REGISTERED NUMBER: 11614317 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Period 1 January 2023 to 31 January 2024 |
for |
Creaton Holdings Limited |
REGISTERED NUMBER: 11614317 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Period 1 January 2023 to 31 January 2024 |
for |
Creaton Holdings Limited |
Creaton Holdings Limited (Registered number: 11614317) |
Contents of the Consolidated Financial Statements |
for the period 1 January 2023 to 31 January 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
Creaton Holdings Limited |
Company Information |
for the period 1 January 2023 to 31 January 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Estate House |
Evesham Street |
Redditch |
Worcestershire |
B97 4HP |
ACCOUNTANTS: |
1623 Warwick Road |
Knowle |
Solihull |
West Midlands |
B93 9LF |
Creaton Holdings Limited (Registered number: 11614317) |
Group Strategic Report |
for the period 1 January 2023 to 31 January 2024 |
The directors present their strategic report of the company and the group for the period 1 January 2023 to 31 January 2024. |
REVIEW OF BUSINESS |
The directors consider group financial performance for the period to be satisfactory and in line with expectations. |
The group achieved a gross profit of £2.8m, or 20.3% of sales revenue, and a net profit before tax of £818k, or 5.9% of sales revenue. |
The shareholders' funds increased by 20% to £3m after the addition of the post-tax profit of £661k less the dividends of £155k. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's operations expose it to a number of financial risks that include price risk & credit risk. |
Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the directors are implemented by the group's finance department as required. |
Price risk |
The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the cost of actively managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature. The group has no exposure to equity securities price risk as it holds no listed or other equity investments. |
Credit risk |
The group has implemented policies that require appropriate credit checks on potential customers before sales are made. |
ON BEHALF OF THE BOARD: |
Creaton Holdings Limited (Registered number: 11614317) |
Report of the Directors |
for the period 1 January 2023 to 31 January 2024 |
The directors present their report with the financial statements of the company and the group for the period 1 January 2023 to 31 January 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the period under review was that of groundwork contractors. |
DIVIDENDS |
The total distribution of dividends for the period ended 31 January 2024 will be £ 155,000 . |
FUTURE DEVELOPMENTS |
The directors anticipate the business environment will remain competitive. However, they believe that the group is in a good financial position and they are confident in the group's ability to maintain and build on this position, albeit with cautious growth expectations. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Derek Young & Co Accountants LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Creaton Holdings Limited |
Opinion |
We have audited the financial statements of Creaton Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 January 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 January 2024 and of the group's profit for the period 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Creaton Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Creaton Holdings Limited |
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 a Report of the Auditors 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. As required by International Standard on Quality Management 1, the engagement partner is responsible for overseeing that the audit is conducted in accordance with the firm's quality management policies and procedures. The engagement partner's responsibilities include taking appropriate actions where necessary to address any identified deficiencies or deviations from the firm's policies and procedures. |
The firm's policies and procedures are designed to ensure that the audit is conducted in accordance with ISAs UK and applicable legal and regulatory requirements, and that reports issued are appropriate in the circumstances. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the group’s and the parent company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
- the results of our enquiries of management about their own identification and assessment of the risks of irregularities |
- any matters we identified having obtained and reviewed the group’s and the parent company's documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the |
financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the group and parent company operate in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s and the parent company's ability to operate or to avoid a material penalty. |
As a result of performing the above, we identified management override of controls as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements ; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Report of the Independent Auditors to the Members of |
Creaton Holdings Limited |
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 Report of the Auditors. |
Other matters which we are required to address |
The period to 31 January 2024 is the first in which the parent company and group required an audit to be carried out. This is also the period in which the period end for group companies was aligned. As a consequence, the comparative figures have not been audited, and the included figures for the parent company's subsidiary, which represent 38% of group profits, are actually for the year ended 31 January 2024, rather than the 13 months to 31 January 2024. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Estate House |
Evesham Street |
Redditch |
Worcestershire |
B97 4HP |
Creaton Holdings Limited (Registered number: 11614317) |
Consolidated |
Income Statement |
for the period 1 January 2023 to 31 January 2024 |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
Notes | £ | £ |
TURNOVER | 3 | 13,940,795 | 16,647,905 |
Cost of sales | 11,105,743 | 14,600,896 |
GROSS PROFIT | 2,835,052 | 2,047,009 |
Administrative expenses | 1,951,026 | 1,229,038 |
OPERATING PROFIT | 5 | 884,026 | 817,971 |
Interest receivable and similar income | 12,995 | 245 |
897,021 | 818,216 |
Interest payable and similar expenses | 6 | 79,277 | 51,777 |
PROFIT BEFORE TAXATION | 817,744 | 766,439 |
Tax on profit | 7 | 150,996 | (7,477 | ) |
PROFIT FOR THE FINANCIAL PERIOD |
Profit attributable to: |
Owners of the parent | 666,748 | 773,916 |
Creaton Holdings Limited (Registered number: 11614317) |
Consolidated |
Other Comprehensive Income |
for the period 1 January 2023 to 31 January 2024 |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
Notes | £ | £ |
PROFIT FOR THE PERIOD | 666,748 | 773,916 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
666,748 |
773,916 |
Note |
Prior year adjustment | 10 | (608,546 | ) | (525,783 | ) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
58,202 |
248,133 |
Total comprehensive income attributable to: |
Owners of the parent | 58,202 | 248,133 |
Creaton Holdings Limited (Registered number: 11614317) |
Consolidated Balance Sheet |
31 January 2024 |
2024 | 2022 | 2022 |
as restated |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 2,427,624 | 2,070,165 | 1,063,885 |
Investments | 12 | - | - | - |
2,427,624 | 2,070,165 | 1,063,885 |
CURRENT ASSETS |
Debtors | 13 | 2,906,317 | 3,209,256 | 1,824,393 |
Cash at bank | 620,122 | 902,615 | 1,388,839 |
3,526,439 | 4,111,871 | 3,213,232 |
CREDITORS |
Amounts falling due within one year | 14 | (1,754,448 | ) | (2,545,024 | ) | (1,818,736 | ) |
NET CURRENT ASSETS | 1,771,991 | 1,566,847 | 1,394,496 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,199,615 |
3,637,012 |
2,458,381 |
CREDITORS |
Amounts falling due after more than one year | 15 | (645,465 | ) | (745,606 | ) | (419,745 | ) |
PROVISIONS FOR LIABILITIES | 18 | (540,040 | ) | (389,044 | ) | (180,191 | ) |
NET ASSETS | 3,014,110 | 2,502,362 | 1,858,445 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 100 | 100 |
Retained earnings | 20 | 3,014,010 | 2,502,262 | 1,858,345 |
SHAREHOLDERS' FUNDS | 3,014,110 | 2,502,362 | 1,858,445 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 October 2024 and were signed on its behalf by: |
D M Hughes - Director |
Creaton Holdings Limited (Registered number: 11614317) |
Company Balance Sheet |
31 January 2024 |
2024 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 743,482 | 404,790 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Creaton Holdings Limited (Registered number: 11614317) |
Consolidated Statement of Changes in Equity |
for the period 1 January 2023 to 31 January 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 100 | 2,384,129 | 2,384,229 |
Prior year adjustment | - | (525,783 | ) | (525,783 | ) |
As restated | 100 | 1,858,346 | 1,858,446 |
Changes in equity |
Dividends | - | (130,000 | ) | (130,000 | ) |
Total comprehensive income | - | 1,382,462 | 1,382,462 |
Balance at 31 December 2022 | 100 | 3,110,808 | 3,110,908 |
Prior year adjustment | - | (608,546 | ) | (608,546 | ) |
As restated | 100 | 2,502,262 | 2,502,362 |
Changes in equity |
Dividends | - | (155,000 | ) | (155,000 | ) |
Total comprehensive income | - | 666,748 | 666,748 |
Balance at 31 January 2024 | 100 | 3,014,010 | 3,014,110 |
Creaton Holdings Limited (Registered number: 11614317) |
Company Statement of Changes in Equity |
for the period 1 January 2023 to 31 January 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2024 |
Creaton Holdings Limited (Registered number: 11614317) |
Consolidated Cash Flow Statement |
for the period 1 January 2023 to 31 January 2024 |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 923,954 | 571,595 |
Interest paid | (27,648 | ) | (19,697 | ) |
Interest element of hire purchase payments paid | (51,629 | ) | (32,080 | ) |
Tax paid | - | (22,198 | ) |
Net cash from operating activities | 844,677 | 497,620 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,010,371 | ) | (1,520,838 | ) |
Sale of tangible fixed assets | 68,842 | 166,265 |
Interest received | 12,995 | 245 |
Net cash from investing activities | (928,534 | ) | (1,354,328 | ) |
Cash flows from financing activities |
Loan repayments in year | (78,666 | ) | (60,500 | ) |
Capital repayments in year | 137,847 | 567,519 |
Amount withdrawn by directors | (102,817 | ) | (6,535 | ) |
Equity dividends paid | (155,000 | ) | (130,000 | ) |
Net cash from financing activities | (198,636 | ) | 370,484 |
Decrease in cash and cash equivalents | (282,493 | ) | (486,224 | ) |
Cash and cash equivalents at beginning of period |
2 |
902,615 |
1,388,839 |
Cash and cash equivalents at end of period | 2 | 620,122 | 902,615 |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Cash Flow Statement |
for the period 1 January 2023 to 31 January 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Profit before taxation | 817,744 | 766,439 |
Depreciation charges | 571,392 | 368,570 |
Loss/(profit) on disposal of fixed assets | 12,679 | (20,278 | ) |
Finance costs | 79,277 | 51,777 |
Finance income | (12,995 | ) | (245 | ) |
1,468,097 | 1,166,263 |
Decrease/(increase) in trade and other debtors | 398,501 | (1,371,012 | ) |
(Decrease)/increase in trade and other creditors | (942,644 | ) | 776,344 |
Cash generated from operations | 923,954 | 571,595 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 31 January 2024 |
31.1.24 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 620,122 | 902,615 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
as restated |
£ | £ |
Cash and cash equivalents | 902,615 | 1,388,839 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank | 902,615 | (282,493 | ) | 620,122 |
902,615 | (282,493 | ) | 620,122 |
Debt |
Finance leases | (902,563 | ) | (137,847 | ) | (1,040,410 | ) |
Debts falling due within 1 year | (78,000 | ) | - | (78,000 | ) |
Debts falling due after 1 year | (246,833 | ) | 78,666 | (168,167 | ) |
(1,227,396 | ) | (59,181 | ) | (1,286,577 | ) |
Total | (324,781 | ) | (341,674 | ) | (666,455 | ) |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements |
for the period 1 January 2023 to 31 January 2024 |
1. | STATUTORY INFORMATION |
Creaton Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of Creaton Holdings Limited & its subsidiary undertaking, Creaton Construction Limited up to 31 January. |
Subsidiaries are consolidated from the date of their acquisition, being the date on which the group obtains control and continue to be consolidated until the date such control ceases. |
Significant judgements and estimates |
The financial statements do not contain any significant judgements or estimation uncertainty. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost less depreciation. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Revenue recognition |
The group recognises revenue from contracts with customers based on the stage of completion, so revenue is matched with the contract costs incurred. |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Loans |
Interest on loans entered into on an arm's length basis is recognised in the profit and loss account in the period during which it accrued. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Construction contracts | 13,940,795 | 16,647,905 |
13,940,795 | 16,647,905 |
4. | EMPLOYEES AND DIRECTORS |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Wages and salaries | 409,245 | 324,460 |
Social security costs | 39,637 | 31,435 |
Other pension costs | 6,494 | 6,180 |
455,376 | 362,075 |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the period was as follows: |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
Accounts | 3 | 3 |
Operational | 7 | 7 |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Directors' remuneration | 26,000 | 26,000 |
Directors' pension contributions to money purchase schemes | 406 | 406 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
The directors consider their own remuneration to be the only significant key management remuneration. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Depreciation - owned assets | 227,139 | 204,245 |
Depreciation - assets on hire purchase contracts | 344,252 | 164,326 |
Loss/(profit) on disposal of fixed assets | 12,679 | (20,278 | ) |
Auditors' remuneration | 13,500 | - |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Bank loan interest | 20,077 | 15,375 |
Other loan interest | 7,524 | 4,118 |
Late payment interest | 47 | 204 |
Hire purchase | 51,629 | 32,080 |
79,277 | 51,777 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the period was as follows: |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | - | (216,330 | ) |
Deferred tax | 150,996 | 208,853 |
Tax on profit | 150,996 | (7,477 | ) |
UK corporation tax has been charged at 25 % . |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Profit before tax | 817,744 | 766,439 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
204,436 |
145,623 |
Effects of: |
Expenses not deductible for tax purposes | 7,766 | 2,978 |
Capital allowances in excess of depreciation | (101,575 | ) | (283,655 | ) |
Utilisation of tax losses | (110,627 | ) | (67,425 | ) |
Adjustments to tax charge in respect of previous periods | - | (13,851 | ) |
Deferred tax | 150,996 | 208,853 |
Total tax charge/(credit) | 150,996 | (7,477 | ) |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
period |
1.1.23 |
to | year ended |
31.1.24 | 31.12.22 |
as restated |
£ | £ |
Interim | 155,000 | 130,000 |
10. | PRIOR YEAR ADJUSTMENT |
The prior year included an accrued income figure of £608,546 which was based on a calculation method adopted by the subsidiary company some years earlier. Whilst appropriate when this calculation was first introduced, by the time that the prior year's figures were reported some years later, the company had moved to a system of billing all work carried out to date at the end of each month, so continuing to include a sales reserve in the accounts was no longer appropriate. |
As the prior years figures also included an opening sales reserve which has also now been removed, the impact on the prior period's figures was a reduction in turnover of £82,763, a reduction in trade debtors of £608,546 and a reduction in profit and loss reserves of £525,783. |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 2,365,567 | 101,677 | 403,012 | 24,274 | 2,894,530 |
Additions | 907,811 | 2,165 | 99,000 | 1,395 | 1,010,371 |
Disposals | (109,715 | ) | - | (39,899 | ) | - | (149,614 | ) |
At 31 January 2024 | 3,163,663 | 103,842 | 462,113 | 25,669 | 3,755,287 |
DEPRECIATION |
At 1 January 2023 | 630,730 | 25,743 | 154,508 | 13,384 | 824,365 |
Charge for period | 468,686 | 12,382 | 85,422 | 4,901 | 571,391 |
Eliminated on disposal | (47,876 | ) | - | (20,217 | ) | - | (68,093 | ) |
At 31 January 2024 | 1,051,540 | 38,125 | 219,713 | 18,285 | 1,327,663 |
NET BOOK VALUE |
At 31 January 2024 | 2,112,123 | 65,717 | 242,400 | 7,384 | 2,427,624 |
At 31 December 2022 | 1,734,837 | 75,934 | 248,504 | 10,890 | 2,070,165 |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 1,343,397 | 35,445 | 1,378,842 |
Additions | 783,336 | - | 783,336 |
Transfer to ownership | (158,775 | ) | - | (158,775 | ) |
At 31 January 2024 | 1,967,958 | 35,445 | 2,003,403 |
DEPRECIATION |
At 1 January 2023 | 227,961 | 2,194 | 230,155 |
Charge for period | 335,247 | 9,005 | 344,252 |
Transfer to ownership | (85,218 | ) | - | (85,218 | ) |
At 31 January 2024 | 477,990 | 11,199 | 489,189 |
NET BOOK VALUE |
At 31 January 2024 | 1,489,968 | 24,246 | 1,514,214 |
At 31 December 2022 | 1,115,436 | 33,251 | 1,148,687 |
Company |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 January 2024 |
DEPRECIATION |
At 1 January 2023 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 December 2022 |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Transfer to ownership | (158,775 | ) | - | (158,775 | ) |
At 31 January 2024 |
DEPRECIATION |
At 1 January 2023 |
Charge for period |
Transfer to ownership | (85,218 | ) | - | (85,218 | ) |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 December 2022 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 December 2022 |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Creaton Cottage, Freer Street, Nuneaton, CV11 4PR. |
Nature of business: |
% |
Class of shares: | holding |
2024 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2022 | 2024 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 2,517,427 | 2,888,225 |
Amounts owed by group undertakings | - | - |
Directors' current accounts | 95,563 | - |
Tax | 13,851 | 13,851 |
VAT | 262,730 | 294,135 |
Prepayments | 16,746 | 13,045 |
2,906,317 | 3,209,256 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2022 | 2024 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 78,000 | 78,000 |
Hire purchase contracts (see note 17) | 563,112 | 403,790 |
Trade creditors | 909,215 | 1,794,150 |
Purchase reserves | 32,788 | 156,230 | - | - |
Social security and other taxes | 40,635 | 13,614 |
Pension fund | 288 | 600 | - | - |
VAT | - | - |
Net wages | - | 4,195 | - | - |
Credit card | 95,608 | 66,537 | - | - |
Directors' current accounts | 14,291 | 21,545 |
Accrued expenses | 20,511 | 6,363 |
1,754,448 | 2,545,024 |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2022 | 2024 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans (see note 16) | 168,167 | 246,833 |
Hire purchase contracts (see note 17) | 477,298 | 498,773 |
645,465 | 745,606 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2022 | 2024 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 78,000 | 78,000 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 78,000 | 78,000 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 90,167 | 168,833 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2022 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year | 563,112 | 403,790 |
Between one and five years | 477,298 | 498,773 |
1,040,410 | 902,563 |
Company |
Hire purchase contracts |
2024 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2022 | 2024 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Deferred tax | 540,040 | 389,044 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 389,044 |
Charge to Income Statement during period | 150,996 |
Balance at 31 January 2024 | 540,040 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Charge to Income Statement during period |
Balance at 31 January 2024 |
The closing deferred tax liability for the group is split as follows: accelerated capital allowances of £606,906, less taxable losses of £66,866. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2022 |
value: | as restated |
£ | £ |
Ordinary | £1 | 100 | 100 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 3,110,808 |
Prior year adjustment | (608,546 | ) |
2,502,262 |
Profit for the period | 666,748 |
Dividends | (155,000 | ) |
At 31 January 2024 | 3,014,010 |
Creaton Holdings Limited (Registered number: 11614317) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 January 2023 to 31 January 2024 |
20. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the period |
Dividends | ( |
) |
At 31 January 2024 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the period ended 31 January 2024 and the year ended 31 December 2022: |
2024 | 2022 |
as restated |
£ | £ |
A J Hughes |
Balance outstanding at start of period | (15,169 | ) | (18,443 | ) |
Amounts advanced | 878 | 3,274 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | (14,291 | ) | (15,169 | ) |
D M Hughes |
Balance outstanding at start of period | (6,376 | ) | (9,637 | ) |
Amounts advanced | 101,939 | 3,261 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | 95,563 | (6,376 | ) |
Interest was charged on the £100K advance to D M Hughes at a rate of 2.25% per annum. The advance was repaid in May 2024. |
22. | RELATED PARTY DISCLOSURES |
During the period, total dividends of £155,000 were paid to the directors . |
23. | ULTIMATE CONTROLLING PARTY |
The group is jointly controlled by the directors, each holding 50% of the issued share capital. There is no single ultimate controlling party. |