Company registration number 06417460 (England and Wales)
WRPS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
WRPS GROUP LIMITED
COMPANY INFORMATION
Directors
Mr B Grime
Mrs D Grime
Mr M Atherton
Mr N Czernianin
Mr D Hornby
Mr S Howarth
Secretary
Mr J Alker
Company number
06417460
Registered office
Unit 15
Barrs Fold Road
Wingates Industrial Estate
Bolton
Greater Manchester
UK
BL5 3XP
Auditor
DKR Audit Services Ltd
36 Lichfield Street
Walsall
West Midlands
UK
WS1 1TJ
WRPS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
WRPS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The turnover for the year consisted primarily from local council and housing association projects throughout the UK. The statement of comprehensive income shows turnover for the year of £13.9m (2023: £15.91m) and profit before tax for the year of £2.32m (2023: £3.07m).
Turnover has fallen by 12.7%, with gross margin at 40.5% in 2024 and 40.7% in 2023. Gross margin remains consistent although continuous monitoring of costs is undertaken, based on past experience of rising costs of material, fuel and labour. This is deemed the norm across the whole construction industry.
The balance sheet continues to strengthen showing a net asset position of £10.4m (2023: £9.65m).
The company has performed financially, operationally and strategically in line with management expectations for the year ended 31 March 2024 and the directors plan to maintain these standards of performance going forward. The directors are satisfied with the company's performance to date.
Employee turnover and attendance has maintained consistent and positive performance, as in previous years.
Principal risks and uncertainties
We consider the principle risks and uncertainties to the business being related to the current economic climate and rising costs. However, we believe that the company has remained well positioned to adapt and respond to market changes and economic challenges, with projects constantly being reviewed. The company has grown from strength to strength and has sufficient resources to continue to trade for the foreseeable future.
Development and performance
The company continues to quote for new construction contracts and further development opportunities with existing clients. The company has established strong relationships with its client base over many years due to the excellent reputation achieved from completing projects on time and being within budget.
Key performance indicators
Key performance indicators include the monitoring and the management of profitability and working capital.
Turnover - £13,896,430 (2023: £15,916,213)
Gross profit - £5,621,598 (2023: £6,478,980)
GP% - 40.5% (2023: 40.7%)
Profit before taxation - £2,324,807 (2023: £3,069,369)
Current ratio - 4.5:1 (2023: 4.5:1)
WRPS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Financial risk management
Price risk
The company continually seeks competitive and reliable suppliers for the majority of supplies received for use in the business.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Liquidity risk
The company manages its cash to maximise interest income, whilst ensuring that the company has sufficient liquid resources to meet the operating needs of the business.
Legislations
New or proposed legislations governing all aspects of the business are routinely reviewed. The business is committed to responding positively to new regulations.
Mr B Grime
Director
26 September 2024
WRPS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of building and scaffolding contractors.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £900,000. The directors do not recommend payment of a final 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 B Grime
Mrs D Grime
Mr M Atherton
Mr N Czernianin
Mr D Hornby
Mr S Howarth
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Auditor
In accordance with the company's articles, a resolution proposing that DKR Audit Services Ltd be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements 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 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.
WRPS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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 B Grime
Director
26 September 2024
WRPS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WRPS GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of WRPS Group 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, 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:
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.
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.
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:
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.
WRPS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WRPS GROUP LIMITED (CONTINUED)
- 6 -
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 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, 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.
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.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to the applicable laws and regulations, including fraud.
- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual suspected and alleged fraud;
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statement of the operations of the company through enquiry and inspection;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
WRPS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WRPS GROUP LIMITED (CONTINUED)
- 7 -
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 instance of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as a fraud may involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls.
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.
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.
Babar Mahmood BA (Hons) ACA
Senior Statutory Auditor
For and on behalf of DKR Audit Services Ltd
26 September 2024
Chartered Accountants
Statutory Auditor
36 Lichfield Street
Walsall
West Midlands
UK
WS1 1TJ
WRPS GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,896,429
15,916,213
Cost of sales
(8,274,831)
(9,437,233)
Gross profit
5,621,598
6,478,980
Administrative expenses
(3,440,302)
(3,401,119)
Operating profit
4
2,181,296
3,077,861
Interest receivable and similar income
7
186,917
13,541
Interest payable and similar expenses
8
(43,406)
(22,033)
Profit before taxation
2,324,807
3,069,369
Tax on profit
9
(667,799)
(544,240)
Profit for the financial year
1,657,008
2,525,129
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WRPS GROUP LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,352,398
1,547,401
Current assets
Stocks
14
12,403
7,778
Debtors
16
3,668,848
3,590,743
Cash at bank and in hand
7,859,103
7,711,128
11,540,354
11,309,649
Creditors: amounts falling due within one year
17
(2,557,407)
(2,491,404)
Net current assets
8,982,947
8,818,245
Total assets less current liabilities
11,335,345
10,365,646
Creditors: amounts falling due after more than one year
18
(571,866)
(434,308)
Provisions for liabilities
Deferred tax liability
20
360,729
285,596
(360,729)
(285,596)
Net assets
10,402,750
9,645,742
Capital and reserves
Called up share capital
22
16
16
Profit and loss reserves
10,402,734
9,645,726
Total equity
10,402,750
9,645,742
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 26 September 2024 and are signed on its behalf by:
Mr B Grime
Director
Company registration number 06417460 (England and Wales)
WRPS GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
16
8,470,597
8,470,613
Year ended 31 March 2023:
Profit and total comprehensive income
-
2,525,129
2,525,129
Dividends
10
-
(1,350,000)
(1,350,000)
Balance at 31 March 2023
16
9,645,726
9,645,742
Year ended 31 March 2024:
Profit and total comprehensive income
-
1,657,008
1,657,008
Dividends
10
-
(900,000)
(900,000)
Balance at 31 March 2024
16
10,402,734
10,402,750
WRPS GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,410,026
3,019,987
Interest paid
(43,406)
(22,033)
Income taxes paid
(540,000)
(865,288)
Net cash inflow from operating activities
1,826,620
2,132,666
Investing activities
Purchase of tangible fixed assets
(1,351,765)
(1,028,699)
Proceeds from disposal of tangible fixed assets
162,691
123,654
Interest received
186,917
13,541
Net cash used in investing activities
(1,002,157)
(891,504)
Financing activities
Proceeds from new finance lease obligations
644,967
722,325
Payment of finance leases obligations
(421,455)
(242,168)
Dividends paid
(900,000)
(1,350,000)
Net cash used in financing activities
(676,488)
(869,843)
Net increase in cash and cash equivalents
147,975
371,319
Cash and cash equivalents at beginning of year
7,711,128
7,339,809
Cash and cash equivalents at end of year
7,859,103
7,711,128
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
WRPS Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 15, Barrs Fold Road, Wingates Industrial Estate, Bolton, Greater Manchester, UK, BL5 3XP.
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. 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 is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.
Profit on construction contracts is recognised on a percentage of completion basis. A provision is made for all losses incurred together with any foreseeable future losses.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
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.
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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:
Leasehold land and buildings
Enter depreciation rate via StatDB - cd75
Leasehold improvements
Over the term of the lease
Plant and equipment
20% reducing balance
Fixtures and fittings
20% reducing balance
Computers
20% reducing balance
Motor vehicles
20% reducing balance
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.8
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 expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which 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 costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.9
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.
1.10
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.
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.
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.
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.
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
Construction contracts
The company undertakes construction contracts during the year ended 31 March 2024.
Management have considered the revenue recognition criteria in FRS 102, Section 23 and, in particular, whether the company has recognised the outcome of construction contracts with estimated reliability. The company has recognised contract revenue and contract costs associated with the construction contract as revenue and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period. Section 23 is met together with an appropriate provision for rectification costs.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Construction contracts
13,896,429
15,916,213
2024
2023
£
£
Other revenue
Interest income
186,917
13,541
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,250
16,250
Depreciation of owned tangible fixed assets
98,714
121,936
Depreciation of tangible fixed assets held under finance leases
244,508
104,746
Loss/(profit) on disposal of tangible fixed assets
40,855
(737)
Operating lease charges
275,194
200,020
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Office
15
15
Operations
61
59
Total
76
74
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
6,481,860
7,436,293
Social security costs
208,959
211,944
Pension costs
28,836
28,524
6,719,655
7,676,761
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
218,421
215,055
Company pension contributions to defined contribution schemes
5,361
5,361
223,782
220,416
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 6).
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
52,185
59,300
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
186,917
13,541
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
186,917
13,541
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
43,406
22,033
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
592,666
399,446
Deferred tax
Origination and reversal of timing differences
75,133
144,794
Total tax charge
667,799
544,240
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)
- 20 -
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
2023
£
£
Profit before taxation
2,324,807
3,069,369
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
581,202
583,180
Tax effect of expenses that are not deductible in determining taxable profit
1,168
4,752
Permanent capital allowances in excess of depreciation
85,429
(43,692)
Taxation charge for the year
667,799
544,240
10
Dividends
2024
2023
£
£
Interim paid
900,000
1,350,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
35,000
Amortisation and impairment
At 1 April 2023 and 31 March 2024
35,000
Carrying amount
At 31 March 2024
At 31 March 2023
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
12
Tangible fixed assets
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2023
54,649
666,141
5,117
3,216
1,846,196
2,575,319
Additions
488,938
3,620
11,698
847,509
1,351,765
Disposals
(22,264)
(3,588)
(377,648)
(403,500)
At 31 March 2024
488,938
54,649
647,497
13,227
3,216
2,316,057
3,523,584
Depreciation and impairment
At 1 April 2023
32,658
502,019
4,128
1,728
487,385
1,027,918
Depreciation charged in the year
10,929
32,718
2,385
298
296,892
343,222
Eliminated in respect of disposals
(18,112)
(2,825)
(179,017)
(199,954)
At 31 March 2024
43,587
516,625
3,688
2,026
605,260
1,171,186
Carrying amount
At 31 March 2024
488,938
11,062
130,872
9,539
1,190
1,710,797
2,352,398
At 31 March 2023
21,991
164,122
989
1,488
1,358,811
1,547,401
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 22 -
The carrying value of land and buildings comprises:
2024
2023
£
£
Long leasehold
488,938
Short leasehold
11,062
21,991
500,000
21,991
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
1,517,814
1,128,951
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,189,548
1,747,694
Carrying amount of financial liabilities
Measured at amortised cost
2,321,455
2,343,627
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
12,403
7,778
15
Construction contracts
2024
2023
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
1,011,569
1,397,273
Contract revenues recognised
Contract costs incurred plus recognised profits less recognised losses to date
3,250,268
3,189,221
Less: progress billing
(2,238,699)
(1,791,948)
1,011,569
1,397,273
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,158,716
1,704,057
Gross amounts owed by contract customers
1,011,569
1,397,273
Other debtors
13,379
6,509
Prepayments and accrued income
485,184
482,904
3,668,848
3,590,743
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
445,712
359,758
Trade creditors
1,050,514
1,366,504
Corporation tax
190,141
137,475
Other taxation and social security
617,677
444,610
Other creditors
115,190
114,831
Accruals and deferred income
138,173
68,226
2,557,407
2,491,404
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
571,866
434,308
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
498,779
398,437
In two to five years
601,697
458,466
1,100,476
856,903
Less: future finance charges
(82,898)
(62,837)
1,017,578
794,066
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
360,729
285,596
2024
Movements in the year:
£
Liability at 1 April 2023
285,596
Charge to profit or loss
75,133
Liability at 31 March 2024
360,729
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,836
28,524
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.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
B Ordinary shares of £1 each
14
14
14
14
16
16
16
16
Ordinary shares have voting rights, and B Ordinary shares have no voting rights.
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
23
Operating lease commitments
Lessee
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
138,661
123,185
Between two and five years
177,492
316,153
316,153
439,338
24
Directors' transactions
Dividends totalling £900,000 (2023 - £1,350,000) were paid in the year in respect of shares held by the company's directors.
25
Ultimate controlling party
The ultimate controlling party is considered to be Mr B Grime and Mrs D Grime by virtue of their shareholding in the company which carries voting rights.
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,657,008
2,525,129
Adjustments for:
Taxation charged
667,799
544,240
Finance costs
43,406
22,033
Investment income
(186,917)
(13,541)
Loss/(gain) on disposal of tangible fixed assets
40,855
(737)
Depreciation and impairment of tangible fixed assets
343,222
226,682
Movements in working capital:
Increase in stocks
(4,625)
(1,918)
(Increase)/decrease in debtors
(78,105)
207,768
Decrease in creditors
(72,617)
(489,669)
Cash generated from operations
2,410,026
3,019,987
WRPS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
27
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
7,711,128
147,975
7,859,103
Obligations under finance leases
(794,066)
(223,512)
(1,017,578)
6,917,062
(75,537)
6,841,525
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