43 false false false false true false false false false false false true false false true true false true true true true 2023-07-01 Sage Accounts Production Advanced 2023 - FRS102_2023 21,722 1,346,898 101 1,108 1,007 xbrli:pure xbrli:shares iso4217:GBP 04222341 2023-07-01 2024-06-30 04222341 2024-06-30 04222341 2023-06-30 04222341 2022-07-01 2023-06-30 04222341 2023-06-30 04222341 2022-06-30 04222341 bus:OrdinaryShareClass1 2023-07-01 2024-06-30 04222341 bus:LeadAgentIfApplicable 2023-07-01 2024-06-30 04222341 bus:Director1 2023-07-01 2024-06-30 04222341 bus:Director2 2023-07-01 2024-06-30 04222341 bus:Director3 2023-07-01 2024-06-30 04222341 bus:Director6 2023-07-01 2024-06-30 04222341 bus:Director7 2023-07-01 2024-06-30 04222341 core:WithinOneYear 2024-06-30 04222341 core:WithinOneYear 2023-06-30 04222341 core:PlantMachinery 2023-06-30 04222341 core:FurnitureFittings 2023-06-30 04222341 core:MotorVehicles 2023-06-30 04222341 core:PlantMachinery 2024-06-30 04222341 core:FurnitureFittings 2024-06-30 04222341 core:MotorVehicles 2024-06-30 04222341 core:PlantMachinery 2023-07-01 2024-06-30 04222341 core:FurnitureFittings 2023-07-01 2024-06-30 04222341 core:MotorVehicles 2023-07-01 2024-06-30 04222341 core:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 04222341 bus:OrdinaryShareClass1 2022-07-01 2023-06-30 04222341 core:RetainedEarningsAccumulatedLosses 2023-06-30 04222341 core:RetainedEarningsAccumulatedLosses 2022-06-30 04222341 core:RetainedEarningsAccumulatedLosses 2024-06-30 04222341 core:RetainedEarningsAccumulatedLosses 2023-06-30 04222341 core:ShareCapital 2024-06-30 04222341 core:ShareCapital 2023-06-30 04222341 core:BetweenOneFiveYears 2024-06-30 04222341 core:BetweenOneFiveYears 2023-06-30 04222341 core:DeferredTaxation 2023-07-01 2024-06-30 04222341 core:AcceleratedTaxDepreciationDeferredTax 2024-06-30 04222341 core:AcceleratedTaxDepreciationDeferredTax 2023-06-30 04222341 core:PlantMachinery 2023-06-30 04222341 core:FurnitureFittings 2023-06-30 04222341 core:MotorVehicles 2023-06-30 04222341 core:DeferredTaxation 2023-06-30 04222341 bus:LeadAgentIfApplicable 2022-07-01 2023-06-30 04222341 bus:HighestPaidDirector 2023-07-01 2024-06-30 04222341 bus:HighestPaidDirector 2022-07-01 2023-06-30 04222341 bus:SmallEntities 2023-07-01 2024-06-30 04222341 bus:Audited 2023-07-01 2024-06-30 04222341 bus:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 04222341 bus:FullAccounts 2023-07-01 2024-06-30 04222341 bus:OrdinaryShareClass1 2024-06-30 04222341 bus:OrdinaryShareClass1 2023-06-30 04222341 core:OtherDeferredTax 2024-06-30 04222341 core:OtherDeferredTax 2023-06-30 04222341 core:OfficeEquipment 2023-06-30 04222341 core:OfficeEquipment 2024-06-30 04222341 core:OfficeEquipment 2023-07-01 2024-06-30 04222341 core:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30
COMPANY REGISTRATION NUMBER: 04222341
PAD Contracts Limited
Financial Statements
For the year ended
30 June 2024
PAD Contracts Limited
Financial Statements
Year ended 30 June 2024
Contents
Page
Strategic report
1
Directors' report
3
Directors' responsibilities statement
6
Independent auditor's report to the member
7
Statement of income and retained earnings
10
Statement of financial position
11
Notes to the financial statements
12
PAD Contracts Limited
Strategic Report
Year ended 30 June 2024
The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006.
Business review and principal activities
The company is a wholly owned subsidiary of Whelan & Grant (Holdings) Ltd. The company's principal activity is the design, manufacture and installation of architectural metalwork and secondary steelwork . There have not been any significant changes in the company's principal activities in the year under review. The directors are not aware, at the date of this report, of any likely major changes in the company's activities in the next year. The company has had a greatly improved year following the difficult trading in 2022 - 2023. Turnover has increased by 67% to £6,232,771 (£3,735,472 in 2023) and a pre-tax profit of £20,614 was achieved (Pre-tax loss (£1,356,863) in 2023). Health and Safety is a key driver of the business and Accident Statistics for the year are very good. The AFR for minor injuries has decreased from the previous year's level and once again there were zero 7 day incidents. Total net assets have remained stable at £2,139,981 (£2,118,259 in 2023). No dividend was declared for the year.
Key performance indicators
The company measures its performance in a number of areas including, health and safety and profitability. 2024 2023 Health and Safety: AFR Minor = 5.97 22.02 AFR 7 Day = 0.00 0.00 AFR Major = 0.00 0.00 Profitability: Pre-Tax profit for the year is recorded as £20,614 (2023: Loss £1,356,863) Turnover: Turnover for the year was £6,232,771 (2023: £3,735,472)
Principal risks and uncertainties
The increase in turnover in the year has had a significant effect on profitability in 2024 when compared to the very low levels of turnover in the preceding period. This increase has allowed the Company to return to profit in 2024 help by a return to more normal margins. The Company has an improved forward order book for the year to June 2025 and the value of secured work already exceeds that of 2024. This should allow a return to target turnover levels and if margins can be maintained, improved profitability in 2025. Competitive pressure in the UK construction industry is a continuing risk for the company, which could result in it losing market share to its competitors. The company manages this risk by providing added value services to its customers and specialises in high class architectural metalwork projects at which it is a market leader. A strong upward supply chain and stable financial position helps to maintain market share which helps to provide of a regular flow of work. Delayed project commencement dates are an increasing risk in maintaining this regular flow of work. 'Slippage' on major projects can reduce the overhead recovery in one period and increase it in another causing significant variation in financial figures for comparative years. Early involvement in site level meetings can help in identifying this at an early stage allowing alternative short-term work to be sought. The Health and Safety of workers is a key risk for the Company and the individuals who work for it. We aim to limit that risk by ensuring we have a high quality Health & Safety department and robust processes and procedures covering all aspects of operations.
Future prospects
Following the previous difficulties in our sector caused by uncertainty around construction costs and the increased costs of funding, there appears to be a noticeable increase in tender activity. This should allow turnover levels to continue increasing in the year to June 2025 which will help the business improve profitability. Relationships with key clients remain strong and with a sound financial position, future workload looks encouraging. Margins are returning to normal levels which coupled with the return to target turnover levels should bring further stability to the business. Generally, the company remains in good overall financial health with an expanding client base and a growing reputation for high quality metalwork which should continue to provide profitable work going forward.
This report was approved by the board of directors on 14 November 2024 and signed on behalf of the board by:
C P Ayres
Director
PAD Contracts Limited
Directors' Report
Year ended 30 June 2024
The directors present their report and the financial statements of the company for the year ended 30 June 2024 .
Directors
The directors who served the company during the year were as follows:
C P Ayres
R F Day
S E George
J J Whelan
L N Grant
Dividends
No dividends have been paid in respect of the year ended 30 June 2024 (2023: £nil).
Financial risk management objectives and policies
The Company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. Operational risk Operational risk is the risk of a direct or indirect loss resulting from the inadequacies or failures of processes or controls due to technology, staff, organisation or external factors. To monitor and control operational risk, the company maintains a system of comprehensive policies and a control framework which is designed to provide a sound and well-controlled operational environment. Price risk The Company is exposed to commodity price risk particularly on high value items such as concrete and reinforcement. This risk is managed by ensuring that where possible fixed price orders are placed for all significant purchases. Credit risk The company's principal financial assets are bank balances. The Company's credit risk is primarily attributable to outstanding balances of interim payments from clients. Careful selection of clients and controls on payment terms limits this risk although it can never be fully eliminated. The Company aims to spread its exposure over a number of clients in order to minimise the effect of payment default by one customer. Cash flow risk Late payment by clients can lead to large cash flow fluctuations. These are managed by careful selection of clients, monitoring of agreed payment dates, and maintaining sufficient reserves to accommodate late payment. Liquidity risk In order to maintain liquidity to ensure funds are available for ongoing operations and future developments, the Company maintains suitable levels of cash on deposit.
Qualifying indemnity provision
The Company has made qualifying third party indemnity provision for the benefit of its directors which were made during the year and which remain in force at the date of this report.
Going concern
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of the financial statements. Whilst there is uncertainty in the current economic climate, the directors are confident that the company can operate to its projected turnover targets within its current cash levels for a period of at least 12 months from the date of the financial statements. Thus they continue to adopt the going concern basis in preparing the annual financial statements.
Disclosure of information in the strategic report
Details of the principal activities, business review and future developments of the company can be found in the strategic report and form part of this report by cross-reference.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that: - so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
WP Audit Services LLP (formerly The Barnbrook Sinclair Partnership LLP) have expressed their willingness to continue in office as auditor of the company and a resolution to reappoint them will be proposed at the forthcoming Annual General Meeting.
This report was approved by the board of directors on 14 November 2024 and signed on behalf of the board by:
C P Ayres
Director
PAD Contracts Limited
Directors' Responsibilities Statement
Year ended 30 June 2024
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the 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 judgments 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.
PAD Contracts Limited
Independent Auditor's Report to the Member of PAD Contracts Limited
Year ended 30 June 2024
Opinion
We have audited the financial statements of PAD Contracts Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, statement of financial position and the related notes, 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 FRS 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; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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: We obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context include the Companies Act and tax legislation. In addition, we considered the provisions of other laws and regulations that do not have an effect on the financial statements but compliance with which may be fundamental to the company's ability to incur or to avoid a material penalty, including the company's operating licences and environmental regulations. Our procedures in response to the risks identified included reviewing the financial statements disclosures and testing supporting documentation to assess compliance with the provisions of relevant laws and regulations considered to have a direct effect in the financial statements, enquiring of management concerning actual or potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, reading minutes of meetings of those charged with governance, reviewing correspondence with relevant regulatory authorities and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential audit risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. 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 auditor’s report. Use of our report
This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Carpenter FCA
(Senior Statutory Auditor)
For and on behalf of
WP Audit Services LLP (formerly The Barnbrook Sinclair Partnership LLP)
Chancery House
30 St Johns Road
Woking
Surrey
GU21 7SA
14 November 2024
PAD Contracts Limited
Statement of Income and Retained Earnings
Year ended 30 June 2024
2024
2023
Note
£
£
Turnover
5
6,232,771
3,735,472
Raw material and consumables
1,639,438
1,354,182
Other external charges
1,151,282
745,564
Staff costs
8
2,318,638
2,094,527
Depreciation and other amounts written off tangible fixed assets
27,312
54,688
Other operating expenses
1,095,951
863,839
------------
------------
Operating profit/(loss)
6
150
( 1,377,328)
Other interest receivable and similar income
10
20,464
20,465
------------
------------
Profit/(loss) before taxation
20,614
( 1,356,863)
Tax on profit/(loss)
11
( 1,108)
( 9,965)
--------
------------
Profit/(loss) for the financial year and total comprehensive income
21,722
( 1,346,898)
--------
------------
Dividends paid and payable
12
( 175,000)
Retained earnings at the start of the year
2,118,109
3,640,007
------------
------------
Retained earnings at the end of the year
2,139,831
2,118,109
------------
------------
All the activities of the company are from continuing operations.
PAD Contracts Limited
Statement of Financial Position
30 June 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
13
36,442
45,809
Current assets
Debtors
14
1,913,381
1,069,539
Cash at bank and in hand
683,140
1,557,146
------------
------------
2,596,521
2,626,685
Creditors: amounts falling due within one year
15
( 492,982)
( 554,134)
------------
------------
Net current assets
2,103,539
2,072,551
------------
------------
Total assets less current liabilities
2,139,981
2,118,360
Provisions for liabilities
Taxation including deferred tax
16
( 101)
------------
------------
Net assets
2,139,981
2,118,259
------------
------------
Capital and reserves
Called up share capital
19
150
150
Profit and loss account
20
2,139,831
2,118,109
------------
------------
Shareholder's funds
2,139,981
2,118,259
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 14 November 2024 , and are signed on behalf of the board by:
C P Ayres
S E George
Director
Director
Company registration number: 04222341
PAD Contracts Limited
Notes to the Financial Statements
Year ended 30 June 2024
1. General information
PAD Contracts Limited is a private limited company registered in England & Wales. The registered number is 04222341 . The address of its registered office is Clare House, 4 Thames Street, Walton on Thames, Surrey KT12 2PU.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis . The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The company finances its operations through cash balances. The company has no short or long term borrowings outside of the group companies.The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of the financial statements. Whilst there is uncertainty in the current economic climate, the directors are confident that the company can operate to its projected turnover targets within its current cash levels for a period of at least 12 months from the date of the financial statements. Thus they continue to adopt the going concern basis in preparing the annual financial statements.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Whelan & Grant (Holdings) Limited which can be obtained from Companies House . As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.
Revenue recognition
Turnover comprises the value of goods and services supplied to external customers and the value of work executed in respect of contracts, excluding VAT and arises from its one principal activity in the United Kingdom.
Corporation tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
4 years
Fixtures and fittings
-
4 years
Motor vehicles
-
4 years
Furniture and equipment
-
4 years
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Construction contracts
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised. Where the collectability of an amount already recognised as contract revenue is no longer probable, the uncollectible amount is expensed rather than recognised as an adjustment to the amount of contract revenue. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments. No account is taken of amounts claimed from contractors on completed contracts until such claims are agreed and received. Retentions are accounted for within turnover when receivable. Amounts recoverable on contracts are stated at the value of turnover less related progress payments receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately .
Defined contribution plans
The company operates defined contribution pension schemes for directors and employees. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds.
4. Critical accounting judgements and key sources of estimation
uncertainty
In the application of the Company's accounting policies, which are described in note 3, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Company's accounting policies.
The directors have reviewed the judgements in regards to revenue recognition and other areas of the financial statements and concluded that there were no material judgements that require separate disclosure.
Key sources of estimation uncertainty
The Company's revenue recognition and margin recognition policies, which are set out in note 3 are central to how the company values the work it has carried out in the financial year and rely on accurate valuations of the works at the period end including a balancing of any advance costs.
5. Turnover
Turnover arises from:
2024
2023
£
£
Construction contracts
6,232,771
3,735,472
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
6. Operating profit/(loss)
Operating profit or loss is stated after charging:
2024
2023
£
£
Operating lease rentals
93,000
93,000
--------
--------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
9,750
8,500
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
24
23
Administrative staff
19
18
----
----
43
41
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
1,999,354
1,831,929
Social security costs
221,849
206,982
Other pension costs
97,435
55,616
------------
------------
2,318,638
2,094,527
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
274,120
261,925
Company contributions to defined contribution pension plans
20,559
19,217
---------
---------
294,679
281,142
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
162,930
152,715
Company contributions to defined contribution pension plans
12,220
11,427
---------
---------
175,150
164,142
---------
---------
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
20,464
19,526
Other interest receivable and similar income
939
--------
--------
20,464
20,465
--------
--------
11. Tax on profit/(loss)
Major components of tax income
2024
2023
£
£
Deferred tax:
Origination and reversal of timing differences
( 1,108)
( 9,965)
-------
-------
Tax on profit/(loss)
( 1,108)
( 9,965)
-------
-------
Reconciliation of tax income
The tax assessed on the profit/(loss) on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 20.50 %).
2024
2023
£
£
Profit/(loss) on ordinary activities before taxation
20,614
( 1,356,863)
--------
------------
Profit/(loss) on ordinary activities by rate of tax
5,154
( 278,157)
Effect of expenses not deductible for tax purposes
3,580
3,925
Utilisation of tax losses
( 9,895)
Unused tax losses
263,480
Effect of tax rate changes
53
787
--------
------------
Tax on profit/(loss)
( 1,108)
( 9,965)
--------
------------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2024
2023
£
£
Dividends on Ordinary shares
175,000
----
---------
A final dividend of £175,000 for the year ended 30 June 2022 was paid in September 2022. No dividends were paid during the year ended 30 June 2024. No final dividend for the year ended 30 June 2024 has been paid post year end.
13. Tangible assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 July 2023
160,894
12,220
191,411
44,260
408,785
Additions
17,945
17,945
---------
--------
---------
--------
---------
At 30 June 2024
178,839
12,220
191,411
44,260
426,730
---------
--------
---------
--------
---------
Depreciation
At 1 July 2023
160,885
11,819
149,088
41,184
362,976
Charge for the year
4,486
132
21,159
1,535
27,312
---------
--------
---------
--------
---------
At 30 June 2024
165,371
11,951
170,247
42,719
390,288
---------
--------
---------
--------
---------
Carrying amount
At 30 June 2024
13,468
269
21,164
1,541
36,442
---------
--------
---------
--------
---------
At 30 June 2023
9
401
42,323
3,076
45,809
---------
--------
---------
--------
---------
14. Debtors
2024
2023
£
£
Trade debtors
367,135
267,136
Amounts owed by customers on construction contracts
1,485,262
711,927
Deferred tax asset
1,007
Prepayments and accrued income
12,251
18,733
Other debtors
47,726
71,743
------------
------------
1,913,381
1,069,539
------------
------------
Amounts owed by group undertakings are non-interest bearing, repayable on demand and unsecured.
15. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
237,129
310,969
Amounts owed to group undertakings
7,595
8,369
Accruals and deferred income
145,481
144,571
Social security and other taxes
79,627
66,145
Other creditors
23,150
24,080
---------
---------
492,982
554,134
---------
---------
Amounts owed to group undertakings are non-interest bearing, repayable on demand and unsecured.
16. Provisions for liabilities
Deferred tax (note 17)
£
At 1 July 2023
101
Charge against provision
( 1,108)
Transfers
1,007
-------
At 30 June 2024
-------
17. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in debtors (note 14)
1,007
Included in provisions for liabilities (note 16)
( 101)
-------
----
1,007
( 101)
-------
----
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
1,593
2,457
Deferred tax - other timing differences
( 2,600)
( 2,356)
-------
-------
(1,007)
101
-------
-------
The timing of the reversal of the provision is uncertain due to the offset of excess depreciation of existing assets and accelerated capital allowances being claimed on future purchases .
18. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 97,435 (2023: £ 55,616 ).
As at the reporting date, amounts payable of £ 10,396 (2023: £12,313) had not been paid over to the plan.
19. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
150
150
150
150
----
----
----
----
The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company .
20. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
21. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
94,558
96,116
Later than 1 year and not later than 5 years
232,500
327,058
---------
---------
327,058
423,174
---------
---------
22. Related party transactions
The Company's immediate parent undertaking is Whelan & Grant (Holdings) Limited, a company incorporated in England and Wales. The company is a wholly owned member of Whelan & Grant (Holdings) Limited and as such has taken advantage of the exemption provided by Section 33.1A of FRS102 not to provide disclosures of transactions entered into with other wholly-owned members of the Group. The registered office of Whelan & Grant (Holdings) Limited is Clare House, 4 Thames Street, Walton on Thames, Surrey, KT12 2PU.
23. Controlling party
In the opinion of the directors, the ultimate parent company is Whelan & Grant (Holdings) Limited , a company incorporated in the United Kingdom. The parent company and ultimate parent company is incorporated in the United Kingdom and registered in England and Wales. Consolidated financial statements are prepared by the ultimate parent company and this is the smallest and largest company which consolidates these accounts. Copies of the group financial statements of Whelan & Grant (Holdings) Limited are available from the Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF 14 3UZ. The ultimate controlling parties are considered to be the Estate of Mrs S Whelan and the Estate of Mrs C Grant.