Read Construction Holdings Limited 04401595 false 2023-04-01 2024-03-31 2024-03-31 The principal activity of the company is building construction for a wide range of commercial and public sector organisations. Digita Accounts Production Advanced 6.30.9574.0 true true true true true true true true false true 04401595 2023-04-01 2024-03-31 04401595 2024-03-31 04401595 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2024-03-31 04401595 bus:OrdinaryShareClass2 bus:Non-cumulativeShares 2024-03-31 04401595 bus:OrdinaryShareClass3 bus:Non-cumulativeShares 2024-03-31 04401595 bus:OrdinaryShareClass4 bus:Non-cumulativeShares 2024-03-31 04401595 core:RetainedEarningsAccumulatedLosses 2024-03-31 04401595 core:ShareCapital 2024-03-31 04401595 core:CurrentFinancialInstruments 2024-03-31 04401595 core:CurrentFinancialInstruments core:WithinOneYear 2024-03-31 04401595 core:BetweenTwoFiveYears 2024-03-31 04401595 core:WithinOneYear 2024-03-31 04401595 core:OtherPropertyPlantEquipment 2024-03-31 04401595 bus:FRS102 2023-04-01 2024-03-31 04401595 bus:Audited 2023-04-01 2024-03-31 04401595 bus:FullAccounts 2023-04-01 2024-03-31 04401595 bus:RegisteredOffice 2023-04-01 2024-03-31 04401595 bus:CompanySecretary1 2023-04-01 2024-03-31 04401595 bus:Director1 2023-04-01 2024-03-31 04401595 bus:Director3 2023-04-01 2024-03-31 04401595 bus:Director4 2023-04-01 2024-03-31 04401595 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2023-04-01 2024-03-31 04401595 bus:OrdinaryShareClass2 bus:Non-cumulativeShares 2023-04-01 2024-03-31 04401595 bus:OrdinaryShareClass3 bus:Non-cumulativeShares 2023-04-01 2024-03-31 04401595 bus:OrdinaryShareClass4 bus:Non-cumulativeShares 2023-04-01 2024-03-31 04401595 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 04401595 core:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 04401595 core:ShareCapital 2023-04-01 2024-03-31 04401595 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-04-01 2024-03-31 04401595 core:PlantMachinery 2023-04-01 2024-03-31 04401595 core:ParentEntities 2023-04-01 2024-03-31 04401595 core:UKTax 2023-04-01 2024-03-31 04401595 1 2023-04-01 2024-03-31 04401595 countries:EnglandWales 2023-04-01 2024-03-31 04401595 2023-03-31 04401595 core:RetainedEarningsAccumulatedLosses 2023-03-31 04401595 core:ShareCapital 2023-03-31 04401595 core:OtherPropertyPlantEquipment 2023-03-31 04401595 2022-04-01 2023-03-31 04401595 2023-03-31 04401595 bus:OrdinaryShareClass1 bus:Non-cumulativeShares 2023-03-31 04401595 bus:OrdinaryShareClass2 bus:Non-cumulativeShares 2023-03-31 04401595 bus:OrdinaryShareClass3 bus:Non-cumulativeShares 2023-03-31 04401595 bus:OrdinaryShareClass4 bus:Non-cumulativeShares 2023-03-31 04401595 core:RetainedEarningsAccumulatedLosses 2023-03-31 04401595 core:ShareCapital 2023-03-31 04401595 core:CurrentFinancialInstruments 2023-03-31 04401595 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 04401595 core:BetweenTwoFiveYears 2023-03-31 04401595 core:WithinOneYear 2023-03-31 04401595 core:OtherPropertyPlantEquipment 2023-03-31 04401595 core:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 04401595 core:ShareCapital 2022-04-01 2023-03-31 04401595 core:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-04-01 2023-03-31 04401595 core:UKTax 2022-04-01 2023-03-31 04401595 2022-03-31 04401595 core:RetainedEarningsAccumulatedLosses 2022-03-31 04401595 core:ShareCapital 2022-03-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 04401595

Read Construction Holdings Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2024
























 

image-name
 

Read Construction Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 7

Statement of Directors' Responsibilities

8

Independent Auditor's Report

9 to 12

Profit and Loss Account

13

Balance Sheet

14

Statement of Changes in Equity

15

Notes to the Financial Statements

16 to 23

 

Read Construction Holdings Limited

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
Chartered Accountant & Statutory Auditor
Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 

Read Construction Holdings 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 company is building construction for a wide range of commercial and public sector organisations.

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 end of the year. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross margin.

The business 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.

The company's operations grew significantly over the year with turnover increasing by 52.8% 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 the 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 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 £1,368,450 (2023 - £661,116). Net profit before tax has increased to £1,490,998 (2023 - £688,970).

At the end of the year the net assets totalled £2,783,198 (2023 - £2,249,176).

 

Read Construction Holdings 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 (BIM) - 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 Holdings 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 Board on 2 September 2024 and signed on its behalf by:

R D Heaton
Director

   
     
 

Read Construction Holdings Limited

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

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 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 & Framework positions.
 

Financial instruments

Objectives and policies

The business' principal financial instruments comprise 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.

 

Read Construction Holdings Limited

Directors' Report for the Year Ended 31 March 2024

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.

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.
 

 

Read Construction Holdings Limited

Directors' Report for the Year Ended 31 March 2024

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.

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 Holdings 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 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 Holdings Limited

Independent Auditor's Report to the Members of Read Construction Holdings Limited

Opinion

We have audited the financial statements of Read Construction Holdings Limited (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, 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 Holdings Limited

Independent Auditor's Report to the Members of Read Construction Holdings 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 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 8], 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 Holdings Limited

Independent Auditor's Report to the Members of Read Construction Holdings Limited

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 Holdings Limited

Independent Auditor's Report to the Members of Read Construction Holdings 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.



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 Holdings Limited

Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

43,424,399

28,421,579

Cost of sales

 

(39,943,871)

(25,996,672)

Gross profit

 

3,480,528

2,424,907

Administrative expenses

 

(2,112,078)

(1,763,791)

Operating profit

4

1,368,450

661,116

Other interest receivable and similar income

5

122,548

27,854

Profit before tax

 

1,490,998

688,970

Tax on profit

9

(372,842)

(35,098)

Profit for the financial year

 

1,118,156

653,872

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 Holdings Limited

(Registration number: 04401595)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Current assets

 

Debtors

11

7,927,690

4,860,698

Cash at bank and in hand

 

6,212,822

3,108,608

 

14,140,512

7,969,306

Creditors: Amounts falling due within one year

13

(11,357,314)

(5,720,130)

Net assets

 

2,783,198

2,249,176

Capital and reserves

 

Called up share capital

200

200

Retained earnings

2,782,998

2,248,976

Shareholders' funds

 

2,783,198

2,249,176

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


R D Heaton
Director

 

Read Construction Holdings Limited

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

Share capital
£

Retained earnings
£

Total
£

At 1 April 2023

200

2,248,976

2,249,176

Profit for the year

-

1,118,156

1,118,156

Dividends

-

(584,134)

(584,134)

At 31 March 2024

200

2,782,998

2,783,198

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

200

1,861,673

1,861,873

Profit for the year

-

653,872

653,872

Dividends

-

(266,569)

(266,569)

At 31 March 2023

200

2,248,976

2,249,176

 

Read Construction Holdings Limited

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 Enterprise Centre, Blast Road, Brymbo, Wrexham, LL11 5BT.

Going concern

The financial statements have been prepared on a going concern basis.

 

Read Construction Holdings 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 company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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

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.

Tax

The tax expense for the period comprises current 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.

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% straight line

 

Read Construction Holdings Limited

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

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.

Defined contribution pension obligation

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

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

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
 £

2023
 £

Construction contracts

43,424,399

28,421,579

4

Operating profit

Arrived at after charging/(crediting)

2024
 £

2023
 £

Operating lease expense - plant and machinery

139,155

81,125

Hire of plant and machinery

180,000

180,000

5

Other interest receivable and similar income

2024
 £

2023
 £

Interest income on bank deposits

122,548

27,284

Other finance income

-

570

122,548

27,854

 

Read Construction Holdings Limited

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

6

Staff costs

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

2024
 £

2023
 £

Wages and salaries

3,116,689

2,718,089

Social security costs

326,331

294,362

Pension costs, defined contribution scheme

244,910

115,872

3,687,930

3,128,323

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

2024
No.

2023
No.

Production

58

63

Administration and support

13

13

71

76

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
 £

2023
 £

Remuneration

18,100

42,152

Contributions paid to money purchase schemes

77,750

7,000

95,850

49,152

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
 No.

2023
 No.

Accruing benefits under money purchase pension scheme

2

2

8

Auditors' remuneration

2024
 £

2023
 £

Audit of the financial statements

15,300

12,500


 

 

Read Construction Holdings Limited

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

9

Taxation

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

2024
£

2023
£

Current taxation

UK corporation tax

372,842

130,083

UK corporation tax adjustment to prior periods

-

(94,985)

372,842

35,098

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 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,490,998

688,970

Corporation tax at standard rate

372,750

130,904

Effect of expense not deductible in determining taxable profit (tax loss)

432

43

Decrease from tax losses for which no deferred tax asset was recognised

-

(549)

Decrease in UK and foreign current tax from adjustment for prior periods

-

(94,986)

Tax decrease from effect of capital allowances and depreciation

(340)

(314)

Total tax charge

372,842

35,098

 

Read Construction Holdings Limited

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

10

Tangible assets

Plant and machinery
£

Total
£

Cost or valuation

At 1 April 2023

91,781

91,781

At 31 March 2024

91,781

91,781

Depreciation

At 1 April 2023

91,781

91,781

At 31 March 2024

91,781

91,781

Carrying amount

At 31 March 2024

-

-

At 31 March 2023

-

-

11

Debtors

Note

2024
£

2023
£

Trade debtors

 

4,726,679

2,681,534

Amounts owed by related parties

18

603,844

740,398

Other debtors

 

52,488

41,300

Prepayments

 

162,923

191,420

Gross amount due from customers for contract work

 

2,381,756

1,206,046

 

7,927,690

4,860,698

Details of non-current trade and other debtors

£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.

12

Cash and cash equivalents

2024
 £

2023
 £

Cash at bank

6,212,197

3,107,274

Cash on hand

625

1,334

6,212,822

3,108,608

 

Read Construction Holdings Limited

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

13

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Trade creditors

 

6,442,006

3,514,128

Amounts due to related parties

18

34,486

34,486

Social security and other taxes

 

1,126,268

354,740

Other payables and subcontractor retentions

 

2,014,897

1,255,823

Accrued expenses

 

183,384

144,551

Income tax liability

9

372,842

59,967

Gross amount due to customers for contract work

 

1,183,431

356,435

 

11,357,314

5,720,130

14

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £244,910 (2023 - £115,872).

15

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary 'A' of £0.10 each

500

50

500

50

Ordinary 'B' of £0.10 each

500

50

500

50

Ordinary 'C' of £0.10 each

500

50

500

50

Ordinary 'D' of £0.10 each

500

50

500

50

 

2,000

200

2,000

200

 

Read Construction Holdings Limited

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

16

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

183,892

147,308

Later than one year and not later than five years

184,603

158,662

368,495

305,970

The amount of non-cancellable operating lease payments recognised as an expense during the year was £188,677 (2023 - £135,751).

17

Dividends

Dividends paid in the year total £584,134 (2023 - £266,569).

18

Related party transactions

At 31 March 2024 there was a balance of £38,550 (2023 - £41,300) owed by one of the directors to the company, which is included in Other debtors.

Summary of transactions with parent

The company is exempt under FRS 102 33.1A from the requirement to disclose transactions with the ultimate parent company, Read Construction UK Limited, and the wholly owned fellow subsidiary Read Construction Group Limited.

 

19

Parent and ultimate parent undertaking

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

 The ultimate parent is Read Construction UK Limited, incorporated in England and Wales.