Caseware UK (AP4) 2023.0.135 2023.0.135 2024-01-312024-01-31truetrueNo description of principal activityfalsetruetruetruetrue2023-02-01452334falsefalse 02728757 2023-02-01 2024-01-31 02728757 2022-02-01 2023-01-31 02728757 2024-01-31 02728757 2023-01-31 02728757 2022-02-01 02728757 5 2023-02-01 2024-01-31 02728757 5 2022-02-01 2023-01-31 02728757 d:CompanySecretary1 2023-02-01 2024-01-31 02728757 d:Director1 2023-02-01 2024-01-31 02728757 d:Director2 2023-02-01 2024-01-31 02728757 d:Director3 2023-02-01 2024-01-31 02728757 d:RegisteredOffice 2023-02-01 2024-01-31 02728757 e:PlantMachinery 2023-02-01 2024-01-31 02728757 e:PlantMachinery 2024-01-31 02728757 e:PlantMachinery 2023-01-31 02728757 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 02728757 e:MotorVehicles 2023-02-01 2024-01-31 02728757 e:MotorVehicles 2024-01-31 02728757 e:MotorVehicles 2023-01-31 02728757 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 02728757 e:FurnitureFittings 2023-02-01 2024-01-31 02728757 e:FurnitureFittings 2024-01-31 02728757 e:FurnitureFittings 2023-01-31 02728757 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 02728757 e:OfficeEquipment 2023-02-01 2024-01-31 02728757 e:OfficeEquipment 2024-01-31 02728757 e:OfficeEquipment 2023-01-31 02728757 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 02728757 e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 02728757 e:Goodwill 2023-02-01 2024-01-31 02728757 e:Goodwill 2024-01-31 02728757 e:Goodwill 2023-01-31 02728757 e:CurrentFinancialInstruments 2024-01-31 02728757 e:CurrentFinancialInstruments 2023-01-31 02728757 e:CurrentFinancialInstruments e:WithinOneYear 2024-01-31 02728757 e:CurrentFinancialInstruments e:WithinOneYear 2023-01-31 02728757 e:ReportableOperatingSegment1 2023-02-01 2024-01-31 02728757 e:ReportableOperatingSegment1 2022-02-01 2023-01-31 02728757 e:UKTax 2023-02-01 2024-01-31 02728757 e:UKTax 2022-02-01 2023-01-31 02728757 e:ShareCapital 2023-02-01 2024-01-31 02728757 e:ShareCapital 2024-01-31 02728757 e:ShareCapital 2022-02-01 2023-01-31 02728757 e:ShareCapital 2023-01-31 02728757 e:ShareCapital 2022-02-01 02728757 e:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 02728757 e:RetainedEarningsAccumulatedLosses 2024-01-31 02728757 e:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 02728757 e:RetainedEarningsAccumulatedLosses 2023-01-31 02728757 e:RetainedEarningsAccumulatedLosses 2022-02-01 02728757 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-02-01 2024-01-31 02728757 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2024-01-31 02728757 e:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-01-31 02728757 d:OrdinaryShareClass1 2023-02-01 2024-01-31 02728757 d:OrdinaryShareClass1 2024-01-31 02728757 d:OrdinaryShareClass1 2023-01-31 02728757 d:OrdinaryShareClass2 2023-02-01 2024-01-31 02728757 d:OrdinaryShareClass2 2024-01-31 02728757 d:OrdinaryShareClass2 2023-01-31 02728757 d:OrdinaryShareClass3 2023-02-01 2024-01-31 02728757 d:OrdinaryShareClass3 2024-01-31 02728757 d:OrdinaryShareClass3 2023-01-31 02728757 d:FRS102 2023-02-01 2024-01-31 02728757 d:Audited 2023-02-01 2024-01-31 02728757 d:FullAccounts 2023-02-01 2024-01-31 02728757 d:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 02728757 e:WithinOneYear 2024-01-31 02728757 e:WithinOneYear 2023-01-31 02728757 e:BetweenOneFiveYears 2024-01-31 02728757 e:BetweenOneFiveYears 2023-01-31 02728757 6 2023-02-01 2024-01-31 02728757 e:Goodwill e:OwnedIntangibleAssets 2023-02-01 2024-01-31 02728757 f:PoundSterling 2023-02-01 2024-01-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 02728757







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JANUARY 2024


TUNNELCRAFT LIMITED






































img003b.png                        

 


TUNNELCRAFT LIMITED
 


 
COMPANY INFORMATION


Directors
C. P. Hicks 
J. J. Riordan 
J. P. Riordan 




Company secretary
J. P. Riordan



Registered number
02728757



Registered office
Ground Floor
Sidney House Christy Close

Southfields Business Park

Basildon

Essex

SS15 6TN




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY





 


TUNNELCRAFT LIMITED
 



CONTENTS



Page
Strategic Report
1 - 4
Directors' Report
5 - 6
Independent Auditors' Report
7 - 10
Statement of Comprehensive Income
11
Statement of Financial Position
12
Statement of Changes in Equity
13
Notes to the Financial Statements
14 - 24


 


TUNNELCRAFT LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Introduction

The Directors present the strategic report for the year ended 31 January 2024. The principal activity of the Company was the supply of labour to tunnelling and other civils project.

Fair review of the business
 
The Directors present the results of the year and the financial position at the year end and report these to be satisfactory. 
Turnover has increased, mainly due to the ramp up of works on the existing HS2 contracts, however, gross margin has fallen by 4.5%. Whilst disappointing, the announcement of the cancelled West Midlands route to Manchester will not affect future turnover as this section had not been released to tender. The Directors expect growth for the foreseeable future but are mindful of political changes which may affect the performance of the Company. It continues to seek out further labour supply works to mitigate any downturn in any other projects.

Principal risks and uncertainties
 
All businesses are subject to risks and uncertainties and the key risks facing Tunnelcraft Limited are:

°Competition
°Cancellation of contracts
°Delays in completion of projects
°Political uncertainties
°Environmental and professional liabilities
°Health and safety issues
°Pandemics
°Force majeure

Financial risks and Uncertainties
 
The Company's operations are exposed to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The Company has in place a risk management program that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of the debt finance and the related finance costs. The Company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.
Given the size of the Company, the Directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the Company's finance department.
Price risk
The Company has no exposure to equity securities price risks as it holds no listed or other equity investments.
Liquidity risk
The Company manages the liquidity risk by ensuring there are sufficient funds to meet the operating needs of the business. In respect of bank balances, the liquidity risk is managed by maintaining a positive balance between continuity of funding and flexibility through an agreed payment policy. The Company does not maintain any short­ term debt finance.
Interest rate risk
The Company has no interest-bearing assets but carries interest-bearing liabilities.
 
Page 1

 


TUNNELCRAFT LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Regulatory risk
The Company is exposed to a number of regulatory risks:

°Legislation risks – non-compliance with laws and statute. The Company has in place procedures to ensure changes or new legislation affecting the group is adhered to and there are regular reviews. 
°Risk of non-compliance with internal policies and procedures – The Company is under a duty to ensure all employees have and are working in a safe environment and adherence to internal rules and policies are followed.
°Health and Safety – The Company is also under a duty to provide all necessary tools and safety clothing to carry out their work. It is also under a duty to ensure that employees are suitably qualified to carry out their work and that all employees hold the relevant construction cards.

Key performance indicators
 
The key performance indicators used to determine the progress and performance of the Company are set out below:           


2024
£
2023
£
Turnover
66,206,590
21,762,381
Gross profit 
5,080,260
2,746,807
Gross profit margin
8%
13%
Earnings before interest, tax, finance costs, depreciation and Directors' pension (EBITFDP)
3,228,204
2,257,479

EBITFDP percentage of Sales
Operating profit as a percentage of sales is viewed as a key performance indicator for the business and this is reviewed regularly. The EBITFDP is a more comparable measure of the performance of the business which shows that the EBITFDP percentage of sales has decreased to 4.9% [2023: increased to 10.4%]. It is the intention of the Company to continue to strengthen its financial performance in the industry by concentrating on and improving its management processes and further expanding its market share, whilst at the same time closely monitoring both direct and indirect costs.

Employees

The Company operates an equal opportunities policy. The main aim of the policy is to ensure that there should be equal opportunity for all, and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability.
Disabled persons are given full and fair consideration for all types of vacancy in as much as opportunities available are considered by the practical limitations of the disability. Should, for whatever reason, an employee of the Company become disabled whilst in employment, every step, where applicable will be taken to assist with rehabilitation and suitable re-training.
The Company maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that the group is responsive to the needs of the employees and the environment.

Page 2

 


TUNNELCRAFT LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Statement of Financial Position

.As at 31 January 2024, the Company’s net assets were £3,034,982 (2023: £3,922,085) of which £3,881,733 (2023: £2,419,645) were cash and cash equivalents.
Company loans and borrowings were £3,415 as at 31st January 2024 (2023: £7,592). This is the balance on a working capital facility with Santander UK.

Section 172 Statement

The board collectively, have a duty to promote the success of the Company. A Director of a Company must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members, and in doing so have regard to:
1. Building strong relationships with both clients and workers
2. Expanding our talent pool to meet diverse client needs
3. Investing in technology to streamline our recruitment and placement processes
4. Maintaining compliance with all relevant regulations and industry standards
Key Stakeholder Relationships:
The board recognise the importance of fostering positive relationships with our key stakeholders:
Employees and Workers: 
We prioritise fair treatment, competitive compensation, and opportunities for skill development. Regular feedback sessions and training programs help ensure worker satisfaction and retention.
Clients:
We maintain open communication channels with our clients to understand their evolving needs and provide high-quality labour solutions. Client satisfaction surveys and account reviews help us continually improve our services.
Suppliers:
We work closely with our suppliers, including recruitment platforms and background check providers, to ensure efficient operations and maintain high standards of worker vetting.
Community and Environment: 
While our direct environmental impact is limited, we encourage sustainable practices among our workers and clients. We also support local community initiatives through volunteering and charitable partnerships.
Decision-Making and Risk Management:
Our board considers the long-term consequences of decisions, balancing the interests of various stakeholders. We maintain a comprehensive risk management framework, regularly assessing and mitigating risks related to worker safety, client satisfaction, and regulatory compliance.
Business Conduct and Reputation:
We are committed to maintaining high standards of business conduct, ensuring all our operations are ethical and transparent. Our code of conduct guides our interactions with clients, workers, and other stakeholders, helping to maintain our reputation in the industry.
By considering these factors, we believe we are promoting the success of the company for the benefit of its members while also having a positive impact on our broader stakeholder community.

Page 3

 


TUNNELCRAFT LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024


This report was approved by the board and signed on its behalf.



C. P. Hicks
Director

Date: 23 October 2024

Page 4

 


TUNNELCRAFT LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The Directors present their report and the financial statements for the year ended 31 January 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £612,897 (2022: loss £208,571).

The Directors recommended the payment of a dividend of £1,500,000 (2023: £nil) as disclosed in note 11.

Directors

The Directors who served during the year were:

C. P. Hicks 
J. J. Riordan 
J. P. Riordan 

Future developments

The company intends to continue to build on its reputation as one of the leading tunnelling labour suppliers in the sector and  to recruit and develop their in-house teams to ensure the continuity and excellence of their workforce.

Matters covered in the Strategic Report

The Company has chosen, in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out within the Company's Strategic Report the Company's Strategic Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties. 

Page 5

 


TUNNELCRAFT LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





J. J. Riordan
Director

Date: 23 October 2024

Page 6

 


TUNNELCRAFT LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TUNNELCRAFT LIMITED

Opinion


We have audited the financial statements of Tunnelcraft Limited (the 'Company') for the year ended 31 January 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 January 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.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Page 7

 


TUNNELCRAFT LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TUNNELCRAFT LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


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 Directors' 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 set out on page 5, 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.


Page 8

 


TUNNELCRAFT LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TUNNELCRAFT LIMITED (CONTINUED)

Auditors' 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 Auditors' 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations that were most significant included:

The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
UK health and safety legislation;
General Data Protection Regulations; and
UK tax legislation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgments made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgments or estimation to manipulate the Company's financial position;
Posting of unusual journals and complex transactions; and
The use of management override of controls to manipulate results, or to cause the Company to enter into transactions not in its best interests.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Page 9

 


TUNNELCRAFT LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TUNNELCRAFT LIMITED (CONTINUED)


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


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 2006Our 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 Auditors' 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.





Andrew Hookway FCA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

23 October 2024
Page 10

 


TUNNELCRAFT LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
66,206,590
21,762,381

Cost of sales
  
(61,126,330)
(19,015,574)

Gross profit
  
5,080,260
2,746,807

Administrative expenses
  
(3,777,396)
(2,608,540)

Operating profit
 5 
1,302,864
138,267

Interest payable and similar expenses
 9 
-
(302)

Profit before tax
  
1,302,864
137,965

Tax on profit
 10 
(689,967)
(346,536)

Profit/(loss) for the financial year
  
612,897
(208,571)

Other comprehensive income for the year
  

Total comprehensive income for the year
  
612,897
(208,571)

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

The notes on pages 14 to 24 form part of these financial statements.

Page 11

 


TUNNELCRAFT LIMITED
REGISTERED NUMBER:02728757



STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
11,200,000
12,600,000

Tangible assets
 13 
169,720
90,400

  
11,369,720
12,690,400

Current assets
  

Debtors: amounts falling due within one year
 14 
6,337,507
7,078,070

Cash at bank and in hand
  
3,881,733
2,419,645

  
10,219,240
9,497,715

Creditors: amounts falling due within one year
 15 
(10,440,849)
(10,498,512)

Net current liabilities
  
 
 
(221,609)
 
 
(1,000,797)

Total assets less current liabilities
  
11,148,111
11,689,603

Provisions for liabilities
  

Other provisions
 16 
(8,113,129)
(7,767,518)

  
 
 
(8,113,129)
 
 
(7,767,518)

Net assets
  
3,034,982
3,922,085


Capital and reserves
  

Called up share capital 
 17 
710
710

Profit and loss account
 18 
3,034,272
3,921,375

  
3,034,982
3,922,085


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J. J. Riordan
C. P. Hicks
Director
Director


Date: 23 October 2024

The notes on pages 14 to 24 form part of these financial statements.

Page 12

 


TUNNELCRAFT LIMITED
 



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 February 2022
710
4,129,946
4,130,656


Comprehensive income for the year

Loss for the year
-
(208,571)
(208,571)
Total comprehensive income for the year
-
(208,571)
(208,571)



At 1 February 2023
710
3,921,375
3,922,085


Comprehensive income for the year

Profit for the year
-
612,897
612,897
Total comprehensive income for the year
-
612,897
612,897


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,500,000)
(1,500,000)


At 31 January 2024
710
3,034,272
3,034,982


The notes on pages 14 to 24 form part of these financial statements.

Page 13

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

Tunnelcraft Limited is a private company limited by shares incorporated in England and Wales. The registered office and the business address is presented on the Company's Information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Tunnelcraft Holdings Limited as at 31 January 2024 and these financial statements may be obtained from Ground Floor, Sidney House Christy Close, Southfields Business Park, Basildon, Essex, United Kingdom, SS15 6TN.

 
2.3

Revenue

Revenue is recognised at the fair value of consideration received or receivable from the expense recharges, agency commission and license fees, provided in the normal course of business, and is shown net of VAT. 

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 15

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.8

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.
 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
Motor vehicles
-
25%
Fixtures and fittings
-
25%
Office equipment
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 16

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.12

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.


Basic financial assets 
Basic financial assets, which include debtors are measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities 
Basic financial liabilities, including creditors, are 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.

 
2.13

Dividends

Dividends are recognised when they become legally payable. In the case of interim and final dividends to equity shareholders, these are declared in board meetings.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience 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.
Establishing useful economic lives for depreciation purposes of tangible fixed asset
Tangible fixed assets, consisting primarily of fixtures and fittings, computer equipment and motor vehicles. The annual depreciation charge depends on the estimated useful economic lives of each type of asset and estimated residual values. The Directors regularly review these asset useful lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have an impact on depreciation charges for the period. Detail of useful economic lives is included in the accounting policies.
 
Page 17

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

3.Judgments in applying accounting policies (continued)


Estimating provisions
The Company makes an estimate of provisions which is based on employee costs for the year, amounts paid in previous years and the movement in CPI. Any significant change in the amounts paid would have an impact on the operating results. The amount of accrual is reviewed on an on-going basis.
Goodwill valuation and impairment 
The Company makes a judgement on the valuation of goodwill on the acquisition of trade during the year. Further this leads to an estimate on the impairment of goodwill. Impairment reviews are carried out on a timely basis to ensure that the accounting policy adopted reflects a true and fair value of the assets.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Expense recharges, agency commissions and license fees
66,206,590
21,762,381

66,206,590
21,762,381


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of owned tangible fixed assets
52,298
37,214

Amortisation of owned intangible fixed assets
1,400,000
1,400,000

Profit on disposal of tangible fixed assets
(9,500)
(11,000)

Other operating lease rentals
26,648
9,071

Page 18

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
21,000
20,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs, including Directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
41,681,749
11,957,487

Social security costs
4,847,694
1,551,679

Pension costs
873,245
759,565

47,402,688
14,268,731


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Construction
449
331



Administration
3
3

452
334


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
38,447
31,033

Company contributions to defined contribution pension schemes
345,611
623,007

384,058
654,040


During the year retirement benefits were accruing to 2 Directors (2023 - 2) in respect of defined contribution pension schemes.

Page 19

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

9.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
-
302

-
302


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
689,967
313,960

Adjustments in respect of previous periods
-
32,576


689,967
346,536


Total current tax
689,967
346,536

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,302,864
137,965


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.03% (2023 - 19%)
313,080
26,213

Effects of:


Fixed asset differences
(27)
-

Expenses not deductible for tax purposes
53,448
19,272

Capital allowances for year in excess of depreciation
-
2,475

Adjustment in realtion to previous years
-
32,576

Remeasurement of deferred tax for
changes in tax rates
429
-

Movement in deferred tax not recognised
(11,072)
-

Group relief
(2,313)
-

Amortisation added back
336,422
266,000

Total tax charge for the year
689,967
346,536

Page 20

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

11.


Dividends

2024
2023
£
£


Dividends
1,500,000
-

1,500,000
-


12.


Intangible assets




Goodwill

£



Cost


At 1 February 2023
14,000,000



At 31 January 2024

14,000,000



Amortisation


At 1 February 2023
1,400,000


Charge for the year on owned assets
1,400,000



At 31 January 2024

2,800,000



Net book value



At 31 January 2024
11,200,000



At 31 January 2023
12,600,000



Page 21

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 February 2023
34,476
112,369
10,304
75,061
232,210


Additions
-
122,279
-
9,940
132,219


Disposals
-
(43,310)
-
-
(43,310)



At 31 January 2024

34,476
191,338
10,304
85,001
321,119



Depreciation


At 1 February 2023
10,556
62,220
8,285
60,749
141,810


Charge for the year on owned assets
8,619
34,439
1,403
8,439
52,900


Disposals
-
(43,311)
-
-
(43,311)



At 31 January 2024

19,175
53,348
9,688
69,188
151,399



Net book value



At 31 January 2024
15,301
137,990
616
15,813
169,720



At 31 January 2023
23,920
50,149
2,019
14,312
90,400


14.


Debtors

2024
2023
£
£


Trade debtors
87,939
576,346

Other debtors
231,077
410,764

Prepayments and accrued income
130,504
144,792

Amounts recoverable on long-term contracts
5,887,987
5,946,168

6,337,507
7,078,070


Page 22

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
3,415
7,592

Trade creditors
225,967
89,999

Amounts owed to group undertakings
5,295,879
5,548,668

Corporation tax
461,194
313,960

Other taxation and social security
1,907,148
2,359,715

Other creditors
473,886
544,714

Accruals and deferred income
2,073,360
1,633,864

10,440,849
10,498,512



16.


Provisions





Retirement Benefits

£





At 1 February 2023
7,767,518


Charged to profit or loss
345,611



At 31 January 2024
8,113,129

The Company provides a pension benefit in respect of senior employees. Amounts payable are charged to the profit and loss account in the year the contracts are entered into between the Company and the employees. The number of Directors to whom pension benefits are accruing under these pension agreements is 2 (2023: 2). 
The contributions and potential liabilities of the Company in respect of the pension agreements are fixed at least until the date of retirement of the employees which is over 10 years from the year end date. 
Although under section 28 of FRS102 this pension agreement is regarded as being a defined benefit scheme, the Directors are of the opinion that it does not bear any of the hallmarks of what is usually considered to be a defined benefit scheme and therefore no further disclosures are considered necessary in order to understand the nature and measurement of the liability. 
The Directors are also of the opinion that the liability as disclosed in the financial statements represents the full and final amount which could be expect, at this stage, to be paid in the future to settle the pension agreement liabilities. 

Page 23

 


TUNNELCRAFT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



236 (2023 - 236) A Ordinary shares of £1.00 each
236
236
236 (2023 - 236) B Ordinary shares of £1.00 each
236
236
238 (2023 - 238) C Ordinary shares of £1.00 each
238
238

710

710


Each share entitles the holder to receive notice of all general meetings and to attend and vote at any general meeting. One vote per member on a show of hands, one vote per share on a poll.


18.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.


19.


Commitments under operating leases

At 31 January 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
16,667
20,000

Later than 1 year and not later than 5 years
-
16,667

16,667
36,667


20.


Controlling party

Tunnelcraft Holdings Limited is the ultimate parent company of Tunnelcraft Limited and the results of Tunnelcraft Limited are included in the consolidated financial statements of Tunnelcraft Holdings Limited which are available at Ground Floor, Sidney House Christy Close, Southfields Business Park, Basildon, Essex, United Kingdom, SS15 6TN. The directors consider that there is no one ultimate controlling party.                                                        

 
Page 24