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Registration number: 04802034

Optimum Construction Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2024

 

Optimum Construction Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 9

 

Optimum Construction Limited

(Registration number: 04802034)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

69,451

48,498

Current assets

 

Stocks

5

243,116

183,390

Debtors

6

204,534

243,828

Cash at bank and in hand

 

286,747

406,226

 

734,397

833,444

Creditors: Amounts falling due within one year

7

(292,434)

(316,671)

Net current assets

 

441,963

516,773

Total assets less current liabilities

 

511,414

565,271

Creditors: Amounts falling due after more than one year

7

(32,763)

(29,748)

Provisions for liabilities

26

4,888

Net assets

 

478,677

540,411

Capital and reserves

 

Called up share capital

10,100

10,100

Retained earnings

468,577

530,311

Shareholders' funds

 

478,677

540,411

 

Optimum Construction Limited

(Registration number: 04802034)
Balance Sheet as at 31 May 2024

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the director on 18 September 2024
 

S A Henderson
Director

   
     
 

Optimum Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in UK.

The address of its registered office is:
c/o Milsted Langdon LLP
Motivo House
Alvington
Yeovil
Somerset
BA20 2FG
England

These financial statements were authorised for issue by the director on 18 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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

Going concern

The financial statements are prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grant income is being accounted for under the accruals model.

 

Optimum Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

20% reducing balance

Motor vehicles

25% reducing balance

Plant and machinery

20% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Optimum Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Optimum Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year was 6 (2023 - 7).

 

Optimum Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

4

Tangible assets

Furniture, fittings and equipment
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2023

1,079

2,177

93,761

97,017

Additions

179

-

73,517

73,696

Disposals

-

-

(68,566)

(68,566)

At 31 May 2024

1,258

2,177

98,712

102,147

Depreciation

At 1 June 2023

243

435

47,841

48,519

Charge for the year

203

348

12,250

12,801

Eliminated on disposal

-

-

(28,624)

(28,624)

At 31 May 2024

446

783

31,467

32,696

Carrying amount

At 31 May 2024

812

1,394

67,245

69,451

At 31 May 2023

836

1,742

45,920

48,498

5

Stocks

2024
£

2023
£

Work in progress

243,116

183,390

6

Debtors

2024
£

2023
£

Trade debtors

188,362

180,009

Other debtors

15,627

63,819

Prepayments

545

-

204,534

243,828

 

Optimum Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

7

Creditors

Due within one year

Note

2024
£

2023
£

 

Loans and borrowings

8

34,549

8,520

Trade creditors

 

177,504

235,540

Social security and other taxes

 

13,978

6,000

Other creditors

 

59,986

18,965

Accruals

 

5,209

5,322

Corporation tax liability

1,208

42,324

 

292,434

316,671

Due after one year

 

Loans and borrowings

8

32,763

29,748

The hire purchase contracts are secured on the assets concerned.

8

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Hire purchase contracts

32,763

-

Finance lease liabilities

-

29,748

32,763

29,748

Current loans and borrowings

2024
£

2023
£

Bank overdrafts

31,779

-

Hire purchase contracts

2,770

-

Finance lease liabilities

-

8,520

34,549

8,520

 

Optimum Construction Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

9

Related party transactions

Loans to directors are repayable on demand. All loans to directors during the year were repaid within the year. Interest is charged at 2% where applicable.

Loans from related parties

2024

Key management
£

Total
£

At start of period

14,979

14,979

Advanced

77,865

77,865

Repaid

(35,613)

(35,613)

At end of period

57,231

57,231

2023

Key management
£

Total
£

At start of period

13,687

13,687

Advanced

37,902

37,902

Repaid

(36,610)

(36,610)

At end of period

14,979

14,979