Company registration number 04664193 (England and Wales)
CITY BRICKWORK (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CITY BRICKWORK (UK) LIMITED
COMPANY INFORMATION
Directors
S Stevens
N P Hatsell
C G Wilmond
Secretary
Mrs S D Stevens
Company number
04664193
Registered office
DSCO, The Tower
The Maltings
Hoe Lane
Ware
Hertfordshire
SG12 9LR
Auditor
The HHC Partnership Ltd
52 High Street
Pinner
Middlesex
HA5 5PW
Accountants
DSCO, The Tower
The Maltings
Hoe Lane
Ware
Hertfordshire
SG12 9LR
CITY BRICKWORK (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
CITY BRICKWORK (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
City Brickwork (UK) Ltd is a leading brickwork sub-contractor in London and the south-east, providing high quality services on major projects within the UK construction industry.
Review of the business
2023 - 24 continued to be another financially challenging year in a still very competitive market. In the last year we were fortunate enough to purchase and moved premises to new headquarters into a wonderful Grade 2 listed building. It is in a great location but unfortunately needed significant renovations and bringing up to date by future proofing it which all came at a cost to the company.
Future challenges undoubtedly await, with uncertainty dominating the outlook for the UK construction industry, even a potential slowdown. However, the pipeline of new work is strong, with new clients secured. This, combined with a healthy balance sheet, places the business in a strong position to move forward with cautious optimism.
Principal risks and uncertainties
The UK construction industry remains a challenging arena in which to operate. The outlook for the next 12 months is uncertain with output falling and predicted to fall further.
Margins are relatively low, and risk remains high. There have been numerous business failures, with the fall out that entails.
Late payments remain endemic, and as the industry slows, clients adopt more aggressive contractual stances, whilst seeking to place more risk onto subcontractors.
We manage these risks by:
There remains risk from fire-related legacy projects, which we have minimised by engaging with clients to assist in any investigation and remedial work. This approach has proved successful so far and has enabled provision to be made for tackling these projects.
Future Performance
City Brickwork (UK) Ltd is a financially robust and successful business. Our order books are on track to increase turnover again above last year's figures and are confident on increased profits in line with the investments made.
We have also invested heavily in several new state of the art software systems and staff members to enhance and increase the performance of the company putting us in a fantastic position as one of the market leaders of brickwork subcontracting in London moving forward.
CITY BRICKWORK (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
S Stevens
Director
29 October 2024
CITY BRICKWORK (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of construction of commercial and domestic properties.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £400,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Stevens
N P Hatsell
C G Wilmond
Auditor
The auditor, The HHC Partnership Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
CITY BRICKWORK (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
On behalf of the board
S Stevens
Director
29 October 2024
CITY BRICKWORK (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CITY BRICKWORK (UK) LIMITED
- 5 -
Opinion
We have audited the financial statements of City Brickwork (UK) Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CITY BRICKWORK (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CITY BRICKWORK (UK) LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
CITY BRICKWORK (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CITY BRICKWORK (UK) LIMITED (CONTINUED)
- 7 -
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements.
During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
We identified that the principal risks of non-compliance with laws and regulations related to compliance with Health & Safety Laws and Regulations.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Company Law, UK financial reporting standards, Tax and Pensions legislation, and distributable profits legislation.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. From the risk assessment we included appropriate audit procedures in response to such risks in our work, where relevant.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of:
• inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
• enquiries with the same concerning any actual or potential litigation or claims;
• inspection of relevant legal correspondence;
• review of board minutes;
• testing the appropriateness of entries in the nominal ledger, including journal entries;
• reviewing transactions around the end of the reporting period;
• the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
• challenging assumptions made by management in their significant accounting estimates.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Haydn Hughes
Senior Statutory Auditor
For and on behalf of The HHC Partnership Ltd
29 October 2024
Chartered Accountants
Statutory Auditor
52 High Street
Pinner
Middlesex
HA5 5PW
CITY BRICKWORK (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
17,411,636
17,396,047
Cost of sales
(14,865,318)
(14,895,608)
Gross profit
2,546,318
2,500,439
Administrative expenses
(1,538,386)
(1,020,923)
Operating profit
4
1,007,932
1,479,516
Interest receivable and similar income
8
4,861
127
Interest payable and similar expenses
9
(279,461)
(117,439)
Profit before taxation
733,332
1,362,204
Tax on profit
10
(299,495)
218,520
Profit for the financial year
433,837
1,580,724
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CITY BRICKWORK (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
433,837
1,580,724
Other comprehensive income
-
-
Total comprehensive income for the year
433,837
1,580,724
CITY BRICKWORK (UK) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
13,860
27,312
Tangible assets
13
161,671
116,557
175,531
143,869
Current assets
Stocks
14
400,519
1,593,403
Debtors
16
4,621,726
3,309,740
Cash at bank and in hand
531,037
579,502
5,553,282
5,482,645
Creditors: amounts falling due within one year
17
(3,834,655)
(3,716,611)
Net current assets
1,718,627
1,766,034
Total assets less current liabilities
1,894,158
1,909,903
Provisions for liabilities
Provisions
19
365,000
432,766
Deferred tax liability
20
39,958
21,774
(404,958)
(454,540)
Net assets
1,489,200
1,455,363
Capital and reserves
Called up share capital
22
20
20
Share premium account
59,999
59,999
Profit and loss reserves
1,429,181
1,395,344
Total equity
1,489,200
1,455,363
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
S Stevens
Director
Company registration number 04664193 (England and Wales)
CITY BRICKWORK (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
20
59,999
1,264,620
1,324,639
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,580,724
1,580,724
Dividends
11
-
-
(1,450,000)
(1,450,000)
Balance at 31 March 2023
20
59,999
1,395,344
1,455,363
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
433,837
433,837
Dividends
11
-
-
(400,000)
(400,000)
Balance at 31 March 2024
20
59,999
1,429,181
1,489,200
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
City Brickwork (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is DSCO, The Tower, The Maltings, Hoe Lane, Ware, Hertfordshire, SG12 9LR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Oddyns Holdings Ltd. These consolidated financial statements are available from its registered office,
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33% on cost
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
15% on cost
Plant and equipment
25% on reducing balance
Fixtures and fittings
25& on reducing balance
Computers
33% on cost
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.14
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
2
Judgements 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 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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK
17,411,637
17,396,048
2024
2023
£
£
Other revenue
Interest income
4,861
127
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
3,000
3,000
Depreciation of owned tangible fixed assets
53,064
40,227
Profit on disposal of tangible fixed assets
-
(34,175)
Amortisation of intangible assets
13,452
13,452
Operating lease charges
87,000
42,120
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
3,000
3,000
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Employees
14
20
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
620,573
593,345
Social security costs
73,817
56,817
Pension costs
172,164
160,175
866,554
810,337
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
170,660
124,000
Company pension contributions to defined contribution schemes
46,632
43,000
217,292
167,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
61
127
Other interest income
4,800
Total income
4,861
127
9
Interest payable and similar expenses
2024
2023
£
£
Interest payable to group undertakings
255,571
117,339
Other interest on financial liabilities
9,005
100
Other interest
14,885
279,461
117,439
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
194,345
Adjustments in respect of prior periods
86,966
(213,000)
Total current tax
281,311
(213,000)
Deferred tax
Origination and reversal of timing differences
18,184
(5,520)
Total tax charge/(credit)
299,495
(218,520)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
733,332
1,362,204
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
183,333
258,819
Tax effect of expenses that are not deductible in determining taxable profit
18,957
12,696
Unutilised tax losses carried forward
(49,339)
Adjustments in respect of prior years
86,966
(213,000)
Permanent capital allowances in excess of depreciation
(7,945)
(2,860)
Research and development tax credit
(219,316)
Deferred tax adjustments in respect of prior years
18,184
(5,520)
Taxation charge/(credit) for the year
299,495
(218,520)
11
Dividends
2024
2023
£
£
Final paid
400,000
1,377,500
Interim paid
72,500
400,000
1,450,000
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
12
Intangible fixed assets
Software
£
Cost
At 1 April 2023 and 31 March 2024
40,764
Amortisation and impairment
At 1 April 2023
13,452
Amortisation charged for the year
13,452
At 31 March 2024
26,904
Carrying amount
At 31 March 2024
13,860
At 31 March 2023
27,312
13
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
209,166
23,238
116,798
349,202
Additions
32,398
6,650
2,324
14,811
41,995
98,178
At 31 March 2024
32,398
215,816
2,324
38,049
158,793
447,380
Depreciation and impairment
At 1 April 2023
141,105
18,228
73,312
232,645
Depreciation charged in the year
4,860
18,678
465
7,691
21,370
53,064
At 31 March 2024
4,860
159,783
465
25,919
94,682
285,709
Carrying amount
At 31 March 2024
27,538
56,033
1,859
12,130
64,111
161,671
At 31 March 2023
68,061
5,010
43,486
116,557
14
Stocks
2024
2023
£
£
Raw materials and consumables
400,519
1,593,403
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
15
Construction contracts
2024
2023
£
£
Contracts in progress at the reporting date
Amounts recoverable on long term contracts
3,473,622
2,112,281
At 31 March 2024, retentions held by customers for contract work amounted to £1,421,598
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
350,961
177,133
Amounts recoverable on long term contracts
3,473,622
2,112,281
Corporation tax recoverable
213,000
Amounts owed by group undertakings
4,750
250
Amounts owed by undertakings in which the company has a participating interest
13,000
Other debtors
443,476
561,357
Prepayments and accrued income
94,309
63,068
4,380,118
3,127,089
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
241,608
182,651
Total debtors
4,621,726
3,309,740
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
18
1,850,787
2,135,216
Trade creditors
769,186
1,034,861
Amounts owed to group undertakings
449,900
47,501
Corporation tax
365,990
Other taxation and social security
116,022
14,951
Other creditors
94,094
154,267
Accruals and deferred income
188,676
329,815
3,834,655
3,716,611
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
18
Loans and overdrafts
2024
2023
£
£
Loans from group undertakings
1,850,787
2,135,216
Payable within one year
1,850,787
2,135,216
The loan is secured by a fixed and floating charge in favour of Oddyns Holdings Ltd covering all the property and undertakings of the company.
The loan is repayable on demand and interest accrues on the outstanding loan balance at a rate of 12% per annum.
19
Provisions for liabilities
2024
2023
£
£
365,000
432,766
Movements on provisions:
£
At 1 April 2023 and 31 March 2024
365,000
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
39,958
21,774
2024
Movements in the year:
£
Liability at 1 April 2023
21,774
Charge to profit or loss
18,184
Liability at 31 March 2024
39,958
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Deferred taxation
(Continued)
- 23 -
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
172,164
160,175
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
20
20
20
20
23
Related party transactions
Oddyns Holdings Ltd
During the year, the company paid dividends totalling £400,000 (2023: £1,377,500) to Oddyns Holdings Ltd, a company which owns 95% of the shareholding of this company and in which S Stevens is a director.
During the year, the company was invoiced by Oddyns Holdings Ltd for services relating to management charges, totalling £30,000 (2023: £30,000).
As at the year end, the company owed £449,900 (2023: owed £47,500) to Oddyns Holdings Ltd.
As at the year end, the company owed £1,850,787 (2023 :£2,135,216) to Oddyns Holdings Ltd. This amount is a loan granted on an arms length basis, with interest accruing at a rate of 12% per annum.
Oddyns Properties Ltd
As at the year end, the company was owed £109,709 (2023: £154,109) by Oddyns Properties Ltd, a company in which S Stevens is a director and shareholder.
GBuild Estates Ltd
As at the year end, the company was owed £13,000 (2023: £154,109) by GBuild Estates Ltd, a company in which S Stevens is a director.
Heath Plant & Commercial Ltd
During the year the company was invoiced for hire and equipment, the amount totalling £302,156 (2023: £333,768) by Heath Plant & Commercial Ltd, a company in which S Stevens is a director.
As at the year end, the company owed £56,000 (2023:£57,458) to Heath Plant & Commercial Ltd, and this amount can be seen in trade creditors.
The company was also owed £2,750 (2023:£250) by Heath Plant & Commercial Ltd.
NPH Holdings Ltd
As at the year end, the company owed £nil (2023: £69,699) to NPH Holdings Ltd, a company in which owns 5% of the shareholding of this company and in which N Hatsell is a shareholder and director.
CITY BRICKWORK (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
24
Ultimate controlling party
The immediate and ultimate parent undertaking is Oddyns Holdings Ltd. The group is controlled by the Director Mr Stevens.
The smallest and largest group into which the results of the company are consolidated is Oddyns Holdings Ltd. A copy of the consolidated accounts are available from the Registered office of that company.
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