Financial Statements
Portview Fit-Out Limited
For the year ended 30 November 2023
Registered number: NI010862
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Company Information
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S Campbell (resigned 29 August 2023)
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S McEvoy (resigned 29 August 2023)
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Chartered Accountants & Statutory Auditors
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12 - 15 Donegall Square West
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Contents
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Directors' responsibilities statement
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Independent auditor's report
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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Strategic report
For the year ended 30 November 2023
The directors present their report and the financial statements of the company for the year ended 30 November 2023.
Portview Fit Out Limited (the “Company”) continues to deliver high quality projects which reflects the company’s skill set, focussing on innovation and quality across all operations to deliver extraordinary spaces for our clients. We are pleased to report a strong trading performance for the year ending 30 November 2023. The results for the year and key performance indicators are set out below:
*There was a Management Buy Out during the year which reduced cash at bank. Cash generated from normal operations was positive.
Revenue increased by 36% to £74m (2022: £54m). Alongside significant revenue growth, the operating margin increased to 10% (2022: 7%), resulting in operating profit of £7.6m (2022: £3.8m).
Management Buy Out (“MBO”):
On 29 August 2023, as part of an MBO, a new holding company, Portview Specialist Holdings Limited, purchased 100% of the shares in Portview Holdings Limited (“PHL”). As a result of this transaction, the previous majority shareholders in PHL sold their shareholdings. PHL has 100% of the shareholding in Portview Fit Out Limited.
Going forward
The Company finished the year with a record high forward order book, and we have significant opportunities across a range of end markets, with both existing and new clients.
Page 1
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Strategic report (continued)
For the year ended 30 November 2023
Business review (continued)
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Health and safety
We are fully committed to consistently achieving the highest health and safety performance to safeguard our employees, clients, sub-contractors, visitors, and any other persons that may be affected by our activities. This commitment extends to ensuring that our operations and activities do not place our employees, sub-contractors, and others at risk of harm, injury, and to be a positive contributor to well-being. The welfare of all individuals involved in our business is paramount and health and safety is central to all business activities. This year, we achieved the milestone of over three million incident free hours under RIDDOR (Reporting of Injuries, Diseases and Dangerous Occurrences Regulations).
Environmental, Social & Governance (“ESG”)
During the year, we published our first annual ESG report and received a rating of BBB (superior) when assessed to the strict criteria of the Global Reporting Institute ESG framework, Comprehensive Reporting model.
ESG serves as a guiding principle that shapes our strategy, operations, and relationships. We recognise that our success is intertwined with the well-being of our people, our environment and society. By integrating sustainability into our business practices, we enhance brand reputation, attract, and retain high quality talent, and build strong relationships based on shared values. We are proud to be a purpose-driven organisation committed to doing the right thing for our employees, customers, and our communities.
Equity, Diversity, and Inclusion Strategy
We are fully committed to achieving a more diverse representation across all levels of our workforce and to tracking our progress based on the results. We have set objectives for diversity strands where there is most notable under-representation but remain committed to tackling under-representation across all other areas such as age, gender identity and expression, faith and belief, and socio-economic background.
Payment Performance
Our supply chain is critical to the success of our business. Suppliers and subcontractors should always be treated fairly and paid within agreed terms. The Company continues to be a member of the Prompt Payment Code, which sets out clear payment performance targets that should be achieved. We have exceeded these targets and intend to maintain this standard going forward.
Principal risks and uncertainties
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The key business risks and uncertainties affecting the company are economic conditions, health and safety, contractual risk, cyber security, and financial risks. The details on how these risks are mitigated are provided below:
Economic conditions:
Our business continues to perform strongly and is well positioned to manage the various phases of the economic cycle. We continue to use a prudent and flexible model to navigate any potential headwinds within the economic environment.
Health and safety:
We maintain appropriate health and safety policies and procedures that comply with laws and regulations to safeguard our employees, clients, sub-contractors, visitors, and any other persons that may be affected by our activities. Inductions and training programs are used to reinforce our health and safety policies.
Contractual risk:
Extensive due diligence is completed to mitigate the risk of mispricing contracts, management of change, and maintaining appropriate margin levels.
Page 2
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Strategic report (continued)
For the year ended 30 November 2023
Principal risks and uncertainties (continued)
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Cyber security:
The Company places great importance on IT and cyber security. We have stringent IT policies and processes that are continually enhanced to mitigate the risk of a cyber-attack. The Company currently holds two accreditations relating to cyber security, ISO 27001:2013 – Information security, cybersecurity & privacy protection, and Cyber Essentials Plus.
Financial risks
The main financial risks are credit risk, interest rate risk, and liquidity risk.
Credit risk:
The Company has an excellent client listing of many well-known public companies and the historical default rate has been insignificant. The company credit checks any potential clients before beginning work, continually monitors throughout a project, and agrees payment commensurate with the directors' view of the perceived risk.
Interest rate risk:
The Company exposure to interest rate fluctuations on its borrowings is managed through annual review of its borrowing requirements. The directors see the company's interest rate risk as minimal.
Liquidity risk:
The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Short-term flexibility is achieved by overdraft facilities and a discrete invoice factoring facility.
This report was approved by the board and signed on its behalf.
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P Scullion
Director
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Page 3
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Directors' report
For the year ended 30 November 2023
The directors present their report and the financial statements for the year ended 30 November 2023.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgements 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;
∙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 principal activity of the company is that of an interior fit-out contractor.
The profit for the year, after taxation, amounted to £6,149,870 (2022 - £3,753,522).
As part of the management buyout in the year, the directors have paid a dividend of £14,120,000 (2022: £Nil).
The directors who served during the year were:
S Campbell (resigned 29 August 2023)
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S McEvoy (resigned 29 August 2023)
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Page 4
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Directors' report (continued)
For the year ended 30 November 2023
The company plans to continue its present activities and ongoing growth strategies.
Greenhouse gas emissions, energy consumption and energy efficiency action
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Combustion of oil and fuel for transport
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Indirect emissions (for own use)
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Intensity measurement
The directors have chosen the metric gross global scope 1 and 2 emissions in tonnes of CO2e per direct employee as this is a common business metric for their industry sector. The intensity measurement has decreased by 1.8% (YoY).
Emissions target
Our target is a reduction in combined Scope 1 and Scope 2 carbon emissions of 30% by year 2030 relative to our 2018 baseline performance. We remain at status ‘net zero’ on carbon emissions following a carbon offsetting investment in 2020.
Methodologies used
The company has followed the 2019 UK Government environmental reporting guidance. It has used the applicable, UK Government Conversion Factors for Company Reporting.
Matters covered in the Strategic report
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Under Schedule 7.1A if "Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations
2008", the company has elected to disclose the following Directors' Report information in the Strategic Report:
- Business review; and
- Principal risks and uncertainties.
Page 5
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Directors' report (continued)
For the year ended 30 November 2023
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditor, Grant Thornton (NI) LLP, will be proposed for reappointment in accordance with section 489 of the Companies Act 2006.
This report was approved by the board on 21 June 2024 and signed on its behalf.
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P Scullion
Director
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Page 6
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Directors' responsibilities statement
For the year ended 30 November 2023
The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgements 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;
∙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.
This report was approved by the board and signed on its behalf.
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P Scullion
Director
Date: 21 June 2024
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Independent auditor's report to the members of Portview Fit-Out Limited
We have audited the financial statements of Portview Fit-Out Limited, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity for the year ended 30 November 2023, and the related 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, Portview Fit-Out Limited's financial statements:
∙give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 30 November 2023 and of its financial performance for the year then ended; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 'Responsibilities of the auditor 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, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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
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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 the date 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.
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Independent auditor's report to the members of Portview Fit-Out Limited (continued)
Other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon, including the Directors' report and the Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the 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 in the financial statements, 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 Directors' report and the Strategic Report for the year for which the financial statements are prepared is consistent with the financial statements, and
∙the Directors' report and the Strategic Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the company and its environment we have obtained in the course of the audit, we have not identified material misstatements in the Directors' report and the Strategic Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙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.
Page 9
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Independent auditor's report to the members of Portview Fit-Out Limited (continued)
Responsibilities of management and those charged with governance for the financial statements
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Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 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, management is 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Responsibilities of the auditor for the audit of the financial statements
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The objectives of an auditor 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 their 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.
A further description of an auditor's 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.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).
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 compliance with Employment Law, Data Privacy Laws, Environmental Regulations and Health and Safety laws, 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 preparation of the financial statements such as Companies Act 2006 and applicable tax laws. 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 posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statement.
Page 10
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Independent auditor's report to the members of Portview Fit-Out Limited (continued)
Responsibilities of the auditor for the audit of the financial statements (continued)
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)
In response to these principal risks, our audit procedures included but were not limited to:
∙inquiries of management on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
∙inspection of the company’s regulatory and legal correspondence and review of minutes of the board of directors meetings during the year to corroborate inquiries made;
∙gaining an understanding of the internal controls established to mitigate risk related to fraud;
∙discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
∙identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
∙designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
∙challenging assumptions and judgements made by management in their significant accounting estimates, including estimating contract accruals, the allowance for the impairment of receivables and recoverability of work in progress; and
∙review of the financial statement disclosures to underlying supporting documentation and inquiries of management.
The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.
The purpose of our audit work and to whom we owe our responsibilities
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This report is made solely to the Company’s members, as a body, in accordance with chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Louise Kelly (Senior statutory auditor)
for and on behalf of
Grant Thornton (NI) LLP
Chartered Accountants &
Statutory Auditors
Belfast
Date: 21 June 2024
Page 11
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Statement of comprehensive income
For the year ended 30 November 2023
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.
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There was no other comprehensive income for 2023 (2022:£NIL).
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The notes on pages 15 to 27 form part of these financial statements.
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Page 12
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Portview Fit-Out Limited
Registered number:NI010862
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Balance sheet
As at 30 November 2023
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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P Scullion
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The notes on pages 15 to 27 form part of these financial statements.
Page 13
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Statement of changes in equity
For the year ended 30 November 2023
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Dividends: Equity capital
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The notes on pages 15 to 27 form part of these financial statements.
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Statement of changes in equity
For the year ended 30 November 2022
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The notes on pages 15 to 27 form part of these financial statements.
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Page 14
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Notes to the financial statements
For the year ended 30 November 2023
Portview Fit-Out Limited is a company limited, by shares and incorporated in Northern Ireland. The registered office is 46 Florenceville Avenue, Belfast, BT7 3GZ.
2.Accounting policies
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Basis of preparation of financial statements
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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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The company has taken advantage of the following disclosure exemptions in preparing these financial statements as permitted by FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of section 11 Basic Financial Instruments paragraph 11.41;
- the requirements of section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Portview Specialist Holdings Limited for the year ended 30 November 2023. These financial statements can be obtained from its registered office; 46 Florenceville Avenue, Belfast BT7, 3GZ.
The following principal accounting policies have been applied:
The directors have assessed that the company has adequate resources to meet the ongoing costs of the business for a minimum of 12 months from the date of signing the financial statements. In coming to this conclusion, the directors have assessed the entity's current financing arrangements and liquid resources. For this reason, the financial statements have been prepared on a going concern basis which presumes the realisation of assets and liabilities in the normal course of business.
Page 15
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Notes to the financial statements
For the year ended 30 November 2023
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Page 16
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Notes to the financial statements
For the year ended 30 November 2023
2.Accounting policies (continued)
The attributable profit on long term contracts is recognised once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to date on the project.
Long term contract work in progress is included in amounts recoverable on contracts. This is stated at measured value which includes retention and a proportion of profit after provision has been made for any foreseeable losses and the deduction of applicable payments to account.
Full provision is made for losses on all contracts in the year in which the loss is first foreseen.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Page 17
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Notes to the financial statements
For the year ended 30 November 2023
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
Page 18
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Notes to the financial statements
For the year ended 30 November 2023
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Page 19
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Notes to the financial statements
For the year ended 30 November 2023
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Judgements in applying accounting policies and key sources of estimation uncertainty
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When preparing the financial statements, management makes a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.
The following are significant management judgments in applying the accounting policies of the company that have the most significant effect on the financial statements.
Recoverability of work in progress
Management considered the recoverability of the company's work in progress balance which is included in the balance sheet at 30 November 2023. Management have reviewed the relevant costs incurred to date and expected costs for completion. Based on these reviews, the directors are satisfied with the recoverability of the work in progress balances at the balance sheet date.
Contract accruals
Management recognise contract accruals based on their best estimate of costs incurred to date. All contracts are reviewed on an individual basis and the estimates are based on management's professional judgement.
Analysis of turnover by country of destination:
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All turnover relates to the delivery of interior fit out contracts.
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The operating (loss)/profit is stated after charging:
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Depreciation of tangible fixed assets
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Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
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Defined contribution pension cost
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Page 20
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Notes to the financial statements
For the year ended 30 November 2023
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Number of production staff
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Number of administrative staff
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Number of management staff
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 4 directors (2022 - 3) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of £188,944 (2022 - £170,484).
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Other interest receivable
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Page 21
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Notes to the financial statements
For the year ended 30 November 2023
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Interest payable and similar expenses
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Adjustments in respect of previous periods
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Page 22
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Notes to the financial statements
For the year ended 30 November 2023
10.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.01% (2022 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.01% (2022 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Adjustments to tax charge in respect of prior periods
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Adjustments to tax charge in respect of prior periods - deferred tax
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Other timing differences leading to an increase (decrease) in taxation
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Remeasurement of deferred tax
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Deferred tax not recognised
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Total tax charge for the year
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Factors that may affect future tax charges
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The standard rate of UK Corporation has increased from 19% to 25% from 1 April 2023 for companies generating taxable profits of more than £250,000. The current 19% tax rate will continue to apply to ‘small’ companies with profits less than £50,000, with a ‘taper relief rate’ for those companies with profits between the new thresholds. These changes have been reflected in these ?nancial statements and ddeferred tax assets and liabilities have been recognised at using the tax rates applicable for the date the assets and liabilities are expected to reverse.
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Dividends paid during the year relating to MBO
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Page 23
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Notes to the financial statements
For the year ended 30 November 2023
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Charge for the year on owned assets
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Page 24
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Notes to the financial statements
For the year ended 30 November 2023
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Due after more than one year
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Directors' current account
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts recoverable on long-term contracts
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Directors' current account
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Page 25
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Notes to the financial statements
For the year ended 30 November 2023
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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2,600,000 Ordinary shares of £1.00 each
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Profit & loss account
Includes all current and prior period retained profits and losses.
Page 26
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Notes to the financial statements
For the year ended 30 November 2023
In 2019, the company recorded £2.97m in respect of a Research and Development claim for 2017 and 2018
and this was subsequently received in 2020. The claim is currently under review by HMRC. However the
Directors are of the opinion that no tax liability will arise from the review.
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 £1,126,885 (2022: £550,495). Contributions totalling £83,823 (2022: £49,670) were payable to the fund at the balance sheet date.
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Related party transactions
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The company and group have availed of the exemption under FRS 102, section 33 Related Party Disclosures paragraph 33.7, from disclosing transactions with group companies.
Key management personnel compensation was £1,123,909 (2022: £1,009,591).
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The company's immediate parent undertaking is Portview Holdings Limited, a company incorporated in Northern Ireland.
The company's ultimate parent undertaking is Portview Specialist Holdings Limited, a company incorporated in Northern Ireland.
The smallest and largest group which the results of Portview Fit-Out Limited are consolidated is that headed
by Portview Specialist Holdings Limited. Copies of the group financial statements are available from the registrar of companies in Belfast.
Page 27
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