REGISTERED NUMBER: 04454574 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
RUDHEATH CONSTRUCTION |
SERVICES LTD |
REGISTERED NUMBER: 04454574 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
RUDHEATH CONSTRUCTION |
SERVICES LTD |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
RUDHEATH CONSTRUCTION |
SERVICES LTD |
Company Information |
for the Year Ended 31 December 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
Review of business |
The Directors are pleased with the performance for the year. 2023 has delivered £37.8m in turnover. The group has continued to invest heavily in research and development during 2023. As a result, the gross profit rate of 43.7% has been achieved and net profit before tax is over £7.6m. |
The growth and strengthened capabilities during 2023 are set to continue with significant investment underway in 2024. |
Continued improvement and capital expenditure in the manufacturing process and maintaining strong relationships with its existing clients ensures a steady flow of repeat business. New opportunities are continually identified as are avenues for diversity. |
Health & Safety performance, profitability and working capital remain strong and are the key performance indicators. |
Principal risks and uncertainties |
The group derives its revenues from the UK construction market. Whilst the industry remains competitive the group looks to offer innovative solutions and spread its workload between large residential, commercial, public sector and retail projects. |
The group operates strong overall financial control and looks to minimise financial risk at all stages as a priority. The group continually tracks its cash flow with projections considered for 3-6 months in advance |
The current order book remains strong with contracts booked to ensure the factory is at capacity for approximately 9 - 12 months in advance. The level of enquiries and tenders being submitted remains at a healthy level and well spread between market sectors. |
The financial key performance indicators are turnover, gross margin and profit which are closely monitored year to year. |
The group's principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations. |
In respect of bank balances, liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities when funds are available. |
Trade debtors and related balances 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. . |
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
On behalf of the board: |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
Principal activity |
The principal activity of the group in the year under review was that of the manufacture of precast concrete products. |
Dividends |
The total distribution of dividends in the period under review was £6,000,000. |
Research and development |
The group is continuing research and development activity into new forms of materials and processes, and a method of tracking panels. |
Future developments |
The group continues to tender for all appropriate work and has some significant contracts in place for 2024 and 2025. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Report of the Directors |
for the Year Ended 31 December 2023 |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Rudheath Construction |
Services Ltd |
Opinion |
We have audited the financial statements of Rudheath Construction Services Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Rudheath Construction |
Services Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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 a Report of the Auditors 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: |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the company engagement team included: |
- identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud; |
- understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; |
- we have tested all sales contracts in the year, ensuring they have led to sales in the financial statements as well as increasing the risk when testing trade debtors; and |
- assessing management estimates by evaluating the significant assumptions and the choice of data used, in particular with regard to anticipated costs to complete on contracts. |
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. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Rudheath Construction |
Services Ltd |
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 a Report of the Auditors 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. |
for and on behalf of |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 37,789,156 | 26,486,180 |
Cost of sales | (21,264,359 | ) | (14,045,596 | ) |
Gross profit | 16,524,797 | 12,440,584 |
Administrative expenses | (9,056,869 | ) | (7,654,394 | ) |
7,467,928 | 4,786,190 |
Other operating income | 12,432 | 17,028 |
Operating profit | 5 | 7,480,360 | 4,803,218 |
Interest receivable and similar income | 143,391 | 18,567 |
7,623,751 | 4,821,785 |
Interest payable and similar expenses | 6 | (547 | ) | (140 | ) |
Profit before taxation | 7,623,204 | 4,821,645 |
Tax on profit | 7 | (636,622 | ) | (132,164 | ) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year | 6,986,582 | 4,689,481 |
Profit attributable to: |
Owners of the parent | 6,986,582 | 4,689,481 |
Total comprehensive income attributable to: |
Owners of the parent | 6,986,582 | 4,689,481 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 10 | 9,979,486 | 9,214,658 |
Investments | 11 | - | - |
Investment property | 12 | - | - |
9,979,486 | 9,214,658 |
Current assets |
Stocks | 13 | 1,404,750 | 1,771,215 |
Debtors | 14 | 4,244,363 | 4,363,827 |
Cash at bank and in hand | 7,687,625 | 6,333,047 |
13,336,738 | 12,468,089 |
Creditors |
Amounts falling due within one year | 15 | 4,107,341 | 3,577,916 |
Net current assets | 9,229,397 | 8,890,173 |
Total assets less current liabilities | 19,208,883 | 18,104,831 |
Provisions for liabilities | 17 | 788,743 | 671,273 |
Net assets | 18,420,140 | 17,433,558 |
Capital and reserves |
Called up share capital | 18 | 136,000 | 136,000 |
Other reserves | 19 | 40,000 | 40,000 |
Retained earnings | 19 | 18,244,140 | 17,257,558 |
Shareholders' funds | 18,420,140 | 17,433,558 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 July 2024 and were signed on its behalf by: |
H R Thorp - Director |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
Current assets |
Debtors | 14 |
Cash at bank |
Creditors |
Amounts falling due within one year | 15 |
Net current liabilities | ( | ) | ( | ) |
Total assets less current liabilities |
Provisions for liabilities | 17 |
Net assets |
Capital and reserves |
Called up share capital | 18 | 136,000 | 136,000 |
Other reserves | 19 | 456,064 | 456,064 |
Retained earnings | 19 | 5,540,230 | 4,921,865 |
Shareholders' funds | 6,132,294 | 5,513,929 |
Company's profit for the financial year | 6,618,365 | 3,543,193 |
The financial statements were approved by the Board of Directors and authorised for issue on |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 136,000 | 15,568,077 | 40,000 | 15,744,077 |
Changes in equity |
Dividends | - | (3,000,000 | ) | - | (3,000,000 | ) |
Total comprehensive income | - | 4,689,481 | - | 4,689,481 |
Balance at 31 December 2022 | 136,000 | 17,257,558 | 40,000 | 17,433,558 |
Changes in equity |
Dividends | - | (6,000,000 | ) | - | (6,000,000 | ) |
Total comprehensive income | - | 6,986,582 | - | 6,986,582 |
Balance at 31 December 2023 | 136,000 | 18,244,140 | 40,000 | 18,420,140 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 136,000 | 4,351,991 | 482,745 | 4,970,736 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - | ( | ) |
Balance at 31 December 2022 | 136,000 | 4,921,865 | 456,064 | 5,513,929 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - |
Balance at 31 December 2023 | 136,000 | 5,540,230 | 456,064 | 6,132,294 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 9,080,811 | 7,547,981 |
Interest paid | (547 | ) | (140 | ) |
Tax paid | 190,195 | 648,666 |
Net cash from operating activities | 9,270,459 | 8,196,507 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (2,192,940 | ) | (2,469,092 | ) |
Sale of tangible fixed assets | 102,055 | 73,246 |
Interest received | 143,391 | 18,567 |
Net cash from investing activities | (1,947,494 | ) | (2,377,279 | ) |
Cash flows from financing activities |
Amount introduced by directors | 31,613 | 24,250 |
Equity dividends paid | (6,000,000 | ) | (3,000,000 | ) |
Net cash from financing activities | (5,968,387 | ) | (2,975,750 | ) |
Increase in cash and cash equivalents | 1,354,578 | 2,843,478 |
Cash and cash equivalents at beginning of year | 2 | 6,333,047 | 3,489,569 |
Cash and cash equivalents at end of year | 2 | 7,687,625 | 6,333,047 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit before taxation | 7,623,204 | 4,821,645 |
Depreciation charges | 1,423,393 | 960,396 |
Profit on disposal of fixed assets | (97,338 | ) | (70,703 | ) |
Finance costs | 547 | 140 |
Finance income | (143,391 | ) | (18,567 | ) |
8,806,415 | 5,692,911 |
Decrease/(increase) in stocks | 366,465 | (1,071,514 | ) |
(Increase)/decrease in trade and other debtors | (106,687 | ) | 5,960,020 |
Increase/(decrease) in trade and other creditors | 14,618 | (3,033,436 | ) |
Cash generated from operations | 9,080,811 | 7,547,981 |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 7,687,625 | 6,333,047 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 6,333,047 | 3,489,569 |
3. | Analysis of changes in net funds |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,333,047 | 1,354,578 | 7,687,625 |
6,333,047 | 1,354,578 | 7,687,625 |
Total | 6,333,047 | 1,354,578 | 7,687,625 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | Statutory information |
Rudheath Construction Services Ltd is a |
2. | Statement of compliance |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertaking drawn up to 31 December 2023. |
In October 2015 Rudheath Construction Services Limited became the parent company for the group. The introduction of the new holding company constituted a group reconstruction and has been accounted for using merger accounting principles. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
There are not considered to be any critical judgements in applying the company's accounting policies. |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets or liabilities within the next financial year are addressed below. |
(i) Work in progress valuation |
The valuation of work in progress involves a number of estimates including costs to complete, anticipated gross profit and the analysis of costs between the different stages of delivery. |
(ii) Provisions |
Provision is made for remedial work. This provision requires management's best estimate of the costs that will be incurred based on contractual requirements. |
Turnover |
Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers and the value of work performed on long term contracts, including any attributable profit. |
The company classifies as long term contracts those which relate to the construction of a number of precast structures under one contract where the contract activity extends over more than one accounting period. The length of these contracts can exceed twelve months. Revenue from long term contracts is recognised by stage of completion. Stage of completion is measured by reference to the value of work performed to date as a percentage of total value for each contract. Where the contract outcome cannot be measured reliably, revenue is measured only to the extent of the expenses recognised that are recoverable. Full provision is made for losses on all contracts in the year in which they are first foreseen. |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | Accounting policies - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use. |
Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs. |
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and future losses on contracts less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account. |
Financial instruments |
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
There are no assets which are initially measured at fair value. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, 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 receipts discounted at a market rate of interest. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | Accounting policies - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the profit and loss account over the period of the lease on a straight line basis. Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is charged or credited to the profit and loss account as other operating income. |
Although this accounting policy is in accordance with FRS 102 Section 1A it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified. |
4. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries | 9,082,067 | 7,970,116 |
Social security costs | 963,309 | 875,152 |
Other pension costs | 473,953 | 403,723 |
10,519,329 | 9,248,991 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | Employees and directors - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration and support | 47 | 45 |
Production | 164 | 156 |
Sales, marketing and distribution | 10 | 9 |
The average number of employees by undertakings that were proportionately consolidated during the year was 221 (2022 - 210 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 324,183 | 301,043 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 302,675 | 283,043 |
Directors' remuneration is paid by the subsidiary company. |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 78,472 | 65,701 |
Depreciation - owned assets | 1,423,395 | 960,396 |
Profit on disposal of fixed assets | (97,338 | ) | (70,703 | ) |
Auditors' remuneration | 24,200 | 29,000 |
Foreign exchange differences | 2,914 | (1,102 | ) |
Property rental | 296,239 | 474,542 |
Auditors' remuneration includes £5,200 (2022 - £5,000) in respect of Rudheath Construction Services Limited. |
6. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Other interest | 547 | 140 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 519,001 | (190,346 | ) |
(Over)/under provision PY | 151 | (7,573 | ) |
Total current tax | 519,152 | (197,919 | ) |
Deferred tax | 117,470 | 330,083 |
Tax on profit | 636,622 | 132,164 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 7,623,204 | 4,821,645 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) | 1,792,978 | 916,113 |
Effects of: |
Expenses not deductible for tax purposes | 11,629 | 23,305 |
Capital allowances in excess of depreciation | (53,560 | ) | - |
Depreciation in excess of capital allowances | - | 163,331 |
Adjustments to tax charge in respect of previous periods | 151 | (7,572 | ) |
Research and development and patent box claims | (1,114,576 | ) | (963,013 | ) |
Total tax charge | 636,622 | 132,164 |
The overprovision of tax for prior years relates to successful Research and Development and Patent Box claims received in the year. |
Factors affecting future tax charges |
Future tax liabilities will be reduced by Research and Development claims and Patent Box claims. |
8. | Individual statement of comprehensive income |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 6,000,000 | 3,000,000 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | Tangible fixed assets |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Cost |
At 1 January 2023 | 5,094,883 | 2,301,885 | 6,713,616 |
Additions | 124,930 | 183,536 | 1,842,226 |
Disposals | - | (8,465 | ) | (204,340 | ) |
At 31 December 2023 | 5,219,813 | 2,476,956 | 8,351,502 |
Depreciation |
At 1 January 2023 | 266,330 | 875,464 | 3,946,029 |
Charge for year | 69,392 | 303,972 | 964,669 |
Eliminated on disposal | - | (7,141 | ) | (200,947 | ) |
At 31 December 2023 | 335,722 | 1,172,295 | 4,709,751 |
Net book value |
At 31 December 2023 | 4,884,091 | 1,304,661 | 3,641,751 |
At 31 December 2022 | 4,828,553 | 1,426,421 | 2,767,587 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
Cost |
At 1 January 2023 | 395,618 | 149,245 | 14,655,247 |
Additions | 42,248 | - | 2,192,940 |
Disposals | (82,870 | ) | - | (295,675 | ) |
At 31 December 2023 | 354,996 | 149,245 | 16,552,512 |
Depreciation |
At 1 January 2023 | 263,477 | 89,289 | 5,440,589 |
Charge for year | 56,658 | 28,704 | 1,423,395 |
Eliminated on disposal | (82,870 | ) | - | (290,958 | ) |
At 31 December 2023 | 237,265 | 117,993 | 6,573,026 |
Net book value |
At 31 December 2023 | 117,731 | 31,252 | 9,979,486 |
At 31 December 2022 | 132,141 | 59,956 | 9,214,658 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | Tangible fixed assets - continued |
Company |
Improvements |
to | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
Disposals | ( | ) | ( | ) |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( | ) | ( | ) |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
11. | Fixed asset investments |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 January 2023 |
and 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Apedale Road, Chesterton, Staffordshire ST5 6BN |
Nature of business: |
% |
Class of shares: | holding |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | Investment property - continued |
12. | Investment property |
Company |
Total |
£ |
Fair value |
At 1 January 2023 |
Additions |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2023 | 567,237 |
Cost | 5,219,814 |
5,787,051 |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 5,219,814 | 5,094,884 |
Aggregate depreciation | (335,722 | ) | (266,330 | ) |
Investment property was valued on an open market basis on 31 December 2023 by the directors . |
13. | Stocks |
Group |
2023 | 2022 |
£ | £ |
Stocks | 760,138 | 610,674 |
Net costs less foreseeable losses | 644,612 | 1,160,541 |
1,404,750 | 1,771,215 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | Debtors |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,669,355 | 1,759,656 |
Other debtors | 392,940 | 391,742 |
Directors' current accounts | - | 16,956 | - | - |
Tax | - | 209,195 |
VAT | 333,150 | 590,097 |
Prepayments and accrued income | 690,156 | 622,093 |
3,085,601 | 3,589,739 |
Amounts falling due after more than one | year: |
Trade debtors | 1,158,762 | 774,088 |
Aggregate amounts | 4,244,363 | 4,363,827 |
Trade debtors are stated net of a provision of £174,538 (2022 - £174,538). |
15. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 2,462,543 | 2,477,826 |
Amounts owed to group undertakings | - | - |
Corporation tax | 519,001 | 18,849 |
Social security and other taxes | 505,818 | 479,921 |
Other creditors | 314,664 | 249,075 |
Directors' current accounts | 14,655 | - | 12,872 | 12,872 |
Accruals and deferred income | 290,660 | 352,245 |
4,107,341 | 3,577,916 |
16. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 300,806 | 267,908 |
Between one and five years | 999,078 | 652,897 |
In more than five years | 612,439 | 24,167 |
1,912,323 | 944,972 |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | Leasing agreements - continued |
The finance leases relate to plant and machinery used in the group's operations. There are no contingent rental, renewal or purchase option clauses. |
17. | Provisions for liabilities |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 677,570 | 671,273 |
Other timing differences | 111,173 | - | 111,173 | 111,173 |
788,743 | 671,273 | 590,316 | 522,273 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 671,273 |
Provided during year | 117,470 |
Balance at 31 December 2023 | 788,743 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Balance at 31 December 2023 |
The net deferred tax liability expected to reverse in 2024 is £228,000. This primarily relates to the reversal of timing differences on capital allowances. |
18. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100,000 | 100,000 |
A Ordinary | £1 | 36,000 | 36,000 |
136,000 | 136,000 |
All shares are entitled to dividends as declared for each class but A Ordinary shares are not entitled to vote and do not participate in any surplus. They are entitled, as a class, to a payment of £1,000 on return of capital. |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | Reserves |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 January 2023 | 17,257,558 | 40,000 | 17,297,558 |
Profit for the year | 6,986,582 | - | 6,986,582 |
Dividends | (6,000,000 | ) | - | (6,000,000 | ) |
At 31 December 2023 | 18,244,140 | 40,000 | 18,284,140 |
Company |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 January 2023 | 4,921,865 | 456,064 | 5,377,929 |
Profit for the year | - |
Dividends | ( | ) | - | ( | ) |
At 31 December 2023 | 5,540,230 | 456,064 | 5,996,294 |
The group other reserves is a merger reserve arising on the group reconstruction. |
The company other reserve is a fair value reserve in respect of the investment property. |
20. | Pension commitments |
The group operates defined contribution pension schemes. The pension cost charge for the period represents contributions payable by the group to the schemes and amounted to £473,953 (2022 - £403,723). |
Contributions totalling £164,993 (2022 - £142,713) were payable to the schemes at the period end and are included in creditors. |
21. | Capital commitments |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | 134,208 | 71,286 |
22. | Directors' advances, credits and guarantees |
At 31 December 2023 the group owed £14,655 to the directors (2022 - £19,956 owed by the directors). |
Interest is charged on credit balances at 11% per annum and debit balances at 3.25% per annum. During the period interest charged by the group was £nil (2022 - £140) and interest charged to the group was £547 (2022 - £1,101). |
The directors charged rent to the group of £31,242 (2022 - £31,242). |
RUDHEATH CONSTRUCTION |
SERVICES LTD (REGISTERED NUMBER: 04454574) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
23. | Related party disclosures |
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 wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year dividends of £6,000,000 (2022 - £3,000,000) were paid to a company controlled by the directors. |
Pension scheme set up for the benefit of a director |
2023 | 2022 |
£ | £ |
Rent charged by the scheme | 257,427 | 255,000 |
Companies under common control owed the group £392,940 (2022 - £391,742) at the year end. |
24. | Ultimate controlling party |
The controlling party is H R Thorp. |