
5
RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
14
Associates

Details of the company's associates at 30 November 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Re-Gen (M&E Services) Ltd
Unit 8 Alpha Business Park, Travellers Close, Hertfordshire.
Ordinary
50

 

 

 

30.4.2023

30.4.2022

 

 

 

£

£

 

 

 

 

 

Aggregate capital and reserves

 

 

1,823,463

1,677,990

Profit for the year

 

 

245,473

427,275

 

16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,436,215
2,505,114
Gross amounts owed by contract customers
2,659,401
1,409,456
Other debtors
8,734
8,733
Prepayments and accrued income
24,450
-
0
6,128,800
3,923,303
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
18
-
0
259
Trade creditors
2,718,414
905,419
Amounts owed to undertakings in which the company has a participating interest
65,984
542,438
Corporation tax
639,096
331,349
Other taxation and social security
215,330
725,057
Other creditors
281,089
133,108
Accruals and deferred income
1,130,986
62,677
5,050,899
2,700,307
RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
18
Finance lease and hire purchase obligations
2023
2022
Future minimum lease payments due under finance leases and hire purchase contracts:
£
£
Within one year
-
0
259

Finance lease payments represent rentals payable by the company 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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
26,758
41,678
2023
Movements in the year:
£
Liability at 1 December 2022
41,678
Credit to profit or loss
(14,920)
Liability at 30 November 2023
26,758

The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
77,325
73,919

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

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of 0p each
50
50
50
50
Preference shares classified as equity
50
50
Total equity share capital
150
150
22
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
42,668
42,536
Between two and five years
170,672
170,144
In over five years
106,670
148,870
320,010
361,550
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
23
Related party transactions
(Continued)
- 24 -
Description of
Income
Payments
transaction
2023
2022
2023
2022
£
£
£
£
Entities over which the entity has control, joint control or significant influence
Dividends receivable
-
0
100,000
-
0
-
0
Entities over which the entity has control, joint control or significant influence
Management fee
-
0
250,000
-
0
-
0
Entities over which the entity has control, joint control or significant influence
Sales and purchases
406,944
1,153,340
1,671,599
553,628
Other related parties
Rent
-
0
-
0
46,224
56,758
Other related parties
Consultancy
-
0
-
0
11,007
-
0
Balances with related parties
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
Entities over which the entity has control, joint control or significant influence
-
0
-
0
65,984
-
0
Other related parties
-
0
-
0
11,007
-
0

 

Name of related party                Nature of relationship

Entities over which the entity has control, joint        Associate

control or significant influence

Other related parties                Entities controlled by key management personnel        

24
Directors' transactions

Dividends totalling £396,000 (2022 - £330,000) were paid in the year in respect of shares held by the company's directors.

RE-GEN (UK) CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
25
Ultimate controlling party

The controlling party is J P Hartland.

J P Hartland is the controlling party as he owns a majority of the company's share capital.

 

26
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
1,998,485
1,713,884
Adjustments for:
Taxation charged
624,926
338,124
Finance costs
286
-
0
Investment income
(5,567)
(100,123)
Loss on disposal of tangible fixed assets
80,824
-
Amortisation and impairment of intangible assets
-
0
43,750
Depreciation and impairment of tangible fixed assets
60,276
61,584
Movements in working capital:
Decrease in stocks
-
0
25,250
Increase in debtors
(2,205,497)
(1,052,966)
Increase/(decrease) in creditors
2,043,104
(1,520,855)
Cash generated from/(absorbed by) operations
2,596,837
(491,352)
27
Analysis of changes in net funds
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
1,879,778
1,663,195
3,542,973
Obligations under finance leases
(259)
259
-
1,879,519
1,663,454
3,542,973
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