Caseware UK (AP4) 2023.0.135 2023.0.135 2023-09-302023-09-30truetruetruetruetrue592022-10-01falseconstruction56truefalsefalse 03909595 2022-10-01 2023-09-30 03909595 2021-10-01 2022-09-30 03909595 2023-09-30 03909595 2022-09-30 03909595 2021-10-01 03909595 4 2022-10-01 2023-09-30 03909595 4 2021-10-01 2022-09-30 03909595 d:CompanySecretary1 2022-10-01 2023-09-30 03909595 d:Director1 2022-10-01 2023-09-30 03909595 d:Director1 2023-09-30 03909595 d:Director2 2022-10-01 2023-09-30 03909595 d:Director3 2022-10-01 2023-09-30 03909595 d:RegisteredOffice 2022-10-01 2023-09-30 03909595 e:PlantMachinery 2022-10-01 2023-09-30 03909595 e:PlantMachinery 2023-09-30 03909595 e:PlantMachinery 2022-09-30 03909595 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 03909595 e:MotorVehicles 2022-10-01 2023-09-30 03909595 e:MotorVehicles 2023-09-30 03909595 e:MotorVehicles 2022-09-30 03909595 e:MotorVehicles e:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 03909595 e:OfficeEquipment 2022-10-01 2023-09-30 03909595 e:OfficeEquipment 2023-09-30 03909595 e:OfficeEquipment 2022-09-30 03909595 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 03909595 e:OwnedOrFreeholdAssets 2022-10-01 2023-09-30 03909595 e:CurrentFinancialInstruments 2023-09-30 03909595 e:CurrentFinancialInstruments 2022-09-30 03909595 e:Non-currentFinancialInstruments 2023-09-30 03909595 e:Non-currentFinancialInstruments 2022-09-30 03909595 e:CurrentFinancialInstruments e:WithinOneYear 2023-09-30 03909595 e:CurrentFinancialInstruments e:WithinOneYear 2022-09-30 03909595 e:Non-currentFinancialInstruments e:AfterOneYear 2023-09-30 03909595 e:Non-currentFinancialInstruments e:AfterOneYear 2022-09-30 03909595 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2023-09-30 03909595 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-09-30 03909595 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2023-09-30 03909595 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-09-30 03909595 e:UKTax 2022-10-01 2023-09-30 03909595 e:UKTax 2021-10-01 2022-09-30 03909595 e:ShareCapital 2023-09-30 03909595 e:ShareCapital 2022-09-30 03909595 e:ShareCapital 2021-10-01 03909595 e:RevaluationReserve 2023-09-30 03909595 e:RevaluationReserve 2021-10-01 2022-09-30 03909595 e:RevaluationReserve 2022-09-30 03909595 e:RevaluationReserve 2021-10-01 03909595 e:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 03909595 e:RetainedEarningsAccumulatedLosses 2023-09-30 03909595 e:RetainedEarningsAccumulatedLosses 2021-10-01 2022-09-30 03909595 e:RetainedEarningsAccumulatedLosses 2022-09-30 03909595 e:RetainedEarningsAccumulatedLosses 2021-10-01 03909595 d:OrdinaryShareClass1 2022-10-01 2023-09-30 03909595 d:OrdinaryShareClass1 2023-09-30 03909595 d:OrdinaryShareClass1 2022-09-30 03909595 d:FRS102 2022-10-01 2023-09-30 03909595 d:Audited 2022-10-01 2023-09-30 03909595 d:FullAccounts 2022-10-01 2023-09-30 03909595 d:PrivateLimitedCompanyLtd 2022-10-01 2023-09-30 03909595 e:WithinOneYear 2023-09-30 03909595 e:WithinOneYear 2022-09-30 03909595 e:BetweenOneFiveYears 2023-09-30 03909595 e:BetweenOneFiveYears 2022-09-30 03909595 e:MoreThanFiveYears 2023-09-30 03909595 e:MoreThanFiveYears 2022-09-30 03909595 e:AcceleratedTaxDepreciationDeferredTax 2023-09-30 03909595 e:AcceleratedTaxDepreciationDeferredTax 2022-09-30 03909595 e:TaxLossesCarry-forwardsDeferredTax 2023-09-30 03909595 e:TaxLossesCarry-forwardsDeferredTax 2022-09-30 03909595 e:OtherDeferredTax 2023-09-30 03909595 e:OtherDeferredTax 2022-09-30 03909595 f:PoundSterling 2022-10-01 2023-09-30 xbrli:shares iso4217:GBP xbrli:pure










NORTHFIELD CONSTRUCTION LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
COMPANY INFORMATION


Directors
P Bryan (resigned 8 November 2023)
D Oughton 
S Dean 




Company secretary
L Oughton



Registered number
03909595



Registered office
Northfield House
Tilford Road

Newstead Village

Nottinghamshire

NG15 0BS




Independent auditors
Barnett & Turner Accountants Ltd
Chartered Accountants & Registered Auditor

Cromwell House

68 West Gate

Mansfield

Nottinghamshire

NG18 1RR





 
NORTHFIELD CONSTRUCTION LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24


 
NORTHFIELD CONSTRUCTION LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 30 September 2023.

Business review
 
The financial results for the year ended 30 September 2023 are in line with the directors' expectations.
With the ongoing economic uncertainty, the company continues to take a cautious approach and carefully selects tenders and contracts with principal contractors with a proven track record and looks to build strong trading partnerships with its customers.  The company has continued to expand its client base and reputation as the leading reinforced concrete specialist in the Midlands.
Northfield has strengthened relations with key suppliers within the supply chain, ensuring payments to suppliers are within agreed payment terms.  A strong supply chain has been instrumental to Northfield’s continued success.
The company continues to utilise its own assets, ensuring reduced operational expenditure on hired plant and equipment.  Capital expenditure during the year has been reduced as the company has been able to manage its own assets accordingly.
The company has been able to retain its experienced construction workforce despite current economic pressures.  The highly skilled and professional workforce remain key to ensure our three primary objectives - 
Quality-Safety-Success - are achieved.

Principal risks and uncertainties
 
The company's principal financial instruments comprise bank balances, trade debtors and creditors, loans to the business and obligations under hire purchase and finance lease agreements. The main purpose of these instruments is to finance the business operations.  The principal risks and uncertainties are described below:
Price risk
Raw materials prices in respect of concrete and rebar have remained fairly stable during the year.  Labour costs are showing a significant increase, especially for highly skilled specialist trades.  The company's objective is to minimise risks and uncertainties to the level of the market place in which it operates.
Cash flow and liquidity risk
Business forecasts identifying, in particular, liquidity requirements are produced frequently whilst internal controls ensure the safeguarding of the company's assets.
Trade creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The business is a lessee in respect of finance leased assets.  The liquidity risk in respect of these is managed by ensuring there are sufficient funds to meet the payments through appropriate cash management using cash flow forecasts.





 
Page 1

 
NORTHFIELD CONSTRUCTION LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Credit risk
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.  The amounts presented in the balance sheet are net of allowances for bad and doubtful debts.
In respect of bank balances, surplus cash is held with the company’s bankers, Lloyds.  As an A-rated bank, the directors consider this to be among Britain’s strongest and safest, and feel the company’s short-term cash is consequently in a low-risk category. 

Financial key performance indicators
 
The KPIs that the company use are relevant to the type of business that it operates.  The financial KPIs that the company use are turnover and operating profit.

Other key performance indicators
 
The other KPIs that the company use are operational (staff retention and motivation) and from a customer service perspective (customer feedback and retention, and new customers).  These KPIs are within the targets set for the year.


This report was approved by the board on 28 August 2024 and signed on its behalf.



D Oughton
Director

Page 2

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Directors' responsibilities statement

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 judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £276,357 (2022 - loss £291,648).

Dividends of £NIL (2022 - £182,000) have been paid during the year.

Directors

The directors who served during the year were:

P Bryan (resigned 8 November 2023)
D Oughton 
S Dean 

Future developments

The directors continue to look to the future with positivity despite continued pressures in the construction sector. Northfield's ongoing policy of investing in plant and machinery to reduce its hire charges continues to be a positive strategy.
Northfield prides itself on the quality and expertise of its personnel.  By continued investment in training of its staff and recruiting only the best management, the company is safeguarding its position for the future. 

Page 3

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsBarnett & Turner Accountants Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 August 2024 and signed on its behalf.
 





D Oughton
Director

Page 4

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHFIELD CONSTRUCTION LIMITED
 

Opinion


We have audited the financial statements of Northfield Construction Limited (the 'company') for the year ended 30 September 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


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.


Page 5

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHFIELD CONSTRUCTION LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion 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 have 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 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.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 3, 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.


Page 6

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHFIELD CONSTRUCTION LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:

We enquired of management regarding the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.  The company did not inform us of any known, suspected or alleged fraud.

We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and current tax legislation.

We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the valuation of work-in-progress and amounts recoverable on contracts.

Testing key revenue lines, in particular cut-off, for evidence of management bias.

Performing a physical verification of key assets and stock items.

Obtaining third-party confirmation of material bank and loan balances.

Reviewing documentation such as the company board minutes, correspondence with solicitors, for
Page 7

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHFIELD CONSTRUCTION LIMITED (CONTINUED)


discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


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 2006Our 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.





Jonathan Wilson FCA CTA (senior statutory auditor)
  
for and on behalf of
Barnett & Turner Accountants Ltd
 
Chartered Accountants
Registered Auditor
  
Cromwell House
68 West Gate
Mansfield
Nottinghamshire
NG18 1RR

28 August 2024
Page 8

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
18,330,584
19,970,247

Cost of sales
  
(15,997,545)
(17,653,601)

Gross profit
  
2,333,039
2,316,646

Administrative expenses
  
(2,640,698)
(2,614,307)

Operating loss
 5 
(307,659)
(297,661)

Interest receivable and similar income
 9 
13,524
433

Interest payable and similar expenses
 10 
(43,972)
(40,255)

Loss before tax
  
(338,107)
(337,483)

Tax on loss
 11 
61,750
45,835

Loss for the financial year
  
(276,357)
(291,648)

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
NORTHFIELD CONSTRUCTION LIMITED
REGISTERED NUMBER: 03909595

BALANCE SHEET
AS AT 30 SEPTEMBER 2023

2023
2023
2022
2022
Note
£
£
£
£

Fixed assets
  

Tangible assets
 13 
1,697,107
1,734,466

Current assets
  

Debtors: amounts falling due within one year
 14 
3,819,211
2,763,573

Cash at bank and in hand
 15 
1,505,097
3,538,506

  
5,324,308
6,302,079

Creditors: amounts falling due within one year
 16 
(3,790,194)
(4,261,168)

Net current assets
  
 
 
1,534,114
 
 
2,040,911

Total assets less current liabilities
  
3,231,221
3,775,377

Creditors: amounts falling due after more than one year
 17 
(378,677)
(584,726)

Provisions for liabilities
  

Deferred tax
 19 
(123,400)
(185,150)

Net assets
  
2,729,144
3,005,501


Capital and reserves
  

Called up share capital 
 20 
8
8

Profit and loss account
 21 
2,729,136
3,005,493

  
2,729,144
3,005,501


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2024.




D Oughton
Director


The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
NORTHFIELD CONSTRUCTION LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 October 2021
8
62,693
3,416,448
3,479,149



Loss for the year
-
-
(291,648)
(291,648)

Dividends: Equity capital
-
-
(182,000)
(182,000)

Transfer to profit and loss account
-
(62,693)
62,693
-



At 1 October 2022
8
-
3,005,493
3,005,501



Loss for the year
-
-
(276,357)
(276,357)


At 30 September 2023
8
-
2,729,136
2,729,144


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.


General information

Northfield Construction Limited is a private limited company incorporated and domiciled in England.  Its registered office and principal place of business is situated at Northfield House, Tilford Road, Newstead Village, Nottinghamshire NG15 0BS.
The principal activity of the company is that of construction.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Northfield Holdings Limited as at 30 September 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

 
2.3

Going concern

On the basis of their assessment of the company's financial position, the directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of preparation of the financial statements.

Page 12

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

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.

 
2.5

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

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 13

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

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.

 
2.9

Tangible fixed assets

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 or reducing balance method as appropriate.

Depreciation is provided on the following basis:

Plant and machinery
-
10-20% on valuation
Motor vehicles
-
25% reducing balance
Office equipment
-
33.33% straight line

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 14

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)

 
2.10

Amounts recoverable on contracts

Amounts recoverable on contracts are stated at cost, including labour and attributable overheads, plus an element of profit relevant to the stage of completion at the balance sheet date. 

At each balance sheet date, amounts recoverable on contracts are assessed for impairment and, if impaired, the carrying amount is reduced to selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Page 15

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

2.Accounting policies (continued)


2.11
Financial instruments (continued)

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.12

Dividends

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates.  The items in the financial statements where these judgements and estimates have been made include:
Revenue recognition and amounts recoverable on contracts:
Contract revenue is recognised as activity progresses, based on certified applications reflecting the stage of completion of the contract.  Profit is recognised as the work is carried out only when the final outcome of the contract can be assessed with reasonable certainty.  Full provision is made for losses on all contracts in the year in which they are first foreseen.
Depreciation of tangible fixed assets:
Determining the appropriate rate of depreciation of tangible fixed assets requires an estimation of the useful economic life and ultimate net realisable value.  The useful economic life is determined to be the period during which each asset will generate positive cash flows for the company.


4.


Turnover

All turnover arose within the United Kingdom.

Page 16

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Other operating lease rentals
245,880
235,729

Depreciation of tangible fixed assets
535,715
636,617

(Profit)/loss on sale of tangible fixed assets
(39,358)
(58,861)


6.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
11,500
11,000

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,631,459
2,820,336

Social security costs
292,712
328,245

Cost of defined contribution scheme
188,669
189,734

3,112,840
3,338,315


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management and administration
18
19



Construction
38
40

56
59

Page 17

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
296,351
520,804

Company contributions to defined contribution pension schemes
14,800
16,000

Compensation for loss of office
98,000
-

409,151
536,804


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £156,497 (2022 - £205,861).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,000 (2022 - £4,000).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
13,524
433


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
43,972
29,514

Finance leases and hire purchase contracts
-
10,741

43,972
40,255

Page 18

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
-
(101,910)


Deferred tax


Origination and reversal of timing differences
(61,750)
56,075


Taxation on loss on ordinary activities
(61,750)
(45,835)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(338,107)
(337,483)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(64,240)
(64,122)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
940
1,035

Capital allowances for year in excess of depreciation
(9,690)
(38,822)

Short term timing difference leading to an increase (decrease) in taxation
-
(587)

Book profit on chargeable assets
(61,752)
54,384

Unrelieved tax losses carried forward
72,992
-

Changes in tax rates
-
2,277

Total tax charge for the year
(61,750)
(45,835)


12.


Dividends

2023
2022
£
£


Dividends paid
-
182,000

Page 19

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2022
5,950,879
773,279
174,264
6,898,422


Additions
174,274
363,481
17,405
555,160


Disposals
(65,812)
(137,036)
(65,320)
(268,168)



At 30 September 2023

6,059,341
999,724
126,349
7,185,414



Depreciation


At 1 October 2022
4,474,846
529,134
159,976
5,163,956


Charge for the year on owned assets
419,144
106,257
10,314
535,715


Disposals
(53,812)
(92,233)
(65,319)
(211,364)



At 30 September 2023

4,840,178
543,158
104,971
5,488,307



Net book value



At 30 September 2023
1,219,163
456,566
21,378
1,697,107



At 30 September 2022
1,476,033
244,145
14,288
1,734,466

Page 20

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

14.


Debtors

2023
2022
£
£


Trade debtors
762,441
875,662

Other debtors
187,574
240,806

Prepayments and accrued income
298,688
321,309

Amounts recoverable on long term contracts
2,469,573
1,224,861

Tax recoverable
100,935
100,935

3,819,211
2,763,573



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,505,097
3,538,506



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
200,000
200,000

Payments received on account
228,000
239,645

Trade creditors
2,862,131
3,064,384

Other taxation and social security
83,171
93,149

Accruals and deferred income
416,892
663,990

3,790,194
4,261,168


The bank loan is a CBILS facility, secured by fixed and floating charges over the assets of the company.


17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
366,667
566,667

Accruals and deferred income
12,010
18,059

378,677
584,726


Page 21

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

18.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
200,000
200,000

Amounts falling due 1-2 years

Bank loans
200,000
200,000

Amounts falling due 2-5 years

Bank loans
166,667
366,667


566,667
766,667


The bank loan is a CBILS facility, secured by fixed and floating charges over the assets of the company.


19.


Deferred taxation




2023


£






At beginning of year
185,150


Charged/(credited) to the profit or loss
(61,750)



At end of year
123,400

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
220,459
193,313

Tax losses carried forward
(92,989)
(4,538)

Other short term timing differences
(4,070)
(3,625)

123,400
185,150

Page 22

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



8 (2022 - 8) Ordinary shares of £1.00 each
8
8



21.


Reserves

Profit and loss account

Profits after dividends and reserve transfers, as noted above, are accumulated and carried forward in the profit and loss account.


22.


Capital commitments


At 30 September 2023 the company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
-
108,448


23.


Pension commitments

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 £188,669 (2022 - £189,734). Contributions totalling £16,281 (2022 - £16,479) were payable to the fund at the balance sheet date and are included in creditors.


24.


Commitments under operating leases

At 30 September 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
3,222
21,475

Later than 1 year and not later than 5 years
77,089
61,689

Later than 5 years
1,202,500
1,387,500

1,282,811
1,470,664

Page 23

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

25.


Related party transactions

The company occupies premises owned by D Oughton and P Bryan.  Rentals payable on a normal commercial basis during the year amounted to £185,000 (2022 - £185,000).


26.


Controlling party

The company is a wholly owned subsidiary of Northfield Holdings Limited, a company incorporated and domiciled in England.  Northfield Holdings Limited is owned equally by D Oughton and P Bryan.

 
Page 24