Company registration number 04716632 (England and Wales)
R & M WILLIAMS (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
R & M WILLIAMS (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr M J Williams
Mr M Gilder
(Appointed 1 July 2023)
Mr M J Morris
(Appointed 1 July 2023)
Company number
04716632
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 (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
R & M WILLIAMS (HOLDINGS) 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 group’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.

This change in management structure and direction at the start of the year ensured that the group turnover showed an increase of £3.08m in 2023 compared to 2022. The board focused on lower value projects and greater margins with less risk to maintain and improve the profitability of the group. This largely came from housing association and local authorities circa £20.5m. Total gross profit for the year increased by £1.213m with an increase in the gross margin of 2.5% from 14.4% to 16.9%. 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 group 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 group 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 group was as follows:

 

2023        2022

£'000        £'000

Turnover             30,651     27,570        

Gross profit (%)         16.88     14.40

Profit/(Loss) before taxation     1,472     285

R & M WILLIAMS (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

On behalf of the board

Mr M J Williams
Director
18 August 2024
R & M WILLIAMS (HOLDINGS) 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.

Principal activities

The principal activity of the company and group 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 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Mr M J Williams
Mr M Gilder
(Appointed 1 July 2023)
Mr M J Morris
(Appointed 1 July 2023)
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 auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

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
18 August 2024
R & M WILLIAMS (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

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

 

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

 

 

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

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

We have audited the financial statements of R & M Williams (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

R & M WILLIAMS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R & M WILLIAMS (HOLDINGS) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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 group and parent company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

R & M WILLIAMS (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R & M WILLIAMS (HOLDINGS) LIMITED
- 7 -

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 group and parent 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 group and parent 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 group and parent company and the group and parent 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
18 August 2024
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
R & M WILLIAMS (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
30,651,026
27,570,127
Cost of sales
(25,476,561)
(23,609,029)
Gross profit
5,174,465
3,961,098
Administrative expenses
(3,722,769)
(3,704,993)
Other operating income
9,345
63,678
Operating profit
4
1,461,041
319,783
Interest receivable and similar income
8
26,751
3,087
Interest payable and similar expenses
9
(13,929)
(13,872)
Amounts written off investments
10
(1,805)
(23,929)
Profit before taxation
1,472,058
285,069
Tax on profit
11
(186,966)
62,216
Profit for the financial year
1,285,092
347,285
Profit for the financial year is attributable to:
- Owner of the parent company
1,227,346
317,774
- Non-controlling interests
57,746
29,511
1,285,092
347,285
R & M WILLIAMS (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,285,092
347,285
Other comprehensive income
-
-
Total comprehensive income for the year
1,285,092
347,285
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,227,346
317,774
- Non-controlling interests
57,746
29,511
1,285,092
347,285
R & M WILLIAMS (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
14
1,366,180
1,173,558
Investment property
15
1,479,373
1,479,373
Investments
16
9,498
11,303
2,855,051
2,664,234
Current assets
Stocks
18
94,285
105,008
Debtors
19
5,822,856
6,415,343
Cash at bank and in hand
3,749,218
1,476,406
9,666,359
7,996,757
Creditors: amounts falling due within one year
20
(7,042,720)
(6,497,954)
Net current assets
2,623,639
1,498,803
Total assets less current liabilities
5,478,690
4,163,037
Creditors: amounts falling due after more than one year
21
(193,000)
(323,428)
Provisions for liabilities
Deferred tax liability
24
165,989
-
0
(165,989)
-
Net assets
5,119,701
3,839,609
Capital and reserves
Called up share capital
26
2,400,000
2,400,000
Other reserves
(2,398,000)
(2,398,000)
Profit and loss reserves
5,117,701
3,835,689
Equity attributable to owner of the parent company
5,119,701
3,837,689
Non-controlling interests
-
1,920
5,119,701
3,839,609

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

R & M WILLIAMS (HOLDINGS) LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 30 NOVEMBER 2023
30 November 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 18 August 2024 and are signed on its behalf by:
18 August 2024
Mr M J Williams
Director
Company registration number 04716632 (England and Wales)
R & M WILLIAMS (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
14
982,893
465,001
Investment property
15
673,269
673,269
Investments
16
2,165,010
2,160,010
3,821,172
3,298,280
Current assets
Debtors
19
1,604,132
837,675
Cash at bank and in hand
1,396,340
273,876
3,000,472
1,111,551
Creditors: amounts falling due within one year
20
(1,656,069)
(8,913)
Net current assets
1,344,403
1,102,638
Total assets less current liabilities
5,165,575
4,400,918
Provisions for liabilities
Deferred tax liability
24
165,989
-
0
(165,989)
-
Net assets
4,999,586
4,400,918
Capital and reserves
Called up share capital
26
2,400,000
2,400,000
Profit and loss reserves
2,599,586
2,000,918
Total equity
4,999,586
4,400,918

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £598,668 (2022 - £116,740 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 18 August 2024 and are signed on its behalf by:
18 August 2024
Mr M J Williams
Director
Company registration number 04716632 (England and Wales)
R & M WILLIAMS (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
Share capital
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 December 2021
2,400,000
(2,398,000)
3,550,915
3,552,915
(27,591)
3,525,324
Year ended 30 November 2022:
Profit and total comprehensive income
-
-
317,774
317,774
29,511
347,285
Dividends
12
-
-
(33,000)
(33,000)
-
(33,000)
Balance at 30 November 2022
2,400,000
(2,398,000)
3,835,689
3,837,689
1,920
3,839,609
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
1,227,346
1,227,346
57,746
1,285,092
Purchase of shares in subsidiary from non-controlling interest
-
-
54,666
54,666
(59,666)
(5,000)
Balance at 30 November 2023
2,400,000
(2,398,000)
5,117,701
5,119,701
-
0
5,119,701
R & M WILLIAMS (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
2,400,000
1,917,178
4,317,178
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
116,740
116,740
Dividends
12
-
(33,000)
(33,000)
Balance at 30 November 2022
2,400,000
2,000,918
4,400,918
Year ended 30 November 2023:
Profit and total comprehensive income
-
598,668
598,668
Balance at 30 November 2023
2,400,000
2,599,586
4,999,586
R & M WILLIAMS (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
2,555,844
(909,729)
Interest paid
(13,929)
(13,872)
Income taxes refunded
162,394
-
0
Net cash inflow/(outflow) from operating activities
2,704,309
(923,601)
Investing activities
Purchase of tangible fixed assets
(531,630)
(492,610)
Proceeds from disposal of tangible fixed assets
31,445
276,962
Purchase of investment property
-
(46,045)
Proceeds from disposal of investment property
-
217,156
Repayment of loans
(3,648)
-
Interest received
26,018
2,354
Dividends received
733
733
Net cash used in investing activities
(477,082)
(41,450)
Financing activities
Repayment of bank loans
(126,000)
(126,000)
Payment of finance leases obligations
(13,929)
(19,946)
Purchase of shares in subsidiary from non-controlling interest
(5,000)
-
Dividends paid to equity shareholders
-
0
(33,000)
Net cash used in financing activities
(144,929)
(178,946)
Net increase/(decrease) in cash and cash equivalents
2,082,298
(1,143,997)
Cash and cash equivalents at beginning of year
1,476,406
2,620,403
Cash and cash equivalents at end of year
3,558,704
1,476,406
Relating to:
Cash at bank and in hand
3,749,218
1,476,406
Bank overdrafts included in creditors payable within one year
(190,514)
-
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
1
Accounting policies
Company information

R & M Williams (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Williams House, Station Square, Neath, SA11 1BY.

 

The group consists of R & M Williams (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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.

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

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company R & M Williams (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 November 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

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

R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

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

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.

 

Revenue from contracts for the provision of professional services is recognised by reference to 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.

1.5
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.

1.6
Tangible fixed assets

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

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
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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

1.7
Investment properties

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

 

1.8
Fixed asset investments

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

 

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

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

 

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

 

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

 

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

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

1.9
Impairment of fixed assets

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

 

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

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

 

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

R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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

1.10
Stocks

Stocks 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.

1.11
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

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

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

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

1.13
Taxation

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

Current tax

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

R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

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

 

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

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. See note 14 for the carrying value of the property, plant and equipment, and the depreciation accounting policy for the useful economic lives for each class of asset.

Impairment of debtors

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 19 for the net carrying amount of the debtors and the associated impairment provision.

Accounting for construction contracts

Recognition of turnover and profit is based on judgements made in respect of the ultimate profitability of a contract. Such judgements are arrived at through the use of estimate in relation to costs and value of work performed to date and to be performed in bringing contracts to completion, including satisfaction of maintenance responsibilities. These estimates are made by reference to recovery of pre-contract costs, surveys of progress against the construction programme, changes in work scope, the contractual terms under which the work is being performed, including the recoverability of any unagreed income from variations and the likely outcome of discussions on claims, costs incurred and external certification of the work performed. The group has appropriate control procedures to ensure all estimates are determined on a consistent basis and subject to appropriate review and authorisation.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Construction contracts
30,651,026
27,570,127
2023
2022
£
£
Other revenue
Interest income
26,018
2,354
Dividends received
733
733
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
3
Turnover and other revenue
(Continued)
- 23 -

The whole of the turnover is attributable to the principal activity of the group 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 group's auditor for the audit of the group's financial statements
6,283
5,950
Depreciation of owned tangible fixed assets
258,541
278,952
Depreciation of tangible fixed assets held under finance leases
3,442
11,584
Loss/(profit) on disposal of tangible fixed assets
45,580
(24,540)
Operating lease charges
25,982
94,479
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,283
5,950
Audit of the financial statements of the company's subsidiaries
18,700
17,000
24,983
22,950
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
60
69
-
-
Administrative
33
44
2
-
Total
93
113
2
-
0
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,508,190
3,800,830
132,824
-
0
Social security costs
330,275
367,450
15,428
-
Pension costs
86,175
102,901
3,984
-
0
3,924,640
4,271,181
152,236
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
84,333
17,233
Company pension contributions to defined contribution schemes
2,530
5,390
86,863
22,623
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
26,018
2,354
Other income from investments
Dividends received
733
733
Total income
26,751
3,087
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
11,680
15,220
Other interest on financial liabilities
2,249
-
Interest on finance leases and hire purchase contracts
-
(1,348)
Total finance costs
13,929
13,872
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
10
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)
Other gains and losses
-
(18,659)
(1,805)
(23,929)
11
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(2,136)
(159,027)
Deferred tax
Origination and reversal of timing differences
354,439
97,341
Adjustment in respect of prior periods
(165,337)
(530)
Total deferred tax
189,102
96,811
Total tax charge/(credit)
186,966
(62,216)

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
1,472,058
285,069
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
338,735
54,163
Tax effect of expenses that are not deductible in determining taxable profit
68,689
15,857
Tax effect of income not taxable in determining taxable profit
(58,711)
(139)
Adjustments in respect of prior years
(167,474)
(159,557)
Effect of change in corporation tax rate
27,654
24,892
Permanent capital allowances in excess of depreciation
(21,927)
2,568
Taxation charge/(credit)
186,966
(62,216)
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
-
33,000
13
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
16
-
18,659
Recognised in:
Amounts written off investments
-
18,659

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

14
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
50,927
1,144,923
388,752
1,472,445
3,057,047
Additions
-
0
148,505
47,954
335,171
531,630
Disposals
-
0
(424,088)
-
0
(116,805)
(540,893)
At 30 November 2023
50,927
869,340
436,706
1,690,811
3,047,784
Depreciation and impairment
At 1 December 2022
-
0
816,938
317,743
748,808
1,883,489
Depreciation charged in the year
2,037
115,143
23,888
120,915
261,983
Eliminated in respect of disposals
-
0
(392,521)
-
0
(71,347)
(463,868)
At 30 November 2023
2,037
539,560
341,631
798,376
1,681,604
Carrying amount
At 30 November 2023
48,890
329,780
95,075
892,435
1,366,180
At 30 November 2022
50,927
327,985
71,009
723,637
1,173,558
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
14
Tangible fixed assets
(Continued)
- 27 -
Company
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 December 2022
141,452
-
0
422,284
563,736
Additions
107,900
22,230
591,700
721,830
Disposals
(25,303)
-
0
(20,549)
(45,852)
At 30 November 2023
224,049
22,230
993,435
1,239,714
Depreciation and impairment
At 1 December 2022
44,467
-
0
54,268
98,735
Depreciation charged in the year
51,221
3,705
117,527
172,453
Eliminated in respect of disposals
(8,553)
-
0
(5,814)
(14,367)
At 30 November 2023
87,135
3,705
165,981
256,821
Carrying amount
At 30 November 2023
136,914
18,525
827,454
982,893
At 30 November 2022
96,985
-
0
368,016
465,001

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
10,325
13,767
-
0
-
0
Motor vehicles
-
0
20,986
-
0
-
0
10,325
34,753
-
-
15
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 December 2022 and 30 November 2023
1,479,373
673,269
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
2,165,010
2,160,010
Listed investments
9,498
11,303
-
0
-
0
9,498
11,303
2,165,010
2,160,010

Listed investments included above:

Listed investments carrying amount
9,352
11,303
-
-

The group's joint venture, Local Consortium Wales LLP, was dissolved in the prior year.

Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 December 2022
11,303
Valuation changes
(1,805)
At 30 November 2023
9,498
Carrying amount
At 30 November 2023
9,498
At 30 November 2022
11,303
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022
2,160,010
Additions
5,000
At 30 November 2023
2,165,010
Carrying amount
At 30 November 2023
2,165,010
At 30 November 2022
2,160,010

On 25 October 2023, 50 A Ordinary shares were acquired from the non controlling interest in R & M Williams Limited.

R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
17
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
R & M Williams Limited
Williams House, Station Square, Neath, SA11 1BY
Ordinary
100.00
18
Stocks
Group
Company
2023
2022
2023
2022
as restated
as restated
£
£
£
£
Raw materials and consumables
94,285
105,008
-
-
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,776,541
2,116,469
954,778
-
0
Corporation tax recoverable
-
0
159,027
-
0
-
0
Amounts owed by group undertakings
-
-
-
718,977
Amounts recoverable on contract
2,189,550
3,499,608
-
-
Other debtors
46,884
395,110
35,338
99,015
Prepayments and accrued income
666,571
78,706
614,016
16,221
5,679,546
6,248,920
1,604,132
834,213
Deferred tax asset (note 24)
143,310
166,423
-
0
3,462
5,822,856
6,415,343
1,604,132
837,675
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
316,514
126,000
-
0
-
0
Obligations under finance leases
23
8,501
18,002
-
0
-
0
Trade creditors
2,563,831
2,265,442
1,448
1,016
Amounts owed to group undertakings
-
0
-
0
806,635
-
0
Corporation tax payable
1,231
-
0
-
0
-
0
Other taxation and social security
1,127,787
1,276,118
77,202
1,873
Other creditors
49,369
48,667
8,272
1,024
Accruals and deferred income
2,975,487
2,763,725
762,512
5,000
7,042,720
6,497,954
1,656,069
8,913

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.

21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
193,000
319,000
-
0
-
0
Obligations under finance leases
23
-
0
4,428
-
0
-
0
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.

22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
319,000
445,000
-
0
-
0
Bank overdrafts
190,514
-
0
-
0
-
0
509,514
445,000
-
-
Payable within one year
316,514
126,000
-
0
-
0
Payable after one year
193,000
319,000
-
0
-
0

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

R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
23
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
8,501
18,002
-
0
-
0
In two to five years
-
0
4,428
-
0
-
0
8,501
22,430
-
-

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

24
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
166,490
-
(56,942)
(213,736)
Tax losses
-
-
197,304
378,440
Retirement benefit obligations
(501)
-
2,948
1,719
165,989
-
143,310
166,423
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
166,490
-
-
(56,237)
Tax losses
-
-
-
59,699
Retirement benefit obligations
(501)
-
-
-
165,989
-
-
3,462
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
24
Deferred taxation
(Continued)
- 32 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 December 2022
(166,423)
(3,462)
Charge to profit or loss
189,102
169,451
Liability at 30 November 2023
22,679
165,989

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 assets.

25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,175
102,901

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

26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,400,000
2,400,000
2,400,000
2,400,000
27
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
26,305
22,200
-
-
Between two and five years
36,970
74,450
-
-
63,275
96,650
-
-
R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 33 -
28
Related party transactions

Group

 

During the year the group made sales of £nil (2022: £nil) and charged management fees of £nil (2022: £15,000) to R & M Williams (Narberth) Limited, a company under common control. At the year end, the group was owed £nil (2022: £318,873) by R & M Williams (Narberth) Limited.

 

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

 

Company

 

At the year end, the company owed £806,635 (2022: £718,977 was owed from) to R & M Williams Limited, its subsidiary.

 

At the year end, the company was owed £nil (2022: £67,842) by R & M Williams (Narberth) Limited, a company under common control.

29
Directors' transactions

Included within other debtors is £3,648 (2022: £nil) due from the directors.

 

Included within other creditors is £nil (2022: £11,758) due to the directors.

30
Controlling party

The company is ultimately controlled by Mr M J Williams by virtue of his shareholding.

31
Comparative restatement

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.

R & M WILLIAMS (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
32
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
1,285,092
347,285
Adjustments for:
Taxation charged/(credited)
186,966
(62,216)
Finance costs
13,929
13,872
Investment income
(26,751)
(3,087)
Loss/(gain) on disposal of tangible fixed assets
45,580
(24,540)
Depreciation and impairment of tangible fixed assets
261,983
290,536
Other gains and losses
1,805
23,929
Movements in working capital:
Decrease in stocks
10,723
8,693
Decrease in debtors
413,995
1,834,562
Increase/(decrease) in creditors
362,522
(3,338,763)
Cash generated from/(absorbed by) operations
2,555,844
(909,729)
33
Analysis of changes in net funds - group
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
1,476,406
2,272,812
3,749,218
Bank overdrafts
-
0
(190,514)
(190,514)
1,476,406
2,082,298
3,558,704
Borrowings excluding overdrafts
(445,000)
126,000
(319,000)
Obligations under finance leases
(22,430)
13,929
(8,501)
1,008,976
2,222,227
3,231,203
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