Company registration number 04483839 (England and Wales)
BUILDING ENGINEERING SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
BUILDING ENGINEERING SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
S Marsh
J Groarke
J Sugden
J Ahmed
P Marsh
Company number
04483839
Registered office
BGEN House
Firecrest Court
Warrington
Cheshire
United Kingdom
WA1 1RG
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
BUILDING ENGINEERING SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 31
BUILDING ENGINEERING SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

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.

Business review

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.

BUILDING ENGINEERING SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Outlook

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.

Section 172 statement

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

S Marsh
Director
30 August 2024
BUILDING ENGINEERING SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the parent company continued to be that of the design and construction of sophisticated environmental facilities. The principal activity of the subsidiary was the design, manufacture and installation of demountable partition solutions.

Results and dividends

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.

Directors

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

S Marsh
J Groarke
J Sugden
J Ahmed
P Marsh
Financial instruments

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.

Liquidity risk

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.

Interest rate risk

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.

Foreign currency risk

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.

BUILDING ENGINEERING SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Credit risk

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.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

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.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

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.

 

BUILDING ENGINEERING SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -

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:

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BUILDING ENGINEERING SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
S Marsh
Director
30 August 2024
BUILDING ENGINEERING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BUILDING ENGINEERING SOLUTIONS LIMITED
- 7 -
Opinion

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).

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 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:

BUILDING ENGINEERING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUILDING ENGINEERING SOLUTIONS LIMITED
- 8 -
Matters on which we are required to report by exception

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:

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 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.

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.

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.

BUILDING ENGINEERING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUILDING ENGINEERING SOLUTIONS LIMITED
- 9 -

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:

 

 

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.

Helen Davies (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
30 August 2024
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
BUILDING ENGINEERING SOLUTIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
47,076,390
61,142,026
Cost of sales
(36,983,449)
(50,591,614)
Gross profit
10,092,941
10,550,412
Administrative expenses
(4,108,671)
(3,766,581)
Operating profit
4
5,984,270
6,783,831
Interest payable and similar expenses
8
(14,094)
(8,367)
Profit before taxation
5,970,176
6,775,464
Tax on profit
9
(1,513,775)
(1,342,348)
Profit for the financial year
23
4,456,401
5,433,116
Profit for the financial year is attributable to:
- Owners of the parent company
4,344,875
5,245,023
- Non-controlling interests
111,526
188,093
4,456,401
5,433,116
Total comprehensive income for the year is attributable to:
- Owners of the parent company
4,344,875
5,245,023
- Non-controlling interests
111,526
188,093
4,456,401
5,433,116
BUILDING ENGINEERING SOLUTIONS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
114,542
148,971
Tangible assets
12
853,471
1,049,287
968,013
1,198,258
Current assets
Stocks
15
341,961
369,953
Debtors
16
14,572,748
13,461,162
Cash at bank and in hand
19,359,379
18,061,706
34,274,088
31,892,821
Creditors: amounts falling due within one year
17
(14,855,194)
(17,061,945)
Net current assets
19,418,894
14,830,876
Total assets less current liabilities
20,386,907
16,029,134
Creditors: amounts falling due after more than one year
18
(106,361)
(174,585)
Provisions for liabilities
Deferred tax liability
20
95,658
126,062
(95,658)
(126,062)
Net assets
20,184,888
15,728,487
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
23
19,564,135
15,219,260
Equity attributable to owners of the parent company
19,564,235
15,219,360
Non-controlling interests
620,653
509,127
20,184,888
15,728,487
The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
S Marsh
J Groarke
Director
Director
Company registration number 04483839 (England and Wales)
BUILDING ENGINEERING SOLUTIONS LIMITED
COMPANY BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
289,893
354,203
Investments
13
2
2
289,895
354,205
Current assets
Stocks
15
226,278
249,835
Debtors
16
11,354,612
11,453,674
Cash at bank and in hand
19,315,616
17,955,369
30,896,506
29,658,878
Creditors: amounts falling due within one year
17
(13,255,787)
(16,127,044)
Net current assets
17,640,719
13,531,834
Net assets
17,930,614
13,886,039
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
23
17,930,514
13,885,939
Total equity
17,930,614
13,886,039

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).

The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
S Marsh
J Groarke
Director
Director
Company registration number 04483839 (England and Wales)
BUILDING ENGINEERING SOLUTIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
100
11,699,602
11,699,702
321,034
12,020,736
Year ended 30 April 2023:
Profit and total comprehensive income
-
5,245,023
5,245,023
188,093
5,433,116
Dividends
10
-
(1,725,365)
(1,725,365)
-
(1,725,365)
Balance at 30 April 2023
100
15,219,260
15,219,360
509,127
15,728,487
Year ended 30 April 2024:
Profit and total comprehensive income
-
4,344,875
4,344,875
111,526
4,456,401
Balance at 30 April 2024
100
19,564,135
19,564,235
620,653
20,184,888
BUILDING ENGINEERING SOLUTIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
100
10,896,279
10,896,379
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
4,715,025
4,715,025
Dividends
10
-
(1,725,365)
(1,725,365)
Balance at 30 April 2023
100
13,885,939
13,886,039
Year ended 30 April 2024:
Profit and total comprehensive income
-
4,044,575
4,044,575
Balance at 30 April 2024
100
17,930,514
17,930,614
BUILDING ENGINEERING SOLUTIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
3,653,572
(3,463,530)
Interest paid
(14,094)
(8,367)
Income taxes paid
(2,214,552)
(871,105)
Net cash inflow/(outflow) from operating activities
1,424,926
(4,343,002)
Investing activities
Purchase of tangible fixed assets
(56,730)
(331,235)
Proceeds from disposal of tangible fixed assets
1,025
-
Net cash used in investing activities
(55,705)
(331,235)
Financing activities
Repayment of bank loans
(10,901)
(10,195)
Payment of finance leases obligations
(60,647)
(112,376)
Dividends paid to equity shareholders
-
0
(1,725,365)
Net cash used in financing activities
(71,548)
(1,847,936)
Net increase/(decrease) in cash and cash equivalents
1,297,673
(6,522,173)
Cash and cash equivalents at beginning of year
18,061,706
24,583,879
Cash and cash equivalents at end of year
19,359,379
18,061,706
BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
1
Accounting policies
Company information

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.

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 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:

 

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.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

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.

1.3
Going concern

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.

1.4
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 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.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -

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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 10 years.

1.6
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.

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
Over the life of the lease
Plant, equipment and office equipment
15% to 25% 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 recognised in the profit and loss account.

1.7
Fixed asset investments

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.

1.8
Impairment of fixed assets

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).

1.9
Stocks

Raw materials and consumables are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

 

Long term contract balances relate to cost incurred on contracts in advance of the stage of contract completion and are valued at cost.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.11
Financial instruments

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

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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

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 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.

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 group after deducting all of its liabilities.

Basic financial 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.12
Equity instruments

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.

1.13
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 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

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.

1.14
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
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.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -

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.

1.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid.

2
Judgements and key sources of estimation uncertainty

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.

Key sources of estimation uncertainty

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.

Profit recognition on long term contracts

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.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Design and construction of environmental facilities
40,829,549
55,329,435
Specialist partitioning
6,246,841
5,812,591
47,076,390
61,142,026

The whole of the turnover is attributable to the principle activity of the group.

 

All turnover arose within the United Kingdom.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
197,525
93,546
Depreciation of tangible fixed assets held under finance leases
53,996
86,028
Amortisation of intangible assets
34,429
34,429
Operating lease charges
342,070
288,210
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
33,500
31,460
Audit of the financial statements of the company's subsidiaries
11,900
11,000
45,400
42,460
For other services
Taxation compliance services
5,600
5,280
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
103
108
81
88
Administrative
15
22
12
19
Total
118
130
93
107

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,746,499
7,711,526
5,479,180
6,598,180
Social security costs
767,788
821,397
634,199
708,267
Pension costs
315,431
336,002
291,814
317,865
7,829,718
8,868,925
6,405,193
7,624,312
BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
426,173
577,041
Company pension contributions to defined contribution schemes
41,134
42,213
467,307
619,254
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
200,378
232,792
Company pension contributions to defined contribution schemes
18,939
18,750
8
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
5,560
990
Interest on finance leases and hire purchase contracts
1,733
7,377
Other interest
6,801
-
Total finance costs
14,094
8,367
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,547,718
1,276,438
Adjustments in respect of prior periods
1,330
(6,890)
Total current tax
1,549,048
1,269,548
Deferred tax
Origination and reversal of timing differences
(35,273)
72,800
Total tax charge
1,513,775
1,342,348
BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 24 -

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
5,970,176
6,775,464
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
1,492,544
1,320,751
Tax effect of expenses that are not deductible in determining taxable profit
9,354
9,684
Adjustments in respect of prior years
1,330
(6,890)
Effect of change in corporation tax rate
-
15,040
Depreciation on assets not qualifying for tax allowances
10,960
8,835
Deferred tax adjustments in respect of prior years
-
0
4,561
Super deduction allowance
-
0
(9,633)
Movement in deferred tax not recognised
(413)
-
Taxation charge
1,513,775
1,342,348
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Equity dividends paid
-
1,725,365
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
344,294
Amortisation and impairment
At 1 May 2023
195,323
Amortisation charged for the year
34,429
At 30 April 2024
229,752
Carrying amount
At 30 April 2024
114,542
At 30 April 2023
148,971
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant, equipment and office equipment
Total
£
£
£
Cost
At 1 May 2023
549,174
1,485,383
2,034,557
Additions
6,298
50,432
56,730
Disposals
-
0
(1,533)
(1,533)
At 30 April 2024
555,472
1,534,282
2,089,754
Depreciation and impairment
At 1 May 2023
308,861
676,409
985,270
Depreciation charged in the year
54,965
196,556
251,521
Eliminated in respect of disposals
-
0
(508)
(508)
At 30 April 2024
363,826
872,457
1,236,283
Carrying amount
At 30 April 2024
191,646
661,825
853,471
At 30 April 2023
240,313
808,974
1,049,287
Company
Leasehold land and buildings
Plant, equipment and office equipment
Total
£
£
£
Cost
At 1 May 2023
549,174
493,696
1,042,870
Additions
6,298
34,644
40,942
At 30 April 2024
555,472
528,340
1,083,812
Depreciation and impairment
At 1 May 2023
308,861
379,806
688,667
Depreciation charged in the year
54,965
50,287
105,252
At 30 April 2024
363,826
430,093
793,919
Carrying amount
At 30 April 2024
191,646
98,247
289,893
At 30 April 2023
240,313
113,890
354,203
BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Tangible fixed assets
(Continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant, equipment and office equipment
178,895
318,839
-
0
-
0

 

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
2
2
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
2
Carrying amount
At 30 April 2024
2
At 30 April 2023
2
14
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Norwood Group Limited
1
Design, manufacture and installation of demountable partition solutions
Ordinary
75.00

Registered office addresses (all UK unless otherwise indicated):

1
Maple House, Sandbrook Business Park, Rochdale, England, OL11 1LQ
BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
116,791
121,198
1,108
1,080
Work in progress
225,170
248,755
225,170
248,755
341,961
369,953
226,278
249,835
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
10,558,653
9,558,106
9,220,598
8,802,283
Gross amounts owed by contract customers
117,687
854,320
117,687
854,320
Amounts owed by group undertakings
1,694,012
1,526,160
1,694,012
1,526,160
Other debtors
58,828
113,859
30,958
37,721
Prepayments and accrued income
2,127,278
1,397,296
275,067
221,769
14,556,458
13,449,741
11,338,322
11,442,253
Deferred tax asset (note 20)
16,290
11,421
16,290
11,421
14,572,748
13,461,162
11,354,612
11,453,674

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.

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
10,000
10,000
-
0
-
0
Obligations under finance leases
19
57,669
60,993
-
0
-
0
Payments received on account
354,480
1,410,628
354,480
1,410,628
Trade creditors
6,038,823
4,455,499
4,882,063
3,830,559
Amounts owed to group undertakings
154,651
347,039
109,651
302,039
Corporation tax payable
248,752
914,256
41,985
789,445
Other taxation and social security
1,810,203
590,280
1,754,570
552,405
Other creditors
111,813
123,464
81,275
91,806
Accruals and deferred income
6,068,803
9,149,786
6,031,763
9,150,162
14,855,194
17,061,945
13,255,787
16,127,044
BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
17
Creditors: amounts falling due within one year
(Continued)
- 28 -

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.

18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
10,833
21,734
-
0
-
0
Obligations under finance leases
19
95,528
152,851
-
0
-
0
106,361
174,585
-
-

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.

19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
57,180
60,993
-
0
-
0
In two to five years
96,017
152,851
-
0
-
0
153,197
213,844
-
-

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.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
96,194
126,477
(13,089)
(17,958)
Short term timing differences
(536)
(415)
29,379
29,379
95,658
126,062
16,290
11,421
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
-
-
(13,089)
(17,958)
Short term timing differences
-
-
29,379
29,379
-
-
16,290
11,421
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 May 2023
114,641
(11,421)
Credit to profit or loss
(35,273)
(4,869)
Liability/(Asset) at 30 April 2024
79,368
(16,290)
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
315,431
336,002

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.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

Called up share capital represents the nominal value of shares that have been issued.

23
Reserves
Profit and loss reserves

The profit and loss reserve includes all current and prior retained profits and losses.

24
Operating lease commitments
Lessee

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:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
488,252
194,303
467,068
137,306
Between two and five years
685,407
312,084
680,109
285,603
1,173,659
506,387
1,147,177
422,909
25
Related party transactions
Transactions with related parties

At the balance sheet date, the group was owed £1,694,012 (2023: £1,526,160) by BGEN Limited, the parent undertaking. During the year, the group made sales of £7,803,719 (2023: £16,278,991) to and purchases of £79,039 (2023: £8,549,929) from BGEN Limited.

 

At the balance sheet date, the group owed £154,651 (2023: £347,039) to Satisfy Recruitment Services Limited, a fellow group company. During the year, the group made purchases of £536,510 (2023: £587,293) from Satisfy Recruitment Services Limited.

 

At the balance sheet date, the company was owed £69,428 (2023: £341,872) by Norwood Group Limited, a fellow group company, which arose as a result of trading in the year. In addition, the company was owed £45,000 (2023: £45,000) by Norwood Group Limited as a result of an advance made by the company in prior periods.

BUILDING ENGINEERING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
26
Controlling party

The parent company of the largest and smallest group preparing consolidated accounts including this company is BGEN Limited, a company registered in England and Wales. Their financial statements are available from Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.

The company was under the control of the directors of BGEN Limited, which had a controlling share of the company's issued ordinary share capital throughout the current and preceding year.

27
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
4,456,401
5,433,116
Adjustments for:
Taxation charged
1,513,775
1,342,348
Finance costs
14,094
8,367
Amortisation and impairment of intangible assets
34,429
34,429
Depreciation and impairment of tangible fixed assets
251,521
179,574
Movements in working capital:
Decrease/(increase) in stocks
27,992
(205,694)
(Increase)/decrease in debtors
(1,106,717)
7,736,435
Decrease in creditors
(1,537,923)
(17,992,105)
Cash generated from/(absorbed by) operations
3,653,572
(3,463,530)
28
Analysis of changes in net funds - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
18,061,706
1,297,673
19,359,379
Borrowings excluding overdrafts
(31,734)
10,901
(20,833)
Obligations under finance leases
(213,844)
60,647
(153,197)
17,816,128
1,369,221
19,185,349
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