Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falsefalse2023-01-01Supply services for plumbing, heating and air-conditioning installation.2424false 1176933 2023-01-01 2023-12-31 1176933 2022-01-01 2022-12-31 1176933 2023-12-31 1176933 2022-12-31 1176933 2022-01-01 1176933 c:Director1 2023-01-01 2023-12-31 1176933 c:Director2 2023-01-01 2023-12-31 1176933 c:Director3 2023-01-01 2023-12-31 1176933 c:RegisteredOffice 2023-01-01 2023-12-31 1176933 c:Agent1 2023-01-01 2023-12-31 1176933 d:Buildings 2023-01-01 2023-12-31 1176933 d:Buildings 2023-12-31 1176933 d:Buildings 2022-12-31 1176933 d:Buildings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 1176933 d:Buildings d:LongLeaseholdAssets 2023-01-01 2023-12-31 1176933 d:PlantMachinery 2023-01-01 2023-12-31 1176933 d:MotorVehicles 2023-01-01 2023-12-31 1176933 d:FurnitureFittings 2023-01-01 2023-12-31 1176933 d:OfficeEquipment 2023-01-01 2023-12-31 1176933 d:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 1176933 d:OtherPropertyPlantEquipment 2023-12-31 1176933 d:OtherPropertyPlantEquipment 2022-12-31 1176933 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 1176933 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 1176933 d:CurrentFinancialInstruments 2023-12-31 1176933 d:CurrentFinancialInstruments 2022-12-31 1176933 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 1176933 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 1176933 e:UnitedKingdom 2023-01-01 2023-12-31 1176933 e:UnitedKingdom 2022-01-01 2022-12-31 1176933 e:RestEuropeOutsideUK 2023-01-01 2023-12-31 1176933 e:RestEuropeOutsideUK 2022-01-01 2022-12-31 1176933 d:UKTax 2023-01-01 2023-12-31 1176933 d:UKTax 2022-01-01 2022-12-31 1176933 d:ShareCapital 2023-12-31 1176933 d:ShareCapital 2022-12-31 1176933 d:ShareCapital 2022-01-01 1176933 d:CapitalRedemptionReserve 2023-12-31 1176933 d:CapitalRedemptionReserve 2022-12-31 1176933 d:CapitalRedemptionReserve 2022-01-01 1176933 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 1176933 d:RetainedEarningsAccumulatedLosses 2023-12-31 1176933 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 1176933 d:RetainedEarningsAccumulatedLosses 2022-12-31 1176933 d:RetainedEarningsAccumulatedLosses 2022-01-01 1176933 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 1176933 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 1176933 d:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2023-12-31 1176933 d:FurtherSpecificTypeProvisionContingentLiability2ComponentTotalProvisionsContingentLiabilities 2022-12-31 1176933 c:OrdinaryShareClass1 2023-01-01 2023-12-31 1176933 c:OrdinaryShareClass1 2023-12-31 1176933 c:OrdinaryShareClass1 2022-12-31 1176933 c:FRS102 2023-01-01 2023-12-31 1176933 c:Audited 2023-01-01 2023-12-31 1176933 c:FullAccounts 2023-01-01 2023-12-31 1176933 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 1176933 d:WithinOneYear 2023-12-31 1176933 d:WithinOneYear 2022-12-31 1176933 d:BetweenOneFiveYears 2023-12-31 1176933 d:BetweenOneFiveYears 2022-12-31 1176933 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-12-31 1176933 d:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-12-31 1176933 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2023-12-31 1176933 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:WithinOneYear 2022-12-31 1176933 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2023-12-31 1176933 d:PlantEquipmentOtherAssetsUnderOperatingLeases d:BetweenOneFiveYears 2022-12-31 1176933 2 2023-01-01 2023-12-31 1176933 6 2023-01-01 2023-12-31 1176933 14 2023-01-01 2023-12-31 1176933 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 1176933









CLEAN ROOM CONSTRUCTION LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
COMPANY INFORMATION


Directors
S D Lawton 
I B Isted 
R T Rowe 




Registered number
1176933



Registered office
Unit K1-K2 Temple Court
Knight Road

Strood

Rochester

Kent

ME2 2LT




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditor

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA




Bankers
Lloyds TSB Bank Plc
20 Greens End

Woolwich

London

SE18 6JZ





 
CLEAN ROOM CONSTRUCTION LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Statement of financial position
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 22

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report to accompany the financial statements for the year ended 31 December 2023.

Business review
 
The company operates within a specialised market providing the design, installation and on-going maintenance of controlled environment facilities.
We are committed to providing a high quality service and to the building of long term relationships with our clients.
Turnover, margin and profitability remain strong in what is a competitive market. 
We have maintained our competitive edge by building relationships with clients whilst monitoring our supply chain to ensure the costs of inputs are minimised and the company is able to tender competitively.
CRC continues to invest in the development of both its personnel and infrastructure.
The directors consider that the outlook for 2024 will remain competitive. Whilst the indications are that the market remains buoyant there continues to be economic pressure as prices increase

Principal risks and uncertainties
 
The market for our services remains competitive with both smaller businesses and larger companies competing on price.
Whilst we will continue to compete on price we will concentrate on projects where our expertise, experience and size allows us to maximise our opportunities.
We will continue to monitor new and existing customer accounts and payment patterns in order to minimise our exposure to bad debt.
The company has significant cash assets and no debt so is not exposed to any interest rate risks.

Financial key performance indicators
 
Given the straight forward nature of the business the directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business


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



S D Lawton
Director

Date: 15 July 2024
Page 1

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 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.

Principal activity

The principal activity of the company continued to be that of the design, manufacture and construction of controlled contamination rooms,buildings and equipment.

Results and dividends

The profit for the year, after taxation, amounted to £1,781,562 (2022 - £2,808,074).

The company voted dividends for the year of £1,486,500 (2022 - £126,500).

Directors

The directors who served during the year were:

S D Lawton 
I B Isted 
R T Rowe 

Future developments

The directors continue to seek new projects and operations both in the UK and in Ireland in an attempt to continue the growth of the business.

Page 2

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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 auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





S D Lawton
Director

Date: 15 July 2024
Page 3

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLEAN ROOM CONSTRUCTION LIMITED
 

Opinion


We have audited the financial statements of Clean Room Construction Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, 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 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 4

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLEAN ROOM 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 2, 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 5

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLEAN ROOM 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:

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• We identified the laws and regulations applicable to the company through discussion with directors and        other management, and from our commercial knowledge and experience of the sector that the company operates in;
• We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and focused accreditations such as UKAS, British Safety Council Membership, S2C2 and CHAS;
• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes, relevant correspondence and certificates held; and
• Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
• Making enquires of management and the board as to where they consider there was susceptibility to fraud along with their knowledge of actual, suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
• Our review of financial statements and testing the disclosures against supporting documentation. 
To address the risk of fraud through management bias and override of controls we:
• Performed analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspected and tested journal entries to identify unusual or unexpected transactions;
• Assessed whether judgement and assumptions made in determining significant accounting estimates,
including revaluations of tangible fixed assets and the useful economic life of tangible fixed assets, were indicative of management bias; and
• Investigated the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
 


Page 6

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


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


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.





Mario Cientanni (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditor
Charles Lake House
Claire Causeway
Crossways Business Park
Dartford
Kent
DA2 6QA
 

15 July 2024
Page 7

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
10,933,939
16,995,146

Cost of sales
  
(6,066,814)
(10,494,362)

Gross profit
  
4,867,125
6,500,784

Administrative expenses
  
(2,548,707)
(3,080,823)

Operating profit
 5 
2,318,418
3,419,961

Interest receivable and similar income
 9 
178,046
13,566

Profit before tax
  
2,496,464
3,433,527

Tax on profit
 10 
(714,902)
(625,453)

Profit for the financial year
  
1,781,562
2,808,074

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 11 to 22 form part of these financial statements.
Page 8

 
CLEAN ROOM CONSTRUCTION LIMITED
REGISTERED NUMBER: 1176933

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
211,612
224,865

  
211,612
224,865

Current assets
  

Stocks
 13 
149,189
76,995

Debtors: amounts falling due within one year
 14 
1,808,825
5,006,277

Cash at bank and in hand
 15 
8,120,523
6,611,988

  
10,078,537
11,695,260

Creditors: amounts falling due within one year
 16 
(5,010,268)
(6,935,306)

Net current assets
  
 
 
5,068,269
 
 
4,759,954

Total assets less current liabilities
  
5,279,881
4,984,819

Provisions for liabilities
  

Other provisions
 17 
(166,600)
(166,600)

Net assets
  
5,113,281
4,818,219


Capital and reserves
  

Called up share capital 
 18 
800
800

Capital redemption reserve
  
200
200

Profit and loss account
  
5,112,281
4,817,219

  
5,113,281
4,818,219


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S D Lawton
Director

Date: 15 July 2024

The notes on pages 11 to 22 form part of these financial statements.
Page 9

 
CLEAN ROOM CONSTRUCTION LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
800
200
4,817,219
4,818,219



Profit for the year
-
-
1,781,562
1,781,562

Dividends: Equity capital
-
-
(1,486,500)
(1,486,500)


At 31 December 2023
800
200
5,112,281
5,113,281



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
800
200
2,135,645
2,136,645



Profit for the year
-
-
2,808,074
2,808,074

Dividends: Equity capital
-
-
(126,500)
(126,500)


At 31 December 2022
800
200
4,817,219
4,818,219


The notes on pages 11 to 22 form part of these financial statements.
Page 10

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Clean Room Construction Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office is Units K1 and K2, Temple Court, Knight Road, Strood, Kent, ME2 2LT. The principal activity of the company during the year was that of the design, manufacture and construction of controlled contamination rooms, buildings and equipment.

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

Foreign currency translation

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'.

Page 11

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

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.

 
2.4

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.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

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 Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

 
2.7

Taxation

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 reporting date in the countries where the company operates and generates income.

Page 12

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

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.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.


Leasehold improvement
-
20%
straight line
Plant and machinery
-
33%
straight line
Motor vehicles
-
25%
straight line
Fixtures and fittings
-
33%
straight line
Office equipment
-
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.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.10

Stocks and work in progress

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 13

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Debtors

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.

 
2.12

Cash and cash equivalents

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.

 
2.13

Creditors

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.

 
2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
 
When payments are made, they are charged to the provision carried in the Statement of financial position.

 
2.15

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.16

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.

 
2.17

Cash Flow

The company being a subsidiary undertaking where 90% or more of the voting rights are controlled within the group whose consolidated financial statements are publicly available, is exempt from the requirement to draw up a cash flow statement in accordance with FRS 102.

Page 14

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.18

Long term contracts

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Cost is calculated as the proportion of total contract value which revenue incurred to date bears total expected revenue for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen. 

  
2.19

Current asset investments

Current asset investments include cash deposits with financial institutions, repayable without penalty, that mature more than 3 months from the date of acquisition; and are convertible to known amounts of cash with an insiginificant risk of change in value. 


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The directors have made estimates and assumptions regarding work in progress and cost accruals on long-term contract work and also on other provisions. These estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant and reviewed on an ongoing basis. The amounts which have been recognised in the year ended 31 December 2023 are listed below:
Work in progress - £148,764 (
2022- £76,195)
Contract cost accrual - £265,103 (
2022 - £2,240,409)
Rectification provision (contracts) - £96,600 (
2022- £96,600)
Dilapidation provision (property) - £70,000 (
2022- £70,000)


4.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
10,553,999
11,053,875

Rest of Europe
379,940
5,941,271

10,933,939
16,995,146


Page 15

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
109,828
120,405

Exchange differences
40,769
(45,925)

Defined contribution pension cost
333,336
212,847


6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
15,000
15,000

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
2,312,924
3,073,678

Social security costs
282,845
398,972

Cost of defined contribution scheme
333,336
212,847

2,929,105
3,685,497


The average monthly number of employees, including directors, during the year was 24 (2022 - 24).

Page 16

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
1,278,001
2,018,806

Company contributions to defined contribution pension schemes
80,937
8,742

1,358,938
2,027,548


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 £683893 (2022 - £1,035,494).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £59,925 (2022 - £3,905).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
178,046
13,566

178,046
13,566


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
590,235
836,114

Adjustments in respect of previous periods
124,667
(210,661)


Total current tax
714,902
625,453

Deferred tax

Total deferred tax
-
-


Tax on profit
714,902
625,453
Page 17

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,496,464
3,433,527


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
587,182
652,370

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(158)
177,177

Depreciation for year in excess of capital allowance
9,710
13,370

(Profit)/loss on disposal of fixed assets
(6,499)
(6,803)

Adjustments to tax charge in respect of prior periods
124,667
(210,661)

Total tax charge for the year
714,902
625,453


Factors that may affect future tax charges

There are no factors that may affect future tax charges.


11.


Dividends

2023
2022
£
£


Dividends paid
1,486,500
126,500

1,486,500
126,500
Page 18

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Land and Building
Other fixed assets
Total

£
£
£



Cost or valuation


At 1 January 2023
64,814
570,093
634,907


Additions
-
122,900
122,900


Disposals
-
(92,530)
(92,530)



At 31 December 2023

64,814
600,463
665,277



Depreciation


At 1 January 2023
58,510
351,532
410,042


Charge for the year on owned assets
6,304
103,522
109,826


Disposals
-
(66,203)
(66,203)



At 31 December 2023

64,814
388,851
453,665



Net book value



At 31 December 2023
-
211,612
211,612



At 31 December 2022
6,304
218,561
224,865


13.


Stocks and work in progress

2023
2022
£
£

Raw materials and consumables
425
800

Work in progress
148,764
76,195

149,189
76,995


Page 19

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Debtors

2023
2022
£
£


Trade debtors
878,276
3,964,702

Amounts owed by group undertakings
-
107,910

Other debtors
861,858
860,514

Prepayments and accrued income
68,691
73,151

1,808,825
5,006,277



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
8,120,523
6,611,988

8,120,523
6,611,988



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
870,888
3,267,686

Amounts owed to group undertakings
1,015,527
-

Corporation tax
529,039
568,947

Other taxation and social security
201,799
720,991

Other creditors
904
1,609

Accruals and deferred income
2,392,111
2,376,073

5,010,268
6,935,306


Page 20

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Provisions





Dilapidation provision
Rectification provision
Total

£
£
£





At 1 January 2023
70,000
96,600
166,600



At 31 December 2023
70,000
96,600
166,600


18.


Share capital

2023
2022
£
£
Authorised, allotted, called up and fully paid



800 (2022 - 800) Ordinary shares of £1.00 each
800
800



19.


Pension commitments

The company operates defined contribution pension schemes, for the directors and certain employees. The assets are held separately from those of the company in independently administered funds. The pension cost charge represents commitments payable by the company to the funds and amounts to £333,336 (2022: £212,847).

Page 21

 
CLEAN ROOM CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£

Land & Buildings


Not later than 1 year
33,600
33,600

Later than 1 year and not later than 5 years
64,400
98,000

98,000
131,600

2023
2022

£
£

Motor vehicles


Not later than 1 year
38,397
-

Later than 1 year and not later than 5 years
47,139
-

85,536
-


21.


Related party transactions

Included in other debtors due within one year is amount due from Modereal Limited (a company under common control) of £861,320 (2022:£858,433).These loans are interest free and repayable on demand.


22.


Ultimate parent company

The ultimate parent company is Rowhill Wood Capital Limited, a company incorporated in England and Wales.
 
Page 22