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COMPANY REGISTRATION NUMBER: 1263512
TERMRIM CONSTRUCTION LIMITED
FINANCIAL STATEMENTS
31 December 2023
TERMRIM CONSTRUCTION LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
Contents
Page
Officers and professional advisers 1
Strategic report 2
Directors' report 4
Independent auditor's report to the members 6
Profit and loss account 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12
TERMRIM CONSTRUCTION LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
G C Bird
Ms B J Rockett
S Bateman
J M McGarvey
Company secretary
Ms B J Rockett
Registered office
1 Pellon Place
Dyson Wood Way
Bradley Business Park
Huddersfield
HD2 1GT
Auditor
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
Bankers
National Westminster Bank plc
8 Market Place
Huddersfield
West Yorkshire
HD1 2AL
TERMRIM CONSTRUCTION LIMITED
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2023
The directors present their report for the financial year ended 31 December 2023.
Principal activity and business review
The principal activity of the company during the year was that of contracting in the construction industry.
The company's major activities included new build, social and extra care housing for housing associations. The company also provides new build, refurbishment and conversion work for social, commercial and private sectors.
Performance and developments during the year
The directors were satisfied with the operating profit achieved during the year.
Principal risks and uncertainties
The company's principal risks are contract overrun, unstable trade suppliers and subcontractors along with the availability of materials due to the current demand. The nature of the company's clientele and payment terms ensures low exposure to credit risk.
Financial instruments
The company's financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.
Due to the nature of the financial instruments used by the company there is no material exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances the liquidity risk is managed by maintaining a balance between current accounts and interest bearing deposit accounts.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Research and development
The company continues to take advantage of technical advances as they arise.
Financial key performance indicators
The directors monitor tender levels, conversion rates, gross margins and short term liquidity as key indicators of business performance. A regular reporting structure is maintained taking into account current workload projections, contract performance and overheads. Trade debtor pay days are within 28 days consequently allowing trade creditors payment within 45 days to provide adequate working capital facilities.
Outlook
The directors continue to examine opportunities for further development of the business and its efficiencies. The directors have considered the results of the current financial year up to the date of this report and are reasonably confident the company will further enhance shareholder value in 2024.
This report was approved by the board of directors on 29 May 2024 and signed on behalf of the board by:
Ms B J Rockett Company Secretary
TERMRIM CONSTRUCTION LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
G C Bird
Ms B J Rockett
S Bateman
J M McGarvey
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Disclosure of information in the strategic report
In accordance with Section 414C(11), Companies Act 2006, the following information required to be contained in this report is set out in the company's Strategic Report on page 2: principal activities, business review, future developments, financial risks and research and development.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 29 May 2024 and signed on behalf of the board by:
Ms B J Rockett Company Secretary
TERMRIM CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TERMRIM CONSTRUCTION LIMITED
YEAR ENDED 31 DECEMBER 2023
Opinion
We have audited the financial statements of Termrim Construction Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, balance sheet, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Directors' Report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of our 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 and the Directors' Report.
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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework; Assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur; Ensured whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations; Gained clear understanding of the entity’s current activities, the scope of its authorisation and confirmed the effectiveness of its control environment where the entity is a regulated entity; As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
D M Butterworth
(Senior Statutory Auditor)
For and on behalf of
Wheawill & Sudworth Limited
Chartered Accountants & statutory auditor
35 Westgate
Huddersfield
HD1 1PA
29 May 2024
TERMRIM CONSTRUCTION LIMITED
PROFIT AND LOSS ACCOUNT
YEAR ENDED 31 DECEMBER 2023
2023
2022
Note
£
£
Turnover
4
21,556,999
23,749,861
Cost of sales
( 19,862,170)
( 21,310,658)
-------------
-------------
Gross profit
1,694,829
2,439,203
Administrative expenses
( 958,191)
( 920,446)
Other operating income
5
7,758
------------
------------
Operating profit
6
736,638
1,526,515
Other interest receivable and similar income
10
52,513
592
------------
------------
Profit before taxation
789,151
1,527,107
Tax on profit
11
( 155,323)
( 291,759)
------------
------------
Profit for the financial year and total comprehensive income
633,828
1,235,348
------------
------------
Dividends paid and payable
12
( 297,525)
( 142,000)
Retained earnings at the start of the year
8,693,521
7,600,173
------------
------------
Retained earnings at the end of the year
9,029,824
8,693,521
------------
------------
All the activities of the company are from continuing operations.
TERMRIM CONSTRUCTION LIMITED
BALANCE SHEET
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
13
89,354
73,209
Current assets
Debtors
14
10,817,408
11,790,872
Cash at bank and in hand
2,358,239
2,179,601
-------------
-------------
13,175,647
13,970,473
Creditors: amounts falling due within one year
15
( 4,204,037)
( 5,322,866)
-------------
-------------
Net current assets
8,971,610
8,647,607
------------
------------
Total assets less current liabilities
9,060,964
8,720,816
Provisions
Taxation including deferred tax
16
( 21,140)
( 17,295)
------------
------------
Net assets
9,039,824
8,703,521
------------
------------
Capital and reserves
Called up share capital
19
10,000
10,000
Profit and loss account
20
9,029,824
8,693,521
------------
------------
Shareholders funds
9,039,824
8,703,521
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 29 May 2024 , and are signed on behalf of the board by:
G C Bird
J M McGarvey
Director
Director
Company registration number: 1263512
TERMRIM CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
633,828
1,235,348
Adjustments for:
Depreciation of tangible assets
19,987
16,377
Other interest receivable and similar income
( 52,513)
( 592)
Gains on disposal of tangible assets
( 6,152)
Tax on profit
155,323
291,759
Changes in:
Trade and other debtors
973,464
( 2,043,684)
Trade and other creditors
( 990,609)
88,144
------------
------------
Cash generated from operations
733,328
( 412,648)
Interest received
52,513
592
Tax paid
( 276,228)
( 53,869)
------------
------------
Net cash from/(used in) operating activities
509,613
( 465,925)
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 37,930)
( 48,356)
Proceeds from sale of tangible assets
7,950
------------
------------
Net cash used in investing activities
( 29,980)
( 48,356)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
( 3,470)
( 1,082)
Dividends paid
( 297,525)
( 142,000)
------------
------------
Net cash used in financing activities
( 300,995)
( 143,082)
------------
------------
Net increase/(decrease) in cash and cash equivalents
178,638
( 657,363)
Cash and cash equivalents at beginning of year
2,179,601
2,836,964
------------
------------
Cash and cash equivalents at end of year
2,358,239
2,179,601
------------
------------
TERMRIM CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 1 Pellon Place, Dyson Wood Way, Bradley Business Park, Huddersfield, HD2 1GT.
2. Statement of compliance
The financial statements have been prepared in compliance with FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity and are rounded to the nearest £.
Debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of income and retained earnings.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: Construction Contracts When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to surveyor valuations. Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. Where the collectability of an amount already recognised as contract revenue is no longer probable, the uncollectible amount is expensed rather than recognised as an adjustment to the amount of contract revenue. Rendering of Services When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have not arisen but not reversed by the balance sheet date, except as required by FRS19. Deferred tax is measured at the rates that are expected to apply in the periods when he timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant & Machinery
-
15% reducing balance
Fixtures & Fittings
-
15% reducing balance/33% straight line
Motor Vehicles
-
25% reducing balance
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
The company contributes to defined contribution pension schemes, the amount charged to the statement of income and retained earnings is the contributions payable in the period. Differences between contributions payable in the period and contributions actually paid are shown as either accruals or prepayments in the statement of financial position.
Other operating income
Other operating income is recognised on an accruals basis.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
5,558
28,206
Construction contracts
21,551,441
23,721,655
-------------
-------------
21,556,999
23,749,861
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
R&D expenditure credit
7,758
------------
------------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
19,987
16,377
Gains on disposal of tangible assets
( 6,152)
Operating lease rentals
73,200
78,762
------------
------------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
13,500
8,000
------------
------------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Direct and contracting
19
16
Directors, management and administration
8
9
------------
------------
27
25
------------
------------
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,963,567
1,928,257
Social security costs
157,120
146,901
Other pension costs
54,370
50,174
------------
------------
2,175,057
2,125,332
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
198,125
221,210
Company contributions to defined contribution pension plans
22,231
21,962
------------
------------
220,356
243,172
------------
------------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
4
5
------------
------------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
104,655
102,729
Company contributions to defined contribution pension plans
6,195
6,195
------------
------------
110,850
108,924
------------
------------
10. Other interest receivable and similar income
2023
2022
£
£
Other interest receivable and similar income
52,513
592
------------
------------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
151,478
283,987
Adjustments in respect of prior periods
( 132)
------------
------------
Total current tax
151,478
283,855
------------
------------
Deferred tax:
Origination and reversal of timing differences
3,845
7,904
------------
------------
Tax on profit
155,323
291,759
------------
------------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
789,151
1,527,107
------------
------------
Profit on ordinary activities by rate of tax
185,613
290,150
Adjustment to tax charge in respect of prior periods
( 132)
Effect of expenses not deductible for tax purposes
95
Rounding on tax charge
( 1)
Effect of change in tax rate on deferred tax opening position
( 1,023)
( 2,254)
Effect of change in tax rate on deferred tax closing position
1,251
4,151
Super deduction expenditure adjustment
( 52)
( 251)
Group relief
( 30,465)
------------
------------
Tax on profit
155,323
291,759
------------
------------
12. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
297,525
142,000
------------
------------
13. Tangible assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
64,183
201,005
32,657
297,845
Additions
34,950
2,980
37,930
Disposals
( 31,396)
( 31,396)
------------
------------
------------
------------
At 31 December 2023
67,737
203,985
32,657
304,379
------------
------------
------------
------------
Depreciation
At 1 January 2023
60,363
143,984
20,289
224,636
Charge for the year
4,290
12,613
3,084
19,987
Disposals
( 29,598)
( 29,598)
------------
------------
------------
------------
At 31 December 2023
35,055
156,597
23,373
215,025
------------
------------
------------
------------
Carrying amount
At 31 December 2023
32,682
47,388
9,284
89,354
------------
------------
------------
------------
At 31 December 2022
3,820
57,021
12,368
73,209
------------
------------
------------
------------
14. Debtors
2023
2022
£
£
Amounts owed by group undertakings
9,502,670
9,484,762
Amounts owed by customers on construction contracts
963,130
2,024,674
Prepayments and accrued income
203,017
186,201
Other debtors
148,591
95,235
-------------
-------------
10,817,408
11,790,872
-------------
-------------
The debtors above include the following amounts repayable on demand but recoverable after more than one year:
2023 2022
£ £
Amounts due from group undertakings 9,502,670 9,484,762
------------ ------------
15. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,667,676
2,325,225
Accruals and deferred income
126,576
177,020
Corporation tax
151,478
276,228
Social security and other taxes
90,855
75,088
Amounts owed to customers on construction contracts
1,153,102
2,451,485
Director loan accounts
14,350
17,820
------------
------------
4,204,037
5,322,866
------------
------------
16. Provisions
Deferred tax (note 17)
£
At 1 January 2023
17,295
Additions
3,845
------------
At 31 December 2023
21,140
------------
17. Deferred tax
The deferred tax included in the balance sheet is as follows:
2023
2022
£
£
Included in provisions (note 16)
21,140
17,295
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
22,339
18,302
Pension plan obligations
( 1,199)
( 1,007)
------------
------------
21,140
17,295
------------
------------
There is no expiry date on timing differences.
18. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution pension plans was £ 32,139 (2022: £ 28,212 ).
19. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
10,000
10,000
10,000
10,000
------------
------------
------------
------------
20. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses .
21. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
2,179,601
178,638
2,358,239
Debt due within one year
(17,820)
3,470
(14,350)
------------
------------
------------
2,161,781
182,108
2,343,889
------------
------------
------------
22. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
13,400
13,200
------------
------------
23. Contingencies
The company is party to a composite guarantee and debenture with other group companies in relation to group borrowings.
24. Related party transactions
Included in creditors are directors' loan accounts at 31 December 2023 of £14,350 (2022: £17,820). These are unsecured, repayable on demand and are currently interest free. Included in debtors are amounts due from group companies totalling £9,502,670 (2022: £9,484,762). These loans are unsecured, repayable on demand and are currently interest free.
25. Controlling party
The direct parent company is Patrick Construction Group Limited whose registered office is the same as this company's registered office. The ultimate parent company is Patrick Construction (Holdings) Limited. Group accounts are available to the public from the Registrar of Companies.