Caseware UK (AP4) 2023.0.135 2023.0.135 2024-05-312024-05-312024-05-31falsefalse2023-06-01falsefalse 06217640 2023-06-01 2024-05-31 06217640 1 2023-06-01 2024-05-31 06217640 2022-06-01 2023-05-31 06217640 2024-05-31 06217640 2023-05-31 06217640 2022-06-01 06217640 1 2023-06-01 2024-05-31 06217640 e:CompanySecretary1 2023-06-01 2024-05-31 06217640 e:Director1 2023-06-01 2024-05-31 06217640 e:Director2 2023-06-01 2024-05-31 06217640 e:Director3 2023-06-01 2024-05-31 06217640 e:Director4 2023-06-01 2024-05-31 06217640 e:Director4 2024-05-31 06217640 e:Director5 2023-06-01 2024-05-31 06217640 e:Director5 2024-05-31 06217640 e:RegisteredOffice 2023-06-01 2024-05-31 06217640 c:Buildings 2023-06-01 2024-05-31 06217640 c:Buildings c:LongLeaseholdAssets 2023-06-01 2024-05-31 06217640 c:MotorVehicles 2023-06-01 2024-05-31 06217640 c:FurnitureFittings 2023-06-01 2024-05-31 06217640 c:OtherResidualIntangibleAssets 2023-06-01 2024-05-31 06217640 c:CurrentFinancialInstruments 2024-05-31 06217640 c:CurrentFinancialInstruments 2023-05-31 06217640 c:Non-currentFinancialInstruments 2024-05-31 06217640 c:Non-currentFinancialInstruments 2023-05-31 06217640 c:Non-currentFinancialInstruments 1 2024-05-31 06217640 c:Non-currentFinancialInstruments 1 2023-05-31 06217640 c:CurrentFinancialInstruments c:WithinOneYear 2024-05-31 06217640 c:CurrentFinancialInstruments c:WithinOneYear 2023-05-31 06217640 c:Non-currentFinancialInstruments c:AfterOneYear 2024-05-31 06217640 c:Non-currentFinancialInstruments c:AfterOneYear 2023-05-31 06217640 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2024-05-31 06217640 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2023-05-31 06217640 c:ShareCapital 2023-06-01 2024-05-31 06217640 c:ShareCapital 2024-05-31 06217640 c:ShareCapital 2023-05-31 06217640 c:ShareCapital 2022-06-01 06217640 c:SharePremium 2023-06-01 2024-05-31 06217640 c:SharePremium 2024-05-31 06217640 c:SharePremium 1 2023-06-01 2024-05-31 06217640 c:SharePremium 2023-05-31 06217640 c:SharePremium 2022-06-01 06217640 c:RevaluationReserve 2023-06-01 2024-05-31 06217640 c:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 06217640 c:RetainedEarningsAccumulatedLosses 2024-05-31 06217640 c:RetainedEarningsAccumulatedLosses 1 2023-06-01 2024-05-31 06217640 c:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 06217640 c:RetainedEarningsAccumulatedLosses 2023-05-31 06217640 c:RetainedEarningsAccumulatedLosses 2022-06-01 06217640 c:AcceleratedTaxDepreciationDeferredTax 2024-05-31 06217640 c:AcceleratedTaxDepreciationDeferredTax 2023-05-31 06217640 c:TaxLossesCarry-forwardsDeferredTax 2024-05-31 06217640 c:TaxLossesCarry-forwardsDeferredTax 2023-05-31 06217640 c:RetirementBenefitObligationsDeferredTax 2024-05-31 06217640 c:RetirementBenefitObligationsDeferredTax 2023-05-31 06217640 c:OtherDeferredTax 2024-05-31 06217640 c:OtherDeferredTax 2023-05-31 06217640 e:OrdinaryShareClass1 2023-06-01 2024-05-31 06217640 e:OrdinaryShareClass1 2024-05-31 06217640 e:OrdinaryShareClass1 2023-05-31 06217640 e:OrdinaryShareClass2 2023-06-01 2024-05-31 06217640 e:OrdinaryShareClass2 2024-05-31 06217640 e:OrdinaryShareClass2 2023-05-31 06217640 e:PreferenceShareClass1 2023-06-01 2024-05-31 06217640 e:PreferenceShareClass1 2024-05-31 06217640 e:FRS102 2023-06-01 2024-05-31 06217640 e:Audited 2023-06-01 2024-05-31 06217640 e:FullAccounts 2023-06-01 2024-05-31 06217640 e:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 06217640 c:Subsidiary1 2023-06-01 2024-05-31 06217640 c:Subsidiary1 1 2023-06-01 2024-05-31 06217640 c:Subsidiary2 2023-06-01 2024-05-31 06217640 c:Subsidiary2 1 2023-06-01 2024-05-31 06217640 c:Subsidiary3 2023-06-01 2024-05-31 06217640 c:Subsidiary3 1 2023-06-01 2024-05-31 06217640 c:Subsidiary4 2023-06-01 2024-05-31 06217640 c:Subsidiary4 1 2023-06-01 2024-05-31 06217640 c:Subsidiary5 2023-06-01 2024-05-31 06217640 c:Subsidiary5 1 2023-06-01 2024-05-31 06217640 c:Subsidiary6 2023-06-01 2024-05-31 06217640 c:Subsidiary6 1 2023-06-01 2024-05-31 06217640 c:Subsidiary7 2023-06-01 2024-05-31 06217640 c:Subsidiary7 1 2023-06-01 2024-05-31 06217640 c:Subsidiary8 2023-06-01 2024-05-31 06217640 c:Subsidiary8 1 2023-06-01 2024-05-31 06217640 c:Subsidiary9 2023-06-01 2024-05-31 06217640 c:Subsidiary9 1 2023-06-01 2024-05-31 06217640 c:Subsidiary10 2023-06-01 2024-05-31 06217640 c:Subsidiary10 1 2023-06-01 2024-05-31 06217640 e:Consolidated 2024-05-31 06217640 e:ConsolidatedGroupCompanyAccounts 2023-06-01 2024-05-31 06217640 2 2023-06-01 2024-05-31 06217640 4 2023-06-01 2024-05-31 06217640 5 2023-06-01 2024-05-31 06217640 6 2023-06-01 2024-05-31 06217640 c:ShareCapital 1 2023-06-01 2024-05-31 06217640 f:PoundSterling 2023-06-01 2024-05-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06217640










HORBURY GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
HORBURY GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
T Wragg 
M Saunders 
M Brown 
A Gordon (appointed 1 March 2024)
M Rigby (resigned 6 June 2023)




Company secretary
M Saunders



Registered number
06217640



Registered office
South Grove House
South Grove

Rotherham

South Yorkshire

S60 2AF




Independent auditors
Shorts
Chartered Accountants & Statutory Auditors

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA





 
HORBURY GROUP LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 4
Directors' report
 
5 - 7
Independent auditors' report
 
8 - 12
Consolidated statement of comprehensive income
 
13
Consolidated balance sheet
 
14 - 15
Company balance sheet
 
16
Consolidated statement of changes in equity
 
17
Company statement of changes in equity
 
18
Consolidated statement of cash flows
 
19 - 20
Consolidated analysis of net debt
 
21
Notes to the financial statements
 
22 - 45


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

The Directors present their report and the audited financial statements of the Group for the year ended 31 May 2024.

Group Business Activities
 
Horbury Group Limited is a holding company for its subsidiary companies. The majority of the Group’s turnover is derived from its largest trading subsidiaries and their principal activities are:
Titan Interior Solutions Limited – specialist interior fit-out subcontractor, undertaking various trades including suspended ceilings, drylining, carpets and floor finishes and demountable partitions. 
Titan Flooring Limited – specialist flooring contractor carrying out the supply and installation of floor preparation and floor coverings.
Horbury Joinery Limited – specialist joinery contractor.
Horbury Property Service Limited – specialist repairs, maintenance and compliance services 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. 
Despite the economic head winds the Group has been able to increase its profit margins in the year whilst reducing its fixed costs, returning a strong profit in the year.
The Group has developed a multi layered strategy focused on processes and efficiency, selective tendering and continuous improvements.
The selective tendering strategy has allowed the business to resize in the year and focus on its core strengths, whilst building on long term client relationships, securing repeat work. This strategy has delivered a 2.2% increase in gross profit margins in the year. 
The operational and process efficiency strategy has been developed and deployed enabling the Group to reduce its fixed costs and drive increased efficiency both at site and in the admin functions, resulting in a 10% overhead reduction in the year.
The gross margin improvements and the cost reduction programmes have contributed to the Group delivering a healthy operating profit in the year.  Given the economic pressure the business has faced the Board of Directors are pleased with the result. 
On the 31st January 2024, the Group 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 Group delivered a refinance package, attracting new capital which has enabled it to repay all its long-term debt. The result of which significantly improved the finances and strengthened the Balance Sheet of the Group giving security over its long-term future.

Page 1

 
HORBURY GROUP LIMITED
 

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

Future Prospects
 
The Group is well positioned to take advantage of any economic improvement, and the directors are  confident that the Group will continue to secure contracts and trade profitably. 
The Group’s core strategy of operational improvement and efficiency, through a continuous focus on productivity and quality the Group has improved its profit margins and client satisfaction, whilst our focus on selective tendering has enabled the Group to develop strong client relationships producing repeat work and derisking future business. 
The Group continues to invest in its people and processes and is on plan to deliver its multi layered operational efficiency strategy which will continue to benefit the business for years to come.
Secured orders together with the sales pipeline remain strong and ahead of previous years, the Group remains on track to deliver incremental growth in financial year 2025 and beyond with improving profit margins. 

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 Group 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 Group’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 Group 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 Group 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 Group:
 
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

Page 2

 
HORBURY GROUP LIMITED
 

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

S172 Statement
 
Engaging with stakeholders 
The success of our business is dependent on the support of all our stakeholders. Building positive relationships with stakeholders that share our values is important to us, and working together towards shared goals assists us in delivering long-term sustainable success. 
Shareholders 
We have an open dialogue with our shareholders through monthly Board meeting and monthly management meeting, shareholders play a key role in our decision-making process, financial performance, and strategic outlook.  
Employees 
The safety of our employees and subcontractors is our foremost concern.  We have processes in place to ensure the safety of our working practices and sites, we promote good practice through various incentives, and we review adherence through a site audit process.  Health and Safety reporting is reviewed at all levels of the Group up to and including at Board level.
Business unit managers attend monthly management meeting where we have an open dialogue to discuss the business financial performance, supplier and customer relationships and operational performance. We also run quarterly site management forums, which allows an opportunity for our site based employees to have an open dialogue with business management and play an active role in decision making. 
We have an open relationship with our employees and promote a two way dialogue to ensure continuous improvement of both the business and our employees.  We promote the development of our employees through our “Planning for the Future” programme to upskill our staff to help make them, and us, more competitive.  Employees needing help have access to support through our EAP as well as our trained Metal Health First Aiders positioned around the business.
Customers 
Our ambition is to deliver best-in-class product and services to our customers. We continue to build strong and lasting relationships with our key customers and invest considerable time with them to understand their needs and listen to how we can improve our service. We attend regular site meeting with our customers to discuss on-going project matters and agree on key project related decisions. 
Suppliers 
We continue to build strong working relationships with our suppliers to develop long lasting partnerships. We run a central procurement team and one of their key performance targets is to continue to develop and support supplier relationships, this is done through periodic reviews with key accounts and more informally with open dialogue on a day-to-day basis. The Board recognises that relationship with suppliers is important to the Group’s long-term success and are briefed in the monthly management meeting by the Procurement team on supplier relationships and any open issues. 
Communities 
We engage with the local communities on several fronts and aim to give something back to the local communities we work in. We partner with a local charity each year to help raise awareness and we organise and fund a number of fund-raising events throughout the year which are keenly supported by employees. We also run The Horbury Academy which is an apprenticeship scheme committed to developing local talent into skilled tradespeople, professionals and managers and have formed a strategic partnership with Sheffield College.
Page 3

 
HORBURY GROUP LIMITED
 

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



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



T Wragg
Director

Page 4

 
HORBURY GROUP 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:

T Wragg 
M Saunders 
M Brown 
A Gordon (appointed 1 March 2024)
M Rigby (resigned 6 June 2023)

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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


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

make judgments 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 financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

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

Principal activity

Horbury Group Limited is a holding company for its subsidiary companies, with the majority of the group's turnover derived from its four largest trading subsidiaries and their principal activities are as follows:
Titan Interior Solutions Limited - specialist interior fit-out subcontractor, undertaking various trades including suspended ceilings, dryining, carpets and floor finishes and demountable partitions.
Titan Flooring Limited - specialist interior fit out subcontractor, undertaking various types of flooring including timber, carpets, vinyl and rubber and all forms of specialist floor preparation.
Horbury Joinery Limited - specialist joinery contractor.
Horbury Property Services Limited - specialist repairs, maintenance and compliance services contractors.
The group also includes a property holding company (South Grove House Limited).

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £1,735,233 (2023 - loss £1,083,013).

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Horbury Group acknowledges the clear scientific evidence linking the rising concentrations of greenhouse gases in our atmosphere to a global warming effect that is resulting in changes to the Earth’s climate. As a responsible organisation, the Horbury Group seeks to minimise adverse environmental impacts resulting from its operations, including the direct and indirect release of greenhouse gas emissions from the use of energy, fuels and refrigerants across the business.

Emissions by source
img4f00.png
Energy consumption used to calculate emissions
img4e87.png


 
Page 6

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

Intensity ratio
For the purposes of monitoring and improving our energy efficiency, we have introduced a carbon intensity metric of ‘tonnes of CO2e per £1 million of turnover’.
img18aa.png
Greenhouse gas emissions have been calculated by multiplying the energy usage by the emission factors listed on Government websites.  The Horbury Group utilises fully renewable electricity sources and figures have been presented using the market-based reporting approach. 
Energy efficiency action
Horbury Group Limited has taken a number of actions relating to its carbon footprint.  End of life fleet vehicles are replaced with more efficient vehicles, either fossil fuel or electric, dependant on use cases.  Charging points for electric vehicles have been installed at the Group’s head office. 
 
The Group continues to investigate ways to reduce its impact on the environment through reduction of emissions of greenhouse gasses.


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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsShortswill 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 7

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

Opinion


We have audited the financial statements of Horbury Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


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


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 8

 
HORBURY GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HORBURY GROUP 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 Group 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 Group 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 Group 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 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.


Page 9

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


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 5, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 Group 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 sector, 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.








Page 10

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


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; 
considered relationship with HMRC, relevant regulators and the Company’s legal advisors; and
review of legal and professional fees and of incident log for evidence of litigation.

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.

Page 11

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






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

17 September 2024
Page 12

 
HORBURY GROUP LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
68,919,575
87,189,606

Cost of sales
  
(59,114,138)
(76,699,739)

Gross profit
  
9,805,437
10,489,867

Administrative expenses
  
(9,127,808)
(10,143,013)

Other operating income
 5 
59,530
503,691

Operating profit before exceptional items
 6 
737,159
850,545

Exceptional items
 10 
1,776,099
(1,150,884)

Operating (loss)/profit after exceptional items
  
2,513,258
(300,339)

Interest receivable and similar income
 11 
1,109
-

Interest payable and similar expenses
 12 
(597,004)
(384,250)

Profit/(loss) before taxation
  
1,917,363
(684,589)

Tax on profit/(loss)
 13 
129,386
30,000

Profit/(loss) for the financial year
  
2,046,749
(654,589)

  

Unrealised surplus on revaluation of tangible fixed assets
  
-
288,603

Other comprehensive income for the year
  
-
288,603

Total comprehensive income for the year
  
2,046,749
(365,986)

Profit/(loss) for the year attributable to:
  

Non-controlling interests
  
311,516
428,424

Owners of the parent Company
  
1,735,233
(1,083,013)

  
2,046,749
(654,589)

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
311,516
428,424

Owners of the parent Company
  
1,735,233
(794,410)

  
2,046,749
(365,986)

The notes on pages 22 to 45 form part of these financial statements.

Page 13

 
HORBURY GROUP LIMITED
REGISTERED NUMBER: 06217640

CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
1,196,482
1,390,545

Tangible assets
 15 
1,785,714
1,870,149

Investment property
 17 
1,722,091
2,522,091

  
4,704,287
5,782,785

Current assets
  

Debtors: amounts falling due within one year
 18 
15,046,248
20,894,779

  
15,046,248
20,894,779

Creditors: amounts falling due within one year
 19 
(14,204,150)
(20,789,206)

Net current assets
  
 
 
842,098
 
 
105,573

Total assets less current liabilities
  
5,546,385
5,888,358

Creditors: amounts falling due after more than one year
 20 
(875,000)
(4,388,594)

Provisions for liabilities
  

Deferred taxation
 23 
-
(188,400)

Other provisions
 24 
-
(11,828)

  
 
 
-
 
 
(200,228)

Net assets
  
4,671,385
1,299,536


Capital and reserves
  

Called up share capital 
 25 
20,485
19,206

Share premium account
 26 
5,633,456
4,313,477

Revaluation reserve
 26 
539,939
539,939

Profit and loss account
 26 
(1,877,710)
(3,616,785)

Equity attributable to owners of the parent Company
  
4,316,170
1,255,837

Non-controlling interests
  
355,215
43,699

  
4,671,385
1,299,536


Page 14

 
HORBURY GROUP LIMITED
REGISTERED NUMBER: 06217640
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024

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 22 to 45 form part of these financial statements.

Page 15

 
HORBURY GROUP LIMITED
REGISTERED NUMBER: 06217640

COMPANY BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 16 
3,951,763
3,951,763

Current assets
  

Debtors: amounts falling due within one year
 18 
4,416,303
5,117,613

Cash at bank and in hand
  
-
1

  
4,416,303
5,117,614

Creditors: amounts falling due within one year
 19 
(5,632,031)
(5,680,922)

Net current liabilities
  
 
 
(1,215,728)
 
 
(563,308)

Total assets less current liabilities
  
2,736,035
3,388,455

  

Creditors: amounts falling due after more than one year
 20 
(875,000)
(4,101,681)

  

Net assets/(liabilities)
  
1,861,035
(713,226)


Capital and reserves
  

Called up share capital 
 25 
20,485
19,206

Share premium account
 26 
5,633,456
4,313,477

Other changes in the profit and loss account

  

3,842
-

Profit and loss account carried forward
  
(3,792,906)
(5,045,909)

  
1,861,035
(713,226)


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 22 to 45 form part of these financial statements.

Page 16

 

 
HORBURY GROUP LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024



Called up share capital
Share premium account
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£



At 1 June 2022
19,206
4,313,477
(11,000)
(2,271,436)
2,050,247
(384,725)
1,665,522





Loss for the year
-
-
-
(1,083,013)
(1,083,013)
428,424
(654,589)


Surplus on revaluation of freehold property
-
-
288,603
-
288,603
-
288,603


Transfer to/from profit and loss account
-
-
262,336
(262,336)
-
-
-





At 1 June 2023
19,206
4,313,477
539,939
(3,616,785)
1,255,837
43,699
1,299,536





Profit for the year
-
-
-
1,735,233
1,735,233
311,516
2,046,749


Shares cancelled during the year
(3,842)
-
-
3,842
-
-
-


Shares issued during the year
5,121
1,319,979
-
-
1,325,100
-
1,325,100



At 31 May 2024
20,485
5,633,456
539,939
(1,877,710)
4,316,170
355,215
4,671,385



The notes on pages 22 to 45 form part of these financial statements.

Page 17

 

 
HORBURY GROUP LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024



Called up share capital
Share premium account
Profit and loss account
Total equity


£
£
£
£



At 1 June 2022
19,206
4,313,477
(4,215,426)
117,257





Loss for the year
-
-
(830,483)
(830,483)





At 1 June 2023
19,206
4,313,477
(5,045,909)
(713,226)





Profit for the year
-
-
1,249,161
1,249,161


Shares cancelled during the year
(3,842)
-
3,842
-


Shares issued during the year
5,121
1,319,979
-
1,325,100



At 31 May 2024
20,485
5,633,456
(3,792,906)
1,861,035



The notes on pages 22 to 45 form part of these financial statements.

Page 18

 
HORBURY GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
2,046,749
(654,589)

Adjustments for:

Amortisation of intangible assets
194,063
151,758

Depreciation of tangible assets
193,267
69,327

Loss on disposal of tangible assets
20,000
145,083

Interest paid
597,004
384,250

Interest received
(1,109)
-

Taxation charge
(129,386)
(30,000)

Decrease in debtors
4,774,500
298,611

Decrease in amounts owed by groups
1,018,651
-

(Decrease) in creditors
(4,658,246)
(2,977,347)

(Decrease)/increase in amounts owed to groups
(174,049)
-

(Decrease)/increase in provisions
(11,828)
-

Fair value gain on investment properties
-
(380,336)

Corporation tax received
5,634
5,672

Net cash generated from operating activities

3,875,250
(2,987,571)


Cash flows from investing activities

Purchase of intangible fixed assets
-
(178,940)

Purchase of tangible fixed assets
(119,549)
(47,520)

Sale of tangible fixed assets
(9,283)
471,250

Sale of investment properties
800,000
-

Interest received
1,109
-

Net cash from investing activities

672,277
244,790

Cash flows from financing activities

Issue of ordinary shares
1,325,100
-

Repayment of loans
(463,240)
(179,375)

Repayment of other loans
(2,614,000)
-

Repayment of/new finance leases
(35,978)
(34,611)

Loans due from/(repaid to) directors
(16,037)
19,269

Issue of preference shares
875,000
-

Interest paid
(597,004)
(384,250)

Net cash used in financing activities
(1,526,159)
(578,967)

Net increase/(decrease) in cash and cash equivalents
3,021,368
(3,321,748)
Page 19

 
HORBURY GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


2024
2023

£
£


Cash and cash equivalents at beginning of year
(4,061,608)
(739,860)

Cash and cash equivalents at the end of year
(1,040,240)
(4,061,608)


Cash and cash equivalents at the end of year comprise:

Bank overdrafts
(1,040,240)
(4,061,608)

(1,040,240)
(4,061,608)


The notes on pages 22 to 45 form part of these financial statements.

Page 20

 
HORBURY GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024




At 1 June 2023
Cash flows
At 31 May 2024
£

£

£

Bank overdrafts

(4,061,608)

3,021,368

(1,040,240)

Debt due after 1 year

(2,897,852)

2,022,852

(875,000)

Debt due within 1 year

(179,388)

179,388

-

Finance leases

(39,050)

35,979

(3,071)


(7,177,898)
5,259,587
(1,918,311)

The notes on pages 22 to 45 form part of these financial statements.

Page 21

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

1.


General information

Horbury Group Limited is a private company limited by shares, incorporated in England and Wales (registered number: 06217640). Its registered office address is South Grove House, South Grove, Rotherham, South Yorkshire, S60 2AF. The principal activity of the company throughout the year was that of a holding company.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The companys functional and presentation currency is pounds sterling.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

 
2.3

Going concern

The directors have performed an assessment of going concern at a Group level, including a review of the Group's current cash position, available banking facilities and financial forecasts for 2025 and 2026, including the ability to adhere to banking covenants over the going concern window. In doing so the Directors have consulted with key stakeholders including financers and also considered current trading trends in our markets and extensive actions already undertaken to protect profitability and liquidity. 
Having considered the above factors, the directors are of the opinion that sufficient resources are in place to enable the business to continue to operate as a going concern for a period of 12 months following the date of this report.

Page 22

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

2.Accounting policies (continued)

 
2.4

Revenue

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 it determined by reference to the proportion of total contract value which costs incurred to date bear to total expected contract 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.


 
2.5

Operating leases: the Group as lessee

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

 
2.6

Interest income

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

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Page 23

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

2.Accounting policies (continued)

 
2.10

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.Enter text here - user input

 
2.11

Exceptional items

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

Page 24

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

2.Accounting policies (continued)

 
2.12

Intangible 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 over its expected life, which is 20 years. Negative goodwill is amortised over 5 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 fir 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.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Software costs
-
4 years

 
2.13

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 25

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

2.Accounting policies (continued)


2.13
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:

Freehold land & buildings
-
2% straight line
Leasehold land & Buildings
-
Over the term of the lease
Motor vehicles
-
25% straight line
Fixtures, fittings & equipment
-
20% - 25% 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.

 
2.14

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.15

Investment property

Investment property, which is property held to earn rentals and/or capital appreciation, is initially recgnised 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.
Where fair value cannot be achieved without undue cost and effort, investment property is accounted for as tangible fixed assets.
Property held for group purposes is classified within tangible fixed assets.

Page 26

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

2.Accounting policies (continued)

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

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

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

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 27

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

3.


Judgments in applying accounting policies 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.
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
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 28

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

3.Judgments in applying accounting policies (continued)

Classification and valuation of investment property
Classification of investment property
In assessing the split of own use and external use, the directors have reviewed floor space and estimated
communal spaces at the year end, and have applied a percentage split to the fair value of the entire property to arrive at the share of the fair value that it attributed to Property Plant and Equipment and Investment Property.
Valuation of investment property
The valuation of the investment property has been undertaken by the directors in conjunction with advice from their property agents. In forming the valuation the directors have reviewed evidence of office sales in the past 12 months in the region, and have used the average price per square foot as a basis for estimating the valuation of the investment property. Inherently in this assessment, the directors have applied their judgment in forming the valuation.


4.


Turnover

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


2024
2023
£
£

Construction contract revenue
68,919,575
87,189,606


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Change in the fair value of investment property
-
503,403

Net rents receivable
42,901
-

Sundry income
16,629
288

59,530
503,691


Page 29

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

6.


Operating profit/(loss)

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

2024
2023
£
£

Depreciation of owned tangible fixed assets
125,734
232,327

Reversal of past impairment of tangible fixed assets
-
(163,000)

Other operating lease rentals
827,237
588,765

Loss/(profit) on disposal of tangible fixed assets
20,000
145,083

Amortisation of intangible assets
194,063
151,758


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
7,000
3,418

Fees payable to the Company's auditors and their associates in respect of:

The auditing of accounts of associates of the Company
68,000
79,582

Taxation compliance services
15,000
16,000

Page 30

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

8.


Employees

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


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
7,991,650
9,182,967
-
-

Social security costs
853,204
988,223
-
-

Cost of defined contribution scheme
315,560
343,979
-
-

9,160,414
10,515,169
-
-


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


        2024
        2023
            No.
            No.







Construction
109
108



Administration
96
166



Directors
3
4

208
278


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
496,250
409,328

Group contributions to defined contribution pension schemes
27,675
21,800

523,925
431,128


During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £265,000 (2023 - £256,477).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,800 (2023 - £7,800).

Page 31

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

10.


Exceptional items

2024
2023
£
£


Legal costs
72,318
615,162

Redundancy costs
20,430
105,752

Exceptional contracting costs
27,379
429,970

Staff long term sickness costs
13,241
-

Profit on disposal of unlisted investment
(421,786)
-

Exceptional loan write off on restructuring
(1,487,681)
-

(1,776,099)
1,150,884

As part of the refinancing package agreed in the year, the Group wrote-off £1,487,681 previously classified as another loan.


11.


Interest receivable

2024
2023
£
£


Other interest receivable
1,109
-

1,109
-


12.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
594,938
353,784

Other interest payable
2,066
30,466

597,004
384,250

Page 32

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

13.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
-
6,083

Adjustments in respect of previous periods
-
(26,166)


-
(20,083)


Total current tax
-
(20,083)

Deferred tax


Origination and reversal of timing differences
(129,386)
(9,917)

Total deferred tax
(129,386)
(9,917)


Profit/(loss) before taxation
(129,386)
(30,000)
Page 33

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


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of25% (2023 -20%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
2,339,149
(684,589)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
584,787
(136,918)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
37,407
29,925

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
330
299,384

Capital allowances for year in excess of depreciation
-
44,499

Adjustments to tax charge in respect of prior periods
(2,452)
(26,166)

Non-taxable income
-
(150,418)

Capital gains
-
101,595

Remeasurement of deferred tax for changes in tax rates
-
(82,351)

Movement in deferred tax not recognised
-
23,131

Deferred tax - other
(484,589)
170,900

Other permanent differences
(264,869)
(305,121)

Group relief
-
1

Losses carried back
-
1,539

Total tax charge for the year
(129,386)
(30,000)

Page 34

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

14.


Intangible assets

Group





Software costs
Goodwill
Total

£
£
£



Cost


At 1 June 2023
178,940
2,992,512
3,171,452



At 31 May 2024

178,940
2,992,512
3,171,452



Amortisation


At 1 June 2023
2,132
1,778,775
1,780,907


Charge for the year on owned assets
44,437
149,626
194,063



At 31 May 2024

46,569
1,928,401
1,974,970



Net book value



At 31 May 2024
132,371
1,064,111
1,196,482



At 31 May 2023
176,808
1,213,737
1,390,545

The company had no intangible fixed assets at 31 May 2024 or 31 May 2023.



Page 35

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

15.


Tangible fixed assets

Group






Freehold property
Long-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 1 June 2023
2,237,226
17,137
7,914
910,716
3,172,993


Additions
-
-
-
119,549
119,549


Disposals
-
-
-
(237,152)
(237,152)



At 31 May 2024

2,237,226
17,137
7,914
793,113
3,055,390



Depreciation


At 1 June 2023
582,713
17,137
7,913
695,081
1,302,844


Charge for the year on owned assets
67,533
-
-
125,734
193,267


Disposals
-
-
-
(226,435)
(226,435)



At 31 May 2024

650,246
17,137
7,913
594,380
1,269,676



Net book value



At 31 May 2024
1,586,980
-
1
198,733
1,785,714



At 31 May 2023
1,654,513
-
1
215,635
1,870,149

The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.

Page 36

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

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
3,951,763



At 31 May 2024
3,951,763





Direct subsidiary undertakings


The following were direct subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Environ Safety Management Limited
England
Ordinary
100.00%
Horbury Facades Limited
England
Ordinary
100.00%
Horbury Joinery Limited
England
Ordinary
66.04%
Horbury Management Services Limited
England
Ordinary
100.00%
Horbury Property Services Limited
England
Ordinary
100.00%
Horbury Systems Limited
England
Ordinary
100.00%
Magna Plant and Tool Hire Limited
England
Ordinary
100.00%
Millstone Building Limited
England
Ordinary
73.67%
Titan Interior Solutions limited
England
Ordinary
83.61%
Tubular Scaffolding Services Ltd
England
Ordinary
85.00%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Horbury Support Services Limited
England
Ordinary
100.00%
South Grove House imited
England
Ordinary
83.20%
TIS Services Limited
England
Ordinary
100.00%
Titan Flooring Limted
England
Ordinary
79.40%

Page 37

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

17.


Investment property

Group


Freehold investment property

£



Valuation


At 1 June 2023
2,522,091


Disposals
(800,000)



At 31 May 2024
1,722,091

Investment property comprises a commercial property held at fair value. The fair value of the investment 
property has been arrived at on the basis of an agreement to sell the property post year end. The directors do not consider there to have been a material change in the fair value of the property since the formal valuation.
Also included in investment property is a property previously occupied by fellow group companies. At the year end, this was partially let to group companies and has been split accordingly as a mixed used property. The investment property element was subsequently revalued to reflect the current use of the property. The fair value of the investment property has been arrived at by the Directors based on their best estimate of market value by reference to market evidence of transaction prices for similar properties.





If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2024
2023
£
£


Historic cost
4,580,784
7,305,156

Accumulated depreciation and impairments
(1,465,850)
(2,041,696)

3,114,934
5,263,460



Page 38

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

18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,716,016
11,592,031
-
-

Amounts owed by group undertakings
-
1,018,651
3,448,501
4,637,791

Other debtors
1,444,521
1,105,133
572,434
7,652

Prepayments and accrued income
363,951
362,094
11,368
88,170

Amounts recoverable on long-term contracts
9,022,840
6,241,533
-
-

Tax recoverable
-
26,837
-
-

Deferred taxation
498,920
548,500
384,000
384,000

15,046,248
20,894,779
4,416,303
5,117,613


Included in trade debtors is an amount of £1,069,484 (2023 £1,671,903) which are debts due in over twelve months.
Included in amounts due from fellow group undertakings in the prior year were balances owed to companies previously in the group which are not classed as related parties.
Included in other debtors are amounts due from the directors of the subsidiaries totally £16,374 (2023 £35,448).

Page 39

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

19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
1,040,240
4,061,608
4,392,492
5,370,317

Bank loans
-
179,388
-
-

Trade creditors
9,055,305
11,024,056
15,631
23,747

Amounts owed to group undertakings
-
174,049
1,084,428
-

Corporation tax
-
11,769
-
-

Other taxation and social security
890,067
1,118,655
-
-

Obligations under finance lease and hire purchase contracts
3,071
35,988
-
-

Other creditors
1,625,314
2,052,119
104,242
97,719

Accruals and deferred income
1,590,153
2,131,574
35,238
189,139

14,204,150
20,789,206
5,632,031
5,680,922


Disclosure of the terms and conditions attached to the non-equity shares is made in note 25.

Included in amounts due to group undertakings in the prior year were balances owed to group companies previously in the group but which are now classified as related parties.


20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
-
283,852
-
-

Other loans
-
2,614,000
-
2,614,000

Net obligations under finance leases and hire purchase contracts
-
3,061
-
-

Accruals and deferred income
-
1,487,681
-
1,487,681

Share capital treated as debt
875,000
-
875,000
-

875,000
4,388,594
875,000
4,101,681




Page 40

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

21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Bank loans
-
179,388
-
-


-
179,388
-
-

Amounts falling due 1-2 years

Bank loans
-
283,852
-
-

Other loans
-
2,614,000
-
2,614,000


-
2,897,852
-
2,614,000



-
3,077,240
-
2,614,000


Bank loans are secured by a fixed and floating charge over the assets of the group. The bank loans have been repaid in full during the year.
In 2023, other borrowings include loan notes of £2,614,000, which carry a coupon rate of 10% per annum. The loan notes were redeemable in 2024, £1,864,000 of which carry a redemption premium of 50% and £750,000 a redemption premium of 20%.


22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
3,071
35,988

Between 1-5 years
-
3,061

3,071
39,049

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Page 41

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

23.


Deferred taxation


Group



2024


£






At beginning of year
360,100


Charged to profit or loss
129,386


Utilised in year
9,434



At end of year
498,920

Company


2024


£






At beginning of year
384,000



At end of year
384,000

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(3,828)
-
-
-

Tax losses
486,868
537,000
384,000
384,000

Timing differences
15,880
(28,900)
-
-

Capital gains
-
(148,000)
-
-

498,920
360,100
384,000
384,000

Comprising:

Asset - due within one year
498,920
548,500
384,000
384,000

Liability
-
(188,400)
-
-

498,920
360,100
384,000
384,000


Page 42

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

24.


Provisions


Group



Group VAT provision

£





At 1 June 2023
11,828


Utilised in year
(11,828)



At 31 May 2024
-


25.


Share capital

2024
2023
£
£
Shares classified as equity

Allotted, called up and fully paid



15,364 (2023 - 15,364) Ordinary shares of £1.00 each
15,364
15,364
5,121 (2023 - 3,842) Ordinary A shares of £1.00 each
5,121
3,842

20,485

19,206

During the year, 3,842 Ordinary A shares were cancelled, and 5,121 Ordinary A shares were issued for a total consideration of £1,325,100.

2024
£
Shares classified as debt

Allotted, called up and fully paid



875,000 (2023 - ) Preference shares of £1.00 each
875,000
-


During the year, 875,000 £1 redeemable preference shares were issued at par value.
The terms of these shares are that the company shall on or before the third anniversary of the issue date, by giving one months notice, be entitled to redeem at par, together with any accrued but unpaid preference dividend, any or all of the preference shares that are outstanding on that date.
The financial liability of £875,000 in relation to the preference share capital treated as debt is included in creditors due after more than one year as the directors have confirmed that it is not their intention to redeem the shares early.


Page 43

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

26.


Reserves

Share premium account

Share premium reserve represents the amount above the nominal value received for shares sold, less transaction costs.

Revaluation reserve

The cumulative revaluation gains and losses in respect of land and buildings, except revaluation gains and losses recognised in profit or loss. 

Profit and loss account

Cumulative profit and loss net of distributions to owners.


27.


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.
The company has taken advantage of the exemption available under section 479A of Companies Act 2006 in respect of the requirement for audit of some of its wholly owned subsidiaries. The company guarantees the liabilities of the following subsidiary companies at the period end until those liabilities are settled in full:
Horbury Support Services Limited
South Grove House Limited
Magna Plant and Tool Hire Limited
Environ Safety Management Limited
The contingent liability at 31 May 2024 was £1,105,840 (2023: £1,872,661).


28.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £315,560 (2023 - £343,979). Contributions totalling £59,444 (2023 - £58,045) were payable to the fund at the balance sheet date and are included in creditors.

Page 44

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

29.


Commitments under operating leases

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


Group
Group
2024
2023
£
£

Not later than 1 year
392,602
460,642

Later than 1 year and not later than 5 years
501,725
724,104

894,327
1,184,746

30.


Controlling party

The directors regard T Wragg as the ultimate controlling party by virtue of his majority shareholding.  

Page 45