REGISTERED NUMBER: |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 March 2024 |
REGISTERED NUMBER: |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 March 2024 |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Contents of the Financial Statements |
for the year ended 31 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 9 |
Report of the Independent Auditors | 11 |
Statement of Comprehensive Income | 14 |
Balance Sheet | 15 |
Statement of Changes in Equity | 16 |
Cash Flow Statement | 17 |
Notes to the Cash Flow Statement | 18 |
Notes to the Financial Statements | 19 |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited |
Company Information |
for the year ended 31 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Irish Square |
Upper Denbigh Road |
St Asaph |
Denbighshire |
LL17 0RN |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Strategic Report |
for the year ended 31 March 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
Jones Bros Ruthin (Civil Engineering) Co Limited is a family business, founded in the 1950s, with its roots in heavy plant. The Company's head office is located in Ruthin, North Wales and the Company directly employs more than 450 staff and operatives. A key part of our success is our collaborative approach and established rapport with clients and businesses. With the provision of vast in-house resources of the Group, dedicated staff, and an award-winning apprenticeship scheme, the Company provides clients with the confidence and certainty that projects will be delivered to the highest professional standards. |
MARKETS |
The Company operates in the following key sectors: |
- Highways, Rail and Infrastructure |
- Energy and Renewables |
- Coastal Defence and Marine Infrastructure |
- Waste Management Facilities & Landfill Engineering |
- Concrete Production, Soil Stabilisation, Quarrying & Aggregate Production |
Support Services: |
- Plant Hire |
- Training Department |
BUSINESS REVIEW |
The Company has undertaken many projects across the UK. This year has seen the start of construction on the North Kyle Wind Farm, a 49-turbine project in East Ayrshire which will have the capacity to power more than 160,000 households. The project also required the construction of site access and approximately 39km of site tracks to allow the transport of 49 wind turbine assemblies. |
The Company is a market leader in delivering onshore wind farms and has constructed over 1800MW of infrastructure and built over 700 turbine foundations. The Company has successfully transferred these skills to onshore connections for offshore wind farms and tidal energy projects. |
The Morlais Onshore Electrical Connection Package project was a design and build contract to deliver onshore infrastructure works for the tidal energy project at Holyhead on the Isle of Anglesey. The development involves the placing of turbines on the seabed or within the underwater environment to capture tidal energy. The onshore works will connect the nine developers' tidal energy circuits to the grid. The Project further involves the design and construction of a new 132kV landfall substation and 6.5km of underground ducting and 132kV cabling and its connection. Once fully completed, the tidal stream project will generate 240MW. |
The Company has seen exciting new ventures into battery energy storage schemes. This has included the completion of the Shilton Lane Battery Storage facility, the Thurrock Section C Shared Infrastructure Project, involving the enabling works for a battery storage compound, and the design and construction of a 240MW Battery Energy Storage Solution at Uskmouth. |
This year has seen the continuing development of the Havant Thicket Reservoir in a joint venture as Future Water MJJV Limited. This flagship project is a design and construction contract to deliver a new reservoir inclusive of earthworks, rip rap, temporary site drainage and access roads. Once completed in 2029, the reservoir will hold approximately 8.7 billion litres of water and the capacity to supply up to 21 million litres of water each day. It will be one mile from east to west, half a mile from north to south, with a new wetland on its northern shore, and is being built on a 160-hectare grassland site. |
The Company has a long history of delivering Coastal Defence and Marine Infrastructure across the UK and this year saw the completion of the Penrhyn Bay Coastal Defence Scheme. The works involved shoreside improvements to reduce beach corrosion and minimise the impact of extreme weather conditions and associated flooding. |
Frameworks are in place with the leading waste management companies and there were many projects including landfill cells and capping which were delivered in the year under these contracts. |
The subsidiary company, Cambrian Services Limited provides specialist concrete production, soil stabilisation, quarrying & aggregate production services to the wider business. In addition, the business has considerable experience in planning and carrying out surfacing works with the in-house specialist surfacing division. |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Strategic Report |
for the year ended 31 March 2024 |
FINACIAL PERFORMANCE |
The statement of Comprehensive Income is set out on page 14. |
The Company's turnover increased to £155.7m (2023: £105.7m) with an operating profit margin of 4.6% (2023: 4.2%) and profit before taxation was £7.2m (2023: £4.5m). |
The Company balance sheet continued to strengthen with net assets of £18.8m (2023: £16.6m) and cash increasing to £21.3m (2023: £16.7m). |
The Company does not have any debt servicing requirements and has cash balances to absorb any short-term working capital or other funding requirements. The Company has a strong order book and expects to continue to be profitable and cash generative for the next twelve months. |
The Company's directors consider various key performance indicators on a frequent basis. These include turnover, operating profit, average number of employees and net assets. |
2024£'000 | 2023£'000 | Movement% |
Turnover | 155,711 | 105,691 | 47 |
Operating profit | 7,182 | 4,453 | 61 |
Average headcount | 456 | 439 | 3 |
Net assets | 18,861 | 16,679 | 13 |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Strategic Report |
for the year ended 31 March 2024 |
RISKS AND UNCERTAINTIES |
The Company operates in a competitive trading environment and faces risk and challenges as it delivers its projects. In order to mitigate the various challenges, the management team meet regularly to review activities and the Company continues to develop the support infrastructure for the business to support the growth of demand for its services. Key areas of focus include: |
Skilled Labour Shortage and Resource Planning- There is strong competition for skilled plant operators across various sectors, including construction, infrastructure projects, and other industries requiring heavy machinery operation. As one of the UK's first independent Modern Apprenticeship providers, the Company has a proven track record in securing apprenticeship opportunities on projects and the apprenticeship scheme has produced nearly 50 per cent of the current workforce. Over the last three years the Company has recruited more than seventy apprentices. |
The Company provides high-quality, accredited training from its in-house training centre located in Denbigh, North Wales. The experienced training team offers specialised plant and machinery training to trainee operatives, adhering to accredited Construction Plant Competence Scheme (CPCS) standards, with the opportunity to complete an NVQ Level 2 in Plant Operations. |
An in-house development of software to assist the planning and forecast process for plant and labour resources has been implemented. This software, which is regularly populated with real time information from the management system, assists in the visibility of plant and skilled labour requirements to ensure optimal use of resources, make strategic plant purchases and plan labour resources. |
Changing technology - The integrated quality management and document system including business and commercial management tools are well established in the company and are continually being enhanced to adapt to business needs, technology and regulatory changes. |
Significant investment has been made in a modern plant fleet with latest technology and significant development has happened in the area of mobile and digital working in the last year with roll out of cutting edge IT hardware and software to the sites which offers the project teams and clients the systems and secure connections to work in remote environments using mobile technology. |
Environmental Sustainability - the Company is part of the Group's Energy Steering Group who set the strategy to minimise the Group's carbon footprint across all operations and who monitor the Group's performance. The Group is dedicated to being an industry leader in environmental stewardship, with a strong commitment to achieving the Group's net zero goals. |
Quality Control, Health and Safety - A team is committed to developing tools that simplify and streamline the planning and execution of quality assurance for engineering works. This involves liaising, collaborating, and communicating effectively with various departments within the Group. The team also focuses on training and implementing these processes across the organisation. To ensure ongoing compliance, they conduct internal audits continually throughout the year, reinforcing adherence to the established processes. |
Treasury Risks - The Company mainly finances its activities through cash balances generated from retained earnings. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the Company's operating activities. The Company does not trade in financial instruments or financial derivatives. The Company's exposure to foreign currency risk is not significant. When materials imported are of significant value steps are taken to mitigate foreign exchange risk. |
The Company considers its financial robustness, performance and liquidity and has risk management processes in place. Financial performance is regularly reviewed at the Board Meetings. Meetings are also held with financial institutions and information is regularly shared. |
The main risks associated with the Company's financial assets and liabilities are set out below, together with the policies adopted by the board for their management: |
Interest Rate Risk |
The Company has no external financial borrowings. As interest rates rise the Company is able to put cash on short term deposit. |
Credit Risk |
The Board's objective is to actively manage the risk of financial loss due on counter party's failure to honour its obligations. Standard payment terms for civil engineering contracts provide for regular monthly payments against the full contract value. The credit worthiness of new customers is assessed before a contract is entered into. In addition, the Company has a credit insurance policy in place to help mitigate any significant losses arising from debtors defaulting. |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Strategic Report |
for the year ended 31 March 2024 |
Inflation Risk |
The Company monitors and managers inflation risk and although it could be a significant risk on input costs, generally, fuel price escalation and specific material indexation clauses are built into the terms or negotiated on many of our contracts to ensure this is managed effectively going forward. |
SECTION 172(1) STATEMENT |
The Directors confirm that they are compliant with Section 172 of the Companies Act 2006, that is, duty to promote the success of the Company for the benefit of all members as a whole. In doing so the Directors have regard, amongst other matters, for the following: |
i) | The likely consequences of decision making in the long term |
ii) | The need to foster relationships with suppliers, customers and others |
iii) | The impact of company operations on the community and the environment |
iv) | Engagement with and regard to the interests of employees (impact of decision making) |
v) | Reputation for high standards of business conduct |
vi) | Acting fairly between members of the Company |
The Board has taken action to promote and support these objectives. There are regular Board meetings with Company Directors and the Business owner with an agenda including items to promote the success of the Company and supporting Board papers. |
Employees are key to the success of Jones Bros and is discussed further below. |
The Company has many supply chain partners and seeks to have robust and clear procurement process with sharing of key information on terms and conditions, standards required and contractual terms. A decentralised procurement process allows increased direct engagement with the project teams and supply chain and there are relationship meetings and dialogue with key strategic supply chain partners and updates on the website. The Company is committed to paying supply chain partners on time and publishes payment practice reports The average time to pay invoices was 24 days. |
Strong customer relationships are key to the business. Pre qualification information and collaborative discussions of client requirements are important for establishing project requirements and contractual terms. Regular progress meetings, reporting and on site engagement occur. |
The Company is passionate about playing an active role in local communities and leaving a lasting legacy that is beneficial to all. There are many ways in which the Company engages with communities including involving local residents in our projects, supporting local schools, fostering future talent, sponsorship and financial support and contributing to the growth of local economies. |
The Company works with various industry and regulatory bodies to participate in the strategy and approach to managing compliance risk, best practice and collaborate on the issues and challenges facing the industry. The Company is an active member on several industry bodies including CECA, CBI and Renewables UK and attends and contributes to meetings and consultations. |
KEY STAKEHOLDER ENGAGEMENT |
In addition to the stakeholders identified explicitly in S172(1) the Company also consider the following as key to the business: |
i. | Subcontractors and agency supply chain providers |
ii. | Local communities, both in North Wales where the company is head quartered and communities across the UK where its projects are based |
iii. | Government & regulatory bodies particularly relevant to the Company's operations including environmental regulatory bodies (NRW, SEPA, EA), health & safety (Health & Safety Executive) and taxation (HM Revenue & Customs) |
iv. | The industry as a whole |
v. | Financial institutions including banks, performance security providers and insurers |
The Company is a family owned inter-generational business, therefore taking a long term view that considers the interests of the wider group of stakeholders underpins its approach. In 2023, eight new directors, including three family members, were appointed to the Board of the Company. Many of these new directors have extensive experience and bring valuable expertise to the Board. |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Strategic Report |
for the year ended 31 March 2024 |
KEY DECISIONS AND STRATEGIES IN THE YEAR |
There have been no significant changes to Company strategy and approach during the period, with continued progression with the established plan. The Company has maintained early and open communications with members, employees, clients, suppliers, industry and financial institutions. |
After the year end, a new company was incorporated in Australia to explore opportunities in the region. |
QUALITY, HEALTH, SAFETY AND THE ENVIRONMENT |
We operate an Integrated Business Quality Management System that includes Quality, Environmental and Health and Safety. The Quality Management System is continually audited and improvements made where required. The system is accredited to the following international and UK standards: |
-Construction Health and Safety Management System certified to ISO 45001 |
-Environmental Management System certified to BS EN ISO 14001 |
-Quality Management System certified to BS EN ISO 9001 |
-Energy Management System certified to BS EN ISO 50001 |
The Company was awarded the Royal Society for the Prevention of Accidents (RoSPA) Gold Award for the 16th consecutive year for health and safety performance. Due to achieving the award for 16 consecutive years, the Company was honoured with the Order of Distinction Award. |
EMPLOYMENT POLICY |
The Company has continued to reinvest in staff, plant and technology to drive efficient processes. During the year the average size of the Company's direct work force increased by 3% to 456 (439 in 2023), with an increase in the use of a short-term skilled workforce during the busier summer season for shorter periods of employment. This approach allows the Company to build a highly skilled, flexible team across all disciplines, with a focus on upskilling the operative workforce to operate a variety of plant machinery to a high level of competency and using the in-house accredited training centre. |
The Company has maintained an award-winning apprenticeship scheme for over a decade, which has successfully contributed to the development of nearly 50% of the current workforce. This initiative has been instrumental in fostering internal talent and supporting the Company's growth. |
The Company prioritises the wellbeing and health of its staff, providing support to our dedicated staff and is a proud sponsors of Mates in Mind. The Company boasts strong staff retention rates, with numerous employees having committed to the company for many years and this longevity reflects the Company's commitment to career development, training and the ongoing professional progression of its employees. |
Communication and consultation with employees is a fundamental aspect of the Company's operations. Any changes made to policies or procedures are communicated to all staff through multiple channels including face to face consultation meetings, email, SMS texts, bulletins, newsletters, a Joint Consultation Committee, site visits and daily briefings. |
The Company is committed to providing equal opportunities to all existing and potential employees. It is supportive of the employment and advancement of disabled and disadvantaged persons. Employees who may become disabled are, wherever possible, supported with appropriate training and equipment so that they can continue their employment within the Company. |
The Directors of the Company extend their gratitude and thanks to all Jones Bros employees for their loyalty, dedication, and hard work. These efforts have been crucial to the ongoing success and growth of the business. |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Strategic Report |
for the year ended 31 March 2024 |
STREAMLINED ENERGY AND CARBON REPORTING (SECR) |
Jones Bros Ruthin Co Limited discloses energy, carbon and related data for the Group aligned to the UK Government Streamlined Energy and Carbon Reporting Requirements ("SECR") and produces an Annual Energy Review in line with the requirements of the ISO 50001:2018 standard to which we are accredited. The review identifies all required energy sources, evaluates figures for energy consumption and identifies opportunities for efficiencies that can be made through changes to plant, equipment and procedures. |
Group Energy Use by Area |
Gas oil used by Mobile & Static Plant | 89.8% |
Fuel Used by Road Vehicles | 9.8% |
Mains Electricity at Company Offices | 0.4% |
Key Energy Efficiency Actions |
- Energy Steering Group established who set the strategy and meet regularly to review the Group's performance. |
- Use of energy management technology to better manage fuel across the business. |
- Weekly plant telemetry data circulated around the business to help highlight inefficient operations. |
- Increased the number of Hybrid Plant across the fleet. |
- Internally developed Hybrid Generators rolled out at sites. |
- Exploring alternative fuels and power train technology. |
The introduction of Energy Champions at the Group's permanent office locations and all sites has been instrumental in ensuring site-specific carbon information is captured consistently. |
The Group will continue to explore sustainable alternatives and ways to enhance surrounding environments, whilst upholding the principles of sustainability. Innovation is at the forefront of the business and the Group is dedicated to environmental progress and sustainable advancements in all areas. |
Group Energy Consumption |
The GHG Protocol Corporate Standard classifies a company's GHG emissions into three 'scopes'. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 is not applicable to the Group. |
Using Conversion Factors as detailed below in the government 'Greenhouse Gas Reporting: Conversion Factors 2023' document to calculate our CO2e emissions, we calculate 18,373 tonnes of carbon as our annual output. |
Greenhouse gas reporting: conversion factors 2023 - GOV.UK (www.gov.uk) |
The 2023-24 summary calculations are listed in the table below. |
Emissions Source | Unit | Total units |
Conversion Factor |
KG of CO2e | % of Total |
Mobile and Static Plant - Gas Oil | litres | 6,202,890 | 2.66000 | 16,499,687.40 | 89.802 |
Fuel Company Road Vehicles-DERV | litres | 642,112 | 2.51000 | 1,611,701.12 | 8.772 |
Fuel - Personal Business Mileage | miles | 727,412 | 0.27000 | 196,401.24 | 1.069 |
18,307,789.76 | 99.643 |
Mains Electricity Consumption (All sites) |
kw/h | 256,997 | 0.25560 | 65,688.43 | 0.357 |
65,688.43 | 0.357 |
18,373,478.19 | 100 |
Jones Bros Carbon Output |
The total Carbon Output of the Group equates to 18,373 tonnes of CO2e for the financial year 2023/24. Against Group annual turnover of £166 million this equates to 110.65 tonnes of carbon per £million of turnover for 2023/24. This is our Energy Performance Indicator (EPI) for Group and shows an 11% improvement from 2022/23's figure of 124.35 tonnes of carbon per £million of turnover and a cumulative 28.4% improvement/reduction in our EPI over the last four years. |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Strategic Report |
for the year ended 31 March 2024 |
FUTURE DEVELOPMENTS |
During 2024/25 and future years, the Company looks forward to continuing to focus on securing civil engineering contracts and frameworks which optimise the use of both the expertise of its skilled workforce and the Group's extensive modern fleet of large plant. |
It is intent on continuing to maintain a balanced portfolio of work types across many clients, managing risk, focusing on creating sustainable solutions and opportunities to optimise technology and AI to drive productivity, and continuing to be a proven and reliable partner to Clients and to deliver projects to a high professional standard. |
ON BEHALF OF THE BOARD: |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Report of the Directors |
for the year ended 31 March 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of civil engineering. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2024 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
POLITICAL DONATIONS AND EXPENDITURE |
During the year, charitable donations totalling £20,540 (2023: £9,740) were made. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 AS TO 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Report of the Directors |
for the year ended 31 March 2024 |
AUDITORS |
The auditors, Salisbury & Company Business Solutions Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited |
Opinion |
We have audited the financial statements of Jones Bros. Ruthin (Civil Engineering) Co. Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page nine, 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 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. |
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 a Report of the Auditors 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: |
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned in accordance with ISA (UK). |
We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: The Companies Act 2006, FRS 102 the 'Financial Reporting Standards applicable in the UK and Republic of Ireland' and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations. |
We accessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations or fraud; |
- Obtain an understanding of the internal controls that management have in place to prevent and detect fraud; |
- Challenging assumptions and judgements made by management in its significant accounting estimates; |
- Reviewing the financial statement disclosures and assessing the appropriateness of the accounting policies used; |
- Identifying and testing journal entries, in particular manual or unusual entries; |
- Obtaining third party confirmations of all the companies banking arrangements; |
- Performing analytical procedures to identify any unusual or unexpected relationships; |
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting. |
The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagements team's knowledge of the industry in which the client operates in and understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Irish Square |
Upper Denbigh Road |
St Asaph |
Denbighshire |
LL17 0RN |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Statement of Comprehensive |
Income |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
7,174,278 | 4,453,312 |
Administration recharge |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Balance Sheet |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Statement of Changes in Equity |
for the year ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Cash Flow Statement |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of fixed asset investments | - | (950 | ) |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
18,757,173 |
Cash and cash equivalents at end of year | 2 | 21,387,450 | 16,484,496 |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Notes to the Cash Flow Statement |
for the year ended 31 March 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Amounts owed by group undertakings | (7,029,172 | ) | 526,602 |
Finance income | - | (16,826 | ) |
153,413 | 4,979,914 |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 21,387,450 | 16,484,496 |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 16,484,496 | 18,757,173 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/23 | Cash flow | At 31/3/24 |
£ | £ | £ |
Net cash |
Cash at bank | 16,484,496 | 4,902,954 | 21,387,450 |
16,484,496 | 21,387,450 |
Total | 16,484,496 | 4,902,954 | 21,387,450 |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Notes to the Financial Statements |
for the year ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Jones Bros. Ruthin (Civil Engineering) Co. Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amount in these financial statements are rounded to the nearest £. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily 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 estimate and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimate are recognised in the period which the estimate is revised where revision affects only that period, or in the period of the revisions and future periods where the revision affects both current and future periods. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover, derived from the principal activity, is calculated on the basis of the value of work executed during the period, including retentions. |
Intangible assets |
Intangible assets relating to computer software are measured at cost less accumulated amortisation and any accumulated impairment losses. |
Amortisation is charged over two years from when the asset is brought into use. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Long-term contracts |
Profit on long-term contracts is recognised as the work is carried out if the financial outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related contract costs as contract activity progress. |
Contract costs are recognised as the higher of actual cost to date or costs as a proportion of final costs, using the reference of turnover to date as a proportion of final turnover. |
Revenue derived from variations on contracts are recognised only when they have been accepted by the customer. |
Full provision is made for losses on all contracts in the year in which they are first foreseen. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost. |
Provisions for liabilities |
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
Employee benefits |
Short term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred. |
Joint arrangements |
The company undertakes a number of business activities through joint arrangements. Joint arrangements exist when two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. |
The company's joint arrangements are joint operations. |
Joint operations are joint arrangements on which parties with joint control have rights to the assets and obligations for the liabilities relating to the arrangement. The activities of a joint operation are primarily designed for the provision of output to the parties to the arrangement indicating that: |
- | The parties have the rights to substantially all the economic benefits of the assets of the arrangement; |
- |
All liabilities are satisfied by the joint participants through their purchases of that output. This indicates, in substance, the joint participants have an obligation for the liabilities of the arrangement. |
The financial statements of the Company include its share of the assets in joint operations, together with its share of the liabilities, revenues and expenses arising jointly or otherwise from those operations and its revenue derived from the sale of its share of the output from the joint operation. All such amounts are measured in accordance with the terms of each arrangement, which are usually in proportion the Company's interest in the joint operation. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
All turnover arose within the United Kingdom. |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management and technical | 161 | 144 |
Administration | 35 | 43 |
Plant operators and site workers | 260 | 252 |
Key Management |
Total remuneration paid to key management (excluding directors) amounted to: |
2024 | 2023 |
£ | £ |
Emoluments | - | 846,336 |
Pension contributions | - | 6,276 |
Total | - | 852,612 |
Key management were included in the director appointments in the year. |
Directors Emoluments |
2024 | 2023 |
£ | £ |
Emoluments | 2,442,136 | 389,548 |
Pension contributions | 10,570 | 1,321 |
Total | 2,452,706 | 390,869 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments | 655,466 | 389,548 |
Pension contributions | 1,321 | 1,321 |
Total | 656,788 | 390,869 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2024 |
6. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 March 2024 nor for the year ended 31 March 2023. |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Group relief | (1,817,675 | ) | (876,229 | ) |
Total tax charge | - | - |
7. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim |
8. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
9. | FIXED ASSET INVESTMENTS |
Interest |
in joint |
venture |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2024 |
9. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Joint venture |
Registered office: Bankside House Henfield Road, Small Dole, Henfield, England, BN5 9XQ |
Nature of business: |
% |
Class of shares: | holding |
10. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contract |
Other debtors |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Trade Debtors |
Aggregate amounts |
The Jones Bros Ruthin Co Limited Group operates a group level treasury policy and combined banking facilities. Accordingly, Jones Bros Ruthin Co Limited holds cash balances on behalf of Jones Bros. Ruthin (Civil Engineering) Co Limited. |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Provision on long-term contracts | 16,510,654 | 11,661,381 |
Tax | ( |
) |
Social security and other taxes |
VAT | 613,779 | 230,304 |
Accrued expenses |
Deferred income |
12. | SECURED DEBTS |
The company has given a Guarantee to its bankers in favour of Jones Bros Ruthin Co Limited (the ultimate parent company). Jones Bros Ruthin Co Limited has also given a Guarantee in favour of the Company. An Inter Company Guarantee has also been given by Jones Bros Ruthin Co Limited and Jones Bros. Ruthin (Civil Engineering) Co Limited. The Group has given a debenture to its bankers secured over all assets of the company. |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 32 | 32 |
Jones Bros. Ruthin (Civil Engineering) |
Co. Limited (Registered number: 00983459) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2024 |
14. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
Retained earnings |
The retained earnings reserve includes all current and prior period retained profits and losses, which remain available but are undistributed at the reporting date. |
15. | ULTIMATE PARENT COMPANY |
Jones Bros Ruthin Co Limited is regarded by the directors as being the company's ultimate parent company. |
The immediate and ultimate parent company is Jones Bros Ruthin Co Limited. |
16. | OFF-BALANCE SHEET ARRANGEMENTS |
The company has no off-balance sheet arrangements. |
17. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr H G Jones, who owns all the equity capital of Jones Bros Ruthin Co Limited. |