The directors present the strategic report for the year ended 30 April 2024.
BES has enjoyed tremendous success and profitability levels over the past 22 years since the business was established in 2002, developing a highly regarded and trusted brand reputation with our clients, underpinned with our drive for continuous improvement, demonstrated through our customer satisfaction scores constantly exceeding 82%.
As such, BES continues to be recognised as one of the market leaders in the Specialist Design Consulting, Construction and Validation of Pharmaceutical and Biotechnology Research, Development and Manufacturing Facilities for critical, lifesaving and life changing medicines and technologies.
Exceptional customer service remains pivotal to our repeat business model and whilst we have experienced a significant reduction in sales volumes within the year ending April 24, due to continuing project drifts, we have still delivered sector leading net profit margins of £4.4 million at 10%, maintaining similar levels of profitability achieved during the year end April 2023.
On a more positive note, the project drifts we have suffered of late, have helped to provide a much higher and more secure opening order book for our next financial year. This, complemented by our healthy enquiry pipeline, ensures that we are confident of turnover levels returning to more normal levels.
Whilst the company’s principal activities and core services remain unchanged, we have continued to broaden our customer base and customer typology working with start-ups, small medium enterprises, and world leading organisations to create state of the art laboratories, cleanrooms, manufacturing facilities and other complex, technically challenging controlled environments.
Repeat business and collaborative working remain at the heart of what we do, demonstrated by our continuing long-term relationships with some of the world’s leading research and science organisations such as AstraZeneca and Recipharm (Bespak), with BES continuing to deliver their flagship facilities and critical assets.
Our flexible, customer-centric and tailored services, including site-based term frameworks, design commissions and design & build projects through to the delivery of major capital schemes for large, process technology driven projects, have matured further with our new site master planning offer, demonstrating the organisations unparalleled capability and agility to deliver a wide range of project sizes of varying complexities.
Our strategic investments in the development of our front-end consulting capabilities continue to flourish, helping build our future construction pipeline, and we have enhanced our multidisciplinary offering through the further development of our In-House Process Engineering, new Sustainability and Digital Engineering capabilities, further differentiating us from our competitors to provide sustainable competitive advantage.
Norwood, our cleanroom subsidiary, have also continued to experience tremendous success and growth, with the introduction of new, innovative product ranges, acting both independently and as an integral, complementary part of our differentiated turnkey fit out/modular solution offering.
Our excellent safety record has been once again rewarded with our second consecutive ROSPA Gold Award and supporting our next stage of organisational digitilisation transformation we have now achieved the highly regarded ISO19650 certification and ISO14001 accreditation respectively, reinforcing our market leading BIM credentials and Environmental Management Systems respectively.
Our strategic marketing has continued to positively promote BES as a specialist, highly differentiated technical brand underpinned by our collaborative culture and proven track record, with a more active and engaging social media presence on the business-to-business platform LinkedIn, with followers now exceeding our short term 5,000 target.
From a Business Development perspective, whilst continuing to consolidate our position as one of the market leading Multidisciplinary Consultants and Contractors in our traditional Pharmaceutical/Biotechnology sectors, we are now also broadening our reach into other hi tech sectors that require critical multidisciplinary engineering and sophisticated controlled environments, ideally within highly regulated industries.
Working closely with both Norwood and our parent company BGEN, who have long established reputations operating in a broader range of niche, industrial, mission critical sectors, we are now more frequently developing joint propositions for clients, combining to provide highly differentiated compelling group offers comprising both white- and blue-collar specialists, supported with our Design Consulting capabilities and in house group DfMA and modular prefabrication facilities.
With our clients and the market demanding higher added value and more complex facilities at accelerated timescales, our strategy to leverage existing group capabilities ensures that we can rise to these challenges. Equally, our engagement with the Group’s clients is serving to catalyse our transition into new sectors to provide further significant, organic, business growth opportunities both in the short term and for the future.
Finally, with our previous investments and restructuring of the organisation at executive leadership level, underpinned by our internal talent management systems, organisational succession planning and continuous business improvement initiatives, we believe we have the structure and balance to both function with high efficiency and the platform to grow, to generate further economies of scale in the near future, maintaining our lower overhead cost base compared to other specialist consultants and contractors.
The Directors are aware of their responsibilities under the provisions of section 172(1) (a) to (f) Companies Act 2006 and make the following disclosure as required under section 414CZA of the Companies Act 2006.
The Directors hold regular and timely discussions to discuss strategic, governance, legal and performance issues and to discuss the results of the Company, as well as setting and approving key financial targets and measures, including annual budgets and expenditure on capital investments.
The strategic decisions of the Directors are driven by the wider Group strategy and pay due regard to the consequences of such decisions in the long-term interests of the stakeholders, the impact on the community and environment in which the Company operates, the need to maintain high standards of business conduct and to treat all stakeholders fairly.
The Directors recognise that the implications of their decisions can have a lasting effect on the Company’s reputation as an employer, a reliable supplier, customer and local stakeholder in the community and strives to ensure that it engages constructively with all parties.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 April 2024.
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group holds or issues financial instruments in order to achieve three main objectives, being:
(a) to finance its operations;
(b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and
(c) for trading purposes.
In addition, various financial instruments (e.g. trade debtors, trade creditors) arise directly from the group's operations.
Transactions in financial instruments result in the group assuming or transferring to another party one or more of the financial risks described below.
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
The group is exposed to fair value interest rate risk on any fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
The group's principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.
Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
During the year management have had a policy of providing employees with information about the group. Regular meetings are held between management and employees to allow a free flow of information and ideas.
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Building Engineering Solutions Ltd (BES) is committed to reducing its impact on climate change and the reduction of carbon emissions associated with its products and services. This is in line with our customers’ requirements and the UK government Net Zero target of 2050. The requirements to monitor our Scope 1, 2 and 3 emissions relevant to our business are well understood by BES Ltd, as is the need to reduce emissions going forward.
During the financial year May 2023 – April 2024, BES Ltd has monitored the carbon emissions associated with various aspects of its operations, currently limited to the UK. The table below shows the Carbon Dioxide (equivalent) emissions in tonnes for the Scope 1, 2 and 3 emissions relevant to our business.
Scope | Emissions Source | Total (kWh) | Emissions (tCO2 (e)) |
Scope1 Direct emissions from our activities (owned or leased (offices) stationary sources that use fossil fuel) | Combustion of Natural Gas | 126,752 | 23.19 |
Scope 2 Indirect emissions from our electricity use for our leased offices (purchased electricity) | Electricity readings | 141,390.79 | 29.27 |
Scope 3 (Included Sources) Category 7 – Employee Commuting | Business Travel | 492,451.62 | 127.96 |
Total (All scopes) | 760,594.465 | 180.42 |
Methodology for collection of data
Evidence-based methodologies were adopted, using verifiable data that collected from actual bills from utility providers for combustible natural gas and electricity, supported with mileage records of employee-owned vehicles for business use.
UK Government GHG Conversion Factors for Company Reporting 2022 were used to convert all energy units to kWh, all mileage units to kWh (Scope 3) and finally kWh to tCO2e.
Intensity Ratio
We have calculated our intensity ratio based on tonnes of CO2e on headcount metrics of 145 full-time equivalents for the financial year.
During the financial year the intensity ratio per full time equivalents has reduced to 1.24 as per the table below, from 2.09 in the previous financial year.
Emissions | 2021-2022 | 2022-2023 | 2023-2024 |
tCO2 (e) per full time equivalents | 3.60 | 2.09 | 1.24 |
Change (%) | N/A | 44% | 41% |
Energy savings during the financial period
During the financial year May 2023 – April 2024, we have introduced a new electric company car scheme and installation of accompanying charging capabilities at our Sandbrook Park Offices. We have further enhanced our digitalisation capabilities, which allows us to more accurately record the emissions associated with our value chain and also introduced an extended flexible working structure which reduces the carbon footprint associated with travel.
Furthermore, to support our overall carbon reduction goals from a holistic perspective, we have also successfully achieved our ISO 14001 accreditation; with the necessary environmental training having been delivered across the organisation, to ensure carbon reduction remains at the forefront of our thinking.
Carbon Reduction Goals and Initiatives
To facilitate the reduction of our carbon emissions further, we plan to implement the following energy efficiency, carbon reduction and sustainability measures moving forwards:
Continue to encourage and promote car sharing
Behaviour change engagement and training across the workforce relating to sustainability
Continuing to work with our supply chain partners to understand emissions and reduction/mitigation approaches and strategies
Further development of our in-house sustainability capabilities to influence and generate high efficiency, low carbon building and facilities design to support our clients decarbonisation targets through reduction of lifecycle energy consumption
We have audited the financial statements of Building Engineering Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 group and parent 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 group's and parent 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:
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.
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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.
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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, 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 the 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 applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity 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.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £4,044,575 (2023 - £4,715,025 profit).
Building Engineering Solutions Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is BGEN House, Firecrest Court, Centre Park, Warrington, Cheshire, United Kingdom, WA1 1RG.
The group consists of Building Engineering Solutions Limited and all of its subsidiaries.
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 group. 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.
The parent company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
This information is included in the consolidated financial statements of BGEN Limited as at 30 April 2024 and these financial statements may be obtained from The Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.
The consolidated group financial statements consist of the financial statements of the parent company Building Engineering Solutions Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The directors prepare detailed profit and cashflow projections for the Group. These indicate that the Group will generate operating profits and cash sufficient to enable it to continue to meet its obligations as they fall due. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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 and other sales related taxes. The fair value of consideration takes into account trade discounts.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing bills raised as a proportion of contract value. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Subcontractor costs are accounted for on the basis of certified invoices received. Turnover derived from variations on contracts is recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts during the year in which they are first foreseen.
Costs incurred in the early stages of contracts or where progress contract values are individually insignificant are held on the balance sheet as work in progress; related sales invoices are treated as deferred income.
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 recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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).
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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. Financial assets classified as receivable within one year are not amortised.
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 enacted or substantively enacted at the balance sheet date. 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 if, and only if, there is 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.
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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 leased asset are consumed.
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid.
In the application of the group’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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The level of turnover recognised in respect of long term contracts is determined by reference to the proportion of work carried out at year end, as explained in note 1.4. Professional judgement is applied by the company's own quantity surveyors in order to assess the stage of completion and raise appropriate and reasonable applications for payment.
Provisions are made against applications for payment where the company believes there is reasonable doubt regarding the recoverability of amounts receivable.
In assessing overall profitability of a contract, upon which attributable profit is calculated, an estimate is made of the remaining costs to be incurred (including costs associated with variations to the customer's original budget) in order to complete each long term contract. Judgement is also required in identifying loss making contracts in respect of which provision is made in full in the year in which they are first foreseen.
The whole of the turnover is attributable to the principle activity of the group.
All turnover arose within the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 30 April 2024 are as follows:
Registered office addresses (all UK unless otherwise indicated):
Included within trade debtors is a balance of £809,120 (2023: £1,942,158) relating to customer retentions due, which includes £514,312 (2023: £193,008) due in greater than one year.
Obligations under finance leases are secured against the assets to which they relate.
Bank loans represent funds drawn down in June 2020 under the Bounce Back Loan scheme, which is unsecured and accrues interest at 2.5% 12 months after the draw down date.
Obligations under finance leases are secured against the assets to which they relate.
Bank loans represent funds drawn down in June 2020 under the Bounce Back Loan scheme, which is unsecured and accrues interest at 2.5% 12 months after the draw down date.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the balance sheet date, £16,876 (2023: £11,851) was payable to the fund and is included within other creditors.
Called up share capital represents the nominal value of shares that have been issued.
The profit and loss reserve includes all current and prior retained profits and losses.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
At the balance sheet date, the group was owed £
At the balance sheet date, the group owed £
At the balance sheet date, the company was owed £