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REGISTERED NUMBER: 05763771 (England and Wales)

















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2024

for

H P Construction Limited

H P Construction Limited (Registered number: 05763771)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


H P Construction Limited

Company Information
for the Year Ended 31 March 2024







DIRECTORS: Mr D A Hutchison
Mr R W Powell
Mrs J Hutchison
Mrs S Powell





SECRETARIES: Mrs J Hutchison
Mrs S Powell





REGISTERED OFFICE: Unit 9, Hydra Business Park
Nether Lane
Ecclesfield
Sheffield
S35 9ZX





REGISTERED NUMBER: 05763771 (England and Wales)





AUDITORS: Sutton McGrath Hartley
5 Westbrook Court
Sharrowvale Road
Sheffield
South Yorkshire
S11 8YZ

H P Construction Limited (Registered number: 05763771)

Strategic Report
for the Year Ended 31 March 2024

The key financial performance indicators for the year has bee analysed as follows:

2024 2023 Variance Amount Variance Percentage
£    £    £    %
Turnover 5,703 13,927 -8,224 -59.05
Gross Profit 826 1,358 -532 -39.18
Profit Before Tax 390 789 -399 -50.57

The directors continue to review the profitability of the company's projects.

The directors monitor the business strategy through turnover, gross profit and profit before tax, and believe that the
company is successful in these areas.

REVIEW OF BUSINESS
The turnover this year has decreased 59.05% compared with the previous year. The gross profit margin has increased to 14.49% (2023: 9.76%). The expectation for the year ended 31 March 2025 is for the turnover and gross profit margin to remain stable.

There is continued demand within the industry and the company is well placed to take advantage of this by providing excellent levels of service to new and existing clients. The workforce continues to expand, and the company invests in its staff by providing training and development to ensure its high standards are met.

The company maintains a strong balance sheet position of £4.03m net assets, including £5.3m cash at bank (2023: £5.1m).


H P Construction Limited (Registered number: 05763771)

Strategic Report
for the Year Ended 31 March 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk of the company continues to be that of failure of the company's subcontractors either financially or through late or inadequate delivery of their work. The company continues to build excellent working relationships with its current subcontractors by working closely with them. The processes involved in selecting new subcontractors is continually monitored and reviewed to minimise any negative impact on the current levels of service provided to customers.

The company recognises the need for strong credit management in relation to its trade debtors. Credit risk is minimised by credit checks of new customers and regularly reviewing trade debtor balances to reduce the exposure to bad debts.

The company has a low risk and diversified investment portfolio, which is externally managed, and does not pose a significant risk to the going concern of the business. This portfolio is measured at fair value through profit and loss.

Detailed health and safety policies are in place to reduce the risk of injury due to the hazardous nature of the business.

2023 has been a year of various UK and Global events which has resulted in all businesses facing new risks and uncertainties, like that experienced during the covid pandemic. Rising costs for raw materials, energy supply and the UK cost of living crisis has resulted in a more cautious market demand. However, as we move further into 2024 and the rate of UK inflation continues to fall back to normal levels, we are experiencing a much more buoyant market as businesses look to expand and invest across the commercial property market within the UK.

We will continue to make that extra effort to maximise every potential opportunity we have in the market as the UK economy gets back on its feet. With this approach, we shall be able to keep our company profitable, stable and make necessary investments. All of which will provide our employees long term stability in employment.

ON BEHALF OF THE BOARD:





Mr D A Hutchison - Director


23 August 2024

H P Construction Limited (Registered number: 05763771)

Report of the Directors
for the Year Ended 31 March 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of general construction and civil engineering.

DIVIDENDS
An interim dividend of 36.44 per share was paid on 31 March 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2024 will be £ 328,000 .

All dividends are paid to directors.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

Mr D A Hutchison
Mr R W Powell
Mrs J Hutchison
Mrs S Powell

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-select suitable accounting policies and then apply them consistently;
-make judgements 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 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

H P Construction Limited (Registered number: 05763771)

Report of the Directors
for the Year Ended 31 March 2024


AUDITORS
The auditors, Sutton McGrath Hartley, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr D A Hutchison - Director


23 August 2024

Report of the Independent Auditors to the Members of
H P Construction Limited

Opinion
We have audited the financial statements of H P Construction Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
H P Construction Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
H P Construction Limited


Auditors' 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 a Report of the Auditors 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:

Our assessment of the susceptibility to material misstatement, whether by fraud or error, is made in a risk based approach.

In this approach, laws and regulations applicable to the entity, such as the Companies Act 2006, United
Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102, the relevant tax compliance regulations within the UK, employment law, and Health and Safety law is considered, and the policies and controls the entity has in place to comply with these laws are reviewed, by discussion, reviews of correspondence and registrations monitored by external bodies. The engagement team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Policies and controls relating to the risk of material misstatement as a result of fraud, management override of controls, and revenue recognitions are also considered. These are assessed by obtaining an understanding of the company's operations and control environment. The policies and controls have been reviewed by discussion, review and sample testing of accounting entries, including journals, challenging assumptions and judgements, reviewing and evaluating related parties transactions, and wider background searches. Testing of income recognition and cut off, in particular in relation to construction contracts is also completed.

We have ensured that the engagement team have appropriate levels of competence and experience to effectively monitor these risks and carry out work relevant to our assessment of each risk, including consideration of the industry the company operates in and its size and complexity.

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 Report of the Auditors.

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 a Report of the Auditors 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.




Jonathon Dickens FCA (Senior Statutory Auditor)
for and on behalf of Sutton McGrath Hartley
5 Westbrook Court
Sharrowvale Road
Sheffield
South Yorkshire
S11 8YZ

28 August 2024

H P Construction Limited (Registered number: 05763771)

Income Statement
for the Year Ended 31 March 2024

2024 2023
Notes £ £

TURNOVER 3 5,703,364 13,927,052

Cost of sales 4,876,938 12,568,224
GROSS PROFIT 826,426 1,358,828

Administrative expenses 548,811 638,651
277,615 720,177

Other operating income 35,026 40,661
OPERATING PROFIT 5 312,641 760,838

Interest receivable and similar income 77,856 28,491
PROFIT BEFORE TAXATION 390,497 789,329

Tax on profit 6 94,595 154,296
PROFIT FOR THE FINANCIAL YEAR 295,902 635,033

H P Construction Limited (Registered number: 05763771)

Other Comprehensive Income
for the Year Ended 31 March 2024

2024 2023
Notes £ £

PROFIT FOR THE YEAR 295,902 635,033


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

295,902

635,033

H P Construction Limited (Registered number: 05763771)

Balance Sheet
31 March 2024

2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible assets 8 179,392 111,596

CURRENT ASSETS
Debtors 9 1,517,979 1,455,441
Investments 10 533,020 506,793
Cash at bank 5,283,115 5,112,877
7,334,114 7,075,111
CREDITORS
Amounts falling due within one year 11 3,187,243 3,045,299
NET CURRENT ASSETS 4,146,871 4,029,812
TOTAL ASSETS LESS CURRENT LIABILITIES 4,326,263 4,141,408

CREDITORS
Amounts falling due after more than one year 12 (244,522 ) (52,884 )

PROVISIONS FOR LIABILITIES 13 (44,848 ) (19,533 )
NET ASSETS 4,036,893 4,068,991

CAPITAL AND RESERVES
Called up share capital 14 9,000 9,000
Retained earnings 4,027,893 4,059,991
SHAREHOLDERS' FUNDS 4,036,893 4,068,991

The financial statements were approved by the Board of Directors and authorised for issue on 23 August 2024 and were signed on its behalf by:





Mr D A Hutchison - Director


H P Construction Limited (Registered number: 05763771)

Statement of Changes in Equity
for the Year Ended 31 March 2024

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 April 2022 9,000 3,744,658 3,753,658

Changes in equity
Dividends - (319,700 ) (319,700 )
Total comprehensive income - 635,033 635,033
Balance at 31 March 2023 9,000 4,059,991 4,068,991

Changes in equity
Dividends - (328,000 ) (328,000 )
Total comprehensive income - 295,902 295,902
Balance at 31 March 2024 9,000 4,027,893 4,036,893

H P Construction Limited (Registered number: 05763771)

Cash Flow Statement
for the Year Ended 31 March 2024

2024 2023
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 683,873 153,746
Tax paid (162,311 ) (176,328 )
Net cash from operating activities 521,562 (22,582 )

Cash flows from investing activities
Purchase of tangible fixed assets (314,165 ) (8,373 )
Sale of tangible fixed assets 203,366 110,834
Interest received 77,856 28,491
Net cash from investing activities (32,943 ) 130,952

Cash flows from financing activities
Amount introduced by directors 328,000 319,700
Amount withdrawn by directors (318,381 ) (158,809 )
Equity dividends paid (328,000 ) (319,700 )
Net cash from financing activities (318,381 ) (158,809 )

Increase/(decrease) in cash and cash equivalents 170,238 (50,439 )
Cash and cash equivalents at beginning of
year

2

5,112,877

5,163,316

Cash and cash equivalents at end of year 2 5,283,115 5,112,877

H P Construction Limited (Registered number: 05763771)

Notes to the Cash Flow Statement
for the Year Ended 31 March 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2024 2023
£ £
Profit before taxation 390,497 789,329
Depreciation charges 107,022 123,088
Profit on disposal of fixed assets (64,020 ) (45,380 )
(Gain)/loss on revaluation of fixed assets (26,226 ) 35,106
Finance income (77,856 ) (28,491 )
329,417 873,652
(Increase)/decrease in trade and other debtors (62,538 ) 1,493,477
Increase/(decrease) in trade and other creditors 416,994 (2,213,383 )
Cash generated from operations 683,873 153,746

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31/3/24 1/4/23
£ £
Cash and cash equivalents 5,283,115 5,112,877
Year ended 31 March 2023
31/3/23 1/4/22
£ £
Cash and cash equivalents 5,112,877 5,163,316


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/23 Cash flow At 31/3/24
£ £ £
Net cash
Cash at bank 5,112,877 170,238 5,283,115
5,112,877 170,238 5,283,115

Liquid resources
Current asset investments 506,793 26,227 533,020
506,793 26,227 533,020
Total 5,619,670 196,465 5,816,135

H P Construction Limited (Registered number: 05763771)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

H P Construction Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 33% on cost
Fixtures and fittings - 33% on cost
Motor vehicles - 33% on cost
Computer equipment - 33% on cost

H P Construction Limited (Registered number: 05763771)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

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.

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

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.






H P Construction Limited (Registered number: 05763771)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued


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

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

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

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

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

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

H P Construction Limited (Registered number: 05763771)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

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

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

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

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£ £
Construction contracts 5,703,364 13,927,052
5,703,364 13,927,052

H P Construction Limited (Registered number: 05763771)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£ £
Wages and salaries 312,544 476,131
Social security costs 32,528 44,241
Other pension costs 244,613 169,526
589,685 689,898

The average number of employees during the year was as follows:
2024 2023

Directors 4 4
Operatives 4 5
Administration 1 1
9 10

2024 2023
£ £
Directors' remuneration 47,632 47,632
Directors' pension contributions to money purchase schemes 236,667 160,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 2

The directors consider themselves to be the key management personnel.

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£ £
Other operating leases 55,000 55,000
Depreciation - owned assets 107,023 123,088
Profit on disposal of fixed assets (64,020 ) (45,380 )
Auditors' remuneration 12,920 14,471

H P Construction Limited (Registered number: 05763771)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£ £
Current tax:
UK corporation tax 69,280 162,311

Deferred tax 25,315 (8,015 )
Tax on profit 94,595 154,296

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£ £
Profit before tax 390,497 789,329
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

97,624

149,973

Effects of:
Expenses not deductible for tax purposes - 112
Income not taxable for tax purposes (22,562 ) -
Capital allowances in excess of depreciation (9,668 ) -
Depreciation in excess of capital allowances - 12,226

Deferred Tax 25,315 (8,015 )
Chargeable Gain 3,886 -
Total tax charge 94,595 154,296

7. DIVIDENDS
2024 2023
£ £
Ordinary shares of £1 each
Interim 328,000 319,700

H P Construction Limited (Registered number: 05763771)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£ £ £ £ £
COST
At 1 April 2023 17,068 13,883 243,958 15,373 290,282
Additions 831 - 305,738 7,596 314,165
Disposals - - (257,267 ) (4,177 ) (261,444 )
At 31 March 2024 17,899 13,883 292,429 18,792 343,003
DEPRECIATION
At 1 April 2023 13,040 12,621 143,009 10,016 178,686
Charge for year 2,384 631 99,652 4,356 107,023
Eliminated on disposal - - (117,921 ) (4,177 ) (122,098 )
At 31 March 2024 15,424 13,252 124,740 10,195 163,611
NET BOOK VALUE
At 31 March 2024 2,475 631 167,689 8,597 179,392
At 31 March 2023 4,028 1,262 100,949 5,357 111,596

9. DEBTORS
2024 2023
£ £
Amounts falling due within one year:
Trade debtors 1,180,299 1,230,202
Amounts recoverable on contract 11,190 85,431
Other debtors 43,958 51,184
Prepayments 38,010 35,780
1,273,457 1,402,597

Amounts falling due after more than one year:
Trade debtors 244,522 52,844

Aggregate amounts 1,517,979 1,455,441

10. CURRENT ASSET INVESTMENTS
2024 2023
£ £
Listed investments 533,020 506,793
Market value of listed investments at 31 March 2024 - £ 533,020 (2023 - £ 506,793 ).

Included in the year are profits of £26,226 (2023: losses of £35,106) for the revaluation of the investments.

H P Construction Limited (Registered number: 05763771)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade creditors 106,865 69,905
Tax 69,280 162,311
Social security and other taxes 11,624 19,359
VAT 41,153 59,739
Other creditors 408,608 693,788
Directors' current accounts 211,245 201,626
Accrued expenses 2,338,468 1,838,571
3,187,243 3,045,299

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£ £
Other creditors 244,522 52,884

13. PROVISIONS FOR LIABILITIES
2024 2023
£ £
Deferred tax 44,848 19,533

Deferred tax
£
Balance at 1 April 2023 19,533
Provided during year 25,315
Balance at 31 March 2024 44,848

Deferred tax of £14,000 is expected to reverse in the next year as accelerated capital allowances reduce.

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
9,000 Ordinary £1 9,000 9,000

15. ULTIMATE CONTROLLING PARTY

The controlling party is the directors by virtue of their shareholdings.

There is no ultimate controlling party.