Company registration number 10257653 (England and Wales)
ADB CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
ADB CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
Mr P Helliar
Mr S Hirst
Company number
10257653
Registered office
Unit 4D
Nup End Business Centre
Old Knebworth
Hertfordshire
SG3 6QJ
Auditors
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
Business address
Unit 4D
Nup End Business Centre
Old Knebworth
Hertfordshire
SG3 6QJ
ADB CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 9
Independent auditor's report
10 - 12
Profit and loss account
13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Company statement of cash flows
20
Notes to the financial statements
21 - 40
ADB CONSTRUCTION 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 directors are satisfied with the results for the year under review that were in line with expectations.

 

The group operates as a specialist in the of provision of civil engineering and groundwork contracting services.

 

The trading group continues to produce an acceptable level of profits from its core activity of groundworks and civil engineering.

 

The construction sector is expected to remain competitive in 2024. The trading group continues to serve its long established clients and is forging new relationships to respond to competitive market conditions.

 

Performance

Turnover for the group for the year ended 30 November 2023 was £54,027,767, representing a 17% decrease from the previous year. Given the challenging market and general economic conditions, this decrease is considered acceptable. For more details, please refer to the key performance indicators. Some large residential projects concluded, and the industry downturn prompted us to rationalise our business operations. We have adjusted our turnover targets to a level that ensures we can continue delivering safe and high-quality projects to our clients.

 

Principal risks and uncertainties

The management of the business and the execution of the group's strategy are exposed to a number of risks. These risks are continually reviewed by the management and appropriate processes are put in place to monitor and mitigate them. The key risks affecting the business are set out below.

 

Employees

The group's employees are its most important resource. It is essential to the future success of the business that a skilled and motivated workforce is retained. The group continues to make significant investment in its human resources both in terms of necessary increases and strengthening of its management teams, supervisory personnel and work force.

 

Details of the number of employees and related costs can be found in note 6 to the financial statements.

 

Certain areas of the group's performance depend on some key individuals. To mitigate the effect of their possible resignation, a scheme linked to the group's results has been introduced to retain those key personnel.

 

Taxation risk

The group is exposed to financial risks from increases in tax rates and changes to the basis of taxation including VAT and corporation tax. Principal controls to mitigate this risk include regular monitoring of legislative proposals and the engagement of experienced executives and the use of experienced sector specific professional advisers to mitigate the impact of changes.

 

Competition

The group operates in a highly competitive market particularly around price, quality and delivery. This may result in downward pressure on margins. In order to mitigate this the group works closely with its clients in order to deliver services within budget and on time.

 

Financing risk

The group is principally funded from retained profits and is reliant on converting these profits into cash. Financial monitoring, forecasting and planning are continuous processes and emphasis is placed on balancing maintenance or growth of profit margin against investment in resources to maintain delivery of a high quality of service to customers.

ADB CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
Principal risks and uncertainties continued

Financial instruments

The group's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans from and to related companies. The main purpose of these instruments is to raise funds for the group's operations and to finance the group's operations. The group's approach to managing other risks applicable to the financial instruments concerned is as follows:

 

Liquidity risk

The group manages the liquidity risk by ensuring there are sufficient funds to meet the operating needs of the business.

 

In respect of bank balances the liquidity risk is managed by maintaining a positive balance between continuity of funding and flexibility through an agreed payment policy.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding and a provision is made for doubtful debts where necessary.

 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due within agreed credit terms.

In respect of loans due to related companies, these are interest-free and payable on demand. This allows the group to maintain sufficient funds to meet its payments to creditors.

Interest rate risk

In respect of loans from companies under common control, these are interest free and repayable on demand.

Credit risk

Financial instruments which potentially subject the group to concentrations of credit risk consist only of cash and trade debtors.

ADB CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
Key performance indicators

The key financial performance indicators used to determine the progress and performance of the company are set out below:

 

 

 

 

 

 

2023

2022

 

 

 

 

Turnover

 

£54,027,767

£64,823,843

 

 

 

 

Gross profit

 

£7,230,109

£7,837,305

 

 

 

 

Gross margin

 

13.38%

12.09%

 

 

 

 

Operating loss

 

(£1,387,097)

(£1,626,363)

 

 

 

 

Earnings before interest, tax, depreciation,

amortisation and pension (EBITDAP)

£3,215,164

£3,533,438

 

 

 

 

EBITDAP percentage of sales

 

5.95%

5.45%

 

 

Gross Profit Margin

The group's gross profit margin improved from 12.09% in 2022 to 13.38% in 2023. This improvement is attributed to the rationalisation of the business, which included a review of the management structure, the completion of some pre-Covid-19 projects, and the acquisition of better clients and projects.

 

Operating Loss and EBITDAP Percentage of Sales

The directors' view variances of operating profit/(loss) as a key performance indicator for the business and this is reviewed regularly. The ratio of operating loss to turnover fell over the course of the year from -2.51% in 2022 to -2.57% in 2023.

 

The EBITDAP percentage of sales is a more relevant measure of the performance of the business which shows that the EBITDAP as a percentage of sales has increased from 5.45% in 2022 to 5.95% in 2023, demonstrating that the business is still profitable in a challenging market place. A non-cash item in the form of amortisation relating to a previous internal restructure has resulted in a significant difference between the operating loss and the EBITDAP in the 2022 and 2023 year end accounts.

 

A non-cash item in the form of a contractual commitment to pay various senior executives of the group a pension upon their retirement, also represents a significant difference between the operating loss and EBITDAP. The pension does not become payable until such executives retire from the business. The earliest an eligible executive could retire is 3 years and the youngest eligible executive cannot retire for at least another 26 years from the balance sheet date. This commitment represents long-term liabilities but are recognised now for the purposes of calculating profit and loss.

 

It is the intention of the directors to continue to strengthen the group's financial performance in the industry by concentrating on improving management processes and further expanding market share, whilst at the same time closely monitoring both direct and indirect costs.

 

Future developments

The group is focused on securing profitable work and continuing to increase its market share by expanding its customer base and is working towards securing more work in the future.

 

The current order position remains positive and therefore provides the directors the basis to look to the future with confidence.

 

The group owned an investment property which was sold after the year end, releasing around £425,000 to working capital to fund growth.

ADB CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

Safety, health and environmental policies

The group continues to strive to improve its safety, health and environmental standards and performance. These are monitored regularly throughout the period and reviewed in response to performance and changes in legislation by its in-house safety department.

 

Health & Safety

The group recognises the significance of health and safety in the workplace to ensure its work force is free from risk, through investment in training and education in the occupational health and safety field. The Board of directors, believe that Health and Safety should serve as equal importance to all aspects of its business.

 

The group invested heavily over the years in order to remain at the forefront of health and safety performance. With its fully staffed health, safety & environmental department, the group is able to facilitate site teams with additional support. The group's head office houses its own training software which is used to deliver a full range of courses through ELearning developed by the organisation and endorsed by institutions such as IOSH and ROSPA. The group also has the added benefit of an external training partner with an NVQ assessment team who are always on hand to offer advice, and assess the workforce against National Standards.

 

With over 40 categories of training, and its own bespoke modular training packages, the statistics speak for themselves. Globally within the organisation, the group has seen a year on year improvement, with some divisions recording accident frequency rates of zero.

 

The above, is complemented by a programme of health surveillance for the benefit of staff, and an Auditing programme which is carried out by the group's NEBOSH trained Health and Safety Advisors.

 

Environmental

As an organisation the group is committed to the wellbeing of the planet and the reduction in harmful processes or materials that have a negative impact upon us.

 

With its BS EN ISO 14001 Accreditation which is audited by the British Standards Institute, the group strive to enhance our standards at every opportunity and exceed the requirements placed upon it.

 

Accreditations

The group has been assessed and has achieved ISO 9001: 2015, ISO 45001: 2018 and ISO 14001: 2015 accreditations with a third party UKAS registered auditor and has developed detailed quality, environmental and health and safety management systems that, in the opinion of the directors, will continue to improve its internal and external processes. The group has also achieved the following accreditations and awards:

ADB CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 5 -

S.172 statement

The information provided below is intended to explain how the directors considered the group's key stakeholders and the broader matters set out in s.172 of the Companies Act 2006 when performing their duties to promote the success of the group.

 

Group culture

The group culture focuses on the importance of strong financial and operational risk management controls

and ensuring it complies with all applicable laws, regulations and ethical principles, locally and nationally.

 

The directors regularly assess and monitor the fulfilment of this culture at the operational level by analysing reports at various business levels ensuring improvements can be made where necessary.

 

By protecting the reputation and economic viability of the group, the directors believe that enhancing this culture is in the long-term benefit of the group and interests of its stakeholders.

 

Long Term Strategy

The group's long term strategy is to grow revenues and increase profits, this being done by providing high levels of service to our clients whilst managing financial, operational, regulatory and legal risks and increasing efficiency at all levels.

 

To achieve these objectives, the directors consider that it is essential to review both medium and long term strategies on a regular basis, as well as maintain good relationships with the group's clients, suppliers and staff to ensure the future goals are met.

Stakeholder relationships

The group's stakeholders are contractors, suppliers, staff and shareholders, the relationships with and interest of are upper most in the directors' minds when making decisions to promote the company.

 

The group works in both the residential and the commercial groundworks arenas. A majority of its clients are repeat business clients. Any new clients are thoroughly checked prior to engaging with them.

 

The group works very hard to maintain good lines of credit with all suppliers. Purchase Ledger is paid on time, if not in advance of the agreed terms. This results in the group obtaining preferential terms and supply.

 

Material shortage is a recent industry issue, which is affecting all within it. Consequently planning of works is even more critical and we are constantly reviewing alternatives.

 

With a buoyant market comes a need for recruitment. The group is fortunate in that a lot staff are time served and very loyal to the business. Senior management have good contacts and thus we are able to source staff as required

 

Staff are kept abreast of current business. Regular inter department meetings are held and these discussions are cascaded down. The group has a policy of promoting from within and foresee no reason for this not to continue.

ADB CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 6 -

Community and Environment

The group does whatever it can with its resources to promote better community relations and foster good environmental credentials.

 

All materials are sustainably resourced and many of the group's vehicles are hybrid.

 

The group has active involvement with a few local schools, hospitals and charities.

On behalf of the board

Mr P Helliar
Director
21 August 2024
ADB CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -

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

Principal activities

The principal activity of the parent company is that of a holding company.

 

The principal activity of the subsidiary is that of provision of civil engineering and groundwork contracting services.

Results and dividends

The results for the year are set out on page 13.

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

No preference dividends were paid.

Directors

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

Mr P Helliar
Mr S Hirst
ADB CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
Energy and carbon report

 

Greenhouse Gas Emissions Data

In line with the Greenhouse Gas Protocol (GHG Protocol) Corporate Accounting and Reporting Standard, the group continues to be engaged in a process aimed at reducing energy and greenhouse gas emissions.

 

The group maintains scopes one (1), two (2) and three (3) emissions, which include electricity and oil. The group also maintain transport emissions inclusive of group owned and operated vehicles, employee owned and operated vehicles (whereby mileage is claimed as a group expense).

 

The group devised a strategy to reduce overall carbon footprint significantly including:

 

- Encouraging employees to purchase renewable technology cars i.e., hybrid vehicles,

- Purchasing energy efficient equipment where appropriate in our office,

- Replacing HVAC systems with energy-efficient equipment where possible,

- Adopting behavioural change measures where possible.

 

The group has a longstanding commitment to tackling climate change. Calculated carbon footprint for the current fiscal year is 3,278.12 tCO2e, whilst energy consumption was 13,498,646.56 kWh (13,498.65 MWh).

 

Methodology

 

The group has reported all emission sources under the Companies Act 2006 (Strategic Report and Director’s Reports) Regulations 2013 as required. Reporting of calculated emissions is in line with the GHG Protocol Corporate Accounting and Reporting Standard and emission factors from the UK Government's GHG Conversion Factors for Company Reporting 2023.

 

The reporting period is the financial year 2022 / 2023, the same as that covered by the Annual Report and Financial Statements. The boundaries of the GHG inventory are defined using the operational control approach. In general, the emissions reported are the same as those which would be reported based on a financial control boundary.

 

2022 / 2023 Emissions

 

Scope 1 (group vehicles and diesel)        Tonnes CO2 equivalent (tCO2e)

                        3,232.85        (2022: 3,346.71)    

        

Scope 2 (electricity)                Tonnes CO2 equivalent (tCO2e)

                        23.71             (2022: 22.13)

 

Scope 3 (electricity T&D and employee vehicles)    Tonnes CO2 equivalent (tCO2e)

                        21.55             (2022: 43.47)

 

Total                        3,278.12 tCO2e         (2022: 3,412.3 tCO2e)

 

Emissions have decreased by 3.93% since our previous reporting period.

 

Scope 1, 2 and scope 3 carbon intensity        0.000061 (tCO2e/turnover) (2022: 0.000053)

 

The intensity metric is based on a total turnover figure of £54,027,767 (2022: £64,823,843).

Efficiency Measures Taken

 

  1. Purchase of hybrid vehicles for group cars

  2. Implementation of battery operated tools on site where possible

  3. Relinquishment of older plant facility with subsequent consumption decrease

ADB CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -

Objectives for 2023 / 2024

 

1. Lighting: Continue to evolve and install low energy lighting across our building portfolio

2. Continual review of existing office equipment and company policies

3. Preparation for the Energy Savings Opportunity Scheme (ESOS) phase 3 assessments

 

ADBCL will report on progress within the next set of financial accounts.

Statement of directors' responsibilities

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

 

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

Statement of disclosure to auditors

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 auditors of the company are 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 auditors of the company are aware of that information.

On behalf of the board
Mr P Helliar
Director
21 August 2024
ADB CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADB CONSTRUCTION LIMITED
- 10 -
Opinion

We have audited the financial statements of ADB Construction 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, the company 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:

ADB CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADB CONSTRUCTION LIMITED
- 11 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities including fraud

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

We assessed the susceptibility of the group and the parent company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by;

ADB CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADB CONSTRUCTION LIMITED
- 12 -

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

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identifying 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.

.........................................................................
21 August 2024
Nirav Sheth (Senior Statutory Auditor)
For and on behalf of Charterhouse (Audit) Limited
Statutory Auditor
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
ADB CONSTRUCTION LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
2023
2022
Notes
£
£
Turnover
3
54,027,767
64,823,843
Cost of sales
(46,797,658)
(56,986,538)
Gross profit
7,230,109
7,837,305
Administrative expenses
(8,621,644)
(9,477,750)
Other operating income
4,438
14,082
Operating loss
4
(1,387,097)
(1,626,363)
Interest receivable and similar income
8
34,882
14,936
Interest payable and similar expenses
9
(379,553)
(338,397)
Amounts written off investments
10
(50)
-
Fair value gains and losses on investment properties
14
(20,000)
(35,000)
Loss before taxation
(1,751,818)
(1,984,824)
Tax on loss
11
(216,544)
13,528
Loss for the financial year
(1,968,362)
(1,971,296)
Loss for the financial year is attributable to:
- Owner of the parent company
(1,525,481)
(1,527,754)
- Non-controlling interests
(442,881)
(443,542)
(1,968,362)
(1,971,296)
Earnings before interest, tax, depreciation, amortisation and pension (EBITDAP)
3,215,164
3,533,438

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

ADB CONSTRUCTION LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
2023
2022
£
£
Loss for the year
(1,968,362)
(1,971,296)
Other comprehensive income
-
-
Total comprehensive income for the year
(1,968,362)
(1,971,296)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(1,525,481)
(1,527,754)
- Non-controlling interests
(442,881)
(443,542)
(1,968,362)
(1,971,296)
ADB CONSTRUCTION LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 15 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
10,276,749
13,946,517
Tangible assets
13
1,366,771
1,722,006
Investment property
14
425,000
445,000
Investments
15
50
100
12,068,570
16,113,623
Current assets
Stocks
19
46,350
845,707
Debtors
20
10,023,076
11,906,197
Cash at bank and in hand
2,044,178
3,454,740
12,113,604
16,206,644
Creditors: amounts falling due within one year
21
(8,512,709)
(12,483,761)
Net current assets
3,600,895
3,722,883
Total assets less current liabilities
15,669,465
19,836,506
Creditors: amounts falling due after more than one year
22
(5,933,474)
(6,529,549)
Provisions for liabilities
Provisions
25
17,445,442
18,563,919
Deferred tax liability
26
108,304
146,911
(17,553,746)
(18,710,830)
Net liabilities
(7,817,755)
(5,403,873)
Capital and reserves
Called up share capital
28
1,458,373
1,570,213
Profit and loss reserves
(8,314,256)
(6,788,775)
Equity attributable to owner of the parent company
(6,855,883)
(5,218,562)
Non-controlling interests
(961,872)
(185,311)
(7,817,755)
(5,403,873)
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:
21 August 2024
Mr P Helliar
Director
Company registration number 10257653 (England and Wales)
ADB CONSTRUCTION LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 16 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
15,507,750
15,507,750
Current assets
Debtors
20
100
100
Cash at bank and in hand
13,837
14,891
13,937
14,991
Creditors: amounts falling due within one year
21
(6,735,969)
(5,889,537)
Net current liabilities
(6,722,032)
(5,874,546)
Total assets less current liabilities
8,785,718
9,633,204
Creditors: amounts falling due after more than one year
22
(5,718,750)
(6,225,000)
Net assets
3,066,968
3,408,204
Capital and reserves
Called up share capital
28
131
131
Profit and loss reserves
3,066,837
3,408,073
Total equity
3,066,968
3,408,204

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £341,236 (2022 - £326,896 loss).

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:
21 August 2024
Mr P Helliar
Director
Company registration number 10257653 (England and Wales)
ADB CONSTRUCTION LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 December 2021
1,666,910
(5,261,021)
(3,594,111)
511,807
(3,082,304)
Year ended 30 November 2022:
Loss and total comprehensive income for the year
-
(1,527,754)
(1,527,754)
(443,542)
(1,971,296)
Redemption of shares
28
(350,273)
-
(350,273)
-
(350,273)
Other movements
253,576
-
253,576
(253,576)
-
Balance at 30 November 2022
1,570,213
(6,788,775)
(5,218,562)
(185,311)
(5,403,873)
Year ended 30 November 2023:
Loss and total comprehensive income for the year
-
(1,525,481)
(1,525,481)
(442,881)
(1,968,362)
Redemption of shares
28
(445,520)
-
(445,520)
-
(445,520)
Other movements
333,680
-
333,680
(333,680)
-
Balance at 30 November 2023
1,458,373
(8,314,256)
(6,855,883)
(961,872)
(7,817,755)
ADB CONSTRUCTION LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 December 2021
131
3,734,969
3,735,100
Year ended 30 November 2022:
Loss and total comprehensive income for the year
-
(326,896)
(326,896)
Balance at 30 November 2022
131
3,408,073
3,408,204
Year ended 30 November 2023:
Profit and total comprehensive income
-
(341,236)
(341,236)
Balance at 30 November 2023
131
3,066,837
3,066,968
ADB CONSTRUCTION LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
134,934
2,798,815
Interest paid
(379,553)
(338,397)
Income taxes paid
(100,000)
(222,939)
Net cash (outflow)/inflow from operating activities
(344,619)
2,237,479
Investing activities
Purchase of tangible fixed assets
(34,689)
(22,954)
Proceeds from disposal of tangible fixed assets
35,511
41,000
Interest received
34,882
14,936
Net cash generated from investing activities
35,704
32,982
Financing activities
Redemption of shares
(445,520)
(350,273)
Repayment of borrowings
(506,250)
(362,500)
Payment of finance leases obligations
(149,877)
(129,880)
Net cash used in financing activities
(1,101,647)
(842,653)
Net (decrease)/increase in cash and cash equivalents
(1,410,562)
1,427,808
Cash and cash equivalents at beginning of year
3,454,740
2,026,932
Cash and cash equivalents at end of year
2,044,178
3,454,740
ADB CONSTRUCTION LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
839,885
697,694
Interest paid
(334,689)
(320,362)
Net cash inflow from operating activities
505,196
377,332
Financing activities
Repayment of borrowings
(506,250)
(362,500)
Net cash used in financing activities
(506,250)
(362,500)
Net (decrease)/increase in cash and cash equivalents
(1,054)
14,832
Cash and cash equivalents at beginning of year
14,891
59
Cash and cash equivalents at end of year
13,837
14,891
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
1
Accounting policies
Company information

ADB Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office and business address is Unit 4D, Nup End Business Centre, Old Knebworth, Hertfordshire, SG3 6QJ

 

The group consists of ADB Construction 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 investment properties at fair value. The principal accounting policies adopted are set out below.

The consolidated group financial statements consist of the financial statements of the parent company ADB Construction 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.

1.2
Going concern

The financial statements have been prepared on a going concern basis even though at the balance sheet date the group's liabilities exceeded its assets by £7,817,755 (2022: £5,403,873).

 

The director considers the going concern basis to be appropriate because, in their opinion, the group will continue to obtain sufficient funding from its shareholders to enable it to pay its debts as they fall due.

 

If the group was unable to continue to obtain sufficient funding to enable it to pay its debts as they fell due, it would be unable to continue trading and adjustments would have to be made reduce the value of assets to their realisable amount, to provide for any further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and liabilities.

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.3
Turnover and 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 costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

 

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 for 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.

 

Gross amounts due from contract customers, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of an incorporated business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

1.5
Tangible fixed assets

Tangible fixed assets are measured at cost, 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:

Short leasehold improvements
over the term of the lease
Plant and machinery
20% - 25% reducing balance
Fixtures, fittings & equipment
33% reducing balance
Motor vehicles
20% - 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 recognised in the profit and loss account.

1.6
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.

 

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.7
Fixed asset investments

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

Investments in associates are accounted for at cost less impairment.

1.8
Impairment of fixed assets

At each reporting end date, the group reviews the carrying amounts of its tangible and intangible 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).

1.9
Stocks

Stock and Work in progress is valued at the lower of cost and net realisable value. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work in progress is reflected in the accounts on a contract by contract basis and represents the unbilled direct and indirect costs incurred as at the year end. These typically arise where mid month valuations have occurred and a time apportioned estimate of the cost of measured work has been calculated. Net realisable value represents the value of the measured work carried out in a particular period, invoiced subsequent to the year end.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
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 measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets 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 recoverable amount. The impairment loss is recognised in profit or loss.

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 24 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, are 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 are not amortised.

 

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.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences. Such 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.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled. 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.

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

1.15
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 25 -
1.16
Retirement benefits

The group provides pension benefits for senior employees. Under the terms of the pension contracts entered into with the senior employees, fixed sums are provided for now in order to provide pension benefits to the individuals upon their retirement. The pension contracts allow for an annual increase in respect of indexation over and above the initial contracted amount.

Although under section 28 of FRS 102 this pension arrangement is regarded as being a defined benefit scheme, the director considers that it does not bear any of the hallmarks of a defined benefit scheme as the group’s contributions are fixed until the point of retirement at which point any further contributions of annual increases cease. Further information can be found in note 27 to the financial statements.

 

The group also provides pension benefits (defined contribution) in respect of senior employees. Amounts payable are charged to the profit and loss account in the year the contracts are entered into between the group and the employees.

1.17
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.

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.

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.

1.18

Preference shares

The Redeemable Preference shares are classified as equity in accordance with Section 22 (liabilities and equity) as they are redeemable at the option of the issuer and do not carry a right to a return.

1.19

Research and development

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the group is expected to benefit.

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
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.

Establishing useful economic lifes for amortisation purposes of intangible fixed assets

Intangible fixed assets consist of goodwill. The annual amortisation charge depends on the estimated useful economic life of the asset. The director regularly reviews the remaining useful life of the asset. Changes in asset useful economic life can have a significant impact on amortisation charge for the period. Detail of the useful economic life is included in accounting policies.

Establishing useful economic lives for depreciation purposes of tangible fixed assets

Tangible fixed assets, consisting primarily of plant and machinery, fixtures and fittings and motor vehicles. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimated residual values. The director regularly reviews these asset useful lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Detail of the useful economic lives is included in the accounting policies.

Long term contract provisions

The group is involved in the construction industry and are engaged in a number of long term contracts at the year end. As a result it is necessary to consider cost long term contracts and the associated provisions required. When calculating the long term contract provision, management considers the stage of completion and the estimated costs to completion. The level of provision required is reviewed on an on-going basis and has been disclosed in note 21.

Provision for doubtful debts

The group makes an estimate of the recoverable value of the trade and other debtors. The group uses estimates based on historical experience determining the level of debts, which the group believes, will not be collected. These estimates include such factors as the current credit rating of the debtor, the aging profile of the debtors and historical experience. Any significant reduction in the level of customers that default on payments or other significant improvements that resulted in a reduction in the level of bad debt provision would have a positive impact on the operating results. The level of provision required is reviewed on an on-going basis and has been disclosed in note 20.

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Civil engineering and groundwork services
54,027,767
64,823,843
2023
2022
£
£
Other significant revenue
Interest income
34,882
14,936
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging:
Depreciation of owned tangible fixed assets
267,990
315,312
Depreciation of tangible fixed assets held under finance leases
96,464
71,968
Loss on disposal of tangible fixed assets
18,809
13,204
Amortisation of intangible assets
3,669,768
3,669,768
Operating lease charges
142,880
133,482
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditors and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,500
6,500
Audit of the financial statements of the company's subsidiaries
25,000
25,000
31,500
31,500
For other services
Other taxation services
360
28,000
All other non-audit services
25,235
18,944
25,595
46,944
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
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
120
139
-
-
Administration
41
45
2
2
Total
161
184
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
8,733,505
10,011,598
-
0
-
0
Social security costs
208,086
260,981
-
-
Pension costs
881,611
1,419,563
-
0
-
0
9,891,775
11,769,168
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
78,725
124,395
Company pension contributions
104,867
158,989
183,592
283,384
The directors are considered to be the only key management personnel.
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
22,895
2,227
Other interest income
11,987
12,709
Total income
34,882
14,936
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
8
Interest receivable and similar income
(Continued)
- 29 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
22,895
2,227
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
14,829
10,606
Other interest
364,724
327,791
Total finance costs
379,553
338,397
10
Amounts written off investments
2023
2022
£
£
Amounts written off fixed asset investments
(50)
-
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
312,818
57,667
Adjustments in respect of prior periods
(57,667)
(218,106)
Total current tax
255,151
(160,439)
Deferred tax
Origination and reversal of timing differences
(38,607)
146,911
Total tax charge/(credit)
216,544
(13,528)
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
11
Taxation
(Continued)
- 30 -

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

2023
2022
£
£
Loss before taxation
(1,751,818)
(1,984,824)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
(403,093)
(377,117)
Tax effect of expenses that are not deductible in determining taxable profit
28,794
17,497
Adjustments in respect of prior years
(57,667)
(218,106)
Group relief
(184,267)
-
0
Capital allowances
(56,891)
(155,952)
Depreciation
83,861
73,583
Amortisation on assets not qualifying for tax allowances
844,414
697,256
Research and development tax credit
-
0
(197,600)
Deferred tax
(38,607)
146,911
Taxation charge/(credit)
216,544
(13,528)
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
36,697,676
Amortisation and impairment
At 1 December 2022
22,751,159
Amortisation charged for the year
3,669,768
At 30 November 2023
26,420,927
Carrying amount
At 30 November 2023
10,276,749
At 30 November 2022
13,946,517
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
13
Tangible fixed assets
Group
Short leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
1,617
4,286,330
311,712
249,560
4,849,219
Additions
-
0
3,300
31,389
28,850
63,539
Disposals
(807)
(140,762)
(6,587)
(16,500)
(164,656)
At 30 November 2023
810
4,148,868
336,514
261,910
4,748,102
Depreciation and impairment
At 1 December 2022
1,617
2,727,355
243,097
155,144
3,127,213
Depreciation charged in the year
-
0
308,859
31,822
23,773
364,454
Eliminated in respect of disposals
(807)
(99,204)
(5,942)
(4,383)
(110,336)
At 30 November 2023
810
2,937,010
268,977
174,534
3,381,331
Carrying amount
At 30 November 2023
-
0
1,211,858
67,537
87,376
1,366,771
At 30 November 2022
-
0
1,558,975
68,615
94,416
1,722,006
The company had no tangible fixed assets at 30 November 2023 or 30 November 2022.

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 machinery
283,974
371,942
-
0
-
0
Motor vehicles
87,376
94,416
-
0
-
0
371,350
466,358
-
-
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 December 2022 and 30 November 2023
445,000
-
Net gains or losses through fair value adjustments
(20,000)
-
At 30 November 2023
425,000
-

The investment property has been revalued, based on the directors' valuation, to reflect its open market value as at the balance sheet date. The valuation was made by reference to market evidence of transaction prices for similar properties.

The historical cost of the investment property is £515,000 (2022: £515,000).

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
15,507,750
15,507,750
Unlisted investments
50
100
-
0
-
0
50
100
15,507,750
15,507,750
Movements in fixed asset investments
Group
Investments other than loans
£
Cost or valuation
At 1 December 2022
100
Disposals
(50)
At 30 November 2023
50
Carrying amount
At 30 November 2023
50
At 30 November 2022
100
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
15
Fixed asset investments
(Continued)
- 33 -
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 December 2022 and 30 November 2023
15,507,750
Carrying amount
At 30 November 2023
15,507,750
At 30 November 2022
15,507,750
16
Subsidiaries

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

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
A D Bly Construction Limited
1
Provision of civil engineering and groundwork contracting services
Ordinary
77.50
-
AD Bly Groundworks & Civil Engineering Limited
1
Non-trading
Ordinary
-
77.50
1 - Unit 4d, Nup End Business Centre, Old Knebworth, Hertfordshire, SG3 6QJ
The aggregate capital and reserves and the profit for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
A D Bly Construction Limited
439,230
1,960,539
AD Bly Groundworks & Civil Engineering Limited
(336,588)
(1,784,259)
17
Associates

Details of associates at 30 November 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Maytrix Construction Limited
1
Development of building projects
Ordinary
-
38.75

1 - Building 18, Gateway 1000 Whittle Way, Arlington Business Park, Stevenage, Hertfordshire, SG1 2FP

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
18
Audit exemption of subsidiaries

For the financial year ended 30 November 2023, AD Bly Groundworks & Civil Engineering Limited has claimed exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

19
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
3,500
3,500
-
-
Work in progress
42,850
842,207
-
-
46,350
845,707
-
-
20
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,322,327
9,565,583
-
0
-
0
Gross amounts owed by contract customers
22,164
283,932
-
0
-
0
Other debtors
1,151,275
1,786,616
100
100
Prepayments and accrued income
527,310
270,066
-
0
-
0
10,023,076
11,906,197
100
100

The fair value of trade and other receivables approximate to their carrying amounts. Trade debtors are stated after provisions for impairments of £1,099,812 (2022: £1,883,601).

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 35 -
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
24
116,181
147,383
-
0
-
0
Payments received on account
1,289,949
2,114,033
-
0
-
0
Trade creditors
3,601,377
6,639,241
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
6,715,681
5,868,178
Corporation tax payable
1,508,320
57,667
-
0
-
0
Other taxation and social security
368,082
620,069
-
-
Other creditors
204,414
150,222
13,788
14,857
Accruals and deferred income
1,424,386
2,755,146
6,500
6,502
8,512,709
12,483,761
6,735,969
5,889,537

The fair value of trade and other payables approximates to their book value. Included within accruals and deferred income are costs accrued for long term contracts amounting to £387,156 (2022: £860,565).

22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
24
214,724
304,549
-
0
-
0
Other borrowings
23
5,718,750
6,225,000
5,718,750
6,225,000
5,933,474
6,529,549
5,718,750
6,225,000

The obligations under finance leases are secured against the assets to which they relate.

23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Loan notes
5,718,750
6,225,000
5,718,750
6,225,000
Payable after one year
5,718,750
6,225,000
5,718,750
6,225,000

£15,500,000 loan notes were issued on 9 September 2016 and interest is charged at 2.5% over base rate per annum.

 

During the period some of the loan notes were redeemed at par value. The loan notes have a redemption date of 1 December 2029 and are redeemable, at par value, at the earlier of the redemption date or at the option of the group on the occurrence of certain events every quarter.

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 36 -
24
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
129,136
162,311
-
0
-
0
In two to five years
239,152
338,577
-
0
-
0
368,288
500,888
-
-
Less: future finance charges
(37,383)
(48,956)
-
0
-
0
330,905
451,932
-
0
-
0

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

25
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Provision for losses on long term contracts
222,950
348,528
-
-
Retirement benefit obligations
27
17,222,492
18,215,391
-
-
17,445,442
18,563,919
-
-
Deferred tax liabilities
26
108,304
146,911
-
0
-
0
17,553,746
18,710,830
-
0
-
0

The group has entered into agreements and is contractually obliged to expend fixed sums in the future to provide retirement benefits to senior employees under the terms of their pension agreements.

Movements on provisions apart from deferred tax liabilities:
Provision for losses on long term contracts
Retirement benefit obligations
Total
Group
£
£
£
At 1 December 2022
348,528
18,215,391
18,563,919
Additional provisions in the year
-
568,039
568,039
Tax on provision
-
(1,295,502)
(1,295,502)
Utilisation of provision
-
(265,436)
(265,436)
Other movements
(125,578)
-
(125,578)
At 30 November 2023
222,950
17,222,492
17,445,442
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 37 -
26
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
108,304
146,911
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 December 2022
146,911
-
Credit to profit or loss
(38,607)
-
Liability at 30 November 2023
108,304
-
27
Retirement benefit schemes
2023
2022
Defined contribution and benefit schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
313,572
316,810
Charge to profit or loss in respect of defined benefit schemes
568,039
1,102,753

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The above pension charge includes an amount of £313,572 (2022: £316,810) in respect of defined contribution scheme paid by the group to the funds.

 

The group also provided pension benefits in respect of senior employees. Amounts payable are charged to the profit and loss account in the year the contracts are entered into between the group and the employees. The number of directors within the group to whom benefits are accruing under these pension agreements is 4 (2022: 4).

 

The contributions and potential liabilities of the group in respect of the pension agreements are fixed at least until the date of retirement of the employees which is over 3-26 years from the year end date.

Although under section 28 of FRS 102 this pension arrangement is regarded as being a defined benefit scheme, the directors are of the opinion that it does not bear any of the hallmarks of what is usually considered to be a defined benefit scheme and therefore no further disclosures are considered necessary in order to understand the nature and measurement of the liability.

The directors are also of the opinion that the liability as disclosed in the financial statements represents the full and final amount which could be expected, at this stage, to be paid in the future to settle the pension agreement liabilities.

ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 38 -
28
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,000
10,000
100
100
B Ordinary shares of 1p each
3,135
3,135
31
31
C Ordinary shares of 1p each
1
1
-
-
13,136
13,136
131
131
Group
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable preference shares of £1 each
3,128,493
3,574,013
3,128,493
3,574,013

Out of the preference share capital are 1,458,242 (2022: 1,570,082) Preference shares of £1 each relating to the ultimate controlling party and therefore are shown within the share capital being attributable to the owner of the parent company. The remaining 1,670,251 (2022: 2,003,931) Preference shares of £1 each are shown under non-controlling interest.

During the year 111,840 (2022: 96,697) Preference shares of £1 each relating to the ultimate controlling party and 333,680 (2022: 253,576) Preference shares of £1 each relating to non-controlling interests were redeemed at par value.

The Ordinary shares and B Ordinary shares rank pari passu and each carries full rights to receive notice of, attend and vote at general meetings.

 

The C Ordinary share does not carry voting rights.

29
Financial commitments, guarantees and contingent liabilities

There is an unlimited cross guarantee between the parent company and fellow group companies.

30
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
518,447
579,237
-
-
Between two and five years
363,449
391,074
-
-
881,896
970,311
-
-
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 39 -
31
Related party transactions

Group

 

Included in other debtors is a balance of £416,524 (2022: £456,477) due from the directors. The maximum balance outstanding during the year was £760,530 (2022: £716,097) and interest of £11,390 (2022: £10,009) has been charged on this balance at HMRC's official rate for beneficial loans. The loans are unsecured and repayable on demand. The year end loan balances are to be repaid in full by 31 August 2023.

 

During the year, rent amounting to £90,880 (2022: £86,181) was paid to the A D Bly Construction Limited Retirement Benefit Scheme. The scheme is established for the benefit of the directors of A D Bly Groundworks & Civil Engineering Limited.

 

Company

 

Included in creditors falling due within one year is an amount of £6,715,681 (2022: £5,868,178) owed to A D Bly Construction Limited, a subsidiary company.

32
Controlling party

The company is ultimately controlled by the director, Mr P Helliar.

The group is ultimately controlled by the director Mr P Helliar.

33
Cash generated from operations - company
2023
2022
£
£
Loss for the year after tax
(341,236)
(326,896)
Adjustments for:
Finance costs
334,689
320,362
Movements in working capital:
Increase in creditors
846,432
704,228
Cash generated from operations
839,885
697,694
ADB CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 40 -
34
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(1,968,362)
(1,971,296)
Adjustments for:
Taxation charged/(credited)
216,544
(13,528)
Finance costs
379,553
338,397
Investment income
(34,882)
(14,936)
Loss on disposal of tangible fixed assets
18,809
13,204
Fair value loss on investment properties
20,000
35,000
Amortisation and impairment of intangible assets
3,669,768
3,669,768
Depreciation and impairment of tangible fixed assets
364,454
387,280
Other gains and losses
50
-
(Decrease)/increase in provisions
(1,118,477)
666,435
Movements in working capital:
Decrease/(increase) in stocks
799,357
(138,237)
Decrease/(increase) in debtors
1,883,121
(1,592,376)
(Decrease)/increase in creditors
(4,095,001)
1,419,104
Cash generated from operations
134,934
2,798,815
35
Analysis of changes in net debt - group
1 December 2022
Cash flows
New finance leases
30 November 2023
£
£
£
£
Cash at bank and in hand
3,454,740
(1,410,562)
-
2,044,178
Borrowings excluding overdrafts
(6,225,000)
506,250
-
(5,718,750)
Obligations under finance leases
(451,932)
149,877
(28,850)
(330,905)
(3,222,192)
(754,435)
(28,850)
(4,005,477)
36
Analysis of changes in net debt - company
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
14,891
(1,054)
13,837
Borrowings excluding overdrafts
(6,225,000)
506,250
(5,718,750)
(6,210,109)
505,196
(5,704,913)
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