Broad Oak Properties Limited
Annual report and financial statements
For the year ended 31 March 2024
Broad Oak Properties Limited
Company information
Directors
Mr A P Harrison
Mr S Conway
Secretary
Mrs S J Harrison
Company number
04375334
Registered office
Broad Oak Farm
Little Green Head
Kingsley Moor
Stoke on Trent
Staffordshire
ST10 2EL
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Business Park
Aldridge
Walsall
West Midlands
WS9 0RB
Broad Oak Properties Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
Broad Oak Properties Limited
Strategic report
For the year ended 31 March 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

 

Broad Oak Properties Limited was founded in 2002 and has since become a thriving business providing services across the UK within the following sectors; construction, heating installation, renewable energy, property refurbishment, new build and property trade. As a company we have a diverse range of contracts and customers, some of which require specialist attention to detail. Our focus continues to be highly driven by our customers and their needs, with an even stronger focus on maintaining long term relationships, most importantly with our customers but also our suppliers and staff.

REVIEW OF THE BUSINESS

Our strong customer relationships and ability to deliver on their requirements was demonstrated during the current financial year by strong revenue growth.

 

Turnover for the year increased by 66% to £41.1m from £24.8m. The increase was predominantly driven by growth in the heating and renewable areas of the business. A key part of the success was our ability to deliver at volume with high quality, whilst a number of competitors struggled with their delivery.

 

The increased volume led to a small drop in gross margin however, this remained strong at 12.8% compared to 16.6% last year.

 

Administrative expenses increased to £2.0m from £1.4m however, this was in line with expectations due to the growth of the business.

 

Profit before tax increased to £4.1m from £2.9m in the prior year.

 

Over the financial year our cash flow was mainly based on cash within the business and we were largely supported by the fact that our customers have continued to be prompt with their payments. Over the next financial year our cash flow will continue to be based on cash and profit within the business. Cash at bank and in hand has increased to £3.4m from £2.8m the prior year.

 

Future Developments

The ongoing green agenda for the Government should ensure that the business continues to see strong demand for its services over the coming financial year.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risks

The current trading environment within our sector remains very competitive alongside the renewable and government funded schemes being subject to change and financial review. However, as a company we are more than aware of the need to adapt and change according to our trading environment. We have proved in the past that we are more than capable, if necessary, of seeking and securing new opportunities and work for the business.

 

Credit Risk

Due to the nature of the business we undertake, there will always be the risk of a customer's failure to honour their obligations to pay within the terms set out by our company. We attempt to minimise this by undertaking credit checks, third party information and implementing credit terms and contracts before proceeding works with customers. A large proportion of our business is operated with Local Authorities and energy company grants. Our debtors are also monitored regularly between both the Finance Department and the Managing Director.

 

Other Business risks

Liquidity/cashflow risks - the company has strong credit control processes in place to ensure credit customers pay within their credit terms in order to maintain cashflow. The company is also currently in a strong cash position to mitigate any liquidity risk.

Broad Oak Properties Limited
Strategic report (continued)
For the year ended 31 March 2024
- 2 -
KEY PEFORMANCE INDICATORS

Key Performance Indicators

 

Turnover

Mar24             Mar23

Turnover            £41,086,348            £24,763,739

Increase /

(decrease)            £16,322,609         £10,882,772

% change             65.9%             78.4%

 

This KPI is calculated by taking the turnover for the year and comparing to the previous year. The movement is shown as both an absolute value and a percentage.

 

Gross Profit

Mar24             Mar23

Gross Profit             £5,249,414            £4,118,941

Gross Profit %         12.8%             16.6%

 

This KPI is calculated by taking the gross profit achieved as a percentage of turnover.

Gross profit margin has decreased slightly during the year due to the turnover mix along with the competitive nature of the market.

On behalf of the board

Mr A P Harrison
Director
4 September 2024
Broad Oak Properties Limited
Directors' report
For the year ended 31 March 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activities of the company in the year under review were those of property development and providing construction services.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £2,000,000 (2023 - £1,000,000). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A P Harrison
Mr S Conway
Auditor

BK Plus Audit Limited, has indicated its willingness to continue in office and will be proposed for re-appointment in accordance with section 485 Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure in the strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Broad Oak Properties Limited
Directors' report (continued)
For the year ended 31 March 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A P Harrison
Director
4 September 2024
Broad Oak Properties Limited
Independent auditor's report
To the members of Broad Oak Properties Limited
- 5 -
Opinion

We have audited the financial statements of Broad Oak Properties Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Broad Oak Properties Limited
Independent auditor's report (continued)
To the members of Broad Oak Properties Limited
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

Broad Oak Properties Limited
Independent auditor's report (continued)
To the members of Broad Oak Properties Limited
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.

Broad Oak Properties Limited
Independent auditor's report (continued)
To the members of Broad Oak Properties Limited
- 8 -
Mr Chris Hession
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
4 September 2024
Accountants
Statutory Auditor
Azzurri House
Walsall Business Park
Aldridge
Walsall
West Midlands
WS9 0RB
Broad Oak Properties Limited
Statement of comprehensive income
For the year ended 31 March 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
41,086,348
24,763,739
Cost of sales
(35,836,934)
(20,644,798)
Gross profit
5,249,414
4,118,941
Administrative expenses
(1,958,551)
(1,372,075)
Other operating income
1,212,380
431,112
Operating profit
4,503,243
3,177,978
Interest payable and similar expenses
7
(408,871)
(296,000)
Profit before taxation
4,094,372
2,881,978
Tax on profit
8
(1,024,504)
(547,337)
Profit for the financial year
3,069,868
2,334,641

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

Broad Oak Properties Limited
Statement of financial position
As at 31 March 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
414,213
-
0
Current assets
Stocks
11
1,034,205
1,158,408
Debtors
12
9,211,839
9,305,314
Cash at bank and in hand
3,422,660
2,837,239
13,668,704
13,300,961
Creditors: amounts falling due within one year
13
(4,633,358)
(4,456,945)
Net current assets
9,035,346
8,844,016
Total assets less current liabilities
9,449,559
8,844,016
Creditors: amounts falling due after more than one year
14
(6,148,117)
(6,700,638)
Provisions for liabilities
Deferred tax liability
17
88,196
-
0
(88,196)
-
Net assets
3,213,246
2,143,378
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
21
3,213,146
2,143,278
Total equity
3,213,246
2,143,378

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
Mr A P Harrison
Director
Company registration number 04375334 (England and Wales)
Broad Oak Properties Limited
Statement of changes in equity
For the year ended 31 March 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
100
808,637
808,737
Year ended 31 March 2023:
Profit and total comprehensive income
-
2,334,641
2,334,641
Dividends
9
-
(1,000,000)
(1,000,000)
Balance at 31 March 2023
100
2,143,278
2,143,378
Year ended 31 March 2024:
Profit and total comprehensive income
-
3,069,868
3,069,868
Dividends
9
-
(2,000,000)
(2,000,000)
Balance at 31 March 2024
100
3,213,146
3,213,246
Broad Oak Properties Limited
Notes to the financial statements
For the year ended 31 March 2024
- 12 -
1
Accounting policies
Company information

Broad Oak Properties Limited is a private company limited by shares incorporated in England and Wales. The registered office is Broad Oak Farm, Little Green Head, Kingsley Moor, Stoke on Trent, Staffordshire, ST10 2EL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements cover the company as an individual entity, have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of 31 March 2023. These consolidated financial statements are available from Broad Oak Farm, Little Green Head, Kingsley Moor, Stoke-on-Trent, ST10 2EL.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities where the relationship is one of being wholly owned.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover

- Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contracts costs, except where this would not be

representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered payable.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

 

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

 

- Property sales

Trading property sales are accounted for on a legal completion basis.

 

- Installations

Installation revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated using the costs incurred to date as a percentage of total expected costs.

 

Turnover and costs on contracts are recognised as activity progresses once the outcome can be assessed with reasonable certainty. Full provision is made for anticipated future losses. Where contract payments received exceed amounts recoverable, these amounts are included in creditors.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10% on cost
Plant and equipment
20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 14 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

 

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the inventory to its present location and condition. The cost of manufactured finished goods and work in progress includes design costs, raw materials, direct labour and other direct costs and related production overheads (based on normal operating capacity).

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 16 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty
Revenue and profit recognition

Recognition of revenue and profit is based on estimates of the ultimate profitability of a contract which is arrived at by estimating the costs and value of work performed to date and to be performed in completing the contracts. Further detail is provided in the ''Construction contracts'' accounting policy.

Property and installation sales

Management review each installation job/contract ongoing at the year end in order to obtain an accurate valuation of the work completed to date and therefore any profits or losses on contract to recognise. Management recognise profits on contracts once the outcome can be measured with reasonable certainty. Management will review the level of work completed and the costs incurred on each individual contract at the year end and then use an estimate of the total costs to complete the contract in order to determine the stage of completion.

 

Any anticipated future losses are provided for in full. Uncertainties in the valuation of individual contracts relate to the actual value of recoverable on the contracts.

 

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Property sales
314,127
150,000
Contracting work
40,772,221
24,613,739
41,086,348
24,763,739

 

4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,000
20,000
Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 18 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Cost of sales
191
149
Administration
8
7
Directors
2
1
Total
201
157

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,017,104
4,732,282
Social security costs
560,705
389,447
Pension costs
184,147
91,330
7,761,956
5,213,059
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
170,000
113,000
Company pension contributions to defined contribution schemes
25,633
1,321
195,633
114,321

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 1).

7
Interest payable and similar expenses
2024
2023
£
£
Interest payable to group undertakings
409,459
297,190
Other interest
(588)
(1,190)
408,871
296,000
Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 19 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
936,308
547,337
Deferred tax
Origination and reversal of timing differences
88,196
-
0
Total tax charge
1,024,504
547,337

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
4,094,372
2,881,978
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,023,593
547,576
Tax effect of expenses that are not deductible in determining taxable profit
5,639
3,034
Over/under provision of DT
-
0
4,728
Over/under provision of DT in the prior year
(4,728)
(3,844)
Deferred tax calculated at increased rates
-
0
(212)
Taxation under/(over) provided for
-
0
(3,945)
Taxation charge for the year
1,024,504
547,337
9
Dividends
2024
2023
£
£
Interim paid
2,000,000
1,000,000
Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 20 -
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Total
£
£
£
Cost
At 1 April 2023
-
0
114,572
114,572
Additions
414,213
-
0
414,213
At 31 March 2024
414,213
114,572
528,785
Depreciation and impairment
At 1 April 2023 and 31 March 2024
-
0
114,572
114,572
Carrying amount
At 31 March 2024
414,213
-
0
414,213
At 31 March 2023
-
0
-
0
-
0
11
Stocks
2024
2023
£
£
Stocks and work in progress
1,034,205
1,158,408
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,375,365
4,317,728
Gross amounts owed by contract customers
1,369,880
178,838
Amounts owed by group undertakings
1,526,734
-
0
Other debtors
796,646
-
0
Prepayments and accrued income
2,143,214
4,808,748
9,211,839
9,305,314
Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 21 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
2,381,013
1,195,957
Amounts owed to group undertakings
43,211
1,370,540
Corporation tax
602,363
546,551
Other taxation and social security
270,417
192,817
Deferred income
18
433,295
-
0
Other creditors
385,487
198,905
Accruals and deferred income
517,572
952,175
4,633,358
4,456,945
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Amounts owed to parent company
15
6,148,117
6,700,638
15
Loans and overdrafts
2024
2023
£
£
Loans from group undertakings
6,148,117
6,700,638
Payable after one year
6,148,117
6,700,638
16
Security

The intercompany loan from Broad Oak KM Limited totalling £6,148,117 (2023 - £6,700,638) is secured by a fixed and floating charge over the assets of the company. Interest is being charged at 10.5% per annum.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
88,196
-
Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
17
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£
Liability at 1 April 2023
-
Charge to profit or loss
88,196
Liability at 31 March 2024
88,196
18
Deferred income
2024
2023
£
£
Other deferred income
433,295
-
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
184,147
91,330

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £13,871 (2023 - £8,310) were payable to the fund at the balance sheet date and are included in creditors.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

The Ordinary shares are non-redeemable, voting shares which carry a right to receive dividends. There is no right to participate in a distribution of capital except on a winding up.

21
Profit and loss reserves

Retained earnings comprises accumulated profits less any losses and distributions which have been retained within the company.

Broad Oak Properties Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 23 -
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
29,761
23,958
Between two and five years
32,453
35,705
62,214
59,663

Total lease payments recognised as an expense during the period amounted to £40,992 (2023 - £18,691).

23
Related party transactions

Wage costs of £25,000 (2023 - £25,000) were recharged from an entity under common control. There is a year end balance with the entity of £Nil (2023 - £Nil).

 

During the year the company also paid a total of £43,834 (2023 - £44,383) to close family members of key management personnel.

24
Ultimate controlling party

The company is a 100% owned subsidiary of Broad Oak KM Limited, which is the ultimate parent company. The ultimate parent company prepares consolidated financial statements as at 31 March 2024 and these financial statements may be obtained from Broad Oak Farm, Little Green Head, Kingsley Moor, Stoke-on-Trent, ST10 2EL.

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