Company Registration No. 11570302 (England and Wales)
EAST ANGLIAN CIVILS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
EAST ANGLIAN CIVILS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr J T Rawling
Mrs A C Rawling
(Appointed 19 July 2023)
Secretary
Mr J M Doolan
Company number
11570302
Registered office
Suite 1, Allium House
12 Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
EAST ANGLIAN CIVILS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 39
EAST ANGLIAN CIVILS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Fair review of the business
During the year, the group have experienced a period of growth as despite a challenging year for the industry with inflationary pressures on costs, and a downturn in the housing market following increased interest rates. The Group has continued to operate efficiently and profitably during the year. The directors are confident in the Group's position and that the Group will continue to operate profitably in the coming years as they develop their own housing units as well as continuing to provide groundwork services for others in the industry.
The Group's key performance indicators during the year were:
Unit 2023 2022
Turnover £ 19,442,025 13,528,514
Gross profit £ 4,141,278 3,201,142
Gross profit margin % 21.3 23.7
Profit before taxation £ 2,838,389 2,208,339
Principals risks and uncertainties
The Group has established a financial management framework whose primary objectives are to protect the Group from events that hinder the achievement of the Group's performance objectives. The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk.
The key risks affecting the group are set out below:
Market
The industry in which the group operates can be affected by government policy and interest rates which affect the housing and development markets in general. The Group provide both groundwork services to the commercial and residential sectors as well as building residential properties themselves. The Group operates a policy of continuously working with its customers to ensure product and service offerings continue to meet and exceed consumer expectation. The Group considers all risks in its quoted job offerings.
Customer and Supplier relationships
The Group recognises the importance of both its customer and supplier relationships in delivering both its strategy and continued growth aspirations. The Group interacts closely and regularly with its customers and suppliers to develop open and honest relationships ensuring focus on project offerings are maintained and allowing challenges to be overcome in an efficient and practical manner.
Employees and labour
The Group values its workforce and recognises the significance this key resource delivers in providing the ability of the Group to achieve its aspirations. In addition, the Group recognises there is a continued demand across the industry for the Group's skilled workforce. The Group manages these risks by ensuring its workforce is highly valued and provides opportunities for development and progression whilst offering fair and competitive remuneration packages.
Credit risk
The Group considers the credit risk of the companies it trades with to be low. Nevertheless, the Group operates a policy of regular monitoring of amounts outstanding for both length of time outstanding and credit limits assigned. The Group keeps abreast of developments within its customers businesses and monitors reporting for indicators of potential changes in risk levels.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments
The directors aims to maintain policies which have resulted in the company's success in recent years. The directors consider that the next year will show further success from continuing operations.
Mr J T Rawling
Director
11 September 2024
EAST ANGLIAN CIVILS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company and group continued to be that of general construction and civil engineering.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £140,970. The directors do not recommend payment of a further 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 J T Rawling
Mrs A C Rawling
(Appointed 19 July 2023)
Political donations
Auditor
TC Group were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr J T Rawling
Director
11 September 2024
EAST ANGLIAN CIVILS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EAST ANGLIAN CIVILS HOLDINGS LIMITED
- 5 -
Opinion
We have audited the financial statements of East Anglian Civils Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 FRS 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 the parent company's 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.
The prior year financial statements have not been audited, therefore the corresponding figures are unaudited.
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 group's and 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.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EAST ANGLIAN CIVILS HOLDINGS LIMITED
- 6 -
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
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 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 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 company or to cease operations, or have no realistic alternative but to do so.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EAST ANGLIAN CIVILS HOLDINGS LIMITED
- 7 -
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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EAST ANGLIAN CIVILS HOLDINGS LIMITED
- 8 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EAST ANGLIAN CIVILS HOLDINGS LIMITED
- 9 -
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.
John Grant (Senior Statutory Auditor)
For and on behalf of TC Group
11 September 2024
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
EAST ANGLIAN CIVILS HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
19,442,025
13,528,514
Cost of sales
(15,300,747)
(10,327,372)
Gross profit
4,141,278
3,201,142
Administrative expenses
(1,244,293)
(1,005,801)
Other operating income
12,032
25,000
Operating profit
4
2,909,017
2,220,341
Share of loss of associates
(60,960)
-
Interest receivable and similar income
8
1,722
65
Interest payable and similar expenses
9
(11,390)
(12,067)
Profit before taxation
2,838,389
2,208,339
Tax on profit
10
(789,405)
(400,636)
Profit for the financial year
2,048,984
1,807,703
Profit for the financial year is attributable to:
- Owners of the parent company
2,007,739
1,737,853
- Non-controlling interests
41,245
69,850
2,048,984
1,807,703
EAST ANGLIAN CIVILS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
£
£
Profit for the year
2,048,984
1,807,703
Other comprehensive income
-
-
Total comprehensive income for the year
2,048,984
1,807,703
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,007,739
1,737,853
- Non-controlling interests
41,245
69,850
2,048,984
1,807,703
EAST ANGLIAN CIVILS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
444
Tangible assets
13
2,651,151
2,008,992
Investment properties
14
561,758
561,758
Investments
15
49
3,212,909
2,571,243
Current assets
Stocks
17
1,335,660
1,184,381
Debtors
18
2,037,487
1,574,141
Cash at bank and in hand
2,847,727
1,474,863
6,220,874
4,233,385
Creditors: amounts falling due within one year
19
(2,737,531)
(1,617,288)
Net current assets
3,483,343
2,616,097
Total assets less current liabilities
6,696,252
5,187,340
Creditors: amounts falling due after more than one year
20
(90,012)
(658,687)
Provisions for liabilities
Provisions
23
60,911
Deferred tax liability
24
385,406
276,744
(446,317)
(276,744)
Net assets
6,159,923
4,251,909
Capital and reserves
Called up share capital
26
100
100
Profit and loss reserves
6,084,686
4,156,947
Equity attributable to owners of the parent company
6,084,786
4,157,047
Non-controlling interests
75,137
94,862
6,159,923
4,251,909
EAST ANGLIAN CIVILS HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
11 September 2024
Mr J T Rawling
Director
EAST ANGLIAN CIVILS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
663,862
472,687
Investment properties
14
561,758
561,758
Investments
15
274
274
1,225,894
1,034,719
Current assets
Debtors
18
2,465,600
159,247
Cash at bank and in hand
1,064,009
588,371
3,529,609
747,618
Creditors: amounts falling due within one year
19
(139,696)
(65,282)
Net current assets
3,389,913
682,336
Net assets
4,615,807
1,717,055
Capital and reserves
Called up share capital
26
100
100
Profit and loss reserves
4,615,707
1,716,955
Total equity
4,615,807
1,717,055
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,978,752 (2022 - £709,444 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
11 September 2024
Mr J T Rawling
Director
Company Registration No. 11570302
EAST ANGLIAN CIVILS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
-
2,479,094
2,479,094
94,612
2,573,706
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,737,853
1,737,853
69,850
1,807,703
Issue of share capital
26
100
-
100
-
100
Dividends
11
-
(60,000)
(60,000)
(69,600)
(129,600)
Balance at 31 December 2022
100
4,156,947
4,157,047
94,862
4,251,909
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
2,007,739
2,007,739
41,245
2,048,984
Dividends
11
-
(80,000)
(80,000)
(60,970)
(140,970)
Balance at 31 December 2023
100
6,084,686
6,084,786
75,137
6,159,923
EAST ANGLIAN CIVILS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
1,067,511
1,067,611
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
709,444
709,444
Dividends
11
-
(60,000)
(60,000)
Balance at 31 December 2022
100
1,716,955
1,717,055
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
2,978,752
2,978,752
Dividends
11
-
(80,000)
(80,000)
Balance at 31 December 2023
100
4,615,707
4,615,807
EAST ANGLIAN CIVILS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,597,646
2,320,924
Interest paid
(11,390)
(12,067)
Income taxes paid
(435,083)
(361,824)
Net cash inflow from operating activities
3,151,173
1,947,033
Investing activities
Purchase of tangible fixed assets
(1,012,482)
(851,412)
Proceeds on disposal of tangible fixed assets
82,583
5,500
Purchase of investment property
-
(561,758)
Interest received
1,722
65
Net cash used in investing activities
(928,177)
(1,407,605)
Financing activities
Proceeds from issue of shares
100
100
Repayment of bank loans
(555,000)
(540,000)
Payment of finance leases obligations
(152,958)
112,960
Dividends paid to equity shareholders
(80,000)
(60,000)
Dividends paid to non-controlling interests
(60,970)
(69,600)
Net cash used in financing activities
(848,828)
(556,540)
Net increase/(decrease) in cash and cash equivalents
1,374,168
(17,112)
Cash and cash equivalents at beginning of year
1,473,559
1,490,671
Cash and cash equivalents at end of year
2,847,727
1,473,559
Relating to:
Cash at bank and in hand
2,847,727
1,474,863
Bank overdrafts included in creditors payable within one year
-
(1,304)
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information
East Anglian Civils Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of East Anglian Civils Holdings Limited and all of its subsidiaries.
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 have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company East Anglian Civils Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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:
Freehold land and buildings
Straight Line 10%
Plant and equipment
Reducing balance 20%
Computers
Reducing balance 15%
Motor vehicles
Reducing balance 25%
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 recognised in the profit and loss account.
1.8
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
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.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 group 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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group 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 group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 group’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 profit and loss account, 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 if, and only if, there is 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.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 25 -
1.16
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.17
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
1.20
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 26 -
1.21
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Bad debt provision
Trade debtors carry an inherent risk factor related to recoverability. The directors have provided for a bad debt provision over the year end trade debtors balance based on their knowledge of the customer, past experience and the most relevant reliable information to them.
Stock provision
The judgement for stock provision relates to work in progress balances held at year end and released in the year. The balances held at year end are reviewed for recoverability and where amounts are deemed irrecoverable are written off in the year. The level of future profitability is at times judged by the directors where not clear.
Costs released to the P&L in relation to the sale of houses are released based on projected margins for sites during the year. Margins are estimated by the directors based on the expected total costs for each site made up of costs incurred to date and further costs expected to be incurred in relation to each site.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of groundwork services
17,239,530
13,528,514
Sale of residential homes
2,202,495
-
19,442,025
13,528,514
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 27 -
2023
2022
£
£
Other significant revenue
Interest income
1,722
65
Grants received
3,360
25,000
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(3,360)
(25,000)
Depreciation of owned tangible fixed assets
366,524
311,923
Profit on disposal of tangible fixed assets
(26,284)
(1,500)
Amortisation of intangible assets
444
74
Operating lease charges
20,010
16,750
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,000
-
Audit of the financial statements of the company's subsidiaries
22,000
-
24,000
-
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
30
35
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 28 -
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,017,497
821,094
Social security costs
99,771
85,305
-
-
Pension costs
219,041
71,725
200,000
1,336,309
978,124
200,000
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
110,974
-
Company pension contributions to defined contribution schemes
200,000
-
310,974
-
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,719
65
Other interest income
3
-
Total income
1,722
65
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
1,719
65
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,501
2,808
Other finance costs:
Interest on finance leases and hire purchase contracts
9,889
9,259
Total finance costs
11,390
12,067
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
681,137
321,725
Adjustments in respect of prior periods
(394)
Total current tax
680,743
321,725
Deferred tax
Origination and reversal of timing differences
108,662
78,911
Total tax charge
789,405
400,636
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 30 -
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:
2023
2022
£
£
Profit before taxation
2,838,389
2,208,339
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
667,021
419,584
Tax effect of expenses that are not deductible in determining taxable profit
72,190
(18,948)
Unutilised tax losses carried forward
55,149
Adjustments in respect of prior years
(394)
Effect of change in corporation tax rate
7,444
-
Permanent capital allowances in excess of depreciation
(26,285)
Other permanent differences
18
Share of profit from associates
14,262
Taxation charge
789,405
400,636
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
80,000
60,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
740
Amortisation and impairment
At 1 January 2023
296
Amortisation charged for the year
444
At 31 December 2023
740
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 31 -
Carrying amount
At 31 December 2023
At 31 December 2022
444
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
472,687
1,721,221
18,148
668,654
2,880,710
Additions
610,132
28,466
176,233
4,050
246,101
1,064,982
Disposals
(101,774)
(101,774)
At 31 December 2023
1,082,819
28,466
1,897,454
22,198
812,981
3,843,918
Depreciation and impairment
At 1 January 2023
586,051
5,350
280,317
871,718
Depreciation charged in the year
1,759
253,053
2,871
108,841
366,524
Eliminated in respect of disposals
(45,475)
(45,475)
At 31 December 2023
1,759
839,104
8,221
343,683
1,192,767
Carrying amount
At 31 December 2023
1,081,060
28,466
1,058,350
13,977
469,298
2,651,151
At 31 December 2022
472,687
1,135,170
12,798
388,337
2,008,992
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 32 -
Company
Freehold land and buildings
Assets under construction
Total
£
£
£
Cost
At 1 January 2023
472,687
472,687
Additions
162,709
28,466
191,175
At 31 December 2023
635,396
28,466
663,862
Depreciation and impairment
At 1 January 2023 and 31 December 2023
Carrying amount
At 31 December 2023
635,396
28,466
663,862
At 31 December 2022
472,687
472,687
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
561,758
561,758
The directors consider the value of the investment properties to be at an open market value at the balance sheet date.
There has been no valuation of investment property by an independent valuer.
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
274
274
Investments in associates
49
49
274
274
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Fixed asset investments
(Continued)
- 33 -
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 January 2023 and 31 December 2023
49
Impairment
At 1 January 2023
-
Transfer to provision for liabilities
49
At 31 December 2023
49
Carrying amount
At 31 December 2023
-
At 31 December 2022
49
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
274
Carrying amount
At 31 December 2023
274
At 31 December 2022
274
16
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
East Anglian Civils Limited
England and Wales
Ordinary
100.00
-
East Anglian Civils Developments Limited
England and Wales
Ordinary
100.00
-
Scenic Homes Limited
England and Wales
Ordinary
74.00
-
Scenic & Wilson Developments Ltd
England and Wales
Ordinary
-
74.00
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Subsidiaries
(Continued)
- 34 -
Scenic & Wilson Developments Ltd and East Anglian Civils Developments Limited are exempt from the requirements of an audit in accordance with section 479A of the companies act 2006.
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
1,335,660
1,184,381
-
-
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,256,787
1,089,851
Amounts owed by group undertakings
-
-
2,465,257
159,247
Other debtors
775,626
484,290
343
Prepayments and accrued income
5,074
2,037,487
1,574,141
2,465,600
159,247
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
20,000
70,471
Obligations under finance leases
22
118,901
156,517
Trade creditors
582,377
721,295
89
Amounts owed to undertakings in which the group has a participating interest
155,158
114,466
Corporation tax payable
436,436
190,776
2,645
Other taxation and social security
50,043
87,796
-
-
Other creditors
1,325,559
271,029
137,107
62,137
Accruals and deferred income
49,057
4,938
2,500
500
2,737,531
1,617,288
139,696
65,282
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
29,167
535,000
Obligations under finance leases
22
60,845
123,687
90,012
658,687
-
-
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
49,167
604,167
Bank overdrafts
1,304
49,167
605,471
-
-
Payable within one year
20,000
70,471
Payable after one year
29,167
535,000
22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
60,845
156,517
In over five years
118,901
123,687
179,746
280,204
-
-
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
23
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Provision for share of loss from associates
60,911
-
-
-
Movements on provisions:
Provision for share of loss from associates
Group
£
Additional provisions made during the year
60,911
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
385,406
276,744
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
276,744
-
Charge to profit or loss
108,662
-
Liability at 31 December 2023
385,406
-
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
219,041
71,725
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100
100
100
100
27
Related party transactions
Remuneration of key management personnel
Key management personnel compensation is considered to be as reported under directors' remuneration disclosed in note 7.
Transactions with related parties
During the year the group made sales of £3,671,514 (2022: £nil) and purchases of £2,202,495 (2022 - £nil) respectively to/from companies in which one or more director(s) has a significant participating interest.
During the year the group made loans of £1,176,342 (2022- £nil) to companies in which one or more directors has a significant participating interest. During the year repayments were received of £134,980 (2022 - £114,466).
During the year, the group paid dividend of £60,970 (2022: £69,600) to the non-controlling interest in which one or more directors has a significant participating interest
28
Controlling party
The ultimate controlling party is both Jethro Rawling and Amy Rawling by virtue of their equal shareholding in East Anglian Civils Holdings Limited
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,048,984
1,807,703
Adjustments for:
Taxation charged
789,405
400,636
Finance costs
11,390
12,067
Investment income
(1,722)
(65)
Gain on disposal of tangible fixed assets
(26,284)
(1,500)
Amortisation and impairment of intangible assets
444
74
Depreciation and impairment of tangible fixed assets
366,524
311,923
Increase in provisions
60,960
-
Movements in working capital:
Increase in stocks
(151,279)
(374,439)
Increase in debtors
(463,446)
(211,791)
Increase in creditors
962,670
376,316
Cash generated from operations
3,597,646
2,320,924
30
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
2,978,752
709,444
Adjustments for:
Taxation charged
2,645
Investment income
(3,156,361)
(698,092)
Movements in working capital:
(Increase)/decrease in debtors
(2,306,353)
346,608
Increase in creditors
77,059
47,999
Cash (absorbed by)/generated from operations
(2,406,903)
408,604
EAST ANGLIAN CIVILS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 39 -
31
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,474,863
1,372,864
2,847,727
Bank overdrafts
(1,304)
1,304
1,473,559
1,374,168
2,847,727
Borrowings excluding overdrafts
(604,167)
555,000
(49,167)
Obligations under finance leases
(280,204)
100,458
(179,746)
589,188
2,029,626
2,618,814
32
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
588,371
475,638
1,064,009
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