Registration number:
Read Construction UK Limited
for the Year Ended 31 March 2024
Read Construction UK Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
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Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Read Construction UK Limited
Company Information
Directors |
R D Heaton A C Read K L Heaton-Morris |
Registered office |
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Auditors |
|
Read Construction UK Limited
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 group is acting as a parent undertaking.
Fair review of the business
The directors aim to present a balanced and comprehensive review of the development and performance of the group's business during the period and its position at the end of the period. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced by the group.
We consider that our key performance indicators are those that communicate the financial performance and strength of the group as a whole, being turnover and gross profit margin.
The group has continued to invest in its infrastructure, people and systems. The management team are committed to ensuring the business provides exemplar customer service in delivering sustainable, best value construction projects for a variety of sectors. The management approach is based on the modern, lean and sustainable construction principles of delivering right first time to achieve client objectives and deliver defect free facilities, with zero harm.
Turnover of the group increased by 52.8% over the year to £43,424,399 (2023 - £28,421,579), as a result of successful tendering on a number of larger construction projects, pre-commencement project delays in prior years leading to projects starting in 2023/24 and also due to a strong demand in the sector as a whole.
The construction industry continued to be very challenging with issues in the supply chain and the continued pressure on profit margin from cost increases throughout the year and to date. Strong project management has mitigated the impact as far as possible, although the gross profit margin has decreased from 8.53% to 8.02%. Operating profit increased to £1,299,754 (2023 - £622,461). Group net profit before tax also increased to £1,411,148 (2023 - £639,909).
At the end of the year the net assets totalled £3,351,354 (2023 - £2,548,919).
Read Construction UK Limited
Strategic Report for the Year Ended 31 March 2024
Principal risks and uncertainties
Throughout the year, we have witnessed build costs reaching unprecedented levels. This has been driven by a combination of factors, including significant price inflation, limited resource availability, and the industry adapting to the emerging Net Zero agenda, all of which have affected the predictability of project costs and timescales.
All the markets that we run in remain highly competitive, and we remain highly selective in the evaluation of the opportunities which we pursue. With our business activities being that of a Principal Contractor, we are reliant on our Clients to continue to bring forward their capital project pipelines. We invest in Client relationship management and target public sector framework positions to maximise our exposure to their forthcoming opportunities that will sustain our growth.
An industry wide skills shortage remains a concern, however with a focus on internal training and development, we are attracting and developing a skilled workforce for the future.
Strategic direction
The Directors have successfully targeted key accolades within the industry to place Read in an enviable position to serve our Clients and successfully respond to tender opportunities:
• Net Zero - 2022 National Constructing Excellence Net Zero winner - demonstrating our innovative capabilities in addressing the climate emergency and client Net Zero aspirations.
• Carbon - published our PPN 06/21 compliant Carbon Reduction Plan and taken significant steps to cut emissions in Scope 1 and 2. Our focus is now on Scope 3 and helping our supply chains on their reduction journeys.
• Project Bank Accounts (PBAs) - whilst many Contractors struggle to set up PBA’s and engage their supply chains, Read have achieved 100% uptake on our most recent projects.
• Building information modeling (BIM0 - as the UK’s first ISO19650 accredited Principal Contractor, we continue to lead the way in Digital Construction supporting clients and upskilling our supply chain.
• Social Value and Community initiatives - continue to grow from strength to strength, supported by the introduction of our new Employee Volunteering Scheme (ESV).
• Frameworks - with a focus on truly collaborative and engaging frameworks, we have secured a position on over 75% of our desired Frameworks with a plan to increase this on future iterations.
Our client and framework partners continue to value our collaborative and supportive engagement. Feedback and recognition on all aspects of a project (pre-construction, construction and aftercare) is strong and 100% of clients, consultants and other key project stakeholders report they are “happy to work with Read in the future”. We pride ourselves on our open honest interactions. Our value propositions are developed entirely by our own internal staff, and all commitments are considered on a project-by-project basis, with realistic commitments set AND delivered.
Read Construction UK Limited
Strategic Report for the Year Ended 31 March 2024
Strategic direction (continued)
Best practice and collaborative embracing of new ways of working and modern methods of construction continue to feature in our projects. Expertise and innovations around leading-edge topics continue to be of major importance to our business in demonstrating skills that support business positioning through Client “Invitation to Tender” selection and assessment criteria for framework and project awards.
Approved by the
Director
Read Construction UK Limited
Directors' Report for the Year Ended 31 March 2024
The directors present their report and the for the year ended 31 March 2024.
Directors of the group
The directors who held office during the year were as follows:
Performance and development
Read Construction began the year on a strong note, having secured a substantial portion of our targeted turnover and identified key prospects to meet our remaining strategic goals. Throughout the year, we secured further significant projects, each contributing positively to our overall performance.
With a significant increase in design and build projects over recent years through a two-stage procurement approach, a key challenge to the business performance rests in the pre-construction stage. Delays to construction start dates because of Client held risks and uncertainties outside of our control can have significant impact on business financial planning, projected turnover, contribution and consequential impacts for work winning priorities.
Despite the significant challenges, the highly competitive industry, price inflation and resource availability issues, we pressed ahead with our targeted growth plans, securing new clients within new sectors, as well as continuing to reinforce and develop existing relationships with long-term clients across North Wales, Northwest England and the Midlands.
All our ISO accreditations (9001, 14001, 45001 and 19650) have been maintained and the ‘best practices’ for which Read are known and respected have been further strengthened.
Key targets for the year have been to secure projects with high sustainability criteria (including the Welsh Governments Net Zero ambitions) and social value opportunities, and to progress our business wide Carbon Reduction Programme. All of these objectives have been achieved.
This year’s results have positioned the business on a strong financial footing to lead into 2024-2025 with a healthy forward order book and strong client relationships and Framework positions.
Read Construction UK Limited
Directors' Report for the Year Ended 31 March 2024
Financial instruments
Objectives and policies
The business' principal financial instruments comprise the bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, all of the business' cash balances are held in a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The group is a lessee in respect of finance leases. The liquidity risk in respect of these is managed by ensuring there are sufficient funds available to meet the payments when they become due.
Mission
Our mission statement is core to all we do:
To impart exemplar customer service in delivering sustainable, best value services whilst exuding integrity and traditional family values.
As such, Read have integrated Environmental, Social, and Governance (ESG) principles into our business operations, recognising the importance of sustainability, social responsibility, and robust governance in shaping the future of the construction industry. Our ESG strategy ensures that we contribute positively to society and the environment, while keeping high ethical standards. This comprehensive approach is critical not only for fulfilling our corporate responsibilities, but also for enhancing our competitive edge and long-term success.
Read Construction UK Limited
Directors' Report for the Year Ended 31 March 2024
• Environmental Sustainability: We prioritise sustainable construction practices to minimise our environmental impact and promote biodiversity net gain. Our adherence to green building standards and Net Zero Carbon principles reflects our commitment to energy efficiency and resource conservation. These standards guide us in designing and constructing buildings that are not only energy-efficient but also environmentally friendly, thereby reducing greenhouse gas emissions and lowering operational costs for our clients. Additionally, we implement waste management plans that emphasise recycling and reusing materials, significantly reducing the volume of waste generated within construction.
• Social Responsibility: Engaging with the communities where we work is a cornerstone of our social responsibility efforts. By prioritising the hiring of local workforce and subcontractors, we support local economies and foster strong community relations. Our community outreach initiatives include partnering with local organizations to support educational programs, infrastructure improvements, and social services. We communicate openly and transparently with all stakeholders, including residents, local authorities, and non-governmental organizations (NGOs), to address concerns and build trust. The health and safety of our employees, subcontractors, and site visitors are paramount. We have implemented comprehensive health and safety policies, including regular training sessions on protocols, emergency response procedures, and best practices in construction safety. Regular safety audits and inspections help us identify potential hazards and implement corrective actions, while wellness programmes promote the physical, mental, and emotional well-being of our employees.
• Governance: Maintaining the highest standards of ethical business practices is fundamental to our governance framework. Our robust code of conduct underscores our commitment to integrity, transparency, and accountability in all business dealings. To prevent bribery, fraud, and other unethical practices, we have implemented strict anti-corruption policies and procedures, supported by regular training for all employees. Ensuring compliance with all relevant laws, regulations, and industry standards is a priority, with our compliance team regularly reviewing and updating our policies to reflect changes in the regulatory environment. We also believe in transparent reporting of our ESG performance. Our annual ESG report provides stakeholders with detailed insights into our environmental, social, and governance achievements, challenges, and future goals. This transparency is complemented by proactive stakeholder engagement through surveys, meetings, and public forums, enabling us to gather feedback and continuously improve our ESG practices.
In terms of principal achievements, we have successfully reduced construction waste by 25% through effective waste management initiatives and achieved BREEAM certification for three major projects, highlighting our commitment to sustainable building practices. We have also increased local employment by 15%, proactively supported community development and economic growth and surpass our KPI targets across all measures to consistently exceed Client expectations.
Future developments
Our future goals include achieving net-zero carbon emissions by 2030 through the adoption of renewable energy and energy-efficient technologies, expanding our community outreach programs, and enhancing our governance framework with advanced compliance monitoring and reporting systems. By robustly adhering to ESG principles, Read Construction not only enhances our competitive advantage but also contributes positively to the communities and environments in which we work, driving sustainable development in the construction industry.
Read Construction UK Limited
Directors' Report for the Year Ended 31 March 2024
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
Director
Read Construction UK Limited
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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Read Construction UK Limited
Independent Auditor's Report to the Members of Read Construction UK Limited
Opinion
We have audited the financial statements of Read Construction UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the parent company's affairs as at 31 March 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 group'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 UK Limited
Independent Auditor's Report to the Members of Read Construction UK Limited
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 group and parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 9], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.
Read Construction UK Limited
Independent Auditor's Report to the Members of Read Construction UK Limited
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:
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent 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 group and parent 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 group's and parent 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 group and parent 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 UK Limited
Independent Auditor's Report to the Members of Read Construction UK 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 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.
For and on behalf of
Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shropshire
SY2 6LG
Read Construction UK Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
111,394 |
17,448 |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
Read Construction UK Limited
(Registration number: 11239319)
Consolidated Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
130 |
130 |
|
Share premium reserve |
1,561,370 |
1,561,370 |
|
Capital redemption reserve |
725 |
725 |
|
Retained earnings |
1,789,129 |
986,694 |
|
Equity attributable to owners of the company |
3,351,354 |
2,548,919 |
|
Shareholders' funds |
3,351,354 |
2,548,919 |
Approved and authorised by the
|
Read Construction UK Limited
(Registration number: 11239319)
Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
130 |
130 |
|
Share premium reserve |
1,561,370 |
1,561,370 |
|
Capital redemption reserve |
725 |
725 |
|
Retained earnings |
784,235 |
784,235 |
|
Shareholders' funds |
2,346,460 |
2,346,460 |
The company made a profit after tax for the financial year of £255,834 (2023 - profit of £244,569).
Approved and authorised by the
|
Read Construction UK Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2024
Equity attributable to the parent company
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
Total equity |
|
At 1 April 2023 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
( |
At 31 March 2024 |
|
|
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
Total equity |
|
At 1 April 2022 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
( |
At 31 March 2023 |
|
|
|
|
|
|
Read Construction UK Limited
Statement of Changes in Equity for the Year Ended 31 March 2024
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 April 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
At 31 March 2024 |
|
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 April 2022 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
At 31 March 2023 |
|
|
|
|
|
Read Construction UK Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in trade debtors |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Cash generated from operations |
|
( |
|
Income taxes (paid)/received |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 April |
3,193,111 |
3,892,656 |
|
Cash and cash equivalents at 31 March |
6,256,540 |
3,193,111 |
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
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.
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2024.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £255,834 (2023 - profit of £244,569).
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The financial statements have been prepared on a going concern basis.
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Judgements and key sources of estimation uncertainty
In preparing these financial statements, the Directors are required to make judgements, estimates and assumptions which will impact the application of accounting policies. These judgements, estimates and assumptions will also affect the amounts reported in respect of assets, liabilities, income and expenses. Actual results may differ from these estimates. |
Management estimates and assumptions are continually reviewed and any variances are adjusted in the profit and loss account as and when more accurate information is obtained. |
Judgements that management have made in applying the company’s accounting policies and which could have the most significant impact on the financial statements relate to the following: |
Revenue recognition and long term contract balances |
Provisions |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Contract revenue recognition
Turnover is ascertained by reference to interim and final valuations carried out during the course of contracts. Attributable profit is ascertained by comparing costs to date relating to disclosed turnover in respect of contracts where a profitable outcome can be assessed with reasonable certainty.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated 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.
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
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 |
Leasehold property |
20% straight line |
Plant and machinery |
12.5% 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 UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Construction contracts |
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
Gain on disposal of Tangible assets |
|
|
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Other finance income |
- |
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
104,946 |
57,911 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of these and the subsidiary companies' financial statements |
17,300 |
14,500 |
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
- |
( |
372,842 |
(35,018) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense relating to changes in tax rates or laws |
- |
|
Decrease from tax losses for which no deferred tax asset was recognised |
- |
( |
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
Total tax charge |
|
|
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Liability |
Accelerated tax depreciation |
|
Tax losses carried forward |
( |
|
2023 |
Liability |
Accelerated tax depreciation |
|
Tax losses carried forward |
( |
|
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
|||||
At 1 April 2023 |
|
|
|
|
|
Additions |
- |
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
At 31 March 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2023 |
|
|
|
|
|
Charge for the year |
- |
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
At 31 March 2024 |
|
|
|
|
|
Carrying amount |
|||||
At 31 March 2024 |
- |
|
|
|
|
At 31 March 2023 |
- |
|
|
|
|
Included in the carrying value of tangible assets, are assets under finance leases with a net book value of £480,443 (2023 - £442,336). The depreciation charge in respect of these assets amounted to £79,434 (2023 - £73,703).
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2023 |
|
At 31 March 2024 |
|
Carrying amount |
|
At 31 March 2024 |
|
At 31 March 2023 |
|
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 |
||||
|
Enterprise Centre
England and Wales |
|
|
|
|
Enterprise Centre
England & Wales |
|
|
|
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Subsidiary undertakings |
Read Construction Group Limited The principal activity of Read Construction Group Limited is |
Read Construction Holdings Limited The principal activity of Read Construction Holdings Limited is |
Debtors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
- |
- |
|
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
Gross amount due from customers for contract work |
|
|
- |
- |
|
|
|
|
|
Details of non-current trade and other debtors
Group
£558,005 (2023 - £553,975) of Trade debtors is classified as non current. Non current trade debtors relate to sales retentions on ongoing construction contracts.
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash at bank |
|
|
- |
- |
Cash on hand |
|
|
- |
- |
|
|
- |
- |
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Social security and other taxes |
|
|
- |
- |
|
Other payables |
|
|
- |
- |
|
Accruals |
|
|
- |
- |
|
Income tax liability |
372,842 |
59,967 |
- |
- |
|
Gross amount due to customers for contract work |
|
|
- |
- |
|
|
|
- |
- |
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Deferred tax and other provisions |
Group
Deferred tax |
Total |
|
At 1 April 2023 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 31 March 2024 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
15 |
|
15 |
|
|
15 |
|
15 |
|
|
15 |
|
15 |
|
|
85 |
|
85 |
|
|
|
|
Loans and borrowings |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Non-current loans and borrowings |
||||
Finance lease liabilities |
|
|
- |
- |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Current loans and borrowings |
||||
Finance lease liabilities |
|
|
- |
- |
The finance lease liabilities are secured.
Read Construction UK Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
During the period the company paid dividends totalling £255,834 (2023 - £244,569).
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £
Related party transactions |
At the year end monies due to the group from the directors amounted to £138,550 (2023 - £141,300), which are included in Other debtors.
Parent and ultimate parent undertaking |
The ultimate controlling parties are the directors due to their interests in the issued share capital of Read Construction UK Limited.