Caseware UK (AP4) 2023.0.135 2023.0.135 2024-05-312024-05-312829falsefalse2023-06-01falsespecialist joinery contractorfalse 03985011 2023-06-01 2024-05-31 03985011 2022-06-01 2023-05-31 03985011 2024-05-31 03985011 2023-05-31 03985011 3 2023-06-01 2024-05-31 03985011 3 2022-06-01 2023-05-31 03985011 4 2023-06-01 2024-05-31 03985011 4 2022-06-01 2023-05-31 03985011 d:Exceptional 2023-06-01 2024-05-31 03985011 d:Exceptional 2022-06-01 2023-05-31 03985011 e:CompanySecretary1 2023-06-01 2024-05-31 03985011 e:Director1 2023-06-01 2024-05-31 03985011 e:Director2 2023-06-01 2024-05-31 03985011 e:Director3 2023-06-01 2024-05-31 03985011 e:Director4 2023-06-01 2024-05-31 03985011 e:RegisteredOffice 2023-06-01 2024-05-31 03985011 d:Buildings 2023-06-01 2024-05-31 03985011 d:Buildings 2024-05-31 03985011 d:Buildings 2023-05-31 03985011 d:Buildings d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03985011 d:Buildings d:LongLeaseholdAssets 2023-06-01 2024-05-31 03985011 d:MotorVehicles 2023-06-01 2024-05-31 03985011 d:FurnitureFittings 2023-06-01 2024-05-31 03985011 d:FurnitureFittings 2024-05-31 03985011 d:FurnitureFittings 2023-05-31 03985011 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03985011 d:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03985011 d:CurrentFinancialInstruments 2024-05-31 03985011 d:CurrentFinancialInstruments 2023-05-31 03985011 d:Non-currentFinancialInstruments 2024-05-31 03985011 d:Non-currentFinancialInstruments 2023-05-31 03985011 d:CurrentFinancialInstruments d:WithinOneYear 2024-05-31 03985011 d:CurrentFinancialInstruments d:WithinOneYear 2023-05-31 03985011 d:Non-currentFinancialInstruments d:AfterOneYear 2024-05-31 03985011 d:Non-currentFinancialInstruments d:AfterOneYear 2023-05-31 03985011 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2024-05-31 03985011 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-05-31 03985011 d:ReportableOperatingSegment1 2023-06-01 2024-05-31 03985011 d:ReportableOperatingSegment1 2022-06-01 2023-05-31 03985011 d:UKTax 2023-06-01 2024-05-31 03985011 d:UKTax 2022-06-01 2023-05-31 03985011 d:ShareCapital 2024-05-31 03985011 d:ShareCapital 2023-05-31 03985011 d:SharePremium 2024-05-31 03985011 d:SharePremium 2023-05-31 03985011 d:CapitalRedemptionReserve 2024-05-31 03985011 d:CapitalRedemptionReserve 2023-05-31 03985011 d:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 03985011 d:RetainedEarningsAccumulatedLosses 2024-05-31 03985011 d:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 03985011 d:RetainedEarningsAccumulatedLosses 2023-05-31 03985011 d:RetainedEarningsAccumulatedLosses 2022-06-01 03985011 d:AcceleratedTaxDepreciationDeferredTax 2024-05-31 03985011 d:AcceleratedTaxDepreciationDeferredTax 2023-05-31 03985011 e:OrdinaryShareClass1 2023-06-01 2024-05-31 03985011 e:OrdinaryShareClass1 2024-05-31 03985011 e:OrdinaryShareClass1 2023-05-31 03985011 e:FRS102 2023-06-01 2024-05-31 03985011 e:Audited 2023-06-01 2024-05-31 03985011 e:FullAccounts 2023-06-01 2024-05-31 03985011 e:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 03985011 d:Subsidiary1 2023-06-01 2024-05-31 03985011 d:Subsidiary1 1 2023-06-01 2024-05-31 03985011 d:WithinOneYear 2024-05-31 03985011 d:WithinOneYear 2023-05-31 03985011 d:BetweenOneFiveYears 2024-05-31 03985011 d:BetweenOneFiveYears 2023-05-31 03985011 4 2023-06-01 2024-05-31 03985011 6 2023-06-01 2024-05-31 03985011 f:PoundSterling 2023-06-01 2024-05-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 03985011










HORBURY JOINERY LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
HORBURY JOINERY LIMITED
 
 
COMPANY INFORMATION


Directors
D Bastow 
M Saunders 
A Willgoose 
T Wragg 




Company secretary
M Saunders



Registered number
03985011



Registered office
South Grove House
South Grove

Rotherham

South Yorkshire

S60 2AF




Independent auditors
Shorts Chartered Accountants
Chartered Accountants & Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA





 
HORBURY JOINERY LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Balance Sheet
 
10
Notes to the Financial Statements
 
11 - 25


 
HORBURY JOINERY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their strategic report on the company for the year ended 31st May 2024.

Principal activities
 
The principal activity of the company continues to be that of a specialist joinery contractor. 

Performance review
 
The UK and global economy have been turbulent over the last few years and has seen unprecedented inflation, in particular material price increases and labour shortages have impacted the financial results of the business in the year. 

The directors identified the market pressures early and reacted through reducing the fixed costs of the business, delivering a 20% reduction in overhead and returning the business back to profit. The reduction in fixed costs allowed the business to focus on its selective tendering strategy which has delivered a significant improvement in profit margins. Contracting gross profit margins increased 3.8% to 14.1% in the year.

The business can report that all legacy contracts impacted by the exceptional inflation have been fully accounted for in these results and all existing live contracts are priced at current material and labour rates and continue to trade profitably.

On the 31st January 2024, the business sold its 95% shareholding in Horbury South West Ltd (HSW) for £435,000, this came in the form of a Management buy out from the existing HSW director.

During the year the parent company to TIS, Horbury Group Ltd, delivered a refinance package, attracting new capital investment into the Group which enabled it to repay all its long-term debt. The result of which significantly strengthened the finances of the Group and subsidiaries, giving added security over its long-term future. 

Future prospects
 
The business is well positioned to take advantage of any economic improvement, and the directors are  confident the business will continue to secure contracts and trade profitably. 

The business has set out a core strategy of operational improvement and efficiency, through a continuous focus on productivity and quality the business has improved its profit margins and client satisfaction, whilst our focus on selective tendering has enabled the business to develop strong client relationships producing repeat work and derisking future business.

The business continues to invest in its people and processes and is on plan to deliver its multi layered operational efficiency strategy.

Secured orders together with the sales pipeline remain strong and ahead of previous years, the business remains on track deliver incremental growth in financial year 2025 and beyond with improving profit margins. 

Page 1

 
HORBURY JOINERY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Principal risks and uncertainties
 
The UK construction market remains highly competitive, and future unexpected inflationary pressures and labour shortages cannot be ruled out.  The directors remain confident that the business is well placed to manage these risks through selective contract tendering, regular monitoring of expected and actual contract outcomes, and robust management of working capital.
The company’s principal credit risk arises from extending credit to its customers, which is managed by credit referencing and selective contract tendering. Robust procedures are in place for the collection of monies due to the company and cash flow and debtors are monitored daily with rolling cash flow projections.
The company is not exposed in any material way to bad debts, which caused the current high level of business failure in the construction sector, our core strategy of selective tendering enables us to manage the risk associated with bad debt.

Use of KPIs
 
The company has continued to use enhanced KPI’s, both financial and operational, to manage the business and to effectively deliver the long-term strategic goals. The following is a brief outline of the KPIs being used within the company:
• Tender margin versus final account margin on a contract by contract basis
• Project status against original programme timetable
• Overdue final account debts
• Retention collection
• Average frequency rate for health and safety data
• Enquiry levels
• Work in hand
• Client and Contract selectivity matrix
• Tender conversion monitoring – by sector and client


This report was approved by the board on 17 September 2024 and signed on its behalf.



T Wragg
Director

Page 2

 
HORBURY JOINERY LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

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

Directors

The directors who served during the year were:

D Bastow 
M Saunders 
A Willgoose 
T Wragg 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent and;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £433,970 (2023 - loss £435,406).

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

 
HORBURY JOINERY LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Post balance sheet events

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

Auditors

The auditorsShorts Chartered Accountantswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 17 September 2024 and signed on its behalf.
 





T Wragg
Director

Page 4

 
HORBURY JOINERY LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY JOINERY LIMITED
 

Opinion


We have audited the financial statements of Horbury Joinery Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 5

 
HORBURY JOINERY LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY JOINERY LIMITED (CONTINUED)

Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
HORBURY JOINERY LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY JOINERY LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

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


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

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

the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
through discussions with the directors and other management and from our commercial knowledge and experience of the sectors that the Company operates in, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships; 
considered journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

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

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
considering relationships with HMRC, relevant regulators and the Company’s legal advisors;
revewing minutes of meeting of management and directors;
reviewing incident log to identify any breaches and problems; and
reviewing the company's risk register to identify key risk areas.

Page 7

 
HORBURY JOINERY LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY JOINERY LIMITED (CONTINUED)

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

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


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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andrew Irvine (Senior Statutory Auditor)
  
for and on behalf of
Shorts Chartered Accountants
 
Chartered Accountants
Statutory Auditor
  
Cedar House
63 Napier Street
Sheffield
South Yorkshire
S11 8HA

17 September 2024
Page 8

 
HORBURY JOINERY LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
10,186,611
13,263,477

Cost of sales
  
(8,746,880)
(11,894,393)

Gross profit
  
1,439,731
1,369,084

Distribution costs
  
(850)
-

Administrative expenses
  
(1,347,897)
(1,697,208)

Exceptional administrative expenses
  
(65,458)
(126,271)

Other operating expenses
 5 
-
(11,643)

Operating profit/(loss)
 6 
25,526
(466,038)

Profit on disposal of investments
 14 
421,786
-

Interest receivable and similar income
 9 
5,880
-

Interest payable and similar expenses
 10 
(6,607)
(12,294)

Profit/(loss) before tax
  
446,585
(478,332)

Tax on profit/(loss)
 11 
(12,615)
42,926

Profit/(loss) after tax
  
433,970
(435,406)

  

  

Retained earnings at the beginning of the year
  
1,833,872
2,269,278

Profit/(loss) for the year
  
433,970
(435,406)

Retained earnings at the end of the year
  
2,267,842
1,833,872
The notes on pages 11 to 25 form part of these financial statements.

Page 9

 
HORBURY JOINERY LIMITED
REGISTERED NUMBER:03985011

BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
5,014
5,494

Investments
 14 
1,266,666
1,266,761

  
1,271,680
1,272,255

Current assets
  

Debtors: amounts falling due within one year
 15 
3,721,314
3,018,765

Cash at bank and in hand
 16 
2,417,943
1,842,934

  
6,139,257
4,861,699

Creditors: amounts falling due within one year
 17 
(5,126,995)
(4,189,369)

Net current assets
  
 
 
1,012,262
 
 
672,330

Total assets less current liabilities
  
2,283,942
1,944,585

Creditors: amounts falling due after more than one year
 18 
-
(94,613)

  

Net assets
  
2,283,942
1,849,972


Capital and reserves
  

Called up share capital 
 21 
53
53

Share premium account
  
15,996
15,996

Capital redemption reserve
  
51
51

Profit and loss account
  
2,267,842
1,833,872

  
2,283,942
1,849,972


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 September 2024.




T Wragg
Director

The notes on pages 11 to 25 form part of these financial statements.

Page 10

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Horbury Joinery Limited is a private company limited by shares, incorporated in England and Wales (registered number: 03985011). Its registered office is South Grove House, South Grove, Rotherham, South Yorkshire S60 2AF. The principal activity of the company throughout the year continued to be that of a specialist joinery contractor.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The company's functional and presentation currency is Pounds Sterling.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have performed an assessment of going concern at a group level including a revew of financing, forecasts and covenant compliance, and having considered these factors, they are of the view that there is a reasonable expectation the the group has adequate resources to continue in operational existence for a period of at least twelve months following the reporting date.

 
2.3

Revenue

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

In the case of long term contracts, turnover reflects the contract activity during the year and represents a proportion of the total contract value. This proportion is calculated as a percentage of total expected costs.

Construction contracts
The attributable profit on long-term contracts is recognised once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to date on the project and is calculated as a percentage of total expected contract costs.

Full provision is made for losses on all contracts in the year in which the loss is first foreseen.

Trade debtors represent contract valuations and retentions certified up to one month after the year end. Amounts recoverable on contracts represent the balance of uncertified valuations.

 
2.4

Operating leases: the Company as lessee

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

Page 11

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

 
2.7

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

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

The depreciation rates used are:

Leasehold land and buildings
-
straight line over the period of the lease
Motor vehicles
-
25% straight line
Fixtures and fittings
-
20% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction,  the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

Page 13

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparentfrom 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 judgement (apart from those involving estimates) has had the most significant effect on amounts recognised in the financial statements.

Turnover from long term contracts
 
Turnover is generated from long term contracts. The group recognises contract revenue and contract costs associated with each contract using the percentage of completion method.

The recognition of revenue and profit therefore rely on estimates in relation to the stage of completion and the forecast total costs of each contract.
Margin is presented in the monthly management accounts for each contract as it is earned on the specific tasks undertaken in the period. A margin is used based on the job budget form completed at the outset, with variations requiring individual approval. Each project’s outturn is reforecast on a monthly basis, so any changes to expected final outturn are reflected in the accounts promptly. The profit to be recognised monthly is calculated on a cumulative basis so that the overall expected outturn is reflected in the cumulative position each month.
The method applies ensures that profit is recognised equally across the life of the project. The calculation of expected outturn is based on the following factors:
 
Variations to overall contract value (expected turnover) which have been agreed with the client;
Costs incurred to date allocated to the project. These allocated costs are reviewed monthly by site  managers and matched to site material lists and expected spend and;
Budgeted overall costs as calculated at the beginning of the project during the tender process which are used to calculate the expected costs to complete The degree of estimation uncertainty centres around the expected costs to complete the contract which, combined with the contract turnover, are used to calculate the expected margin outturn on each project.
 
When contract losses are anticipated these are recognised in full at the time of identification in so far as they can be measured reliably.

Page 14

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Contract revenue
10,186,611
13,263,477


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Sundry income
-
(11,643)



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2024
2023
£
£

Auditors' remuneration
23,138
23,583

Exchange differences
3,027
4,838

Other operating lease rentals
101,576
165,561

Page 15

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

7.


Employees

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


2024
2023
£
£

Wages and salaries
686,506
670,400

Social security costs
134,879
157,506

Cost of defined contribution scheme
51,154
59,359

872,539
887,265


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


        2024
        2023
            No.
            No.







Construction
15
6



Administration
9
18



Directors
4
5

28
29


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
209,470
219,470

Company contributions to defined contribution pension schemes
22,900
23,900

232,370
243,370


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £115,970 (2023 - £127,447).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £12,950 (2023 - £13,950).

Page 16

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

9.


Interest receivable

2024
2023
£
£


Other interest receivable
5,880
-


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
6,607
11,232

Other interest payable
-
1,062

6,607
12,294


11.


Taxation


2024
2023
£
£

Corporation tax


Adjustments in respect of previous periods
(727)
(22,826)


Total current tax
(727)
(22,826)

Deferred tax


Origination and reversal of timing differences
13,342
(20,100)

Total deferred tax
13,342
(20,100)


Tax on profit/(loss)
12,615
(42,926)
Page 17

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 20%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
446,586
(478,332)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
111,434
(95,666)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
13
790

Adjustments to tax charge in respect of prior periods
(3,579)
(22,826)

Remeasurement of deferred tax for changes in tax rates
-
(13,549)

Fixed asset differences
-
(50)

Unrelieved tax losses carried forward
-
1,539

Movement in deferred tax
13,342
47,671

Other differences leading to an increase (decrease) in the tax charge
-
(2,170)

Group relief
(108,595)
41,335

Total tax charge for the year
12,615
(42,926)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Exceptional items

2024
2023
£
£


Exceptional costs
65,458
126,271

The exceptional items include £65,458 (2023: £6,247) in relation to redundancy costs and £nil (2023: £120,024) in relation to various write offs of contracting applications no longer deemed recoverable as a result of contractor insolvencies.



Page 18

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

13.


Tangible fixed assets





Leasehold property
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 June 2023
17,137
42,218
59,355


Additions
-
2,547
2,547


Disposals
-
(211)
(211)



At 31 May 2024

17,137
44,554
61,691



Depreciation


At 1 June 2023
17,137
36,724
53,861


Charge for the year on owned assets
-
3,027
3,027


Disposals
-
(211)
(211)



At 31 May 2024

17,137
39,540
56,677



Net book value



At 31 May 2024
-
5,014
5,014



At 31 May 2023
-
5,494
5,494

Page 19

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
1,266,761


Disposals
(95)



At 31 May 2024
1,266,666






Net book value



At 31 May 2024
1,266,666



At 31 May 2023
1,266,761

Horbury Joinery Limited along with related parties, Titan Interior Solutions Limited and Horbury Support Services Limited each own 33.3% of the issued share capital of South Grove House Limited which provides managed office facilities to these companies.

The directors are of the opinion that the carrying value of the investment is supported by the underlying assets held within South Grove House Limited.

During the year, the company disposed of its subsidiary, Horbury South West Limited for a profit on disposal of £421,786 with gross proceeds of £435,000 and incurring cost of disposal of £13,214.

Page 20

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

South Grove House Limited
England and Wales
Ordinary Shares
33.30%


15.


Debtors

2024
2023
£
£


Trade debtors
585,813
1,373,447

Gross amounts owed by contract customers
1,750,884
1,263,009

Amounts owed by group undertakings
1,069,268
109,560

Corporation tax recoverable
21,907
21,150

Other debtors
259,922
204,117

Prepayments and accrued income
28,862
29,482

Deferred taxation (Note 20)
4,658
18,000

3,721,314
3,018,765


Included in trade debtors is an amount of £nil (2023: £170,085) which are debts that are due in over twelve months.

Page 21

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,417,943
1,842,934



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
-
59,796

Trade creditors
841,783
1,595,364

Amounts owed to group undertakings
3,448,668
1,878,287

Other taxation and social security
243,201
159,097

Other creditors
206,557
229,421

Accruals and deferred income
386,786
267,404

5,126,995
4,189,369



18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
-
94,613


Page 22

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

19.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
-
59,796

Amounts falling due 1-2 years

Bank loans
-
94,613



-
154,409


The long-term loans are secured by fixed and floating charges of the company and fellow group companies.

The bank loan is repayable in 10 years following the twelve month anniversary of the initial drawdown. The repayment terms of the loan state that monthly instalments of £4,983 are to be paid, exclusive of interest. The interest rate is 3.25% over the Bank of England's base rate and is charged separately.

The loan has been repaid in full during the year.

Page 23

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

20.


Deferred taxation




2024


£






At beginning of year
18,000


Charged to profit or loss
(13,342)



At end of year
4,658

The deferred tax asset is made up as follows:

2024
2023
£
£


Accelerated capital allowances
4,658
18,000

4,658
18,000


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



53 (2023 - 53) Ordinary shares of £1.00 each
53
53



22.


Contingent liabilities

The Company's bankers hold an unlimited Composite Company Limited Multilateral Guarantee and debenture between the following group companies: Horbury Group Limited, Horbury Joinery Limited, Tubular Scaffolding Services Limited, Titan Interior Solutions Limited, T.I.S. Services Limited, South Grove House Limited, Millstone Building Limited, Magna Plant and Tool Hire Limited, Horbury Support Services Limited (formerly known as G.B.W. (Tool Hire) Limited), Horbury Property Services Limited, Horbury Building Systems Limited, Titan Flooring Limited and Environ Safety Management Limited.


23.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held
separately from those of the Company in an independently administered fund. The pension cost charge
represents contributions payable by the Company to the fund and amounted to £51,154 (2023 -
£59,359).

Page 24

 
HORBURY JOINERY LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

24.


Commitments under operating leases

At 31 May 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
62,091
42,086

Later than 1 year and not later than 5 years
100,824
84,339

162,915
126,425


25.


Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A from the provisions of section 33 of FRS 102. Related party disclosures, from disclosing transaction with wholly owned subsidiary undertakings. 
Transactions during the year and balances at the year end with related parties are shown below:


2024
2023
£
£

Management services paid to subsidiaries
(332,632)
-
Balances owed to group undertakings
(3,448,668)
(1,878,288)
Balances due from group undertakings
1,069,268
109,560


26.


Controlling party

The immediate and ultimate parent undertaking and controlling party is Horbury Group Limited, which
prepares group financial statements.
The registered office of Horbury Group Limited is South Grove House, South Grove, Rotherham, South
Yorkshire, S60 2AF.

 
Page 25