Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31false2023-04-01falseConstruction of domestic buildings162110falsefalse 08837074 2023-04-01 2024-03-31 08837074 2022-04-01 2023-03-31 08837074 2024-03-31 08837074 2023-03-31 08837074 2022-04-01 08837074 c:Director1 2023-04-01 2024-03-31 08837074 c:Director2 2023-04-01 2024-03-31 08837074 c:Director3 2023-04-01 2024-03-31 08837074 c:Director4 2023-04-01 2024-03-31 08837074 c:Director5 2023-04-01 2024-03-31 08837074 c:Director6 2023-04-01 2024-03-31 08837074 c:Director6 2024-03-31 08837074 c:Director7 2023-04-01 2024-03-31 08837074 c:RegisteredOffice 2023-04-01 2024-03-31 08837074 d:Buildings 2023-04-01 2024-03-31 08837074 d:Buildings 2024-03-31 08837074 d:Buildings 2023-03-31 08837074 d:Buildings d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 08837074 d:Buildings d:LeasedAssetsHeldAsLessee 2023-04-01 2024-03-31 08837074 d:PlantMachinery 2023-04-01 2024-03-31 08837074 d:MotorVehicles 2023-04-01 2024-03-31 08837074 d:MotorVehicles 2024-03-31 08837074 d:MotorVehicles 2023-03-31 08837074 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 08837074 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2023-04-01 2024-03-31 08837074 d:FurnitureFittings 2023-04-01 2024-03-31 08837074 d:FurnitureFittings 2024-03-31 08837074 d:FurnitureFittings 2023-03-31 08837074 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 08837074 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2023-04-01 2024-03-31 08837074 d:OfficeEquipment 2023-04-01 2024-03-31 08837074 d:ComputerEquipment 2023-04-01 2024-03-31 08837074 d:OtherPropertyPlantEquipment 2023-04-01 2024-03-31 08837074 d:OtherPropertyPlantEquipment 2024-03-31 08837074 d:OtherPropertyPlantEquipment 2023-03-31 08837074 d:OtherPropertyPlantEquipment d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 08837074 d:OtherPropertyPlantEquipment d:LeasedAssetsHeldAsLessee 2023-04-01 2024-03-31 08837074 d:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 08837074 d:LeasedAssetsHeldAsLessee 2023-04-01 2024-03-31 08837074 d:CurrentFinancialInstruments 2024-03-31 08837074 d:CurrentFinancialInstruments 2023-03-31 08837074 d:Non-currentFinancialInstruments 2024-03-31 08837074 d:Non-currentFinancialInstruments 2023-03-31 08837074 d:ReportableOperatingSegment1 2023-04-01 2024-03-31 08837074 d:ReportableOperatingSegment1 2022-04-01 2023-03-31 08837074 d:UKTax 2023-04-01 2024-03-31 08837074 d:UKTax 2022-04-01 2023-03-31 08837074 d:ShareCapital 2024-03-31 08837074 d:ShareCapital 2022-04-01 2023-03-31 08837074 d:ShareCapital 2023-03-31 08837074 d:ShareCapital 2022-04-01 08837074 d:SharePremium 2023-04-01 2024-03-31 08837074 d:SharePremium 2024-03-31 08837074 d:SharePremium 2022-04-01 2023-03-31 08837074 d:SharePremium 2023-03-31 08837074 d:SharePremium 2022-04-01 08837074 d:RetainedEarningsAccumulatedLosses 2023-04-01 2024-03-31 08837074 d:RetainedEarningsAccumulatedLosses 2024-03-31 08837074 d:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 08837074 d:RetainedEarningsAccumulatedLosses 2023-03-31 08837074 d:RetainedEarningsAccumulatedLosses 2022-04-01 08837074 d:AcceleratedTaxDepreciationDeferredTax 2024-03-31 08837074 d:AcceleratedTaxDepreciationDeferredTax 2023-03-31 08837074 d:RetirementBenefitObligationsDeferredTax 2024-03-31 08837074 d:RetirementBenefitObligationsDeferredTax 2023-03-31 08837074 c:OrdinaryShareClass1 2023-04-01 2024-03-31 08837074 c:OrdinaryShareClass1 2024-03-31 08837074 c:OrdinaryShareClass1 2023-03-31 08837074 c:FRS102 2023-04-01 2024-03-31 08837074 c:Audited 2023-04-01 2024-03-31 08837074 c:FullAccounts 2023-04-01 2024-03-31 08837074 c:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 08837074 d:HirePurchaseContracts d:WithinOneYear 2024-03-31 08837074 d:HirePurchaseContracts d:WithinOneYear 2023-03-31 08837074 d:HirePurchaseContracts d:BetweenOneFiveYears 2024-03-31 08837074 d:HirePurchaseContracts d:BetweenOneFiveYears 2023-03-31 08837074 2 2023-04-01 2024-03-31 08837074 4 2023-04-01 2024-03-31 08837074 e:PoundSterling 2023-04-01 2024-03-31 iso4217:GBP xbrli:shares xbrli:pure

Company Registration Number 08837074























RE:GEN NORTH EAST LIMITED





FINANCIAL STATEMENTS





 31 MARCH 2024


























img06a9.png

 
RE:GEN NORTH EAST LIMITED
 

COMPANY INFORMATION


Directors
M R Hodgkiss 
G L Francis 
J Horner 
P A Flannigan 
R B Sheridan 
A N Mcintosh (appointed 18 September 2023)
R B Sheridan 




Registered number
08837074



Registered office
RE:GEN House
3 Azure Court

Doxford International Business Park

Sunderland

England

SR3 3BE




Independent auditors
Armstrong Watson Audit Limited
Statutory Auditor & Chartered Accountants

One Strawberry Lane

Newcastle Upon Tyne

NE1 4BX





 
RE:GEN NORTH EAST LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Analysis of Net Debt
 
12
Notes to the Financial Statements
 
13 - 25


 
RE:GEN NORTH EAST LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

Business review
 
The principal activity of the company is that of building contractors comprising of the estate regeneration including the refurbishment of Registered Providers dwellings and the construction of new build houses.
2023 / 2024 was a year of significant growth with all targets exceeded. Turnover grew to £61m from the previous year of £39m with no loss making schemes being experienced within the year.
The company maintained their strong ethos around Safety, Client delivery, People and the Strong focus on utilisation of cash.
The company were successful in the negotiation of a number of long term frameworks which has contributed to a strong forward pipeline with 90% of next years turnover already secured.
Future Developments
The company is planning to consolidate all divisions during 2024/25 and will revise the management structure of the new formed group.
The company has agreed a controlled geographical expansion into the North West of England and have invested in a proven leadership team to manage this process.

Principal risks and uncertainties
 
 The large rise inflation is likely to effect the business in some areas however the Directors continue to attempt to mitigate any risks by pro-active management, particularly in relation to subcontractor procurement and supply chain management.
The majority of contracts procured are either less than 1 year in duration. These typically are fixed price and the risk is mitigated with fixed price subcontract and supply agreements.  
Longer term projects or frameworks have inflationary mechanism embedded into the contracts.
The volatile labour market and shortage of skilled workers is also perceived as a risk. This will be mitigated with further significant investment in its current workforce and new appointments. Heavy investment into people development and apprenticeships is forecast for long term growth.
Governance
With the growth of the group. Large investment has and will be made in the forthcoming year around governance. Appointment of a CFO, Head of Legal and Head of H&S have been key priorities as well as implementation of a new commercial software system.
Page 1

 
RE:GEN NORTH EAST LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Financial key performance indicators
 
The directors used a range of financial key performance indicators to monitor business performance during the year, these were as follows:


2024
2023
        £
        £
Turnover

61,328,567

39,984,143
 
Gross Profit

7,664,308

4,890,757
 
Gross Profit Margin

12.5%

12.2%
 


 


This report was approved by the board and signed on its behalf.



G L Francis
Director

Date: 7 October 2024
Page 2

 
RE:GEN NORTH EAST 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' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,913,911 (2023 - £1,709,513).

Directors

The directors who served during the year were:

M R Hodgkiss 
G L Francis 
J Horner 
P A Flannigan 
R B Sheridan 
A N Mcintosh (appointed 18 September 2023)
R B Sheridan 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

 
RE:GEN NORTH EAST LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





G L Francis
Director

Date: 7 October 2024

Page 4

 
RE:GEN NORTH EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RE:GEN NORTH EAST LIMITED
 

Opinion


We have audited the financial statements of Re:Gen North East Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
RE:GEN NORTH EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RE:GEN NORTH EAST LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the 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 the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records 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 Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
RE:GEN NORTH EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RE:GEN NORTH EAST LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.
 
We reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations.
 
We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
 
The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition (with a focus on amounts recoverable on long term contracts) and management override of controls.
 
We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
 
We enquired of the directors about actual and potential litigation and claims.
 
We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
 
In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
RE:GEN NORTH EAST LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RE:GEN NORTH EAST LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Simon Turner (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Statutory Auditor & Chartered Accountants

7 October 2024
Page 8

 
RE:GEN NORTH EAST LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
61,328,567
39,984,143

Cost of sales
  
(53,664,259)
(35,093,386)

Gross profit
  
7,664,308
4,890,757

Administrative expenses
  
(5,291,634)
(3,025,898)

Exceptional items
  
874,078
-

Other operating income
 5 
-
374,911

Operating profit
 6 
3,246,752
2,239,770

Interest receivable and similar income
 10 
47,270
934

Interest payable and similar expenses
 11 
(46,836)
(40,135)

Profit before taxation
  
3,247,186
2,200,569

Tax on profit
 12 
(333,275)
(491,056)

Profit for the financial year
  
2,913,911
1,709,513

  

Total comprehensive income for the year
  
2,913,911
1,709,513

The notes on pages 13 to 25 form part of these financial statements.

Page 9

 
RE:GEN NORTH EAST LIMITED
REGISTERED NUMBER: 08837074

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 15 
933,623
2,198,640

  
933,623
2,198,640

Current assets
  

Debtors: amounts falling due within one year
 16 
16,068,502
10,416,285

Cash at bank and in hand
 17 
168,108
1,867,247

  
16,236,610
12,283,532

Creditors: amounts falling due within one year
 18 
(16,767,835)
(12,041,381)

Net current (liabilities)/assets
  
 
 
(531,225)
 
 
242,151

Total assets less current liabilities
  
402,398
2,440,791

Creditors: amounts falling due after more than one year
  
(277,217)
-

Provisions for liabilities
  

Deferred taxation
 21 
(125,012)
(215,694)

  
 
 
(125,012)
 
 
(215,694)

Net assets
  
169
2,225,097


Capital and reserves
  

Called up share capital 
 22 
169
169

Profit and loss account
 23 
-
2,224,928

  
169
2,225,097


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




G L Francis
R B Sheridan
Director
Director


Date: 7 October 2024

The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
RE:GEN NORTH EAST LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 April 2022
100
(80,406)
1,050,970
970,664


Comprehensive income for the year

Profit for the year
-
-
1,709,513
1,709,513

Dividends: Equity capital
-
-
(455,149)
(455,149)

Shares issued during the year
69
-
-
69

Transfer to/from profit and loss account
-
80,406
(80,406)
-



At 1 April 2023
169
-
2,224,928
2,225,097


Comprehensive income for the year

Profit for the year
-
-
2,913,911
2,913,911

Dividends: Equity capital
-
-
(5,138,839)
(5,138,839)


At 31 March 2024
169
-
-
169


Page 11

 
RE:GEN NORTH EAST LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

1,867,247

(1,699,139)

168,108

Debt due within 1 year

(954,877)

935,133

(19,744)

Finance leases

(511,829)

120,833

(390,996)


400,541
(643,173)
(242,632)

The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

The company is a private company limited by shares incorporated in England.
The address of its registered office is Regen House 3 Azure Court, Doxford International Business Park, Sunderland, England, SR3 3BE.
The company's principal activity is construction.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

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.

 
2.2

Going concern

Management and the Directors have considered a period of at least twelve months from the date of sign off when making their assessment with regards to going concern. After consideration of all factors, including review of forecasted future profitability, pipeline of work, and wider economic conditions, the Directors have continued to adopt the going concern basis in preparing the financial statements.

Page 13

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Construction Contracts
When the outcome of a construction contract can be estimated reliably in terms of its stage of completion, future costs to complete and collectability of billings, the company recognises revenue and expenses on the construction contract by reference to the stage of completion of the contract activity at the end of the reporting period. The stage of completion is determined on the basis of the proportion of the contract costs incurred to date over the estimated total costs.
When the outcome of a contract cannot be estimated reliably the company only recognises revenue to the extent of the recoverable contract costs incurred.

 
2.4

Interest income

Interest income is recognised in profit or loss on a cash received basis.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

 
2.8

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. 

Depreciation is provided on the following basis:

Plant and machinery
-
15% Reducing balance
Motor vehicles
-
25% Reducing balance
Fixtures and fittings
-
15% Reducing balance
Office equipment
-
25% Straight line
Computer equipment
-
25% Straight line
Buildings
-
5% Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 15

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements require management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities and income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
a) Stage of completion of contracts 
The stage of completion of contracts is measured using the costs to complete method. This involves forecasting future costs and therefore involves uncertainty. Forecast costs are based on the budgeted costs and historic experience of costs to complete similar contracts. Where contracts are forecast to be loss-making, the full loss is recognised as soon as this is foreseen. Margin is taken only where it is considered that the outcome of the contract can be measured reliably.

Page 16

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Contracting income
61,328,567
39,984,143


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
-
374,911



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
281,035
168,938

Other operating lease rentals
215,323
-


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
22,050
24,000

Page 17

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
8,534,799
5,415,192
8,534,799
5,415,192

Social security costs
850,831
499,609
850,831
499,609

Cost of defined contribution scheme
308,597
184,699
308,597
184,699

9,694,227
6,099,500
9,694,227
6,099,500


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
162
110


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,424,411
248,667

Company contributions to defined contribution pension schemes
13,200
4,034

1,437,611
252,701


During the year retirement benefits were accruing to 1 director (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £313,332 (2023 - £93,108).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £1,112).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
47,270
934

47,270
934

Page 18

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
27,323
32,266

Finance leases and hire purchase contracts
19,513
7,869

46,836
40,135


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
518,232
289,755

Adjustments in respect of previous periods
(94,276)
-


423,956
289,755


Total current tax
423,956
289,755

Deferred tax


Origination and reversal of timing differences
(90,681)
201,301

Total deferred tax
(90,681)
201,301


Taxation on profit on ordinary activities
333,275
491,056
Page 19

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
3,247,186
2,200,569


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
811,797
418,108

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
36,175
129,736

Capital allowances for year in excess of depreciation
(40,206)
(66,422)

Capital gains
(166,075)
-

Other differences leading to an increase (decrease) in the tax charge
(151,202)
53,989

Group relief claimed
(157,214)
(44,355)

Total tax charge for the year
333,275
491,056


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends - Ordinary shares
5,138,839
455,149


14.


Exceptional items

2024
2023
£
£


Exceptional items
874,078
-

Exceptional items represents the gain on disposal of freehold property to a related company outside of the group.

Page 20

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Tangible fixed assets





Land and building
Motor vehicles
Fixtures, fittings and equipment
Other tangible assets
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
1,177,820
911,468
83,611
257,970
2,430,869


Additions
-
61,305
44,141
39,846
145,292


Disposals
(1,099,716)
(32,290)
(8,284)
-
(1,140,290)



At 31 March 2024

78,104
940,483
119,468
297,816
1,435,871



Depreciation


At 1 April 2023
5,448
161,886
11,806
53,089
232,229


Charge for the year on owned assets
833
52,447
20,144
61,961
135,385


Charge for the year on financed assets
-
145,650
-
-
145,650


Disposals
-
(11,016)
-
-
(11,016)



At 31 March 2024

6,281
348,967
31,950
115,050
502,248



Net book value



At 31 March 2024
71,823
591,516
87,518
182,766
933,623



At 31 March 2023
1,172,372
749,582
71,805
204,881
2,198,640

Page 21

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Debtors

2024
2023
£
£


Trade debtors
9,272,620
5,082,741

Amounts owed by group undertakings
3,176,035
425,023

Other debtors
32,184
475,374

Prepayments and accrued income
6,408
208,356

Amounts recoverable on long-term contracts
3,581,255
4,224,791

16,068,502
10,416,285



17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
168,108
1,867,247

168,108
1,867,247



18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
-
873,088

Trade creditors
5,471,286
5,851,271

Amounts owed to group undertakings
182,777
-

Corporation tax
30,732
289,755

Other taxation and social security
1,768,754
1,659,692

Obligations under finance lease and hire purchase contracts
113,779
511,829

Other creditors
20,714
82,359

Accruals and deferred income
9,179,793
2,773,387

16,767,835
12,041,381


Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.

Page 22

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
277,217
-

277,217
-


Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
113,778
-

Between 1-5 years
277,217
-

390,995
-

Page 23

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Deferred taxation




2024


£






At beginning of year
(215,693)


Charged to profit or loss
90,681



At end of year
(125,012)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(132,448)
(219,156)

Pension surplus
7,436
3,463

(125,012)
(215,693)


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,693 (2023 - 1,693) Ordinary shares of £0.10 each
169
169



23.


Reserves

Capital Redemption Reserve

This reserve records the value of shares that were purchased back by the company.

Profit and loss account

This reserve records retained earnings and accumulated profits net of dividends.


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £308,597 (2023 - £184,699). Contributions totalling £19,744 (2023 - £13,852) were payable to the fund at the balance sheet date and are included in creditors.

Page 24

 
RE:GEN NORTH EAST LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


Related party transactions

The company has taken the exemption within section 33 of FRS102 to not disclose transactions between wholly owned member of the group.
Key management personnel comprises of the Directors whose remuneration is disclosed in note 8 of these financial statements.


26.


Controlling party

The company's immediate parent company and the only group to consolidate these financial statements is RE:GEN Group Limited. There is no ultimate controlling party.

Page 25