Company registration number 08544532 (England and Wales)
INTELLE CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
INTELLE CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
Mr N Armstrong
Mr NF Coulter
Company number
08544532
Registered office
Unit 11b Centre Court
Treforest Industrial Estate
Pontypridd
Rhondda Cynon Taf
CF37 5YR
Auditor
WBV Limited
The Third Floor
Langdon House, Langdon Road
SA1 Swansea Waterfront
Swansea
Wales
SA1 8QY
INTELLE CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 25
INTELLE CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

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

 

 

Review of the business

 

This year of trading has maintained a steady growth over the past 12 months with a significant increase in turnover from £15.5m in 2022/23 to £21.6m in 2023/24. We remain a key construction partner to private developers within the South Wales and South West Construction sectors, specialising in high volume residential schemes and purpose built student accommodation projects. We are now also operating within the residential social landlords sectors on residential care homes and multi residential accommodation. We continue to focus and improve our business on successful delivery through the life cycle of a project. Our involvement early during project development, offering cost plan advice and advising our clients on the optimum construction methodology for their projects, ensures the project design is developed with efficiency at the forefront at all key aspects of the project. We work closely with a dedicated team of professional staff and engage our supply chain for the specialist services required to instigate a successful project delivery strategy for our clients.

During the past 12 months we have continued to grow the business, securing increased value projects through repeat business clients, and also establishing new leads with developers who are looking at multi residential developments within the South Wales and South West regions.

Our flagship project during the year was Gramercy Tower in Cardiff, a 28 story residential development, for repeat business client Urban Centric. This year has seen the completion of the reinforced concrete structure and the unitised façade envelope to allow the internal fitout to progress at pace for completion in the final quarter 2024. During the year we completed some existing residential schemes, an office conversion to residential in Frome, Somerset and bespoke houses at Brynna in South Wales.

We have secured some exciting new schemes this year with a total revenue of £80m spread over the next 2 years that include; Blue Dragon in Cardiff Bay, a multi storey student residential project for Cardiff Sixth Form College; Knox Court in Cardiff City Centre, an existing office conversion and roof extension into residential co-living accommodation for our existing client Urban Centric; Dan Y Mynydd Care Home in Porth, a new build 60 bed extra care home for social landlord Linc Cymru in Porth; with further projects being negotiated making the next couple of years exciting times for Intelle.

Our operational and commercial performance has been maintained across all projects resulting in consistent and healthy operating margins and strengthened cash at bank. The opportunities we have secured this year have created a significant revenue for our next financial year with revenue also carried into 2025/26.

The company's operations expose it to a variety of financial risks that include the effects of credit risk and interest rate risk.

 

INTELLE CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Principal risks and uncertainties

 

Project delivery and financial performance remains a risk on all construction projects. By monitoring the design, procurement and operational key dates at regular project meetings and holding detailed monthly cost reviews, we are able to ensure corrective action is taken to ensure the projects' overall performance is maintained.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.

Price risk

The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing the exposure to commodity price risk exceed potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Credit risk

The company's credit risk is primarily attributable to 'amounts recoverable on contracts.' The amounts are presented net of allowance for doubtful debts. The credit risk on liquid funds is limited because the counter parties are banks with high credit-ratings assigned by international credit rating agencies. The company has no significant concentration of credit risk with exposure spread over a number of counter parties and customers.

Liquidity risk

The company has strong cash reserves to fund its operations together with liquid investments if required.

Interest rate cash flow risk

The company has interest bearing assets and liabilities. Interest bearing assets comprise cash which earns interest at variable rates.

 

 

Key performance indicators

The company's key performance indicators (KPI's) are summarised below;

KPI's         2024        2023        2022        2021        

Turnover        £21,609,893    £15,505,888    £16,560,769    £15,012,383

Gross margin    £3,190,190     £3,683,701    £2,205,585    £1,575,190

Operating profit     £2,344,532    £3,006,903    £1,491,108    £1,008,146

Cash at bank    £4,808,814      £4,060,345    £3,331,174    £4,670,686

Net current assets £2,947,934     £1,779,673     £(139,266) £376,126

Gross margin %     14.76         23.76        13.32        10.49        

 

 

INTELLE CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

On behalf of the board

Mr N Armstrong
Director
8 October 2024
INTELLE CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

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

Principal activities

The principal activity of the company continued to be that of the construction of commercial and domestic buildings.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £900,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr N Armstrong
Mr NF Coulter
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr N Armstrong
Mr NF Coulter
Director
Director
8 October 2024
INTELLE CONSTRUCTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 5 -

The directors are responsible 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:

 

 

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.

INTELLE CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTELLE CONSTRUCTION LIMITED
- 6 -
Opinion

We have audited the financial statements of Intelle Construction Limited (the 'company') for the year ended 31 May 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

INTELLE CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTELLE CONSTRUCTION LIMITED (CONTINUED)
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

 

 

 

 

INTELLE CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTELLE CONSTRUCTION LIMITED (CONTINUED)
- 8 -

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.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

- Enquiring of management, including obtaining and reviewing of supporting documentation concerning the company's policies and procedures relating to:

 

- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

 

- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

 

- The systems and controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

 

- Discussions within the engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this process we did not identify any significant areas where there was potential for fraud.

 

- Obtaining an understanding of the legal and regulatory frameworks that the company operates in, with a focus on those laws and regulations that had a direct effect on the Financial Statements ot that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006, the Financial Reporting Standard FRS102 and relevant tax legislation.

 

Audit response to risks identified

 

Our procedures to risks identified included the following:

 

- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

 

- Enquiring of management for details of actual and potential litigation and claims;

 

- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

 

- In addressing the risk of management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates indicate any potential bias; and evaluating the rationale of any significant transactions that are unusual or outside the normal course of business.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

 

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

INTELLE CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTELLE CONSTRUCTION LIMITED (CONTINUED)
- 9 -

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.

David Rowe BA ACA
Senior Statutory Auditor
For and on behalf of WBV Limited
8 October 2024
Chartered Accountants
Statutory Auditor
The Third Floor
Langdon House, Langdon Road
SA1 Swansea Waterfront
Swansea
Wales
SA1 8QY
INTELLE CONSTRUCTION LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
21,609,893
15,505,888
Cost of sales
(18,419,703)
(11,822,187)
Gross profit
3,190,190
3,683,701
Administrative expenses
(845,658)
(721,829)
Other operating income
-
0
45,031
Operating profit
8
2,344,532
3,006,903
Interest receivable and similar income
7
542
238
Amounts written off investments
9
234,089
(60,767)
Profit before taxation
2,579,163
2,946,374
Tax on profit
10
(633,572)
(589,952)
Profit for the financial year
1,945,591
2,356,422

The profit and loss account has been prepared on the basis that all operations are continuing operations.

INTELLE CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
2024
2023
£
£
Profit for the year
1,945,591
2,356,422
Other comprehensive income
-
-
Total comprehensive income for the year
1,945,591
2,356,422
INTELLE CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
37,050
37,738
Investments
13
2,386,451
2,508,435
2,423,501
2,546,173
Current assets
Debtors
14
3,527,713
3,162,224
Cash at bank and in hand
4,808,814
4,060,345
8,336,527
7,222,569
Creditors: amounts falling due within one year
15
(5,388,593)
(5,442,896)
Net current assets
2,947,934
1,779,673
Net assets
5,371,435
4,325,846
Capital and reserves
Called up share capital
17
2
2
Profit and loss reserves
5,371,433
4,325,844
Total equity
5,371,435
4,325,846

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 8 October 2024 and are signed on its behalf by:
Mr N Armstrong
Mr NF Coulter
Director
Director
Company registration number 08544532 (England and Wales)
INTELLE CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
2
2,869,422
2,869,424
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
2,356,422
2,356,422
Dividends
11
-
(900,000)
(900,000)
Balance at 31 May 2023
2
4,325,844
4,325,846
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
1,945,591
1,945,591
Dividends
11
-
(900,000)
(900,000)
Balance at 31 May 2024
2
5,371,433
5,371,435
INTELLE CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
2,059,889
1,419,481
Income taxes paid
(782,854)
(219,094)
Net cash inflow from operating activities
1,277,035
1,200,387
Investing activities
Purchase of tangible fixed assets
(24,115)
(2,693)
Proceeds from disposal of investments
395,007
431,239
Interest received
285
39
Other income received from investments
257
199
Net cash generated from investing activities
371,434
428,784
Financing activities
Dividends paid
(900,000)
(900,000)
Net cash used in financing activities
(900,000)
(900,000)
Net increase in cash and cash equivalents
748,469
729,171
Cash and cash equivalents at beginning of year
4,060,345
3,331,174
Cash and cash equivalents at end of year
4,808,814
4,060,345
INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
1
Accounting policies
Company information

Intelle Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 11b Centre Court, Treforest Industrial Estate, Pontypridd, Rhondda Cynon Taf, CF37 5YR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover consists of the amounts of work invoiced for services rendered and the value of certificates issued during the year net of value added tax. All turnover is derived in the UK from the company's single class of business.

 

Construction contracts

 

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably, and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as an expense in the period they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

 

The 'percentage of completion method' is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract cots in determining the stage of completion. The costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

 

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
Variable rates
Motor vehicles
Straight line over 4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Amounts recoverable on long term contracts

A number of the construction contracts included within the financial statements have completion dates that differ from the year end. The measurement of revenue and costs is affected by a variety of uncertainties that depend upon future events. Under construction contracts, the estimates of contract revenue and costs often need to be revised as events occur and uncertainties are resolved.

 

Therefore, contract revenue and costs are allocated to the accounting periods in which the construction work is performed. In cases where the outcome of a construction contract can be estimated reliably, the contract revenue and costs are recognised by reference to the stage of completion at the end of the reporting period. Estimation of the contract outcome is based upon the stage of completion, future cost and the collectability of contract billings.

 

In cases where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised in the profit and loss account as an expense in the period in which they are incurred, and revenue is recognised only to the extent of contract costs incurred when it is considered probable that these will be recovered.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Construction services
21,609,784
15,505,888
INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
21,609,784
15,505,888
2024
2023
£
£
Other revenue
Interest income
285
39
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,741
11,200
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Directors
2
2
Administration
18
19
Total
20
21

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,007,183
783,297
Social security costs
90,361
82,918
Pension costs
92,927
83,045
1,190,471
949,260
INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
20,000
20,000
Company pension contributions to defined contribution schemes
12,000
8,000
32,000
28,000

The number of directors were regsitered in the company's defined contribution pension scheme was 2 (2023 2).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
285
39
Income from fixed asset investments
Income from other fixed asset investments
257
199
Total income
542
238
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
285
39
8
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
24,803
21,776
Profit on disposal of investments
(38,937)
(48,573)
9
Gains / losses on revaluation of investments
2024
2023
£
£
Other gains and losses
234,089
(60,767)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
633,572
589,952
INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Taxation
(Continued)
- 22 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

 

2024 - 25%

2023 - 304 days at 19% and 61 days at 25% resulting in an effective tax rate for the year of 20%.

2024
2023
£
£
Profit before taxation
2,579,163
2,946,374
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
644,791
589,275
Tax effect of expenses that are not deductible in determining taxable profit
578
192
Adjustments in respect of prior years
-
0
(3,198)
Permanent capital allowances in excess of depreciation
172
3,683
Effect of revaluations of investments
(9,968)
-
0
Pension and non trade loan relationships
(2,001)
-
0
Taxation charge for the year
633,572
589,952
11
Dividends
2024
2023
£
£
Final paid
900,000
900,000
INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
12
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 June 2023
65,756
84,985
150,741
Additions
2,770
21,345
24,115
Disposals
(234)
-
0
(234)
At 31 May 2024
68,292
106,330
174,622
Depreciation and impairment
At 1 June 2023
63,461
49,542
113,003
Depreciation charged in the year
3,524
21,279
24,803
Eliminated in respect of disposals
(234)
-
0
(234)
At 31 May 2024
66,751
70,821
137,572
Carrying amount
At 31 May 2024
1,541
35,509
37,050
At 31 May 2023
2,295
35,443
37,738
13
Fixed asset investments
2024
2023
£
£
Offshore bonds
2,386,451
2,508,435
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 June 2023
2,508,435
Valuation changes
234,089
Disposals
(356,073)
At 31 May 2024
2,386,451
Carrying amount
At 31 May 2024
2,386,451
At 31 May 2023
2,508,435
INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
0
1,624,054
Gross amounts owed by contract customers
2,259,664
751,891
Other debtors
634,897
333,864
Prepayments and accrued income
192,761
126,775
3,087,322
2,836,584
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
440,391
325,640
Total debtors
3,527,713
3,162,224
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,632,362
2,602,734
Corporation tax
443,946
593,228
Other taxation and social security
46,543
46,197
Other creditors
-
0
652
Accruals and deferred income
2,265,742
2,200,085
5,388,593
5,442,896
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
92,927
83,045

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2
2
2
2
INTELLE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
18
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
20,892
20,892
Between two and five years
28,652
49,543
49,544
70,435
19
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,945,591
2,356,422
Adjustments for:
Taxation charged
633,572
589,952
Investment income
(542)
(238)
Gain on disposal of investment
(38,937)
(48,573)
Depreciation and impairment of tangible fixed assets
24,803
21,776
Other gains and losses
(234,089)
60,767
Movements in working capital:
Increase in debtors
(365,488)
(765,050)
Increase/(decrease) in creditors
94,979
(795,575)
Cash generated from operations
2,059,889
1,419,481
20
Analysis of changes in net funds
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
4,060,345
748,469
4,808,814
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