Company registration number 04642985 (England and Wales)
A D BLY CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
A D BLY CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
A B W McSkimming
M J Thompson
S A Hirst
P A Helliar
D C Jenkins
(Appointed 1 December 2023)
T A Sargent
(Appointed 1 December 2023)
K L McSkimming
(Appointed 1 December 2023)
Company number
04642985
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
A D BLY CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 9
Independent auditor's report
10 - 12
Profit and loss account
13
Statement of comprehensive income
14
Balance sheet
15
Statement of changes in equity
16
Statement of cash flows
17
Notes to the financial statements
18 - 34
A D BLY 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 principal activity of the company was that of provision of civil engineering and groundwork contracting services.

 

The company 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 company continues to serve its long established clients and is forging new relationships to respond to competitive market conditions.

 

Performance

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

 

Taxation risk

The company 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, the engagement of experienced executives and the use of experienced sector specific professional advisers to mitigate the impact of changes.

 

Competition

The company 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 company works closely with its clients in order to deliver services within budget and on time.

 

Financing risk

The company 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.

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

Financial instruments

The company'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 company's operations and to finance the company's operations. The company's approach to managing other risks applicable to the financial instruments concerned is as follows:

 

Liquidity risk

The company 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 company 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 company to concentrations of credit risk consist only of cash and trade debtors.

A D BLY 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 profit/(loss)

 

£685,806

£740,188

 

 

 

 

Earnings before interest, tax, depreciation,

amortisation and pension (EBITDAP)

£3,226,724

£3,544,972

 

 

 

 

EBITDAP percentage of sales

 

5.97%

5.47%

 

Gross Profit Margin

The company’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 Profit and EBITDAP percentage of sales

The directors' view variances of operating profit as a key performance indicator for the business and this is reviewed regularly. The ratio of operating profit to turnover has increased over the course of the year from 1.14% in 2022 to 1.27% 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 5.47% in 2022 to 5.97% in 2023, demonstrating that the business continues to be 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 profit 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 company a pension upon their retirement, also represents a significant difference between the operating profit 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 company'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.

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

Future developments

The company 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 gives the directors the basis to look to the future with confidence.

 

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

 

Safety, health and environmental policies

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

 

Health & Safety

The company 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 company 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 company is able to facilitate site teams with additional support. The company head office houses its own training software which is used to deliver a full range of courses through e-learning developed by the organisation and endorsed by institutions such as IOSH and ROSPA. The company 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 company 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 A D Bly's NEBOSH trained Health and Safety Advisors.

 

Environmental

As an organisation the company 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 company strives to enhance our standards at every opportunity and exceed the requirements placed upon it.

Accreditations

The company 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 company has also achieved the following accreditations and awards:

A D BLY 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 company'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 company.

 

Company culture

The company 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 company, the directors believe that enhancing this culture is in the long-term benefit of the company and interests of its stakeholders.

 

Long Term Strategy

The company'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 it is essential to review both medium and long term strategies on a regular basis, as well as maintain good relationships with the company's clients, suppliers and staff to ensure the future goals are met.

Stakeholder relationships

The company'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 company 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 company 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 company 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 company are 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 company has a policy of promoting from within and foresees no reason for this not to continue.

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

Community and Environment

The company 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 company's vehicles are hybrid.

 

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

On behalf of the board

A B W McSkimming
Director
21 August 2024
A D BLY 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 company continues to be that of provision 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 final dividend.

No preference dividends were paid.

Directors

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

A B W McSkimming
M J Thompson
S A Hirst
P A Helliar
D C Jenkins
(Appointed 1 December 2023)
T A Sargent
(Appointed 1 December 2023)
K L McSkimming
(Appointed 1 December 2023)
A D BLY CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
Energy and carbon report

 

Greenhouse Gas (GHG) Emissions

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

 

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

 

ADBCL 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.

 

ADBCL have 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

 

ADBCL have 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 (company 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 company cars

  2. Implementation of battery operated tools on site where possible

  3. Relinquishment of older plant facility with subsequent consumption decrease

A D BLY 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to 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 company’s auditors 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 company’s auditors are aware of that information.

On behalf of the board
A B W McSkimming
Director
21 August 2024
A D BLY CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A D BLY CONSTRUCTION LIMITED
- 10 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

A D BLY CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A D BLY CONSTRUCTION LIMITED
- 11 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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 company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by;

A D BLY CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A D BLY 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
A D BLY CONSTRUCTION LIMITED
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
(6,548,741)
(7,111,199)
Other operating income
4,438
14,082
Operating profit
4
685,806
740,188
Interest receivable and similar income
8
34,882
14,936
Interest payable and similar expenses
9
(44,864)
(18,035)
Amounts written off investments
10
(50)
-
Fair value losses on investment properties
14
(20,000)
(35,000)
Profit before taxation
655,774
702,089
Taxation
11
(216,544)
13,528
Profit for the financial year
439,230
715,617
Earnings before interest, tax, depreciation, amortisation and pension (EBITDAP)
3,226,724
3,544,972

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

A D BLY CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
2023
2022
£
£
Profit for the year
439,230
715,617
Other comprehensive income
-
-
Total comprehensive income for the year
439,230
715,617
A D BLY CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 15 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
5,820,000
7,760,000
Tangible assets
13
1,366,771
1,722,006
Investment property
14
425,000
445,000
Investments
15
10,050
10,100
7,621,821
9,937,106
Current assets
Stocks
18
46,350
845,707
Debtors
19
16,738,657
17,774,275
Cash at bank and in hand
2,030,341
3,439,849
18,815,348
22,059,831
Creditors: amounts falling due within one year
20
(7,191,917)
(12,457,400)
Net current assets
11,623,431
9,602,431
Total assets less current liabilities
19,245,252
19,539,537
Creditors: amounts falling due after more than one year
21
(10,460,524)
(10,820,798)
Provisions for liabilities
Provisions
23
6,715,885
6,604,999
Deferred tax liability
24
108,304
146,911
(6,824,189)
(6,751,910)
Net assets
1,960,539
1,966,829
Capital and reserves
Called up share capital
26
3,138,493
3,584,013
Profit and loss reserves
(1,177,954)
(1,617,184)
Total equity
1,960,539
1,966,829
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:
A B W McSkimming
P A Helliar
Director
Director
Company registration number 04642985 (England and Wales)
A D BLY CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
3,934,286
(2,332,801)
1,601,485
Year ended 30 November 2022:
Profit and total comprehensive income
-
715,617
715,617
Redemption of shares
26
(350,273)
-
0
(350,273)
Balance at 30 November 2022
3,584,013
(1,617,184)
1,966,829
Year ended 30 November 2023:
Profit and total comprehensive income
-
439,230
439,230
Redemption of shares
26
(445,520)
-
0
(445,520)
Balance at 30 November 2023
3,138,493
(1,177,954)
1,960,539
A D BLY CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(704,951)
2,101,121
Interest paid
(44,864)
(18,035)
Income taxes paid
(100,000)
(222,939)
Net cash (outflow)/inflow from operating activities
(849,815)
1,860,147
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)
Payment of finance leases obligations
(149,877)
(129,880)
Net cash used in financing activities
(595,397)
(480,153)
Net (decrease)/increase in cash and cash equivalents
(1,409,508)
1,412,976
Cash and cash equivalents at beginning of year
3,439,849
2,026,873
Cash and cash equivalents at end of year
2,030,341
3,439,849
A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
1
Accounting policies
Company information

A D Bly 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.

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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

A D Bly Construction Limited is a subsidiary of ADB Construction Limited and the results of A D Bly Construction Limited are included in the consolidated financial statements of ADB Construction Limited which are available from Unit 4D, Nup End Business Centre, Old Knebworth, Hertfordshire, SG3 6QJ.

1.2
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.

1.3
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of 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.

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.4
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:

Land and buildings Leasehold
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 credited or charged to profit or loss.

1.5
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.

1.6
Fixed asset investments

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

1.7
Impairment of fixed assets

At each reporting period end date, the company 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).

1.8
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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

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

 

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

 

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

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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, 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 recoverable amount. The impairment loss is recognised in profit or loss.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.11
Equity instruments

Equity instruments issued by the company 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 company.

1.12
Taxation

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

Current tax

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

Deferred tax

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

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.13
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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

The company 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 directors consider that it does not bear any of the hallmarks of a defined benefit scheme as the company’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 25 to the financial statements.

The company 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 company and the employees.

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 the profit and loss account so as to produce a constant periodic rate of interest over the term of the lease.

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 leases asset are consumed.

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.17

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.

1.18

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 company is expected to benefit.

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

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

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 directors regularly review 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 consists 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 directors regularly review 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 company is involved in the construction industry and is engaged in a number of long term contracts at the year end. As a result it is necessary to consider the cost of 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 20.

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Provision for doubtful debts

The company makes an estimate of the recoverable value of the trade and other debtors. The company uses estimates based on historical experience to determine the level of debts which the company 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 is disclosed in note 19.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Civil engineering and groundwork services
54,027,767
64,823,843
2023
2022
£
£
Other revenue
Interest income
34,882
14,936
4
Operating profit
2023
2022
Operating profit 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
1,940,000
1,940,000
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 company
25,000
25,000
For other services
Other taxation services
360
28,000
All other non-audit services
25,235
18,944
25,595
46,944
A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
6
Employees

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

2023
2022
Number
Number
Production
120
139
Administration
41
45
Total
161
184

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
8,733,505
10,011,598
Social security costs
208,086
260,981
Pension costs
550,036
794,314
9,560,200
11,143,919
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
129,765
163,448
Company pension contributions to defined contribution schemes
51,950
20,500
Company pension contributions to defined benefit schemes
125,674
249,033
307,389
432,981

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022: 4).

Directors are also considered to be the only key management personnel.

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
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

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
30,035
7,429
44,864
18,035
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)
A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
11
Taxation
(Continued)
- 26 -

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
655,774
702,089
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
150,894
133,397
Tax effect of expenses that are not deductible in determining taxable profit
28,795
17,497
Adjustments in respect of prior years
(57,667)
(218,106)
Group relief
(340,235)
(181,858)
Capital allowances
(56,891)
(155,952)
Depreciation
83,861
73,583
Amortisation on assets not qualifying for tax allowances
446,394
368,600
Research and development tax credit
-
0
(197,600)
Deferred tax
(38,607)
146,911
Taxation charge/(credit) for the year
216,544
(13,528)
12
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
19,400,000
Amortisation and impairment
At 1 December 2022
11,640,000
Amortisation charged for the year
1,940,000
At 30 November 2023
13,580,000
Carrying amount
At 30 November 2023
5,820,000
At 30 November 2022
7,760,000
A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
13
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
807
4,001,185
266,482
183,803
4,452,277
Additions
-
0
3,300
31,389
28,850
63,539
Disposals
(807)
(140,762)
(6,587)
(16,500)
(164,656)
At 30 November 2023
-
0
3,863,723
291,284
196,153
4,351,160
Depreciation and impairment
At 1 December 2022
807
2,442,210
197,867
89,387
2,730,271
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
-
0
2,651,865
223,747
108,777
2,984,389
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 net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
283,974
371,942
Motor vehicles
87,376
94,416
371,350
466,358
14
Investment property
2023
£
Fair value
At 1 December 2022
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).

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
15
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
16
10,000
10,000
Unlisted investments
50
100
10,050
10,100
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 December 2022
10,000
100
10,100
Disposals
-
(50)
(50)
At 30 November 2023
10,000
50
10,050
Carrying amount
At 30 November 2023
10,000
50
10,050
At 30 November 2022
10,000
100
10,100
16
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
AD Bly Groundworks & Civil Engineering Limited
1
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
- Unit 4d, Nup End Business Centre, Old Knebworth, Hertfordshire, SG3 6QJ
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
AD Bly Groundworks & Civil Engineering Limited
(1,784,259)
(336,588)
A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
17
Associates

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Maytrix Construction Limited
1
Ordinary
50.00

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

18
Stocks
2023
2022
£
£
Raw materials and consumables
3,500
3,500
Work in progress
42,850
842,207
46,350
845,707
19
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
8,322,327
9,565,583
Gross amounts owed by contract customers
22,164
283,932
Amounts owed by group undertakings
6,715,681
5,868,178
Other debtors
1,151,175
1,786,516
Prepayments and accrued income
527,310
270,066
16,738,657
17,774,275

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).

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
20
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
22
116,181
147,383
Payments received on account
1,289,949
2,114,033
Trade creditors
3,601,377
6,639,241
Corporation tax
212,818
57,667
Other taxation and social security
368,082
620,069
Other creditors
190,626
135,365
Accruals and deferred income
1,412,884
2,743,642
7,191,917
12,457,400

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).

21
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
22
214,724
304,549
Amounts owed to group undertakings
10,245,800
10,516,249
10,460,524
10,820,798

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

22
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
129,136
162,311
In two to five years
239,152
338,577
368,288
500,888
Less: future finance charges
(37,383)
(48,956)
330,905
451,932

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

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
23
Provisions for liabilities
2023
2022
Notes
£
£
Provision for losses on long term contracts
222,950
348,528
Retirement benefit obligations
25
6,492,935
6,256,471
6,715,885
6,604,999
Deferred tax liabilities
24
108,304
146,911
6,824,189
6,751,910

The company 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
£
£
£
At 1 December 2022
348,528
6,256,471
6,604,999
Additional provisions in the year
-
236,464
236,464
Reduction in the year
(125,578)
-
(125,578)
At 30 November 2023
222,950
6,492,935
6,715,885
24
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
108,304
146,911
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
A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
25
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
236,464
477,504

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

 

The company 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 company and the employees. The number of directors to whom benefits are accruing under these pension agreements is 4 (2022: 4).

 

The contributions and potential liabilities of the company 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.

26
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
7,750
7,750
7,750
7,750
Ordinary X Shares of £1 each
2,250
2,250
2,250
2,250
10,000
10,000
10,000
10,000
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
Preference shares classified as equity
3,128,493
3,574,013
Total equity share capital
3,138,493
3,584,013
A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
26
Share capital
(Continued)
- 33 -

The Ordinary A Shares and Ordinary X Shares have attached to them full voting rights and rank pari passu. Refer to Companies House for full details of the rights attached to each class of share.

During the year the company redeemed 445,520 (2022: 350,273) Redeemable Preference shares of £1 each.

27
Financial commitments, guarantees and contingent liabilities

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

28
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
518,447
579,237
Between two and five years
363,449
391,074
881,896
970,311
29
Related party transactions

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 2024.

 

Included in debtors falling due within one year is an amount of £6,715,681 (2022: £5,868,178) owed from the parent company, ADB Construction Limited.

 

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.

30
Ultimate controlling party

The company's ultimate parent company is ADB Construction Limited, whose registered office is Unit 4D, Nup End Business Centre, Old Knebworth, Hertfordshire, SG3 6QJ.

The ultimate controlling party is Mr P Helliar.

A D BLY CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
31
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
439,230
715,617
Adjustments for:
Taxation charged/(credited)
216,544
(13,528)
Finance costs
44,864
18,035
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
1,940,000
1,940,000
Depreciation and impairment of tangible fixed assets
364,454
387,280
Other gains and losses
50
-
Increase in provisions
110,886
365,665
Movements in working capital:
Decrease/(increase) in stocks
799,357
(138,237)
Decrease/(increase) in debtors
1,035,618
(2,281,749)
(Decrease)/increase in creditors
(5,659,881)
1,074,770
Cash (absorbed by)/generated from operations
(704,951)
2,101,121
32
Analysis of changes in net funds
1 December 2022
Cash flows
New finance leases
30 November 2023
£
£
£
£
Cash at bank and in hand
3,439,849
(1,409,508)
-
2,030,341
Obligations under finance leases
(451,932)
149,877
(28,850)
(330,905)
2,987,917
(1,259,631)
(28,850)
1,699,436
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