Registered number:
FOR THE PERIOD ENDED 30 JUNE 2023
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CORLEY + WOOLLEY LIMITED
COMPANY INFORMATION
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CORLEY + WOOLLEY LIMITED
CONTENTS
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CORLEY + WOOLLEY LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
We present our Strategic Report with the Financial Statements of the company for the period ended 30 June 2023.
The principal activity of the company continues to be that of a main contractor specialising in interior fit-out and refurbishment projects in the commercial office and hospitality sectors. We operate predominantly in the London and M25 corridor market. The differentiators we set out to achieve as a business is our attention to detail in every facet of what we do, being extremely passionate about our client’s business as well as our own, personalised Director/Owner involvement from Pre-Construction through to Practical Completion, and our Aftercare services thus ensuring our belief in a ‘Client for Life’ philosophy.
The years 2022 and 2023 saw a whole range of unforeseeable challenges that had a significant impact on the business and the wider construction industry. Whilst it is evident to all involved that there has been large price rises in the cost of materials along with interest rate rises, labour shortages, energy and the long term effects of COVID-19, this has been exacerbated by the regular failure of the supply chain, and the lack of support from Developer Clients who expect contractors to absorb all variables that occurred in the marketplace, thereby draining the business of a significant proportion of its working capital. We suffered from these issues on two projects which has caused the business to make substantial provision for foreseeable losses within this reporting period, as dictated by accounting rules. We have a significant P.I. claim being submitted which has the opportunity to improve the cash position of the company but will not be concluded until late 2024. As a result of this the company was forced to enter into a CVA on 10 July 2024, to protect itself from aggressive creditors. Moving forward the directors have put additional safeguards and procedures in place to protect the company from similar issues in future projects. Despite this, we remain positive about both our industry and our business and we will focus on completing all works and retention collections to provide the business with the strongest base for the future.
The results for the period show an operating loss of £3,240,372 (Dec 2021 - profit £574,071) and a pre-tax loss of £3,211,833 (Dec 2021 - profit £574,936).
The Directors chose to change the reporting period from 12 to 18 months, thus showing an increase in turnover for 2022 / 2023 to £68.5 million.
The key business risks and uncertainties that face the company are related to the management of the CVA process and ultimately the successful conclusion of the P.I. claim that it is pursuing.
The market remains volatile with both competitor and supply chain failures, which brings uncertainty to Clients and investors alike. The Board will continue to monitor the financial performance of the company as well as applying appropriate Health & Safety expertise. The Directors of Corley + Woolley Limited continue to remain committed and in control of the business and it remains a live company for future work.
Page 1
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CORLEY + WOOLLEY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
The gross profit of the company for the current period is 0.2% compared to 7.4% for the year ended 31 December 2021. The current ratio has reduced to 1.20:1 (Dec 2021 - 1.58:1).
This report was approved by the board on 23 August 2024 and signed on its behalf.
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CORLEY + WOOLLEY LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
The directors present their report and the financial statements for the period ended 30 June 2023.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to 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.
The loss for the period, after taxation, amounted to £2,500,643 (Dec 2021 - profit £460,576).
During the year dividends were paid totalling £532,940 (Dec 2021 - £349,960). The directors do not recommend the payment of a further dividend.
The directors who served during the period were:
The directors are not aware of any future developments which would have a significant effect on the company.
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CORLEY + WOOLLEY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
The company entered into a Company Voluntary Arrangement (CVA) on the 10 July 2024, due to the losses incurred on contracts, which can be further explained on note 1.2.
Under section 487(2) of the Companies Act 2006, Clay Ratnage Daffin & Co Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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CORLEY + WOOLLEY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORLEY + WOOLLEY LIMITED
We have audited the financial statements of Corley + Woolley Limited (the 'company') for the period ended 30 June 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
We draw attention to note 1.2 in the financial statements, which indicates that the value and timing of a significant P.I. claim is as yet to be determined. As stated in note 1.2, these events or conditions, along with the other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included review of the Company Voluntary Arrangement agreed 10 July 2024, cash flow forecasts prepared and the estimates and assumptions in relation to the P.I. claim.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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CORLEY + WOOLLEY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORLEY + WOOLLEY LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of 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.
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CORLEY + WOOLLEY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORLEY + WOOLLEY LIMITED (CONTINUED)
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
• Obtaining an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. • Obtained an understanding of how the company is complying with those legal and regulatory frameworks by making enquiries to the management of the company’s accounting department, and management itself. • The susceptibility of the company’s financial statements to material misstatement caused by fraud or other irregularities were assessed with the following procedures: o Identifying and assessing the design effectiveness of controls which management have in place to prevent and detect fraud o Understanding how those charged with governance considered and addressed the potential for override of controls and management biases o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations o Assessing the extent of compliance with the relevant laws and regulations o Assessing the extent to which pressures existed which may have increased the risk of fraudulent revenue recognition Potential fraud risks that had been identified throughout the planning and commencement of the audit were communicated to the audit team. The inherent limitations of audit present an unavoidable risk that we, the auditors, may not have detected some material misstatements within the financial statements despite proper planning and performance of our duties as auditors. Equally, there remains a risk of the non-detection of fraud which could involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. The audit procedures carried out are designed to detect material misstatements within the financial statements, and as such we take no responsibility for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
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CORLEY + WOOLLEY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CORLEY + WOOLLEY LIMITED (CONTINUED)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
for and on behalf of
Chartered Accountants & Statutory Auditors
Suite D, The Business Centre
Faringdon Avenue
Essex
RM3 8EN
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CORLEY + WOOLLEY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2023
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CORLEY + WOOLLEY LIMITED
REGISTERED NUMBER: 08276510
BALANCE SHEET
AS AT 30 JUNE 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 14 to 27 form part of these financial statements.
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CORLEY + WOOLLEY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2023
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2021
Page 11
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CORLEY + WOOLLEY LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2023
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CORLEY + WOOLLEY LIMITED
ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 30 JUNE 2023
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
1.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The figures in the financial statements have been rounded to the nearest £1.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has reported a loss before tax of £3.21m in the 18 month period ended 30 June 2023. This loss includes provision for total estimated losses on two contracts which have been recognised as an expense in the period, as required by FRS 102. The losses on these contracts along with price rises, labour shortages and the long-term effects of COVID-19 seen industry-wide, caused a significant disruption to working capital. This led to the company entering into a Company Voluntary Arrangement (CVA) on 10 July 2024 and the company has a P.I. claim of some £8.8m being submitted in relation to the losses incurred.
In arriving at their conclusion on going concern, the directors have given due consideration to whether the funding and liquidity resources available are sufficient to accommodate the principal risks and uncertainties faced by the Company, as noted above. The directors have prepared cash flow forecasts based on reasonable assumptions and the directors’ best estimates of the timing of income from contracts and the P.I. claim but the element relating to the P.I. claim is as yet to be determined. This therefore provides a material uncertainty related to events or conditions that would impact upon the company’s ability to continue as a going concern and realise its assets and discharge its liabilities in the normal course of business. At the time of approving the financial statements, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for a period of 12 months from the approval of the financial statements.
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
1.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using an appropriate basis.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
1.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
1.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Defined benefit pension plan
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
1.Accounting policies (continued)
Corley + Woolley Limited is a private company limited by shares, incorporated in England, United Kingdom. The address of the registered office is Suite D, The Business Centre, Faringdon Avenue, Romford, Essex RM3 8EN. The company's principal place of business is 99 Bishopsgate, London, EC2M 3XD.
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
Page 19
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
Page 20
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
Page 21
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
The company has tax losses of some £3,031,000 carried forward for offset against future trading profits.
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
Page 25
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
Share premium account
Capital redemption reserve
Profit and loss account
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £142,296 (Dec 2021 - £114,214). Contributions totalling £30,927 (Dec 2021 - £18,726) were payable to the fund at the reporting date.
The company also operated a defined benefit small self-administered scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company for a specific pension and amounted to £Nil (2021 - £200,000).
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CORLEY + WOOLLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
Page 27
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