Company Registration No. 03867792 (England and Wales)
CLEAR LINE MAINTENANCE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CLEAR LINE MAINTENANCE LIMITED
COMPANY INFORMATION
Directors
Mr J Mountford
Mr P Hebb
Mr D P Higgins
Mr I J Hagan
Ms J Grayson
Company number
03867792
Registered office
1 Rawson Spring Way
Sheffield
S6 1PG
Auditor
Knowles Warwick Audit Services Limited
Charlotte House
500 Charlotte Road
Sheffield
S2 4ER
Bankers
Barclays
1 Churchill Place
London
E14 5HP
CLEAR LINE MAINTENANCE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 25
CLEAR LINE MAINTENANCE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
1
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The company provides customers with a single point of procurement for the design, supply, installation and maintenance of building façades, and is proud to be amongst the United Kingdoms largest specialist principal façade contractors, with a focus on the provision of robust, quality driven, technical solutions for significant new build, remediation, and sustainability driven projects as a single source supplier.
The company's specialism is the refurbishment, maintenance, and replacement of facades to any nature of high-rise, high-occupancy, and higher-risk buildings; they supply façade systems that include brickwork, render, rainscreens, insulated panels, curtain walling, windows, atria, and balconies, alongside a growing specialist minor works division who provide innovative solutions to façade component failures and deficiencies, term maintenance, and building envelope cleaning. Executed projects undertaken by the company as principal contractor include commercial, private and student residential, healthcare, data storage, and power generating buildings, with services also being provided to select tier-one main contractors, for both remediation and new build works.
Through professional management, innovation, and efficiency the company has been able to build a reputation for providing outstanding service, meeting the high demands of health and safety, quality, and timeframes under their single source offering. The company is proud to self-deliver façade construction projects, with each construction process from initial surveying, design, Building Safety Regulator approvals, access, dismantling, installation, and quality management of their works being undertaken in-house.
The company has continued to maintain and further enhance their internal processes throughout the year, with further investment being made into their in-house specialist façade design, modelling and document control functions, further bolstering the company's self-delivery offering.
The on-going strategic plan for the company focuses on three areas:
Continued investment in people, with recruitment taking place in design, project management, and health and safety functions,
Investment in infrastructure, both at head office and on-site, ensuring all employees can deliver the excellent service expected by our customers and to maintain a safe working environment,
Developing and enhancing key long-term relationships with developers, main contractors, consultants, and supply chain partners.
A significant facet of the strategic plan is the continued development of the company as one of the UK’s largest leading specialist principal contractors. The company continues to seek its reputation and recognition growth, striving for greater dominance in the sector of remediation, maintenance, new build, and sustainability driven façade construction projects as a single source supplier, cementing their place as a valued and trusted partner to their expanding client network.
The company continues to support both the Building Safety Fund and Cladding Safety Scheme in meeting their objectives in respect of the provision of remediation of unsafe cladding systems that are installed on many multi-occupancy residential buildings. Alongside this, close relationships with a number of key developers have also been maintained; such developers recognise the company's specialist knowledge and engineering expertise, employing the company to fulfil their commitment to the UK Governments Self-Remediation terms.
Our corporate governance delivers a framework in which we control our activities effectively whilst enabling us to meet the high standard of workmanship and project delivery that have become expected of us. This in turn allows us to assist in the commercial effectiveness of our customers and suppliers and gives us the resources to adapt to our customers’ needs as required.
CLEAR LINE MAINTENANCE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Principal risks and uncertainties
The company continues to be happy with their progress; the situation around global and domestic supply chains has eased, but the senior management team have not lost sight of what remain uncertain industrial and economic conditions, particularly with the potential change in Government resultant of the forthcoming general election, the uncertainties on their economic direction, and investment channels a new regime may take. Our senior team shall continue to monitor external market conditions to ensure there are suitable systems in place to identify and mitigate any risks that may arise, and we
As a company we have always been aware of the potential risks associated with providing credit to clients and we continue to review market conditions to reduce our overall exposure, additionally, the company has always operated on a prudent basis and with significant cash reserves, and this will remain our policy. We operate with an agile operational structure, ensuring that the effects of any governmental regime change will be slight, and we will maintain strong operational capability and market leading profitability.
There continues to be an extremely high demand for competent contractors who are able to undertake large complex remedial and renovation works. Currently the demand for these works exceeds the number of companies operating in the sector, with increased demand having been placed on the market through the introduction of Cladding Safety Scheme, which includes buildings with unsafe cladding over 11m in height. As a result, the number of tender opportunities remains high, and the company continues to win a significant proportion of these enquiries, with an order book in excess of 12 months. There is strong political drive to invest in the construction industry whilst ensuring improvements in the safety, efficiency, and sustainability of existing buildings.
The principal risk and uncertainty faced by the company remains to be the continued pressure on cladding specific professional resources, and the UK’s challenging economic environment which continues to influence the level of investment into new commercial developments. However, this is more than countered by the requirement for competent façade remedial works contractors to undertake the critical need for the removal of unsafe cladding from multi-occupancy residential buildings throughout the country.
Development and performance
The company’s key performance indictors include turnover, project gross profit margins, company EBITDA and nonfinancial indicators such as contractors per site and days labour to ensure project delivery. The company focuses on the gross margin of each project on a monthly basis to ensure that it is running as planned and so that timely action can be taken when required.
Key performance indicators
Turnover amounted to £44.35 million (2023: £48.57 million) an 8.6% decrease on the previous year.
Profit before tax was £15.7 million (2023: £22.5 million) a decrease of 30% compared to the previous year, due to revenue from highly profitable projects, efficiency gains, and significant contributions to profit being made by the final project payments and release of retentions in the prior year.
Prospects for the forthcoming year remain buoyant, with multiple projects and pre-construction service contracts being underway, with multiple new awards being in the design, planning, and building control (enveloping BSR application) stages.
Mr P Hebb
Director
21 October 2024
CLEAR LINE MAINTENANCE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
3
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of management, design and installation of building facades and curtain walling.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J Mountford
Mr P Hebb
Mr S Wesley
(Resigned 7 September 2024)
Mr D P Higgins
Mr I J Hagan
Ms J Grayson
Financial instruments
Financial risk
The company operates budgetary and financial reporting procedures, which are supported by key performance indicators to manage credit, liquidity and other financial risk.
Auditor
Knowles Warwick Audit Services Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr P Hebb
Director
21 October 2024
CLEAR LINE MAINTENANCE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
4
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CLEAR LINE MAINTENANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLEAR LINE MAINTENANCE LIMITED
5
Opinion
We have audited the financial statements of Clear Line Maintenance Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CLEAR LINE MAINTENANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLEAR LINE MAINTENANCE LIMITED (CONTINUED)
6
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly followed auditing standards.
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by;
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
In response to the risk of revenue recognition, we;
In response to the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify unusual transactions;
Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
Agreeing financial statement disclosures to underlying supporting documentation
Enquiring of management as to actual and potential litigation and claims; and
Reviewing correspondence with HMRC and other relevant parties.
CLEAR LINE MAINTENANCE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CLEAR LINE MAINTENANCE LIMITED (CONTINUED)
7
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Steven Knowles FCA
Senior Statutory Auditor
For and on behalf of Knowles Warwick Audit Services Limited
22 October 2024
Chartered Accountants
Statutory Auditor
Charlotte House
500 Charlotte Road
Sheffield
S2 4ER
CLEAR LINE MAINTENANCE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
8
2024
2023
Notes
£
£
Turnover
2
44,351,350
48,571,043
Cost of sales
(22,850,259)
(22,369,770)
Gross profit
21,501,091
26,201,273
Administrative expenses
(5,718,006)
(3,793,174)
Other operating income
9,904
4,894
Operating profit
3
15,792,989
22,412,993
Interest receivable and similar income
7
272,288
105,108
Interest payable and similar expenses
8
(14,287)
(29,509)
Amounts written off investments
9
(357,203)
-
Profit before taxation
15,693,787
22,488,592
Tax on profit
10
(3,704,974)
(4,274,687)
Profit for the financial year
11,988,813
18,213,905
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
CLEAR LINE MAINTENANCE LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
9
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
232,139
273,154
Current assets
Debtors
13
11,262,635
12,983,571
Cash at bank and in hand
8,419,240
13,704,224
19,681,875
26,687,795
Creditors: amounts falling due within one year
14
(7,615,179)
(13,474,338)
Net current assets
12,066,696
13,213,457
Total assets less current liabilities
12,298,835
13,486,611
Creditors: amounts falling due after more than one year
15
(25,048)
(28,472)
Provisions for liabilities
Provisions
17
370,000
533,000
Deferred tax liability
18
57,635
67,800
(427,635)
(600,800)
Net assets
11,846,152
12,857,339
Capital and reserves
Called up share capital
21
1
1
Capital redemption reserve
1
1
Profit and loss reserves
11,846,150
12,857,337
Total equity
11,846,152
12,857,339
The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
Mr P Hebb
Director
Company registration number 03867792 (England and Wales)
CLEAR LINE MAINTENANCE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
10
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
1
1
7,643,432
7,643,434
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
18,213,905
18,213,905
Contribution to EOT
-
-
(13,000,000)
(13,000,000)
Balance at 31 March 2023
1
1
12,857,337
12,857,339
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
11,988,813
11,988,813
Contribution to EOT
-
-
(13,000,000)
(13,000,000)
Balance at 31 March 2024
1
1
11,846,150
11,846,152
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
11
1
Accounting policies
Company information
Clear Line Maintenance Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Rawson Spring Way, Sheffield, S6 1PG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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:
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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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.
The financial statements of the company are consolidated in the financial statements of 31 March 2024. These consolidated financial statements are available from its registered office.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for services net of VAT and 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 costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. 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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
12
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:
Land and buildings Leasehold
5% Straight line
Plant, machinery and equipment
30% Reducing balance
Fixtures and fittings
25% Straight line
Motor vehicles
30% Reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. .
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
13
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
14
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
15
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
16
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sales from trading activities
44,351,350
48,571,043
2024
2023
£
£
Other revenue
Interest income
272,288
105,108
Grants received
9,904
4,894
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(9,904)
(4,894)
Depreciation of owned tangible fixed assets
44,280
21,653
Depreciation of tangible fixed assets held under finance leases
-
39,818
Operating lease charges
151,342
317,692
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,000
14,000
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was as follows:
2024
2023
Number
Number
Directors
6
6
Direct
40
37
Administration
7
7
Total
53
50
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,031,382
2,208,908
Social security costs
605,976
236,930
Pension costs
167,827
157,329
5,805,185
2,603,167
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
2,988,064
526,103
Company pension contributions to defined contribution schemes
127,429
122,947
3,115,493
649,050
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 6).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
600,053
127,000
Company pension contributions to defined contribution schemes
48,333
76,667
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
18
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
245,147
89,844
Other interest income
27,141
15,264
Total income
272,288
105,108
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
128
2,368
Other interest
14,159
27,141
14,287
29,509
9
Amounts written off investments
2024
2023
£
£
Amounts written off current loans
(357,203)
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,721,846
4,270,013
Adjustments in respect of prior periods
(6,707)
Total current tax
3,715,139
4,270,013
Deferred tax
Origination and reversal of timing differences
(10,165)
4,674
Total tax charge
3,704,974
4,274,687
The tax rate in the prior year was 19% until 31 March 2023. This changed to 25% from 1 April 2023.
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
19
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
15,693,787
22,488,592
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
3,923,447
4,272,832
Tax effect of expenses that are not deductible in determining taxable profit
14,609
16,234
Adjustments in respect of prior years
(6,706)
Group relief
(18,972)
Research and development tax credit
(82,420)
Tax relief on share options
(132,886)
Capital allowances
(905)
(81)
Deferred tax
(10,165)
4,674
Taxation charge for the year
3,704,974
4,274,687
11
Tangible fixed assets
Land and buildings Leasehold
Plant, machinery and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
276,574
186,700
164,517
119,506
747,297
Additions
3,266
3,266
At 31 March 2024
276,574
189,966
164,517
119,506
750,563
Depreciation and impairment
At 1 April 2023
101,652
124,536
164,517
83,439
474,144
Depreciation charged in the year
13,829
19,630
10,821
44,280
At 31 March 2024
115,481
144,166
164,517
94,260
518,424
Carrying amount
At 31 March 2024
161,093
45,800
25,246
232,139
At 31 March 2023
174,922
62,164
36,068
273,154
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
20
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant, machinery and equipment
58,800
Motor vehicles
34,106
-
92,906
12
Construction contracts
2024
2023
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
6,443,911
7,639,177
At 31 March 2024, retentions held by customers for contract work amounted to £3,041,656 (2023 - £2,523,477).
At 31 March 2024, amounts of £729,680 (2023 - £437,138) included in gross amounts owed by contract customers are due for settlement after more than 12 months.
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,547,334
3,706,345
Gross amounts owed by contract customers
6,443,911
7,639,177
Amounts owed by group undertakings
979,435
976,529
Other debtors
124,115
489,409
Prepayments and accrued income
167,840
172,111
11,262,635
12,983,571
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
19,270
Trade creditors
1,782,099
1,593,833
Amounts owed to group undertakings
494,808
402,203
Corporation tax
1,282,157
2,960,595
Other taxation and social security
714,495
1,177,129
Government grants
19
3,424
4,000
Other creditors
94,410
7,080,604
Accruals and deferred income
3,243,786
236,704
7,615,179
13,474,338
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Government grants
19
25,048
28,472
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
19,362
Less: future finance charges
(92)
19,270
Finance lease payments represent rentals payable by the company 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.
17
Provisions for liabilities
2024
2023
£
£
Provision for remedial work
370,000
533,000
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Provisions for liabilities
(Continued)
22
Movements on provisions:
£
At 1 April 2023
533,000
Utilisation of provision
(163,000)
At 31 March 2024
370,000
The remedial works provision accounts for potential repair works to be performed on projects that have been completed or in progress where issues have arisen. The provision is calculated based upon the expected labour and material costs required to perform the remedial works.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
57,635
67,800
2024
Movements in the year:
£
Liability at 1 April 2023
67,800
Credit to profit or loss
(10,165)
Liability at 31 March 2024
57,635
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
23
19
Government grants
Deferred income is included in the financial statements as follows:
2024
2023
£
£
Current liabilities
3,424
4,000
Non-current liabilities
25,048
28,472
28,472
32,472
In previous years the company received grant funding to assist in the growth of the business. At the year end all grant conditions had been met and the balance included in other creditors is to be released in line with the depreciation of assets it was used to purchase.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
167,827
157,329
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
The company has one class of ordinary share with no fixed right to income. Each ordinary share has full voting rights and rights to dividends and capital distributions (including on winding up).
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
112,662
46,940
23
Events after the reporting date
There are no post balance sheet events that the directors feel should be brought to the attention of the shareholders.
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
24
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Rent paid to
2024
2023
£
£
Key management personnel
112,662
112,662
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Group entities
494,808
402,203
Key management personnel
-
7,011,680
All amounts outstanding at the balance sheet date are unsecured and will be settled by cash. No interest is charged in respect of outstanding amounts.
No guarantees have been given to or received from related parties.
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
979,435
976,529
Other related parties
62,734
492,045
All amounts outstanding at the balance sheet date are unsecured and will be settled by cash. No interest is charged in respect of outstanding amounts.
No guarantees have been given to or received from related parties.
Other information
At the end of the year an amount of £0 (2023 - £353,600) was owed to the company from Bron-yr-aur Limited. The £353,600 that was owed to the company from a prior period was written off during the year. Bron-yr-aur Limited is a related party of Clear Line Maintenance Limited by way of the common Directorship of Mr Stephen Wesley.
CLEAR LINE MAINTENANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
25
25
Directors' transactions
Loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Director's loan
-
8,545
(8,545)
-
8,545
(8,545)
-
Loans to directors were interest free and are repayable on demand.
26
Ultimate controlling party
The company is a wholly owned subsidiary of Clear Line Holdings Limited, a company registered in England & Wales under company number 08149507.
The company is under the ultimate control of Clear Line Employee Ownership Trust.
The results of the company are consolidated into the group accounts of Clear Line Holdings Limited.
2024-03-312023-04-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.300Mr J MountfordMr P HebbMr S WesleyMr D P HigginsMr I J HaganMs J Grayson038677922023-04-012024-03-3103867792bus:Director12023-04-012024-03-3103867792bus:Director22023-04-012024-03-3103867792bus:Director42023-04-012024-03-3103867792bus:Director52023-04-012024-03-3103867792bus:Director62023-04-012024-03-3103867792bus:Director32023-04-012024-03-3103867792bus:RegisteredOffice2023-04-012024-03-3103867792bus:Agent12023-04-012024-03-31038677922024-03-31038677922022-04-012023-03-3103867792core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3103867792core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31038677922023-03-3103867792core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-03-3103867792core:PlantMachinery2024-03-3103867792core:FurnitureFittings2024-03-3103867792core:MotorVehicles2024-03-3103867792core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3103867792core:PlantMachinery2023-03-3103867792core:FurnitureFittings2023-03-3103867792core:MotorVehicles2023-03-3103867792core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3103867792core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3103867792core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3103867792core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3103867792core:CurrentFinancialInstruments2024-03-3103867792core:CurrentFinancialInstruments2023-03-3103867792core:ShareCapital2024-03-3103867792core:ShareCapital2023-03-3103867792core:CapitalRedemptionReserve2024-03-3103867792core:CapitalRedemptionReserve2023-03-3103867792core:RetainedEarningsAccumulatedLosses2024-03-3103867792core:RetainedEarningsAccumulatedLosses2023-03-3103867792core:ShareCapital2022-03-3103867792core:CapitalRedemptionReserve2022-03-3103867792core:RetainedEarningsAccumulatedLosses2022-03-3103867792core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-012024-03-3103867792core:PlantMachinery2023-04-012024-03-3103867792core:FurnitureFittings2023-04-012024-03-3103867792core:MotorVehicles2023-04-012024-03-310386779212023-04-012024-03-310386779212022-04-012023-03-3103867792core:UKTax2023-04-012024-03-3103867792core:UKTax2022-04-012023-03-310386779222023-04-012024-03-310386779222022-04-012023-03-3103867792core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3103867792core:PlantMachinery2023-03-3103867792core:FurnitureFittings2023-03-3103867792core:MotorVehicles2023-03-31038677922023-03-3103867792core:Non-currentFinancialInstruments2024-03-3103867792core:Non-currentFinancialInstruments2023-03-3103867792core:WithinOneYear2024-03-3103867792core:WithinOneYear2023-03-3103867792bus:PrivateLimitedCompanyLtd2023-04-012024-03-3103867792bus:FRS1022023-04-012024-03-3103867792bus:Audited2023-04-012024-03-3103867792bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP