Company registration number 01382857 (England and Wales)
R & M WILLIAMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
R & M WILLIAMS LIMITED
COMPANY INFORMATION
Directors
Mr M J Williams
Mr M Gilder
Mr M J Morris
Mr C N Sherlock
(Appointed 8 July 2024)
Company number
01382857
Registered office
Williams House
Station Square
Neath
SA11 1BY
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
R & M WILLIAMS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 26
R & M WILLIAMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

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

Review of the business

The company’s main goal for 2023 was to continue to develop the business as one of Wales’s leading multi-disciplined contractors, deliver strong results for its shareholders and demonstrate strong commercial performance.

During the period the Chairman returned to the role of MD carrying out a root and branch review of operations which resulted in several changes to senior personnel and a general restructuring of how the business delivered. There was a need to re-focus on self-delivery and respond more fully to the needs of our customers. There were also some strategic additions made to the business to ensure that the inherent multi disciplined strengths of R & M Williams were maximised.

The board focused on lower value projects and greater margins with less risk to maintain and improve the profitability of the company. This largely came from housing association and local authorities. Total gross profit for the year increased by £0.31m with an increase in the gross margin of 1.3% from 14.2% to 15.5%. This return would have been improved further if it had not been for some poor performing legacy projects. These have now traded through the books and will not have any further impact on results in future.

The current order book reflects the higher investment in social value engagement, marketing and pre-construction process. The business has also invested in digital process improvements to improve efficiencies and reduce base line costs this year and in the future. The company continues to be successful in securing new opportunities from existing and new sectors. Significant investment and success has been found in obtaining positions on a wide range of Frameworks which ensures a more stable opportunity base over the years to come, to support our activities, we continue to recruit new staff with enhanced skills and recognised track records whilst also continuing to focus on efficiencies and re-examination of long-term practices of the operation to improve both out performance and profitability. The company is fully committed to continual development of staff and operatives across the business.

Principal risks and uncertainties

Key risk for the business is the rising cost of inflation within the supply chain, workforce, and economy. Whilst inflation will directly impact on R & M Williams operating costs it will also affect our clients’ budgets that are equally affected and could see clients reducing their portfolio of opportunities. Outside of inflation there is a shortage of skilled labour within the construction sector with many of the trades retiring or not returning to workforce after pandemic and also with today’s youth not interested in joining the industry. Whilst South Wales & Southwest England have the draw of Hinkley Point Nuclear Power plant, that is now at full worker capacity with a quoted 22,000 construction workers.

Key performance indicators

Commensurate with the construction industry, the directors believe the key business performance indicators are turnover, gross margin and profit before tax.

 

Performance of the company was as follows:

 

2023         2022

£'000         £'000

Turnover             27,250         27,570            

Gross Profit (%)         15.5         14.2    

Profit/(Loss) before taxation        593         236

On behalf of the board

Mr M J Williams
Director
21 August 2024
R & M WILLIAMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of one of Wales' leading multi-disciplined contractors.

Results and dividends

The results for the year are set out on page 7. A fair review of the business is set out in the Strategic Report on page 1.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 J Williams
Mr M Gilder
Mr M J Morris
Mr C N Sherlock
(Appointed 8 July 2024)
Auditor

The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr M J Williams
Director
21 August 2024
R & M WILLIAMS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

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.

R & M WILLIAMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R & M WILLIAMS LIMITED
- 4 -
Opinion

We have audited the financial statements of R & M Williams Limited (the 'company') for the year ended 30 November 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.

Opinions on other matters prescribed by the Companies Act 2006

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

R & M WILLIAMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R & M WILLIAMS LIMITED
- 5 -
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. 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.

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

R & M WILLIAMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R & M WILLIAMS LIMITED
- 6 -

To address risk of fraud through management bias and override of controls, we:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
21 August 2024
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
R & M WILLIAMS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
27,249,662
27,570,127
Cost of sales
(23,033,393)
(23,661,249)
Gross profit
4,216,269
3,908,878
Administrative expenses
(3,629,791)
(3,693,013)
Other operating income
345
45,778
Operating profit
4
586,823
261,643
Interest receivable and similar income
7
19,639
2,749
Interest payable and similar expenses
8
(11,680)
(13,872)
Amounts written off investments
9
(1,805)
(14,165)
Profit before taxation
592,977
236,355
Tax on profit
11
(17,515)
58,754
Profit for the financial year
575,462
295,109

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

R & M WILLIAMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
575,462
295,109
Other comprehensive income
-
-
Total comprehensive income for the year
575,462
295,109
R & M WILLIAMS LIMITED
BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
328,469
748,480
Investment property
13
806,104
806,104
Investments
14
9,352
11,157
1,143,925
1,565,741
Current assets
Stocks
15
94,285
105,008
Debtors
16
5,029,267
6,319,023
Cash at bank and in hand
2,352,878
1,202,530
7,476,430
7,626,561
Creditors: amounts falling due within one year
17
(6,185,699)
(7,202,680)
Net current assets
1,290,731
423,881
Total assets less current liabilities
2,434,656
1,989,622
Creditors: amounts falling due after more than one year
18
(193,000)
(323,428)
Net assets
2,241,656
1,666,194
Capital and reserves
Called up share capital
23
500
500
Capital redemption reserve
1,500
1,500
Profit and loss reserves
2,239,656
1,664,194
Total equity
2,241,656
1,666,194

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 21 August 2024 and are signed on its behalf by:
Mr M J Williams
Director
Company registration number 01382857 (England and Wales)
R & M WILLIAMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 December 2021
500
1,500
1,369,085
1,371,085
Year ended 30 November 2022:
Profit and total comprehensive income
-
-
295,109
295,109
Balance at 30 November 2022
500
1,500
1,664,194
1,666,194
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
575,462
575,462
Balance at 30 November 2023
500
1,500
2,239,656
2,241,656
R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
1
Accounting policies
Company information

R & M Williams Limited is a private company limited by shares incorporated in England and Wales. The registered office is Williams House, Station Square, Neath, SA11 1BY.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of R & M Williams (Holdings) Limited. These consolidated financial statements are available from its registered office, Williams House, Station Square, Neath, SA11 1BY.

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.

 

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

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 12 -

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 it will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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:

Leasehold improvements
4% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance

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
Investment property

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

1.7
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.

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

1.8
Impairment of fixed assets

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

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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

 

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

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

1.9
Stocks

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

1.10
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.

1.11
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.

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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 company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
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.

1.13
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.

1.14
Retirement benefits

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

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.15
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.

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.

Provisions

Provisions are included against customer claims and bad debts. These provisions require management's best estimate of the costs that will be incurred based on contractual agreements and historical experience, current knowledge of the trading difficulties of customers and a review of stock movements following the period end.

Construction contracts

Revenue and costs arising from construction accounts are determined by the directors' assessment of both the progress of the contract at the reporting date and the estimated outcome of the contract. When reliable estimates can be made of both, profits are recognised in the Profit & Loss Account based on the proportion of work already undertaken.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments economic utilisation and the physical condition of the assets.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Construction contracts
27,249,662
27,570,127
R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Other revenue
Interest income
18,906
2,016
Dividends received
733
733

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
4,417
-
Fees payable to the company's auditor for the audit of the company's financial statements
18,700
17,000
Depreciation of owned tangible fixed assets
86,088
207,185
Depreciation of tangible fixed assets held under finance leases
3,442
11,584
Loss/(profit) on disposal of tangible fixed assets
138,182
(45,210)
Operating lease charges
25,982
94,479
5
Employees

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

2023
2022
Number
Number
Production
60
69
Administrative
31
44
Total
91
113

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,375,366
3,800,830
Social security costs
314,847
367,450
Pension costs
82,191
102,901
3,772,404
4,271,181
R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
153,972
261,119
Company pension contributions to defined contribution schemes
4,310
12,410
158,282
273,529
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
n/a
84,760
Company pension contributions to defined contribution schemes
n/a
2,400

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
18,906
2,016
Other income from investments
Dividends received
733
733
Total income
19,639
2,749
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
11,680
15,220
Interest on finance leases and hire purchase contracts
-
(1,348)
11,680
13,872
R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
9
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Loss on financial assets held at fair value through profit or loss
(1,805)
(5,270)
Other gains/(losses)
Amounts written off joint ventures
-
(8,895)
(1,805)
(14,165)
10
Impairments

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

2023
2022
Notes
£
£
In respect of:
Investments in joint ventures
14
-
8,895
Recognised in:
Amounts written off investments
-
8,895

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

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
11
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(2,136)
(159,027)
Deferred tax
Origination and reversal of timing differences
184,988
71,871
Adjustment in respect of prior periods
(165,337)
28,402
Total deferred tax
19,651
100,273
Total tax charge/(credit)
17,515
(58,754)

The actual charge/(credit) 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
592,977
236,355
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
136,450
44,907
Tax effect of expenses that are not deductible in determining taxable profit
6,875
3,590
Tax effect of income not taxable in determining taxable profit
(58,711)
(139)
Adjustments in respect of prior years
(167,474)
(130,625)
Effect of change in corporation tax rate
12,376
18,095
Group relief
88,029
-
0
Permanent capital allowances in excess of depreciation
(30)
5,418
Taxation charge/(credit) for the year
17,515
(58,754)
R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
50,926
1,003,471
388,755
972,137
2,415,289
Additions
-
0
40,605
25,724
18,100
84,429
Disposals
-
0
(398,785)
-
0
(946,553)
(1,345,338)
At 30 November 2023
50,926
645,291
414,479
43,684
1,154,380
Depreciation and impairment
At 1 December 2022
-
0
772,471
317,743
576,595
1,666,809
Depreciation charged in the year
2,037
63,922
20,183
3,388
89,530
Eliminated in respect of disposals
-
0
(383,968)
-
0
(546,460)
(930,428)
At 30 November 2023
2,037
452,425
337,926
33,523
825,911
Carrying amount
At 30 November 2023
48,889
192,866
76,553
10,161
328,469
At 30 November 2022
50,926
231,000
71,012
395,542
748,480

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

2023
2022
£
£
Plant and equipment
10,325
13,767
Motor vehicles
-
0
20,986
10,325
34,753
13
Investment property
2023
£
Fair value
At 1 December 2022 and 30 November 2023
806,104
14
Fixed asset investments
2023
2022
£
£
Listed investments
9,352
11,157
R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
14
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 December 2022
11,157
Valuation changes
(1,805)
At 30 November 2023
9,352
Carrying amount
At 30 November 2023
9,352
At 30 November 2022
11,157
15
Stocks
2023
2022
as restated
£
£
Raw materials and consumables
94,285
105,008
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,821,763
2,116,469
Corporation tax recoverable
-
0
159,027
Amounts owed by group undertakings
806,635
-
0
Amounts recoverable on contract
2,189,550
3,499,608
Other debtors
15,454
302,252
Prepayments and accrued income
52,555
78,706
4,885,957
6,156,062
Deferred tax asset (note 21)
143,310
162,961
5,029,267
6,319,023
R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19
316,514
126,000
Obligations under finance leases
20
8,501
18,002
Trade creditors
2,562,383
2,264,426
Amounts owed to group undertakings
-
0
718,977
Corporation tax
1,231
-
0
Other taxation and social security
1,050,585
1,274,245
Other creditors
33,510
42,305
Accruals and deferred income
2,212,975
2,758,725
6,185,699
7,202,680

Included within creditors due within one year, is a balance of £8,501 (2022: £18,002) secured on fixed assets and a balance of £126,000 (2022: £126,000) secured by a fixed and floating charge over the assets.

18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19
193,000
319,000
Obligations under finance leases
20
-
0
4,428
193,000
323,428

Included within creditors due after more than one year, is a balance of £nil (2022: £4,428) secured on fixed assets and a balance of £193,000 (2022: £319,000) secured by a fixed and floating charge over the assets.

19
Loans and overdrafts
2023
2022
£
£
Bank loans
319,000
445,000
Bank overdrafts
190,514
-
0
509,514
445,000
Payable within one year
316,514
126,000
Payable after one year
193,000
319,000

The long-term loans are secured by fixed charges over the fixed assets held by the company.

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
20
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
8,501
18,002
In two to five years
-
0
4,428
8,501
22,430

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. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

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

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
(56,942)
(157,499)
Tax losses
197,304
318,741
Retirement benefit obligations
2,948
1,719
143,310
162,961
2023
Movements in the year:
£
Asset at 1 December 2022
(162,961)
Charge to profit or loss
19,651
Asset at 30 November 2023
(143,310)

The deferred tax asset is expected to decrease next year. This is due to the utilisation of losses and the origination of new timing differences on tangible fixed assets.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
82,191
102,901

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.

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
23
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
450
450
450
450
Ordinary A Shares of £1 each
50
50
50
50
500
500
500
500
24
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
26,305
22,200
Between two and five years
36,970
74,450
63,275
96,650
25
Ultimate controlling party

R & M Williams (Holdings) Limited is the company's immediate and ultimate parent undertaking and Mr M Williams who controls 100% of the shares of R & M Williams (Holdings) is the company's ultimate controlling party.

 

The parent undertaking of the largest and smallest group which includes the company and for which group accounts are prepared is R & M Williams (Holdings) Limited. R & M Williams (Holdings) Limited's registered office is Williams House, Station Square, Neath, SA11 1BY. Copies of the group financial statements for R & M Williams (Holdings) Limited can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

26
Related party transactions

During the year the company recharged costs of £1,743,641 (2022: £nil) to R & M Williams (Holdings) Limited, its parent company. Also during the year the company sold £274,629 (2022: £342,059) worth of fixed assets to and paid hire costs of £210,024 (2022: £149,321) to R & M Williams (Holdings) Limited. At the year end, the company was owed £806,635 (2022: £718,977 owed) to R & M Williams (Holdings) Limited.

 

During the year the company made sales of £nil (2022: £nil) to R & M Williams (Narberth) Limited, a company under common control. At the year end, the company was owed £nil (2022: £251,031) by R & M Williams (Narberth) Limited.

 

During the year the company made purchases of £nil (2022: £63,751) from CBI Interiors Limited , a company under common control. At the year end, the company owed £58 (2022: £14,845 was owed by) to CBI Interiors Limited.

 

R & M WILLIAMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
27
Directors' transactions
Description
Opening balance
Amounts advanced
Closing balance
£
£
£
Mr M J Williams  -
(14,007)
17,655
3,648
(14,007)
17,655
3,648
28
Comparative reclassification

Land held for development has been reclassified from stock to investment properties as the directors believe that this provides a more accurate reflection on the true nature of the assets.

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