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Registered number: 08718376
DXI Regeneration Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 30 September 2023
Financial Statements
Contents
Page
Company Information 1
Strategic Report 2
Directors' Report 3
Independent Auditor's Report 4—7
Statement of Comprehensive Income 8
Balance Sheet 9
Statement of Changes in Equity 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13—21
Page 1
Company Information
Directors I Rawlins
D Clark
Secretary L Rawlins
Company Number 08718376
Registered Office Landgate Business Centre
Wigan Road
Ashton In Makerfield
Lancashire
WN4 0BX
Accountants Sheppards Chartered Accountants
Suite A, 2nd Floor Kennedy House
31 Stamford Street
Altrincham
Cheshire
WA14 1ES
Auditors Leavitt Walmsley Associates Ltd
Chartered Certified Accountants
Statutory Auditors
8 Eastway, Sale
Cheshire
M33 4DX
Page 1
Page 2
Strategic Report
The directors present their strategic report for the year ended 30 September 2023.
Principal Activity
The principal activity of the company continues to be that of civil engineering.
Review of the Business
The company has continued to grow its turnover and client base, and to invest significantly in plant and equipment.
Profits for the previous year ended 30th September 2022 were exceptional because of a number of one-off opportunities. The profit for the year ended 30th September 2023 reverted to the normal growth pattern. 
Sales increased to £12.938m (2022:£11.305m) but tighter margins, overhead increases, and a loss on sale of fixed assets resulted in a decrease in pre tax profit to £0.876m (2022:£1.498m). 
EBITDA was £2.300m (2022: £1.911m). 
Balance sheet net assets increased to £2.918m (2022:£2.734m).
Principal Risks and Uncertainties
The directors believe the main risk that the company faces, in addition to the financial instrument risks, is the impact of political decisions and the general economic climate on the civil engineering sector.
The company enters into long-term contracts in the normal course of business which introduces further commercial, inflation, customer and supply chain risks to the business which can impact on revenue and profit recognised on each contract. Significant levels of our current activity continue to relate to the building and construction sector which continue to be impacted by fierce competition and rising material prices. The directors actively manage this risk by working with selected clients in the private sector. 
The continuing conflict between Russia and Ukraine has disrupted worldwide supply chains and has resulted in significant increases in both inflation and interest rates to the UK economy. The future trends in both inflation and interest rates remains uncertain.
Future Developments
The directors plan to increase sales, and to venture into framework agreements with blue chip infrastructure companies.
Management are looking to further develop relations with its key customer base and take on new partners during the course of 2024 to strengthen business activity in the sector. 
Key Performance Indicators
The Key Performance Indicators (KPI's) that the managemnt team at DXI focus on are as follows:
Sales performance  £12.938m (2022:£11.305m)
Gross profit percentage  34.4% (2022:37.6%)
Net profit percentage before tax 6.8%  (2022:13.2%)
In addition to the KPI's above management monitor the levels of overheads incurred.
KPIs include revenue, gross profit margin and net profit margin. These KPIs are selected as ‘key’ on the basis that the company is driven by gross margins on contracts and the directors strive to keep margins as high as possible in order to preserve profit
On behalf of the board
I Rawlins
Director
30th September 2024
Page 2
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Directors' Report
The directors present their report and the financial statements for the year ended 30 September 2023.
Dividends
The value of interim dividends paid amounted to £133,000 .
The directors did not recommended a final dividend.
Directors
The directors who held office during the year were as follows:
I Rawlins
D Clark
Matters covered in the Strategic Report
The company has chosen, in accordance with Companies Act 2006, s414C(11) to set out in the Strategic Report information required by The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, sch 7 to be contained in the Report of the Directors. It has done this in respect of future developments. 
Statement of Directors' Responsibilities
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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to: 
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of Disclosure of Information to Auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information. 
Independent Auditors
The auditors, Leavitt Walmsley Associates Ltd, will be proposed for re-appointment at the Annual General Meeting.
On behalf of the board
I Rawlins
Director
30th September 2024
Page 3
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Independent Auditor's Report
Opinion
We have audited the financial statements of DXI Regeneration Limited for the year ended 30 September 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its profit/(loss) 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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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 or 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.
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Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in and how the company is complying with the legal and regulatory frameworks;
• inquired of management, and those charged with governance, concerning their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and
• discussed matters concerning non-compliance with laws and regulations and how fraud may occur including an assessment of how, and where, the financial statements may be susceptible to fraud.
Significant laws and regulations having a direct impact on the financial statements:
As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are:
• FRS 102;
• Companies Act 2006; and
• Tax legislation.
We performed audit procedures to detect any non-compliance which may have a material impact on the financial statements. These included reviewing financial statement disclosures, inspecting correspondence with local tax authorities and evaluating tax advice.
Significant laws and regulations having an indirect impact on the financial statements:
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to Health and Safety. We performed audit procedures to inquire of management and those charged with governance as to whether the company is in compliance with these laws and regulations and reviewed notices published by the Health and Safety Executive. We also made inquiries with those charged with governance to identify any live and material claims or disputes with sub-contractors or clients.
Other risks relating to irregularities, including fraud:
The audit engagement team identified the risk of management override of controls, revenue recognition and estimates made in the valuation of amounts recoverable on contracts as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to:
• Testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transaction and transactions outside the normal course of business and assessing whether the judgements made in making those estimates are indicative of potential bias. 
• Testing a sample of revenue transactions recognised either side of the balance sheet date to determine whether revenue was recorded in the correct period.
• Challenging judgements and estimates applied in the valuation of amounts recoverable on contracts by discussing contract performance, reviewing post-year-end performance of projects and comparing the outturn of projects with the estimates made in preparing the prior year’s financial statements. 
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to disclose
Without qualifying our opinion, we draw attention to note 1.1 ‘Basis of Preparation of the Financial Statements’ and the fact that the company’s comparative financial statements were unaudited. For the year ended 30 September 2022, the company qualified as small and the directors took advantage of the exemption of section 477 of Companies Act 2006 and did not require the company to have its financial statements for the year then ended audited. 
Use Of Our Report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
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Steven John Collings FCCA (Senior Statutory Auditor)
for and on behalf of Leavitt Walmsley Associates Ltd , Statutory Auditor
30th September 2024
Leavitt Walmsley Associates Ltd
Chartered Certified Accountants
Statutory Auditors
8 Eastway, Sale
Cheshire
M33 4DX
Page 7
Page 8
Statement of Comprehensive Income
2023 2022
as restated
Notes £ £
TURNOVER 3 12,938,822 11,305,596
Cost of sales (8,484,063 ) (7,054,183 )
GROSS PROFIT 4,454,759 4,251,413
Administrative expenses (3,202,234 ) (2,658,435 )
OPERATING PROFIT 4 1,252,525 1,592,978
Loss on disposal of fixed assets (162,102 ) -
Other interest receivable and similar income 9 5,687 1,179
Interest payable and similar charges 10 (219,874 ) (174,976 )
PROFIT BEFORE TAXATION 876,236 1,419,181
Tax on Profit 11 (413,556 ) (316,773 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 462,680 1,102,408
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
Prior year adjustment (79,443) -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 383,237 1,102,408
The notes on pages 12 to 21 form part of these financial statements.
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Balance Sheet
Registered number: 08718376
2023 2022
as restated
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 13 3,890,406 3,235,355
3,890,406 3,235,355
CURRENT ASSETS
Stocks 14 9,560 110,026
Debtors 15 4,449,289 3,965,392
Cash at bank and in hand 542,254 891,642
5,001,103 4,967,060
Creditors: Amounts Falling Due Within One Year 16 (2,807,340 ) (3,114,108 )
NET CURRENT ASSETS (LIABILITIES) 2,193,763 1,852,952
TOTAL ASSETS LESS CURRENT LIABILITIES 6,084,169 5,088,307
Creditors: Amounts Falling Due After More Than One Year 17 (2,204,196 ) (1,951,570 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 20 (962,328 ) (548,772 )
NET ASSETS 2,917,645 2,587,965
CAPITAL AND RESERVES
Called up share capital 21 200 200
Profit and Loss Account 2,917,445 2,587,765
SHAREHOLDERS' FUNDS 2,917,645 2,587,965
On behalf of the board
I Rawlins
Director
30th September 2024
The notes on pages 12 to 21 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 October 2021 200 1,596,117 1,596,317
Profit for the year and total comprehensive income - 1,102,408 1,102,408
Dividends paid - (110,760) (110,760)
As at 30 September 2022 200 2,587,765 2,587,965
As at 1 October 2022 as previously stated 200 2,667,208 2,667,408
Prior year adjustment - (79,443 ) (79,443 )
As at 1 October 2022 as restated 200 2,587,765 2,587,965
2,587,765
Profit for the year and total comprehensive income - 462,680 462,680
Dividends paid - (133,000) (133,000)
As at 30 September 2023 200 2,917,445 2,917,645
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Cash Flow Statement
2023 2022
as restated
Notes £ £
Cash flows from operating activities
Net cash generated from operations 1 1,115,959 1,629,096
Interest paid (219,874 ) (174,975 )
Tax refunded 72,412 -
Net cash generated from operating activities 968,497 1,454,121
Cash flows from investing activities
Purchase of tangible assets (67,796 ) (46,803 )
Proceeds from disposal of tangible assets 285,008 -
Interest received 5,687 1,179
Net cash generated from/(used in) investing activities 222,899 (45,624 )
Cash flows from financing activities
Equity dividends paid (133,000 ) (110,760 )
Proceeds from new bank borrowings - 250,000
Repayment of bank borrowings (105,735 ) (83,080 )
Repayment of finance leases (1,159,979 ) (558,948 )
Amount withdrawn by directors (142,070) (198,618)
Net cash used in financing activities (1,540,784 ) (701,406 )
(Decrease)/increase in cash and cash equivalents (349,388 ) 707,091
Cash and cash equivalents at beginning of year 2 891,642 184,551
Cash and cash equivalents at end of year 2 542,254 891,642
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Notes to the Cash Flow Statement
1. Reconciliation of profit for the financial year to cash generated from operations
2023 2022
as restated
£ £
Profit for the financial year 462,680 1,102,408
Adjustments for:
Tax on profit 413,556 316,773
Interest expense 219,874 174,976
Interest income (5,687 ) (1,179 )
Depreciation of tangible assets 385,806 318,037
Loss on disposal of tangible assets 162,102 -
Movements in working capital:
Decrease/(increase) in stocks 100,466 (88,149 )
Increase in trade and other debtors (414,239 ) (958,548 )
(Decrease)/increase in trade and other creditors (208,599 ) 764,778
Net cash generated from operations 1,115,959 1,629,096
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2023 2022
as restated
£ £
Cash at bank and in hand 542,254 891,642
3. Analysis of changes in net debt
As at 1 October 2022 Cash flows New finance leases As at 30 September 2023
£ £ £ £
Cash at bank and in hand 891,642 (349,388) - 542,254
Finance leases (2,624,080) 1,159,979 (1,420,171) (2,884,272)
Debts falling due within one year (115,247 ) (665) - (115,912 )
Debts falling due after more than one year (284,463) 106,400 - (178,063)
(2,132,148) 916,326 (1,420,171) (2,635,993)
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Notes to the Financial Statements
1. General Information
DXI Regeneration Limited is a private company, limited by shares, incorporated in England & Wales, registered number 08718376 . The registered office is Landgate Business Centre, Wigan Road, Ashton In Makerfield, Lancashire, WN4 0BX.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
The 2022 comparative figures were unaudited as the directors took exemption under section 477 of the Companies Act 2006 to not have the financial statements audited as the company qualified as a small company. The company no longer qualified as small for the year ended 30 September 2023 and hence the 2023 financial statements are the first ones subject to audit. 
Going concern
The directors have considered the working capital requirements of the business for a period of at least 12 months from the date of approval of these financial statements and consider these to be adequate to enable the company to meet its day-to-day obligations.
After reviewing forecasts, cash resources and consideration of other support from associated entities, the directors have a reasonable expectation that the company has sufficient resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements.
Accordingly, the directors continue to adopt the going concern basis of accounting in the preparation of these financial statements. 
2.2. Significant judgements and estimations
The preparation of the financial statements requires management to make judgements, estimates, and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. The nature of estimation means that the actual outcomes might differ from the 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical accounting judgements include the following:
Revenue recognition
The company enters into long-term contracts in the normal course of business. The nature of such contracts introduces judgement and uncertainty into the recognition of revenue and profit for the business.
2.3. Turnover
The company recognises turnover at the fair value of the consideration received or receivable. 
Turnover is calculated at net invoiced sales values, excluding VAT.
The company enters into contracts with clients to undertake permanent works at an agreed value over a period of time. When the outcome of a contract can be estimated reliably, contract turnover and associated costs are recognised as turnover and costs respectively by reference to the stage of completion of the contract activity at the balance sheet date. Full provision is made for losses on all contracts in the year in which the loss is first foreseen. 
Where the outcome of a contract cannot be estimated reliably, contract turnover is recognised only to the extent of contract costs incurred that is probable will be recoverable, and contract costs are recognised in the period in which they are incurred. 
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2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Cost includes costs which are directly attributable in bringing the asset to its location and condition so that it is capable of operating in the manner intended by management. 
Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery 10% on a reducing balance
Motor Vehicles 15% on a reducing balance
Fixtures & Fittings 25% on a reducing balance
Computer Equipment 33% on cost
The directors assess the company's tangible assets for evidence of impairment at each reporting date. Where there are indicators of impairment the directors compare the recoverable amount with the carrying amount. If the recoverable amount is lower than the carrying amount the aset is written down to the recoverable amount which is recognised in the profit or loss for the year. Impairment losses are reversed when there is evidence that the reasons giving rise to the loss have ceased to apply.
Residual values used in the calculation of depreciable amount are the expected amounts which would currently be obtained from disposal of assets, after deducting the estimated costs of disposal, if the assets were already of the age and in the condition expected at the end of their useful lives. Profits and losses on disposal of fixed assets are included in the calculation of profit for the year. 
2.5. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over their useful lives.
Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
Financial instruments
The company has elected to apply (where applicable) the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.
Financial assets are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors and bank balances, are initially measured at transaction price including transaction costs, and are subsequently measured at amortised cost using the effective interest rate, unless the arrangement constitutes a financing transaction. Financing transactions are measured at the present value of future receipts, discounted at a market rate of interest.
Impairment of financial assets
Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows, discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to a third party that is able to sell the asset in its entirety to an unrelated party.
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2.5. Leasing and Hire Purchase Contracts - continued
Basic financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing arrangement, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Debt instruments are subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s contractual obligations are discharged, cancelled or they expire. 
Equity instruments
Equity instruments issued by the company are recorded at the fair value of the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. 
2.6. Stocks and Work in Progress
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Estimated selling price less costs to complete and sell are based on the prices available in the market in which a willing, knowledgeable and informed third party would offer in exchange for the goods or services.
Stocks are reviewed at each balance sheet date for evidence of obsolescence or damage and their estimated selling price less costs to complete and sell established. Where estimated selling price less costs to complete and sell are lower than cost, a write-down is recognised which is recognised immediately in profit or loss. Slow-moving items are also reviewed at each balance sheet date for evidence that cost is lower than estimated selling price less costs to complete and sell; where any write-downs or additional write-downs are required, these are also recognised in profit and loss. 
2.7. Cash and Cash Equivalents
Cash and cash equivalents is represented by cash in hand and deposits held at call with banks.
2.8. Taxation
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
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3. Turnover
Analysis of turnover by class of business is as follows:
2023 2022
as restated
£ £
Construction 12,938,822 11,305,596
4. Operating Profit
The operating profit is stated after charging:
2023 2022
as restated
£ £
Depreciation of tangible fixed assets 385,806 318,037
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2023 2022
as restated
£ £
Audit Services
Audit of the company's financial statements 9,500 -
6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2023 2022
as restated
£ £
Wages and salaries 1,599,222 1,614,275
Social security costs 149,132 140,501
Other pension costs 93,132 7,841
1,841,486 1,762,617
7. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2023 2022
Office and administration 3 3
Managerial 14 14
Site workers 20 31
37 48
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8. Directors' remuneration
2023 2022
as restated
£ £
Emoluments 59,548 29,688
Company contributions to money purchase pension schemes 40,000 -
99,548 29,688
The number of directors to whom retirement benfits were accruing was 1  (2022: 1).
9. Interest Receivable and Similar Income
2023 2022
as restated
£ £
Bank interest receivable 1,506 10
Other interest receivable 4,181 1,169
5,687 1,179
10. Interest Payable and Similar Charges
2023 2022
as restated
£ £
Bank loans and overdrafts 31,357 36,224
Finance charges payable under finance leases and hire purchase contracts 187,296 138,752
Other finance charges 1,221 -
219,874 174,976
11. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2023 2022
as restated
2023 2022 £ £
Current tax
UK Corporation Tax 25.0% 19.0% - -
Deferred Tax
Deferred taxation 413,556 316,773
Total tax charge for the period 413,556 316,773
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2023 2022
£ £
Profit before tax 876,236 1,419,181
Tax on profit at 25% (UK standard rate) 219,059 284,738
Goodwill/depreciation not allowed for tax 136,977 60,427
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Expenses not deductible for tax purposes 3,057 1,171
Tax losses utilised (23,331 ) (89,424 )
Capital allowances (299,129 ) (256,912 )
Short term timing differences 413,556 316,773
Prior period adjustment (36,633 ) -
Total tax charge for the period 413,556 316,773
In the Budget on 3 March 2021, the UK government announced an increase in the main UK corporation tax rate from 19% to 25% with effect from 1 April 2023. This change in rate was substantively enacted on 24 May 2021. The deferred tax balances reflect the rate that is expected to apply on crystallisation. 
12. Prior Period Adjustment
The accounts have been restated to incorporate the impact of the understatement of interest payable in earlier years. The change has resulted in a reduction in profits available for distribution after tax of £146,534  at 30th September 2023 
A summary of the prior year accounting impact is as follows:
                                                                              £
Increase in creditors – interest payable           146,534
Reduction in retained profit                            146,534
13. Tangible Assets
Plant & Machinery Motor Vehicles Fixtures & Fittings Computer Equipment Total
£ £ £ £ £
Cost
As at 1 October 2022 3,524,208 653,769 29,156 29,898 4,237,031
Additions 1,381,931 97,590 7,661 785 1,487,967
Disposals (569,473 ) - - - (569,473 )
As at 30 September 2023 4,336,666 751,359 36,817 30,683 5,155,525
Depreciation
As at 1 October 2022 674,997 287,160 13,349 26,170 1,001,676
Provided during the period 321,077 60,099 1,667 2,963 385,806
Disposals (122,363 ) - - - (122,363 )
As at 30 September 2023 873,711 347,259 15,016 29,133 1,265,119
Net Book Value
As at 30 September 2023 3,462,955 404,100 21,801 1,550 3,890,406
As at 1 October 2022 2,849,211 366,609 15,807 3,728 3,235,355
14. Stocks
2023 2022
as restated
£ £
Raw materials 9,560 110,026
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15. Debtors
2023 2022
as restated
£ £
Due within one year
Trade debtors 3,882,404 3,509,274
Prepayments and accrued income 35,139 68,922
Other debtors 120,994 19,665
Corporation tax recoverable assets 47,541 119,953
VAT 109,976 136,413
Directors' loan accounts 253,235 111,165
4,449,289 3,965,392
16. Creditors: Amounts Falling Due Within One Year
2023 2022
as restated
£ £
Net obligations under finance lease and hire purchase contracts 858,139 956,973
Trade creditors 1,297,966 1,669,644
Bank loans and overdrafts 115,912 115,247
Other taxes and social security 99,124 3,712
Other creditors 13,097 123,760
Accruals 423,102 244,772
2,807,340 3,114,108
17. Creditors: Amounts Falling Due After More Than One Year
2023 2022
as restated
£ £
Net obligations under finance lease and hire purchase contracts 2,026,133 1,667,107
Bank loans 178,063 284,463
2,204,196 1,951,570
2023 2022
as restated
£ £
Net obligations under finance lease and hire purchase contracts 2,883,394 2,624,080
Bank loans and overdrafts 293,975 399,710
The bank loan is secured by way of a fixed and floating charge in favour of The Royal Bank of Scotland dated 13 August 2014. The hire purchase contracts and finance leases are secured over the assets to which they relate. 
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18. Loans
An analysis of the maturity of loans is given below:
2023 2022
as restated
£ £
Amounts falling due within one year or on demand:
Bank loans 115,912 115,247
115,912 115,247
2023 2022
as restated
£ £
Amounts falling due between one and five years:
Bank loans 178,063 284,463
178,063 284,463
19. Obligations Under Finance Leases and Hire Purchase
2023 2022
as restated
£ £
The future minimum finance lease payments are as follows:
Not later than one year 858,139 956,973
Later than one year and not later than five years 2,026,133 1,667,107
2,884,272 2,624,080
2,884,272 2,624,080
20. Deferred Taxation
The provision for deferred tax is made up as follows:
2023 2022
as restated
£ £
Accelerated capital allowances 962,328 548,772
Deferred tax balances have arisen due to accelerated capital allowances on qualifying assets. These balances are expected to reverse over the next five years. 
21. Share Capital
2023 2022
as restated
Allotted, called up and fully paid £ £
100 Ordinary A shares of £ 1.00 each 100 100
100 Ordinary B shares of £ 1.00 each 100 100
200 200
The A shares have voting rights and no dividend rights ; and the B Shares have dividend rights and no voting rights.
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22. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £93,132 (2022: £7,841). No amounts were owed to the pension fund at the balance sheet date (2022: £nil).
23. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
As at 1 October 2022 Amounts advanced Amounts repaid Amounts written off As at 30 September 2023
£ £ £ £ £
Mr. Ivan Rawlins 111,165 142,070 - - 253,235
The above loan is unsecured, interest free and repayable on demand.
The loan was repaid after the year end.
24. Dividends
2023 2022
as restated
£ £
On equity shares:
Interim dividend paid 133,000 110,760
133,000 110,760
25. Related Party Disclosures
Key management personnel (including directors) received compensation of £549,413 (2022: £506,408)
549,413 506,408
During the year the company had transactions with entities over which a director had significant influence and control as follows:
   Nature and amount of transactions:
     Purchases £121,920 (2022: £73,580)
     Management fee payable £102,000 (2022: £70,000)
     Rent payable £60,384 (2022: £30,000)
     Sale of plant £25,500 (2022: £nil)
  Amounts outstanding at the year end:
     Due to related parties £122,628 (2022: £201,198)
     Due from related parties £50,840 (2022: nil)
26. Retained Earnings
Retained earnings includes all current and prior period profits and losses. This includes distributable and non-distributable reserves. 
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