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REGISTERED NUMBER: 07505341 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2024

for

Duo Operations Limited

Duo Operations Limited (Registered number: 07505341)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Statement of Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16

Notes to the Financial Statements 17


Duo Operations Limited

Company Information
for the Year Ended 30 June 2024







DIRECTORS: M F McWilliams
S J Hall
L Magee
P J McDermott





REGISTERED OFFICE: Siskin Drive
Middlemarch Business Park
Coventry
West Midlands
CV3 4FJ





REGISTERED NUMBER: 07505341 (England and Wales)





AUDITORS: Thornton Springer LLP
Chartered Accountants and
Statutory Auditor
67 Westow Street
London
SE19 3RW

Duo Operations Limited (Registered number: 07505341)

Strategic Report
for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

PRINCIPAL ACTIVITY

The principal activity of the company during the period were civil engineering and construction activities, sale of Quarrying equipment and spares, repair and maintenance of aggregate processing equipment, processing of aggregates in the quarrying sector and rental and sale of plant and machinery.

REVIEW OF BUSINESS

Turnover during the year turnover decreased by 17.8% to £76,006,021 from £92,551,323. This was a result of adopting a more selective approach to the project appraisal, focussing on contracts that deliver a pre-defined acceptable yield. As a result of this strategy the margin and profit achieved increased.

Gross margin improved from 15.8% to 22.0%, this was achieved by a greater focus on delivery of our projects and the end of historical legacy projects. The business continues to strive to achieve overhead savings in the period the reduction amounted to 6%. The net result of the above culminated in a increase of operating profit of 29.4%.

The expectation for the current year is that turnover and gross profit will increase, further cost overhead savings will be made and the result will be an overall improvement in operating profit. At the year-end date the company's net assets were £9.94m (2023 - £5.35m), this is expected to rise as the company has agreed for the current year to make no dividend payments.

The business improvement plans would not be possible without the continued endeavour and commitment of our workforce. Operating in a safe and healthy manner whilst being environmentally responsible remains a key focus of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors of the company meet on a regular basis and review and evaluate the Company's risk appetite. In the view of the directors, the principal risks and uncertainties can be categorised as follows:

Economic Risk

Whilst the negative impact of the Covid-19 pandemic of recent years is thankfully lessening, it has been replaced by the economic uncertainty arising from the continual conflict in Ukraine. This is having a major impact on input prices on items such as fuel, steel, concrete and other supplies. The business has procedures and processes in place to ensure proper risk assessments are considered as part of our tendering and project selection stage. The business continues to monitor and review its cost base to ensure all exposure to price increases is mitigated.

Overall economic and social infrastructure investment is forecast to be between £700-775bn over the next 10 years.
Of this, £379bn is confirmed with £164bn to be spent by the end of 2024/25. Energy (£36bn a year) and transport (£19bn a year) will receive the largest share of investment in the next two years.

Construction output is forecast to fall by 2.9% in 2024 but coming towards the end of the year, the focus is clearly on next year and construction output is forecast to rise by 2.5% in 2025, which is slightly more positive than expected three months ago.
The wider UK economy appears to be in a stronger position than it was 3-6 months ago and early indicators for the two largest construction sections. The forecasts for the other key construction sectors remain similar to three months ago, as many firms operating in commercial refurbishment and fit-out or working on major infrastructure projects continue to experience robust activity.

Arguably, the UK construction industry has suffered more than most due to high inflation and high interest rates. Continuing supply chain volatility, shortages of skilled labour, and high materials costs have made it hard for the industry to recover at the same pace as other parts of the economy.





Duo Operations Limited (Registered number: 07505341)

Strategic Report
for the Year Ended 30 June 2024



Credit Risk

The company's principal financial assets are cash and trade debtors. The company has a credit control policy in place which regularly reviews the credit performance of our debtor book.

Liquidity risk

The cash / working capital requirements of the business are managed on a regular basis by means of a rolling six-month cash forecast. This model incorporates anticipated receipts from customers and prospective payments to suppliers for the period. Exceptional movements from the previous forecasted cashflow model are reviewed at the quarterly board meetings. A revised cash projection is presented at the same meeting and assumptions underlying the model are discussed.

Following the demise of ISG we seek to further protect ourselves by ensuring WIP is maintained at a minimum level not to excess 3% and explore the market place for suitable credit insurance.

Competitive Risk

The company operates in diverse sectors where there is strong competition. The company seeks to mitigate this risk through the quality of its service offering whilst offering competitive pricing to our customer base. The decision to bid is strictly controlled by Directors through satisfactory completion of tender bid approval process where opportunities are scored against key business performance indicators.

Governance Structure

The Board has delegated a number of its responsibilities to Board Committees, which utilise the expertise and experience of their members to examine subjects in detail and make recommendations to the Board where required. This delegation allows the Board to focus more of its time on strategic and other broader matters.

The Duo will commence a refresh of its strategy and blueprint, as well as a reshape of its business model in order to build its capabilities and achieve its growth targets. and to ensure effective corporate governance across both strategic and BAU activity.

IT Technology Risk

The company could potentially be exposed to loss of network and or data. The company mitigates this risk by having an in-house dedicated IT team to ensure that ongoing policies and procedures are suitable and effective. Duo's processes and procedures are designed to reduce risk of cyber threats and demonstrates your commitment to cyber security. The system is accredited to the industry recognised standard Cyber Essentials.


Duo Operations Limited (Registered number: 07505341)

Strategic Report
for the Year Ended 30 June 2024

SECTION 172(1) STATEMENT
In accordance with S172 of the Companies Act 2006, the directors are required to act individually and collectively in the way they consider, to be in good faith, and be most likely to promote the success of the company for the benefit of its shareholders. In performing their responsibilities, the directors must have regard for the following matters:-

- the likely consequences of any decision taken on the long-term sustainability of the company.
- the interests and wellbeing of the company's employees.
- the need to foster and grow the company's relationships with suppliers, customers, and other business stakeholders.
- the impact of the company's operations on the local communities, local environment, and climate.
- the reputation of the company in maintaining high standards of business conduct, integrity and transparency.
- the need to act openly, fairly and without fear of discrimination in dealings between employees of the company.

Decision Making

The Directors regard these matters as of cultural importance and are embedded as the core values on which all decision making in the company's business strategy is founded. The Directors' strategy is to build and maintain a high-quality business by maintaining and strengthening the balance sheet and ensuring sufficient funding to maintain operational flexibility.

Employees

The Directors recognise that the success of the business depends upon attracting the best talent, retaining and reducing staff turnover, motivating employees to deliver and excel in all business operations. In valuing our employees, we must ensure that we always act responsibly, provide a clear career path, adopt fair pay across genders and benefit incentives, adhering to Company policies on equal opportunities, safeguarding and elimination of modern slavery. The periodic employee appraisal program encourages employee feedback and facilitates the opportunity for both employees and managers to set performance goals.

The Directors have introduced a set of guiding principles that all employees are expected to follow, and through which the Directors must lead by example.

The Health Safety and wellbeing of our employees are of paramount importance. The Directors have developed and implemented industry recognised health and safety management system, with procedures and processes which are accredited to ISO 45001. Adherence to this system will drive continual improvement in all business activities which will safeguard our employees, subcontractors and business stakeholders.

Suppliers and Customers

The Directors believe in developing and maintaining lasting relationships with suppliers and customers. Business operations rely on expertise and resources of key suppliers within the Company Supply Chain. The company is committed to being open and transparent in dealings, striving to improve payment days and adhering to agreed terms. Directors will engage in a respectful, courteous and considerate manner to bolster and improve Supply Chain relationships.

Business Conduct

The company aims to conduct all its business relationships with integrity and courtesy, with the expectation that it will be reciprocated. The Directors believe that maintaining a reputation for competency, reliability, quality and honesty in its dealings is a fundamental requirement to deliver the company's strategic objectives. This extends to our dealings with the public, government agencies, local authorities, and other businesses. This commitment is underlined through adopting the Considerate Constructors Scheme on projects which is an industry recognised scheme to impact positive change and lasting legacy of projects in the local community.








Duo Operations Limited (Registered number: 07505341)

Strategic Report
for the Year Ended 30 June 2024



Carbon/Climate Disclosure

Labour states that it wants to make the UK "the green finance capital of the world" On decarbonisation it is important we align with recommendations with respect to engagement and behavioural change to reduce carbon emissions and mitigate the risk of relying on unproven technologies to achieve net zero. On climate adaptation and resilience we will look to align to improvement infrastructure's climate resilience, as the Adaptation Reporting Power of the UK Climate Change Act will be made mandatory for all infrastructure owners and operators.

Climate change is of priority concern and strategic importance for Duo, as a company actively engaged in national infrastructure projects, and in the aggregate industry. Our Board of Directors are actively engaged in the setting of policy, procedures and governance of climate change issues, supported by our Sustainability Team of project specific champions and our SHEQ management team. All activities are assessed for impact and mitigation measures identified.

Senior Company Management has primary responsibility for the design and implementation of our response to climate change achieved through setting annual, measurable, achievable objectives and targets. Our climate change strategy is informed and underpinned by active engagement with our stakeholders including investors, local authorities and nongovernment organisations. We regularly review our objectives on climate change with emerging technologies and Regulations. We aim to increase awareness within our Company employees through training and informed information. We strive to utilise and promote within our supply chain companies who lead and are recognised for adopting sustainable and climate green practices.

Our response to climate change is focused on mitigation adaption, and low-emissions technology.

We aim to reduce Green House Gasses through:

- Reduced emissions, achieved by reducing plant idling.
- Utilisation of electric power sourced through green processes such as wind and solar.
- Encouraging electric car, car share and cycle to work practices.
- Recycling within all operations and activities
- Sourcing locally

ON BEHALF OF THE BOARD:





M F McWilliams - Director


31 October 2024

Duo Operations Limited (Registered number: 07505341)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of The principal activity of the company during the period were civil engineering and construction activities, sale of Quarrying equipment and spares, repair and maintenance of aggregate processing equipment, processing of aggregates in the quarrying sector and rental and sale of plant and machinery.

DIVIDENDS
No dividends will be distributed for the year ended 30 June 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

M F McWilliams
S J Hall

Other changes in directors holding office are as follows:

P Doran - resigned 10 July 2023
L Magee - appointed 30 May 2024
P J McDermott - appointed 30 May 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 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 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 company'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 company's auditors are aware of that information.

Duo Operations Limited (Registered number: 07505341)

Report of the Directors
for the Year Ended 30 June 2024


AUDITORS
The auditors, Thornton Springer LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M F McWilliams - Director


31 October 2024

Report of the Independent Auditors to the Members of
Duo Operations Limited

Opinion
We have audited the financial statements of Duo Operations Limited (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 30 June 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 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
Duo Operations Limited


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 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, 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 Statement of Directors' Responsibilities set out on page six, 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 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.

Report of the Independent Auditors to the Members of
Duo Operations 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.

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

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.

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with relevant laws and regulations. Non-compliance with these laws and regulations might have a material effect on the financial statements.

We evaluated management's incentives and opportunity for fraudulent manipulation of the financial statement (including the risk of override of controls) and determined that the principal risks were posting of unusual journal entries outside the normal course of business and revenue recognition journal entries to manipulate the company's performance profit measures and other key performance indicators.

Audit procedures performed included: review of the financial statements and disclosures to underlying supporting documentation, review of compliance with the laws and regulations, enquiries with management, testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Under ISA 240 (UK) there is a presumed risk that revenue may be misstated due to the improper recognition of revenue. To address this risk, we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard, performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions. We tested a sample of revenue transactions to supporting evidence and tested, on a sample basis, revenue related balances in the balance sheet.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Report of the Independent Auditors to the Members of
Duo Operations Limited


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.




Stephen A Kaye (Senior Statutory Auditor)
for and on behalf of Thornton Springer LLP
Chartered Accountants and
Statutory Auditor
67 Westow Street
London
SE19 3RW

31 October 2024

Duo Operations Limited (Registered number: 07505341)

Statement of Comprehensive Income
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   

TURNOVER 4 76,006,021 92,551,323

Cost of sales (59,246,542 ) (77,879,821 )
GROSS PROFIT 16,759,479 14,671,502

Administrative expenses (5,917,367 ) (6,295,140 )
OPERATING PROFIT 6 10,842,112 8,376,362

Interest receivable and similar income 136,211 61,171
10,978,323 8,437,533

Interest payable and similar expenses 7 (5,522,047 ) (4,612,493 )
PROFIT BEFORE TAXATION 5,456,276 3,825,040

Tax on profit 8 (859,155 ) -
PROFIT FOR THE FINANCIAL YEAR 4,597,121 3,825,040

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

4,597,121

3,825,040

Duo Operations Limited (Registered number: 07505341)

Balance Sheet
30 June 2024

30.6.24 30.6.23
Notes £    £   
FIXED ASSETS
Tangible assets 9 8,041,424 520,010
Investments 10 1,216,560 1,216,500
9,257,984 1,736,510

CURRENT ASSETS
Stocks 11 865,549 338,683
Debtors 12 33,770,458 36,921,728
Cash at bank 1,503,660 883,456
36,139,667 38,143,867
CREDITORS
Amounts falling due within one year 13 (27,276,407 ) (33,112,352 )
NET CURRENT ASSETS 8,863,260 5,031,515
TOTAL ASSETS LESS CURRENT
LIABILITIES

18,121,244

6,768,025

CREDITORS
Amounts falling due after more than one
year

14

(7,458,875

)

(1,416,702

)

PROVISIONS FOR LIABILITIES 17 (713,925 ) -
NET ASSETS 9,948,444 5,351,323

CAPITAL AND RESERVES
Called up share capital 18 99 99
Retained earnings 19 9,948,345 5,351,224
SHAREHOLDERS' FUNDS 9,948,444 5,351,323

The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2024 and were signed on its behalf by:





M F McWilliams - Director


Duo Operations Limited (Registered number: 07505341)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2022 99 1,526,184 1,526,283

Changes in equity
Total comprehensive income - 3,825,040 3,825,040
Balance at 30 June 2023 99 5,351,224 5,351,323

Changes in equity
Total comprehensive income - 4,597,121 4,597,121
Balance at 30 June 2024 99 9,948,345 9,948,444

Duo Operations Limited (Registered number: 07505341)

Cash Flow Statement
for the Year Ended 30 June 2024

30.6.24 30.6.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 7,533,058 5,824,697
Interest paid (5,471,020 ) (4,481,495 )
Interest element of hire purchase payments
paid

(51,027

)

(130,998

)
Net cash from operating activities 2,011,011 1,212,204

Cash flows from investing activities
Purchase of tangible fixed assets (7,980,688 ) -
Purchase of fixed asset investments (60 ) -
Sale of tangible fixed assets 388,257 -
Interest received 134,511 61,171
Net cash from investing activities (7,457,980 ) 61,171

Cash flows from financing activities
Capital repayments in year 5,934,908 (273,376 )
Amount introduced by directors 440,000 -
Amount withdrawn by directors (307,735 ) (155,218 )
Net cash from financing activities 6,067,173 (428,594 )

Increase in cash and cash equivalents 620,204 844,781
Cash and cash equivalents at beginning of
year

2

883,456

38,675

Cash and cash equivalents at end of year 2 1,503,660 883,456

Duo Operations Limited (Registered number: 07505341)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

30.6.24 30.6.23
£    £   
Profit before taxation 5,456,276 3,825,040
Depreciation charges 61,537 124,211
Loss on disposal of fixed assets 9,480 -
Finance costs 5,522,047 4,612,493
Finance income (136,211 ) (61,171 )
10,913,129 8,500,573
Increase in stocks (526,866 ) (238,884 )
Decrease/(increase) in trade and other debtors 4,446,493 (5,033,285 )
(Decrease)/increase in trade and other creditors (7,299,698 ) 2,596,293
Cash generated from operations 7,533,058 5,824,697

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:

Year ended 30 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 1,503,660 883,456
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 883,456 38,675


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank 883,456 620,204 1,503,660
883,456 620,204 1,503,660
Debt
Finance leases (1,616,889 ) (5,934,908 ) (7,551,797 )
(1,616,889 ) (5,934,908 ) (7,551,797 )
Total (733,433 ) (5,314,704 ) (6,048,137 )

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

Duo Operations Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the recognition of certain financial assets and liabilities measured at fair value.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

There are no significant judgements (apart from those involving estimates) which have had an effect on the accounts recognised in the financial statements.

Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Contract revenue recognition

Turnover is measured at the fair value of consideration received or receivable, net of discounts, rebates, value added taxes and other sales taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 33% on cost, 20% on cost and 10% on cost
Computer equipment - 33% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition, including any import costs, duties and carriage.

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

3. ACCOUNTING POLICIES - continued

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 year 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.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

3. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and intra-group balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at cost and amortised cost are assessed for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

For financial assets measured at amortised costs, the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated cash flow discounted at the asset's original effective interest rate.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank overdraft, intra-group balances and hire purchase contracts, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, and, if applicable, other short-term highly liquid investments with original maturities of three months or less.

4. TURNOVER

The breakdown of turnover and profit before taxation from continuing activities attributable to principal activities of the company along with segmental analysis has not been provided on the basis that in the directors' opinion such information would be seriously prejudicial to the company's interest.

5. EMPLOYEES AND DIRECTORS
30.6.24 30.6.23
£    £   
Wages and salaries 6,595,221 8,279,329
Social security costs 330,616 321,509
Other pension costs 104,107 47,351
7,029,944 8,648,189

The average number of employees during the year was as follows:
30.6.24 30.6.23

Directors 3 3
Administration 25 22
Operators 85 121
113 146

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

5. EMPLOYEES AND DIRECTORS - continued

30.6.24 30.6.23
£    £   
Directors' remuneration 404,269 358,731

Information regarding the highest paid director is as follows:
30.6.24 30.6.23
£    £   
Emoluments etc 250,000 144,001

No retirement benefits are accruing for any directors.

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.6.24 30.6.23
£    £   
Hire of plant and machinery 8,562,330 8,872,220
Depreciation - owned assets 48,795 47,852
Depreciation - assets on hire purchase contracts 12,742 76,360
Loss on disposal of fixed assets 9,480 -
Auditors' remuneration 17,500 13,000
Foreign exchange differences (26,135 ) 245,578

7. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.24 30.6.23
£    £   
Interest charges 18,982 87,244
Loan interest charges 1,328,920 1,182,957
Invoice discounting and interest charges 4,123,118 3,211,294
Hire purchase 51,027 130,998
5,522,047 4,612,493

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.6.24 30.6.23
£    £   
Current tax:
UK corporation tax 145,230 -

Deferred tax 713,925 -
Tax on profit 859,155 -

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.6.24 30.6.23
£    £   
Profit before tax 5,456,276 3,825,040
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

1,364,069

726,758

Effects of:
Expenses not deductible for tax purposes 12,787 1,682
Capital allowances in excess of depreciation (659,596 ) -
Depreciation in excess of capital allowances - 10,976
Utilisation of tax losses (16,847 ) (739,416 )
Adjustments to tax charge in respect of previous periods (555,183 ) -
Deferred taxation 713,925 -
Total tax charge 859,155 -

Changes to the future UK corporation tax rates were substantively enacted as part of the Finance Bill 2021 on 24 May 2021. It makes provision for the rate of corporation tax in the UK to increase from 1 April 2023 from 19% to 25% where a company has taxable profits exceeding £250,000. Therefore, the tax rate of 25% has been used in the calculations for 2024.

9. TANGIBLE FIXED ASSETS
Plant and Computer
machinery equipment Totals
£    £    £   
COST
At 1 July 2023 704,682 83,271 787,953
Additions 7,965,688 15,000 7,980,688
Disposals (561,952 ) - (561,952 )
At 30 June 2024 8,108,418 98,271 8,206,689
DEPRECIATION
At 1 July 2023 212,545 55,398 267,943
Charge for year 32,931 28,606 61,537
Eliminated on disposal (164,215 ) - (164,215 )
At 30 June 2024 81,261 84,004 165,265
NET BOOK VALUE
At 30 June 2024 8,027,157 14,267 8,041,424
At 30 June 2023 492,137 27,873 520,010

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 July 2023 492,750
Additions 7,385,000
Disposals (419,750 )
At 30 June 2024 7,458,000
DEPRECIATION
At 1 July 2023 188,667
Charge for year 12,742
Eliminated on disposal (144,070 )
At 30 June 2024 57,339
NET BOOK VALUE
At 30 June 2024 7,400,661
At 30 June 2023 304,083

10. FIXED ASSET INVESTMENTS
Shares in
group
undertaking
£   
COST
At 1 July 2023 1,216,500
Additions 60
At 30 June 2024 1,216,560
NET BOOK VALUE
At 30 June 2024 1,216,560
At 30 June 2023 1,216,500

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Excav8 Limited
Registered office: 11-15 Thistle Street, Edinburgh, Scotland, EH2 1DF
Nature of business: Engineering
%
Class of shares: holding
Ordinary 100.00

Duo Site Services Limited
Registered office: Siskin Drive, Middlemarch Business Park, Coventry, England, CV3 4FJ
Nature of business: Site restoration services
%
Class of shares: holding
Ordinary 60.00

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

11. STOCKS
30.6.24 30.6.23
£    £   
Finished goods 865,549 338,683

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Trade debtors 5,014,961 4,233,647
Amounts owed by group undertakings 1,668,903 6,203,840
Other debtors 1,671,353 1,671,353
Amounts owed by related entities 923,389 6,949,525
Amounts recoverable under contracts 18,146,674 16,117,761
VAT 1,911,724 552,716
Prepayments and accrued income 4,433,454 1,192,886
33,770,458 36,921,728

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£    £   
Hire purchase contracts (see note 15) 2,154,854 515,782
Trade creditors 13,701,470 13,627,464
Amounts owed to group undertakings - 65,288
Tax 143,531 -
Social security and other taxes 516,217 440,769
Other creditors 7,063,887 13,161,356
Amounts owed to related
entities 715,234 -
Directors' current accounts 432,283 300,018
Accruals and deferred income 2,548,931 5,001,675
27,276,407 33,112,352

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30.6.24 30.6.23
£    £   
Hire purchase contracts (see note 15) 5,396,943 1,101,107
Other creditors 2,061,932 315,595
7,458,875 1,416,702

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
30.6.24 30.6.23
£    £   
Gross obligations repayable:
Within one year 2,860,532 764,593
Between one and five years 6,273,346 1,325,975
9,133,878 2,090,568

Finance charges repayable:
Within one year 705,678 248,811
Between one and five years 876,403 224,868
1,582,081 473,679

Net obligations repayable:
Within one year 2,154,854 515,782
Between one and five years 5,396,943 1,101,107
7,551,797 1,616,889

Non-cancellable operating leases
30.6.24 30.6.23
£    £   
Within one year 226,547 71,747
Between one and five years 796,547 113,094
In more than five years 110,000 120,000
1,133,094 304,841

16. SECURED DEBTS

The following secured debts are included within creditors:

30.6.24 30.6.23
£    £   
Secured debts 7,785,025 1,616,889

The bank overdraft of the group is secured via a fixed and floating charge over the assets of the company and the group plus the associated companies Duo Processing Limited and DMP Assets Limited.

Hire purchase contracts are secured against the assets to which the loans relate.

Invoice discounting creditors are secured against the trade debtors they relate to.

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

17. PROVISIONS FOR LIABILITIES
30.6.24 30.6.23
£    £   
Deferred tax 713,925 -

Deferred
tax
£   
Provided during year 713,925
Balance at 30 June 2024 713,925

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 30.6.23
value: £    £   
99 Ordinary Shares 1 99 99

19. RESERVES
Retained
earnings
£   

At 1 July 2023 5,351,224
Profit for the year 4,597,121
At 30 June 2024 9,948,345

20. ULTIMATE PARENT COMPANY

The company is a subsidiary of Duo Group (U.K.) Ltd, a company registered in England and Wales.

These financial statements have been consolidated in the financial statements of PT McWilliams Group Ltd. The consolidated financial statements can be obtained from 17 Clarendon Road, Belfast, BT1 3BG.

The ultimate parent company at the year end is PT McWilliams Group Ltd, a company registered in Northern Ireland.

21. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Companies under common control
30.6.24 30.6.23
£    £   
Sales 2,792,204 6,598,313
Purchases (2,467,856 ) (5,432,764 )
Amount due from related parties 923,389 6,982,143
Amount due to related parties (715,234 ) (95,590 )

Duo Operations Limited (Registered number: 07505341)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

22. ULTIMATE CONTROLLING PARTY

The controlling party is M F McWilliams.