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Registration number: 05637448

Read Construction Group Ltd

Annual Report and Financial Statements

for the Year Ended 31 March 2024

 

Read Construction Group Ltd

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12 to 21

 

Read Construction Group Ltd

Company Information

Directors

R D Heaton

A C Read

K L Heaton-Morris

Company secretary

L M Heaton

Registered office

Enterprise Centre
Blast Road
Brymbo
Wrexham
Clywd
LL11 5BT

Auditors

CBSL Accountants Limited
Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 

Read Construction Group Ltd

Strategic Report for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

Principal activity

The principal activity of the company is acting as the parent undertaking of Read Construction Holdings Limited and holding the assets used in the trade of that company.

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Operating loss increased from the prior year with increased depreciation on assets and totalled £68,698 (2023 - £38,655). Increased dividends received from subsidiary company from £266,569 in 2023 to £584,134 in 2024 and therefore an increase in profit before tax to £504,283 (2023 - £217,508).

Detailed analysis of the group performance is included in the accounts of the parent company, Read Construction UK Limited.

Principal risks and uncertainties

The principal risks and uncertainties facing the business are similar to those of the sector as a whole. Sourcing new equipment to ensure the fleet can continue to support the subsidiary company as required remains challenging but the directors and management team plan ahead to ensure project requirements are met.

Approved and authorised by the Board on 2 September 2024 and signed on its behalf by:
 


R D Heaton
Director

 

Read Construction Group Ltd

Directors' Report for the Year Ended 31 March 2024

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

Directors of the company

The directors who held office during the year were as follows:

R D Heaton

A C Read

K L Heaton-Morris

Financial instruments

Objectives and policies

The business' principal financial instrument is bank balances. All of the balances are held in such a way that achieve a competitive rate of interest.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 2 September 2024 and signed on its behalf by:
 


R D Heaton
Director

 

Read Construction Group Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

 

Read Construction Group Ltd

Independent Auditor's Report to the Members of Read Construction Group Ltd

Opinion

We have audited the financial statements of Read Construction Group Ltd (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and 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 auditor 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 director's 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 original financial statements were 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.

 

Read Construction Group Ltd

Independent Auditor's Report to the Members of Read Construction Group Ltd

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter 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.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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.

 

Read Construction Group Ltd

Independent Auditor's Report to the Members of Read Construction Group Ltd

Auditor 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:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to this company and its sector and determined that the most significant are those relating to the reporting framework and the relevant UK tax legislation.

• We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures.

• As an audit engagement team, we assessed the susceptibility of the company’s financial statements to material misstatement including how fraud might occur and considered the opportunities and incentives that may exist within the company for fraud. We considered the controls that the company has established to address the risks identified to prevent, deter and detect fraud; and how the management and directors monitor those controls.

• Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Those procedures involved: - enquiries of management and those charged with governance; - journal entry testing; - assessing whether judgements in making accounting estimates are indicative of a potential bias; and – evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

• Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included revenue recognition and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

• We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Read Construction Group Ltd

Independent Auditor's Report to the Members of Read Construction Group Ltd

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 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.




Louise Osselton FCA (Senior Statutory Auditor)
For and on behalf of CBSL Accountants Limited, Statutory Auditor

Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

2 September 2024

 

Read Construction Group Ltd

Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

-

-

Gross profit/(loss)

 

-

-

Administrative expenses

 

(308,698)

(278,655)

Other operating income

3

240,000

240,000

Operating loss

4

(68,698)

(38,655)

Income from shares in group undertakings

 

584,134

266,569

Other interest receivable and similar income

5

2,507

5

Interest payable and similar expenses

6

(13,660)

(10,411)

   

572,981

256,163

Profit before tax

 

504,283

217,508

Tax on profit

10

19,963

(39,906)

Profit for the financial year

 

524,246

177,602

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Read Construction Group Ltd

(Registration number: 05637448)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

11

1,368,245

1,367,584

Investments

12

501,800

501,800

 

1,870,045

1,869,384

Current assets

 

Debtors

13

274,172

134,500

Cash at bank and in hand

 

43,718

84,503

 

317,890

219,003

Creditors: Amounts falling due within one year

15

(1,539,472)

(1,687,776)

Net current liabilities

 

(1,221,582)

(1,468,773)

Total assets less current liabilities

 

648,463

400,611

Creditors: Amounts falling due after more than one year

15

(192,613)

(193,210)

Provisions for liabilities

16

(185,130)

(205,093)

Net assets

 

270,720

2,308

Capital and reserves

 

Called up share capital

840

840

Capital redemption reserve

960

960

Retained earnings

268,920

508

Shareholders' funds

 

270,720

2,308

Approved and authorised by the Board on 2 September 2024 and signed on its behalf by:
 


R D Heaton
Director

 

Read Construction Group Ltd

Statement of Changes in Equity for the Year Ended 31 March 2024

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 April 2023

840

960

508

2,308

Profit for the year

-

-

524,246

524,246

Dividends

-

-

(255,834)

(255,834)

At 31 March 2024

840

960

268,920

270,720

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 April 2022

840

960

67,475

69,275

Profit for the year

-

-

177,602

177,602

Dividends

-

-

(244,569)

(244,569)

At 31 March 2023

840

960

508

2,308

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Enterprise Centre
Blast Road
Brymbo
Wrexham
Clywd
LL11 5BT

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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

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

Summary of disclosure exemptions

The company has taken advantage of the disclosure exemption under section 1.12 of FRS 102 to not present a statement of cash flows.

Name of parent of group

These financial statements are consolidated in the financial statements of Read Construction UK Limited.

The financial statements of Read Construction UK Limited may be obtained from Companies House.

Tax

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

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

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

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

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

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

Tangible assets

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

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

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

12.5% - 20% straight line

Fixtures and fittings

20% - 33% straight line

Motor vehicles

20% straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Leases

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

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

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

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

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

3

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
 £

2023
 £

Other operating income from hire of plant and machinery and management charges to group companies

240,000

240,000

4

Operating loss

Arrived at after charging/(crediting)

2024
 £

2023
 £

Depreciation expense

335,285

303,408

Operating lease expense - plant and machinery

14,403

17,465

Profit on disposal of property, plant and equipment

(87,065)

(64,732)

5

Other interest receivable and similar income

2024
 £

2023
 £

Interest income on bank deposits

2,507

5

6

Interest payable and similar expenses

2024
 £

2023
 £

Interest on obligations under finance leases and hire purchase contracts

13,660

10,411

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

18,192

17,520

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

4

4

4

4

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
 £

2023
 £

Remuneration

9,096

8,760

9

Auditors' remuneration

2024
 £

2023
 £

Audit of the financial statements

2,000

2,000


 

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

-

(70,116)

Deferred taxation

Arising from origination and reversal of timing differences

(19,963)

110,022

Tax (receipt)/expense in the income statement

(19,963)

39,906

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

504,283

217,508

Corporation tax at standard rate

126,071

54,377

Effect of revenues exempt from taxation

(146,034)

(66,642)

UK deferred tax expense relating to changes in tax rates or laws

-

52,171

Total tax (credit)/charge

(19,963)

39,906

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Accelerated tax depreciation

316,789

Tax losses carried forward

(131,659)

185,130

2023

Liability
£

Accelerated tax depreciation

302,780

Tax losses carried forward

(97,687)

205,093

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

11

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 April 2023

172,642

201,977

568,833

2,399,789

3,343,241

Additions

-

18,369

150,001

181,832

350,202

Disposals

-

-

(191,333)

(90,071)

(281,404)

At 31 March 2024

172,642

220,346

527,501

2,491,550

3,412,039

Depreciation

At 1 April 2023

172,642

112,861

381,694

1,308,460

1,975,657

Charge for the year

-

41,948

79,618

213,719

335,285

Eliminated on disposal

-

-

(178,973)

(88,175)

(267,148)

At 31 March 2024

172,642

154,809

282,339

1,434,004

2,043,794

Carrying amount

At 31 March 2024

-

65,537

245,162

1,057,546

1,368,245

At 31 March 2023

-

89,116

187,139

1,091,329

1,367,584

Included in the carrying value of tangible assets is £480,443 (2023 - £442,336) relating to assets held under finance leases or hire purchase agreements. The depreciation charge for the year in respect of these assets amounted to £79,434 (2023 - £73,703).

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

12

Investments

2024
 £

2023
 £

Investments in subsidiaries

501,800

501,800

Subsidiaries

£

Cost or valuation

At 1 April 2023

501,800

At 31 March 2024

501,800

Carrying amount

At 31 March 2024

501,800

At 31 March 2023

501,800



 

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Read Construction Holdings Limited

Enterprise Centre
Blast Road
Brymbo
Wrexham
North Wales
LL11 5BT

England and Wales

Ordinary

100%

100%

Subsidiary undertakings

Read Construction Holdings Limited

The principal activity of Read Construction Holdings Limited is building construction.

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

13

Debtors

2024
£

2023
£

Trade debtors

5,400

-

Other debtors

132,500

132,500

Prepayments

136,272

2,000

274,172

134,500

14

Cash and cash equivalents

2024
 £

2023
 £

Cash at bank

43,718

84,503

15

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

18

155,239

118,433

Trade creditors

 

1,309

57,966

Amounts due to related parties

22

1,368,592

1,505,146

Social security and other taxes

 

14,332

6,231

 

1,539,472

1,687,776

Due after one year

 

Loans and borrowings

18

192,613

193,210

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2023

205,093

205,093

Deferred tax charged to the P&L account

(19,963)

(19,963)

At 31 March 2024

185,130

185,130

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

17

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary 'A' of £1 each

420

420

420

420

Ordinary 'B' of £1 each

420

420

420

420

 

840

840

840

840

18

Loans and borrowings

2024
 £

2023
 £

Non-current loans and borrowings

HP and finance lease liabilities

192,613

193,210

2024
 £

2023
 £

Current loans and borrowings

HP and finance lease liabilities

155,239

118,433

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

14,403

7,941

Later than one year and not later than five years

20,897

21,176

35,300

29,117

The amount of non-cancellable operating lease payments recognised as an expense during the year was £14,403 (2023 - £9,926).

 

Read Construction Group Ltd

Notes to the Financial Statements for the Year Ended 31 March 2024

20

Dividends

Final dividends paid

 

2024
£

2023
£

Final dividend of £609.13 (2023 - £582.31) per each Ordinary 'A' share

255,834

244,569

     

21

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £131,332 (2023 - £Nil).

22

Related party transactions

Summary of transactions with other related parties

At the year end monies due from a director amounted to £100,000 (2023 - £100,000), which is included in Other debtors.
 

23

Parent and ultimate parent undertaking

The company's immediate parent is Read Construction UK Limited, incorporated in England and Wales.