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Company registration number: NI001808
FELIX O'HARE & COMPANY LIMITED
Financial statements
31 March 2024
FELIX O'HARE & COMPANY LIMITED
Contents
Directors and other information
Strategic report
Directors' report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
FELIX O'HARE & COMPANY LIMITED
Directors and other information
Directors D Gill
M Campbell
C Quinn (Resigned 31 December 2023)
Gerard Brooks (Appointed 6 April 2024)
Secretary Roberta Truesdale
Company number NI001808
Registered office 88 Chancellors Road
Newry
Business address 88 Chancellors Road
Newry
Auditor Shriver Price & Co.
49 Downshire Road
Newry
Co. Down
BT34 1BA
Bankers AIB (NI)
Hill Street
Newry
FELIX O'HARE & COMPANY LIMITED
Strategic report
Year ended 31 March 2024
Principal activities
The principal activities of the company are building and contracting.
Business review and results
The business has returned to profitability which has been partly attributed to a slowdown in cost pressures and new work secured which include inflationary cost mechanisms.
Principal risks and uncertainties
The company is positive about the future, however geopolitical events may impact the supply chain. Currency risk remains a threat but the company endeavours to match currency denomination of revenue and expenditure where possible.
Future Developments
The company has a healthy order book of tendered and negotiated work.
Statement by the directors in performance of their statutory duties in accordance with s172(1)
The Board of Directors, in line with their duties under s172(1) (a-f) of the Companies Act 2006, act in a way they consider, in good faith, will be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard to a range of matters when making decisions taken during the year ended 31 March 2024. Key decisions and matters that are of strategic importance to the company are appropriately informed by s172 factors. Through an open and regular dialogue on an ongoing basis with the company's key stakeholders, the Board maintains a clear understanding of their needs, assesses their perspective and monitors their impact on the company's strategic ambition, culture and their future plans.
As part of the Board's decision-making process, the Board considers the potential impact of decisions on relevant stakeholders, including its financiers and creditors, business partners and customers, whilst also having regard to several wider factors, including the impact of the company's operations on the community and environment. The directors seek to promote a culture of environmental sustainability within the business, through responsible business practices focused on an energy efficient approach.
Management policies seek to ensure that both the career development of employees and recruitment are determined solely on merit and aptitude regardless of age, sex, ethnic origin, religious belief or disability. Consultation with employees or their representatives has continued at, all levels, with the aim of ensuring that their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance of the company as a whole.
This report was approved by the board of directors on 22 August 2024 and signed on behalf of the board by:
D Gill
Director
FELIX O'HARE & COMPANY LIMITED
Directors' report
Year ended 31 March 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024.
Directors
The directors who served the company during the year were as follows:
D Gill
M Campbell
C Quinn (Resigned 31 December 2023)
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The directors consider the state of the company's affairs to be satisfactory having returned to profitability and are positive about future works secured.
Greenhouse gas emissions and energy consumption
Unit 2024 2023
Emissions resulting from activities for which the company is responsible tCO2e 1,224 599
Emissions resulting from the purchase of electricity by the company
for its own use tCO2e 64 59
_______ _______
Total emissions tCO2e 1,288 658
Total energy consumed kWh 5,300,380 2,816,717
Tonnes CO2e per £1million turnover TCO2e/£1m turnover 2.01 1.26
_______ _______
Methodologies for energy and emissions calculations
The methodology followed to collate the data contained within this report aligns with the requirements of the World Business Council for Sustainable Development (WBCSD) and World Resource Institute's (WRI) GHG Protocol Corporate Accounting and Reporting Standard for Scope 1-3 emissions. The raw data is extracted from utility bills and invoices and collated on ESG software SustainIQ. The carbon conversion factors have been obtained from the UK Government's annual conversion factor publication and relate to the correct year of data collection.
Principal measures taken to increase energy efficiency
The company operate an IMS to ISO 14001:2015. The company conducted an energy audit in 2023 on all energy consuming operations across the business and implemented an Energy Efficiency policy aligned with the principles of ISO 50001 based on these findings. The company prioritises the use of locally sourced products with demonstrated life cycle through Environmental Produce Declarations.
LED lighting and other energy efficient equipment upgrades have been installed in head office, workshop and site offices. The company has a phased workshop LEV system upgrade planned as a result of 2023 energy audit findings beginning Q3 2024. The company has submitted an application to NIE for installation of Solar PV panels at head office/joinery workshop which should provide approximately 25% of electricity demand, with plans for future expansion.
The company has deployed battery energy storage (BESS) on site to reduce diesel consumption from generators and continues to actively work to reduce the need for diesel generators on site through effective programme management and efficient site layout. The company utilises hired manual and/or electric plant and machinery where feasible on site to avoid diesel powered alternative. An Anti-Idling policy is enforced across site operations and plant operators are being trained on efficient machine handling. The company implements a Green Travel Policy to provide suitable cycle/scooter parking on all sites to facilitate active travel. The company's vehicle fleet is being upgraded to hybrid/EV in a phased upgrade scheme. To limit travel by company vehicles, meetings are conducted remotely via MS Teams where feasible.
Additional information
The company achieved Platinum in the Northern Ireland Environmental Benchmarking Survey November 2023 for commitment to environmental management and performance improvement.
Financial instruments
Basic financial instruments are recognised at amortised cost.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 22 August 2024 and signed on behalf of the board by:
D Gill
Director
FELIX O'HARE & COMPANY LIMITED
Independent auditor's report to the members of
Felix O'Hare & Company Limited
Year ended 31 March 2024
Opinion
We have audited the financial statements of Felix O'Hare & Company Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and 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 FRS 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 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report has been prepared in accordance with applicable legal requirements.
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 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 the 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 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. 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: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to data protection, UK tax legislation and health and safety, and we considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates or significant judgements. Audit procedures performed by the engagement team included: - Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; - Evaluating and, where appropriate, challenging assumptions and judgements made by management in making significant accounting estimates. There are inherent limitations in the audit procedures described above. We are less likely to become aware of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 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 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 auditors 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.
Gary Price FCA (Senior Statutory Auditor)
For and on behalf of
Shriver Price & Co.
Chartered Accountants and Statutory Auditors
49 Downshire Road
Newry
Co. Down
BT34 1BA
22 August 2024
FELIX O'HARE & COMPANY LIMITED
Statement of comprehensive income
Year ended 31 March 2024
2024 2023
Note £ £
Turnover 5 64,782,408 53,713,555
Cost of sales ( 61,414,470) ( 50,997,249)
__________ __________
Gross profit 3,367,938 2,716,306
Administrative expenses ( 2,788,382) ( 2,739,858)
Other operating income 6 - 536
__________ __________
Operating profit/(loss) 7 579,556 ( 23,016)
Other interest receivable and similar income 10 47,678 24,070
__________ __________
Profit before taxation 627,234 1,054
Tax on profit 11 ( 233,460) 272,537
__________ __________
Profit for the financial year 393,774 273,591
__________ __________
Foreign currency retranslation - 26,676
__________ __________
Total comprehensive income for the year 393,774 300,267
__________ __________
All the activities of the company are from continuing operations.
FELIX O'HARE & COMPANY LIMITED
Statement of financial position
31 March 2024
2024 2023
Note £ £ £ £
Fixed assets
Tangible assets 13 3,523,777 3,372,071
Investments 14 89 89
__________ __________
3,523,866 3,372,160
Current assets
Stocks 15 8,596,735 7,349,237
Debtors 16 3,274,903 1,633,059
Cash at bank and in hand 7,114,994 7,358,665
__________ __________
18,986,632 16,340,961
Creditors: amounts falling due
within one year 17 ( 14,274,816) ( 11,984,385)
__________ __________
Net current assets 4,711,816 4,356,576
__________ __________
Total assets less current liabilities 8,235,682 7,728,736
Provisions for liabilities 18 ( 409,747) ( 177,750)
__________ __________
Net assets 7,825,935 7,550,986
__________ __________
Capital and reserves
Called up share capital 21 4,892 3,718
Revaluation reserve 792,575 799,599
Capital redemption reserve 138,282 138,282
Foreign currency retranslation reserve 135,677 135,677
Profit and loss account 6,754,509 6,473,710
__________ __________
Shareholders funds 7,825,935 7,550,986
__________ __________
These financial statements were approved by the board of directors and authorised for issue on 22 August 2024 , and are signed on behalf of the board by:
D Gill M Campbell
Director Director
Company registration number: NI001808
FELIX O'HARE & COMPANY LIMITED
Statement of changes in equity
Year ended 31 March 2024
Called up share capital Revaluation reserve Capital redemption reserve Foreign currency retranslation reserve Profit and loss account Total
£ £ £ £ £ £
At 1 April 2022 3,718 806,623 138,282 109,001 6,193,095 7,250,719
Profit for the year 273,591 273,591
Other comprehensive income for the year:
Foreign currency retranslation - 26,676 - 26,676
Reclassification from revaluation reserve to profit and loss account ( 7,024) 7,024 -
_______ _______ _______ _______ _________ _________
Total comprehensive income for the year - ( 7,024) - 26,676 280,615 300,267
_______ _______ _______ _______ _________ _________
At 31 March 2023 and 1 April 2023 3,718 799,599 138,282 135,677 6,473,711 7,550,987
Profit for the year 393,774 393,774
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account ( 7,024) 7,024 -
_______ _______ _______ _______ _________ _________
Total comprehensive income for the year - ( 7,024) - - 400,798 393,774
Issue of shares 1,174 1,174
Dividends paid and payable ( 120,000) ( 120,000)
_______ _______ _______ _______ _________ _________
Total investments by and distributions to owners 1,174 - - - ( 120,000) ( 118,826)
_______ _______ _______ _______ _________ _________
At 31 March 2024 4,892 792,575 138,282 135,677 6,754,509 7,825,935
_______ _______ _______ _______ _________ _________
FELIX O'HARE & COMPANY LIMITED
Statement of cash flows
Year ended 31 March 2024
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 393,774 273,591
Adjustments for:
Depreciation of tangible assets 147,811 134,643
Other interest receivable and similar income ( 47,678) ( 24,070)
Gain/(loss) on disposal of tangible assets ( 7,951) -
Tax on profit 233,460 ( 272,537)
Accrued expenses/(income) 71,900 ( 107,830)
Foreign currency retranslation - 26,676
Changes in:
Stocks ( 1,247,498) ( 4,506,914)
Trade and other debtors ( 1,641,844) 3,845,288
Trade and other creditors 2,204,870 3,069,506
_________ _________
Cash generated from operations 106,844 2,438,353
Interest received 47,678 24,070
Tax refunded/(paid) 12,199 675,518
_________ _________
Net cash from operating activities 166,721 3,137,941
_________ _________
Cash flows from investing activities
Purchase of tangible assets ( 317,066) ( 103,350)
Proceeds from sale of tangible assets 25,500 -
Acquisition of subsidiaries - ( 89)
_________ _________
Net cash used in investing activities ( 291,566) ( 103,439)
_________ _________
Cash flows from financing activities
Proceeds from issue of ordinary shares 1,174 -
Equity dividends paid ( 120,000) -
_________ _________
Net cash used in financing activities ( 118,826) -
_________ _________
Net increase/(decrease) in cash and cash equivalents ( 243,671) 3,034,502
Cash and cash equivalents at beginning of year 7,358,665 4,324,163
_________ _________
Cash and cash equivalents at end of year 7,114,994 7,358,665
_________ _________
FELIX O'HARE & COMPANY LIMITED
Notes to the financial statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 88 Chancellors Road, Newry.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 2 % straight line
Plant and machinery - 12.5 % straight line
Fittings fixtures and equipment - 20 % straight line
Motor vehicles - 20 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Construction contracts
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
Cash and cash equivalents
Cash consists of cash on hand and demand deposits. Cash equivalents consist of short term highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of change in value.
4. Judgements in applying accounting policies and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. (a) Critical judgements in applying the entity's accounting policies There are no critical judgements in applying the company's accounting policies. (b) Critical accounting estimates and assumptions Estimation of costs to complete and contract provisions In order to determine the profit and loss that the company is able to recognise on its developments and construction contracts in a specific period, the company has to allocate total costs of the developments and construction contracts between the proportion completing in the period and the proportion to complete in a future period. The assessment of the total costs to be incurred and final contract value requires a degree of estimation, as does the assessment of a development's valuation. However, management has established internal controls to review and ensure the appropriateness of estimates made on an individual contract basis, including any necessary contract provisions.
5. Turnover
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024 2023
£ £
United Kingdom 48,646,355 45,808,413
Ireland 16,136,053 7,905,142
__________ __________
64,782,408 53,713,555
__________ __________
6. Other operating income
2024 2023
£ £
Rental income - 536
_______ _______
7. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 147,811 134,643
(Gain)/loss on disposal of tangible assets ( 7,951) -
Foreign exchange differences ( 18,387) -
Fees payable for the audit of the financial statements 7,500 7,500
_______ _______
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Administrative 22 20
Other 83 84
_______ _______
105 104
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 4,806,931 4,760,803
Social security costs 495,994 518,603
Other pension costs 457,047 329,002
_________ _________
5,759,972 5,608,408
_________ _________
9. Directors' remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 278,470 473,282
Company contributions to pension schemes in respect of qualifying services 105,673 109,279
_______ _______
384,143 582,561
_______ _______
Remuneration of the highest paid directors in respect of qualifying services:
2024 2023
£ £
Aggregate remuneration 117,999 126,435
Company contributions to pension plans in respect of qualifying services 20,000 -
_______ _______
137,999 126,435
_______ _______
10. Other interest receivable and similar income
2024 2023
£ £
Bank deposits 47,678 16,997
Other interest receivable and similar income - 7,073
_______ _______
47,678 24,070
_______ _______
11. Tax on profit
Major components of tax expense/income
2024 2023
£ £
Current tax:
Adjustments in respect of previous periods - ( 10,889)
Foreign current tax expense 1,463 -
_______ _______
Total current tax 1,463 ( 10,889)
_______ _______
Deferred tax:
Origination and reversal of timing differences 166,959 3,164
Impact of change in tax rate 65,038 -
Deferred tax charge/credit prior year - ( 264,812)
_______ _______
Total deferred tax 231,997 ( 261,648)
_______ _______
Tax on profit 233,460 ( 272,537)
_______ _______
Reconciliation of tax expense/income
The tax assessed on the profit for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25.00 % (2023: 19.00%).
2024 2023
£ £
Profit before taxation 627,234 1,054
_______ _______
Profit multiplied by rate of tax 156,809 200
Adjustments in respect of prior periods - ( 10,889)
Effect of expenses not deductible for tax purposes 10,150 2,964
Adjustments to tax in respect of foreign tax 1,463 -
Impact of change in tax rate 65,038 -
Adjustment deferred tax prior period - ( 264,812)
_______ _______
Tax on profit 233,460 ( 272,537)
_______ _______
12. Dividends
Equity dividends
2024 2023
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 120,000 -
_______ _______
13. Tangible assets
Freehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £ £
Cost
At 1 April 2023 3,170,000 1,204,764 16,742 612,665 5,004,171
Additions 13,401 164,075 - 139,590 317,066
Disposals - ( 71,750) - ( 73,132) ( 144,882)
_________ _________ _______ _______ _________
At 31 March 2024 3,183,401 1,297,089 16,742 679,123 5,176,355
_________ _________ _______ _______ _________
Depreciation
At 1 April 2023 124,800 1,016,273 16,742 474,285 1,632,100
Charge for the year 15,600 61,237 - 70,974 147,811
Disposals - ( 71,750) - ( 55,583) ( 127,333)
_________ _________ _______ _______ _________
At 31 March 2024 140,400 1,005,760 16,742 489,676 1,652,578
_________ _________ _______ _______ _________
Carrying amount
At 31 March 2024 3,043,001 291,329 - 189,447 3,523,777
_________ _______ _______ _______ _________
At 31 March 2023 3,045,200 188,491 - 138,380 3,372,071
_________ _______ _______ _______ _________
Included in the cost/valuation of land and buildings at 31 March 2024 is £2,403,401 attributable to land in respect of which no depreciation is provided.
Tangible assets held at valuation
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Freehold property Total
£ £
At 31 March 2024
Aggregate cost 462,930 462,930
Aggregate depreciation (275,988) (275,988)
_______ _______
Carrying amount 186,942 186,942
_______ _______
At 31 March 2023
Aggregate cost 462,930 462,930
Aggregate depreciation (267,412) (267,412)
_______ _______
Carrying amount 195,518 195,518
_______ _______
14. Investments
Shares in group undertakings Total
£ £
Cost
At 1 April 2023 and 31 March 2024 89 89
_______ _______
Impairment
At 1 April 2023 and 31 March 2024 - -
_______ _______
Carrying amount
At 31 March 2024 89 89
_______ _______
At 31 March 2023 89 89
_______ _______
15. Stocks
2024 2023
£ £
Amounts due for ongoing contract work 8,583,283 7,340,111
Finished goods 13,452 9,126
_________ _________
8,596,735 7,349,237
_________ _________
16. Debtors
2024 2023
£ £
Trade debtors 3,212,431 1,475,492
Called up share capital not paid 1,174 -
Prepayments and accrued income 43,489 49,009
Other debtors 17,809 108,558
_________ _________
3,274,903 1,633,059
_________ _________
17. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 12,615,423 10,704,369
Accruals and deferred income 121,500 49,600
Corporation tax 1,463 ( 12,199)
Social security and other taxes 1,540,240 1,210,033
Other creditors ( 3,810) 32,582
__________ __________
14,274,816 11,984,385
__________ __________
18. Provisions
Deferred tax (note 19) Total
£ £
At 1 April 2023 177,750 177,750
Charges against provisions 36,230 36,230
Unused tax losses 130,729 130,729
Impact of change in tax rate 65,038 65,038
_______ _______
At 31 March 2024 409,747 409,747
_______ _______
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in provisions (note 18) 409,747 177,750
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Accelerated capital allowances 96,994 46,181
Fair value adjustment of property 517,455 393,266
Unused tax losses ( 204,702) ( 261,697)
_______ _______
409,747 177,750
_______ _______
20. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 457,047 (2023: £ 329,002 ).
21. Called up share capital
Issued and called up
2024 2023
No £ No £
Ordinary shares of £ 1.00 each 3,718 3,718 3,718 3,718
Ordinary B shares of £ 1.00 each 1,174 1,174 - -
_______ _______ _______ _______
4,892 4,892 3,718 3,718
_______ _______ _______ _______
Issued and fully paid
2024 2023
No £ No £
Ordinary shares of £ 1.00 each 3,718 3,718 3,718 3,718
_______ _______ _______ _______
Issued and partly paid
2024 2023
No £ No £
Ordinary B shares of £ 1.00 each - £ - paid 1,174 - - -
_______ _______ _______ _______
22. Analysis of changes in net debt
At 1 April 2023 Cash flows At 31 March 2024
£ £ £
Cash and cash equivalents 7,358,665 (243,671) 7,114,994
_________ _______ _________
23. Controlling party
The company is a 100% subsidiary of Felix O'Hare Group Ltd.