Company registration number 02903530 (England and Wales)
R. H. IRVING CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
R. H. IRVING CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
Mr R H Irving
Mr B S H Field
Mr J W Birkett
Mr M A Moodycliffe
Ms A M Dodd
Mrs J C Brownlee
Mr Craig Kingsley
(Appointed 17 May 2024)
Secretary
Ms A M Dodd
Company number
02903530
Registered office
Hylton House
Borders Business Park
Longtown
Cumbria
CA6 5TD
Auditor
Saint & Co.
Sterling House
Wavell Drive
Rosehill
Carlisle
CA1 2SA
R. H. IRVING CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
R. H. IRVING CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -
The directors present the strategic report for the year ended 29 February 2024.
Principle activities and business review
The principal activity of the Company during the year was that of construction and civil engineering contractors.
R H Irving Construction Ltd continued to be engaged as a main contractor and sub-contractor to a range of clients, both long-standing and new in the private and public sector. The historic work stream of providing civil engineering services for major housebuilders’ new developments continues, but our strategy of diversifying into other civil engineering and construction projects for clients in the commercial sector, industrial sector, retail and for local authorities, has proved positive in providing a wider distribution of work streams.
Risk exposure
With an uncertain political landscape due to an anticipated General Election in 2024, there continued to be economic challenges for our industry. The cost of raw materials continued to impact on the business throughout 2023-24 and a generally cautious approach to investment limits opportunities.
There is risk to any business in our sector; from sourcing, retaining and developing a skilled workforce and robust management team; from health and safety issues relating to our staff and sites; from securing and ensuring continuity of projects at a competitive yet sustainable price, together with managing those projects within budget and timescale. Our approach is pro-active in identifying any risks through regular management consultations and implementing actions to mitigate such risks having an impact on the business.
Key performance indicators
2023-24 2022-23
Turnover Movement 20.63% -2.41%
Gross Profit Margin 13.16% 19.22%
Profit Before Tax Margin -0.47% 4.60%
Building on our consistency in winning work within our competitive industry, we have increased turnover in this year to £22m, but gross profit margin and net profit margin have significantly declined. This is mainly attributed to unforeseen challenges on two major contracts which, given the duration of these contracts, spanning this and part of next financial year, continues to impact negatively. However, the positive outcomes on other contracts will limit the overall effect on the business. Generally, the continuing uplift in cost of raw materials and increase in overheads is a factor. We continue to monitor these areas, analysing processes and contract outcomes closely to ensure reduction of potentially negative impacts.
Future developments
The Company now has diverse work streams, utilising our existing skills set on a range of construction and civil engineering projects, continuing with ongoing groundworks contracts within the housebuilding sector, but taking advantage of more opportunities in the commercial, retail, industrial construction and public sectors, further developing our versatility and client base.
We continue to look towards making our business systems and processes more efficient and to build on the various ISO accreditations awarded last year. We are looking towards further accreditations to enhance and bolster the business, ensuring quality, consistency and enhancing our client’s confidence in us.
Going forward, we will continue to closely monitor all spending and ensure contingencies are in place to maintain the future security of our business and workforce. Opportunities are rigorously vetted to ensure we keep exposure to risk at a minimum. It is important for us to continue with our strategy of ensuring the delivery of a quality product to a diverse client and contract base, reducing any potential negative impact of risks associated with any one sector in what is an increasingly challenging and competitive business environment.
R. H. IRVING CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Signed by order of the Directors
Mr M A Moodycliffe
Director
1 November 2024
R. H. IRVING CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 29 February 2024.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £66,905. 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:
Mr R H Irving
Mr B S H Field
Mr J W Birkett
Mr M A Moodycliffe
Ms A M Dodd
Mrs J C Brownlee
Mr Craig Kingsley
(Appointed 17 May 2024)
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
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.
On behalf of the board
Mr M A Moodycliffe
Director
1 November 2024
R. H. IRVING CONSTRUCTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
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.
R. H. IRVING CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R. H. IRVING CONSTRUCTION LIMITED
- 5 -
Opinion
We have audited the financial statements of R. H. Irving Construction Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 29 February 2024 and of its loss 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 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.
R. H. IRVING CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R. H. IRVING CONSTRUCTION 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.
R. H. IRVING CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R. H. IRVING CONSTRUCTION LIMITED (CONTINUED)
- 7 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
R. H. IRVING CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R. H. IRVING CONSTRUCTION LIMITED (CONTINUED)
- 8 -
Stuart Farrer
Senior Statutory Auditor
For and on behalf of Saint & Co.
18 November 2024
Chartered Accountants &
Statutory Auditor
Sterling House
Wavell Drive
Rosehill
Carlisle
CA1 2SA
R. H. IRVING CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
22,256,262
18,449,853
Cost of sales
(19,327,620)
(14,903,522)
Gross profit
2,928,642
3,546,331
Administrative expenses
(3,261,871)
(2,853,157)
Other operating income
126,982
142,386
Operating (loss)/profit
4
(206,247)
835,560
Interest receivable and similar income
8
125,207
25,808
Interest payable and similar expenses
9
(24,405)
(12,674)
(Loss)/profit before taxation
(105,445)
848,694
Tax on (loss)/profit
10
26,833
(155,052)
(Loss)/profit for the financial year
(78,612)
693,642
The income statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 13 to 26 form part of these financial statements.
R. H. IRVING CONSTRUCTION LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
29 FEBRUARY 2024
29 February 2024
- 10 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
2,450
7,307
Tangible assets
13
1,237,834
1,139,866
1,240,284
1,147,173
Current assets
Debtors
14
3,646,961
2,973,759
Cash at bank and in hand
4,267,191
5,274,605
7,914,152
8,248,364
Creditors: amounts falling due within one year
15
(3,934,541)
(4,002,088)
Net current assets
3,979,611
4,246,276
Total assets less current liabilities
5,219,895
5,393,449
Creditors: amounts falling due after more than one year
16
(289,069)
(290,273)
Provisions for liabilities
Deferred tax liability
18
52,561
79,394
(52,561)
(79,394)
Net assets
4,878,265
5,023,782
Capital and reserves
Called up share capital
21
4,730
4,730
Capital redemption reserve
22
600
600
Profit and loss reserves
22
4,872,935
5,018,452
Total equity
4,878,265
5,023,782
The notes on pages 13 to 26 form part of these financial statements.
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 1 November 2024 and are signed on its behalf by:
Mr M A Moodycliffe
Director
Company registration number 02903530 (England and Wales)
R. H. IRVING CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
4,730
600
4,391,654
4,396,984
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
693,642
693,642
Dividends
11
-
-
(66,844)
(66,844)
Balance at 28 February 2023
4,730
600
5,018,452
5,023,782
Year ended 29 February 2024:
Loss and total comprehensive income
-
-
(78,612)
(78,612)
Dividends
11
-
-
(66,905)
(66,905)
Balance at 29 February 2024
4,730
600
4,872,935
4,878,265
The notes on pages 13 to 26 form part of these financial statements.
R. H. IRVING CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(564,510)
1,767,331
Interest received
125,207
25,808
Interest paid
(24,405)
(12,674)
Income taxes paid
(144,874)
(242,221)
Net cash (outflow)/inflow from operating activities
(608,582)
1,538,244
Investing activities
Purchase of tangible fixed assets
(386,076)
(430,268)
Proceeds from disposal of tangible fixed assets
52,930
73,074
Net cash used in investing activities
(333,146)
(357,194)
Financing activities
Payment of finance leases obligations
1,219
176,488
Dividends paid
(66,905)
(66,844)
Net cash (used in)/generated from financing activities
(65,686)
109,644
Net (decrease)/increase in cash and cash equivalents
(1,007,414)
1,290,694
Cash and cash equivalents at beginning of year
5,274,605
3,983,911
Cash and cash equivalents at end of year
4,267,191
5,274,605
The notes on pages 13 to 26 form part of these financial statements.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
1
Accounting policies
Company information
R. H. Irving Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hylton House, Borders Business Park, Longtown, Cumbria, CA6 5TD.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
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.
1.4
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:
Computer software
25% straight line
1.5
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.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
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:
Freehold land and buildings
No depreciation
Leasehold land and buildings
185 years straight line
Plant and equipment
25% straight line
Computers
25% straight line
Motor vehicles
25% straight line
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.
1.6
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.8
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 statement of financial position 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.
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.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest 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.
1.9
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.
1.10
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 income statement 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.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
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.
The key assumptions and other sources of estimation uncertainty that have a significant risk of causing material adjustment to the carrying amount of assets and liabilities within the next financial year are as follows:
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Construction contracts
22,256,262
18,449,853
2024
2023
£
£
Other revenue
Interest income
125,207
25,808
Management charges receivable
126,982
142,386
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
278,722
222,092
Profit on disposal of tangible fixed assets
(43,544)
(61,478)
Amortisation of intangible assets
4,857
4,594
Operating lease charges
7,464
7,194
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
6,500
4,725
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production staff
62
57
Administrative staff
36
35
Total
98
92
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
6
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,882,858
3,640,405
Social security costs
447,254
422,897
Pension costs
194,465
130,551
4,524,577
4,193,853
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
416,461
423,491
Company pension contributions to defined contribution schemes
33,335
19,588
449,796
443,079
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
84,821
71,588
Company pension contributions to defined contribution schemes
7,791
13,942
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
125,132
25,760
Other interest income
75
48
Total income
125,207
25,808
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
8
Interest receivable and similar income
(Continued)
- 20 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
125,132
25,760
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
24,405
12,674
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
145,052
Deferred tax
Origination and reversal of timing differences
(26,833)
10,000
Total tax (credit)/charge
(26,833)
155,052
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
10
Taxation
(Continued)
- 21 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(105,445)
848,694
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(26,361)
161,252
Tax effect of expenses that are not deductible in determining taxable profit
482
Tax effect of income not taxable in determining taxable profit
(11,681)
Unutilised tax losses carried forward
60,424
Permanent capital allowances in excess of depreciation
(35,895)
(4,791)
Depreciation on assets not qualifying for tax allowances
405
Short term timing differences
1,350
(133)
Deferred tax movement
(26,833)
10,000
Taxation (credit)/charge for the year
(26,833)
155,052
11
Dividends
2024
2023
£
£
Final paid
66,905
66,844
12
Intangible fixed assets
Computer software
£
Cost
At 1 March 2023 and 29 February 2024
19,425
Amortisation and impairment
At 1 March 2023
12,118
Amortisation charged for the year
4,857
At 29 February 2024
16,975
Carrying amount
At 29 February 2024
2,450
At 28 February 2023
7,307
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
13
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
194,402
356,164
347,697
77,065
1,133,183
2,108,511
Additions
85,792
8,340
291,944
386,076
Disposals
(915)
(162,335)
(163,250)
At 29 February 2024
194,402
356,164
433,489
84,490
1,262,792
2,331,337
Depreciation and impairment
At 1 March 2023
3,850
307,218
60,402
597,175
968,645
Depreciation charged in the year
1,925
25,565
10,897
240,335
278,722
Eliminated in respect of disposals
(915)
(152,949)
(153,864)
At 29 February 2024
5,775
332,783
70,384
684,561
1,093,503
Carrying amount
At 29 February 2024
194,402
350,389
100,706
14,106
578,231
1,237,834
At 28 February 2023
194,402
352,314
40,479
16,663
536,008
1,139,866
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
537,593
526,830
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,462,907
2,815,885
Other debtors
65,038
Prepayments and accrued income
184,054
92,836
3,646,961
2,973,759
Included within trade debtors is £141,106 (2023: £315,849) relating to retentions due in more than one year.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
181,721
179,298
Trade creditors
2,591,749
2,513,749
Corporation tax
142
145,016
Other taxation and social security
230,527
113,974
Deferred income
19
20,000
Other creditors
13,189
7,443
Accruals and deferred income
897,213
1,042,608
3,934,541
4,002,088
Hire Purchase liabilities of £181,721 (2023: £179,298) are secured on the assets bought under hire purchase.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
289,069
290,273
Hire Purchase liabilities of £289,069 (2023: £290,273) are secured on the assets bought under hire purchase.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
181,721
179,298
In two to five years
289,069
290,273
470,790
469,571
Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 24 -
18
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
116,196
81,255
Tax losses
(60,424)
-
Short term timing differences
(3,211)
(1,861)
52,561
79,394
2024
Movements in the year:
£
Liability at 1 March 2023
79,394
Credit to profit or loss
(26,833)
Liability at 29 February 2024
52,561
The net amount of deferred tax liabilities that are expected to reserve within 12 months is £61,000 (2023: £48,000) relating to the reversal of existing timing differences on tangible fixed assets.
19
Deferred income
2024
2023
£
£
Other deferred income
20,000
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
194,465
130,551
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.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 25 -
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,400
4,400
4,400
4,400
B Ordinary Class shares of £1 each
180
180
180
180
C Ordinary Class shares of £1 each
150
150
150
150
4,730
4,730
4,730
4,730
Each ordinary share is entitled to one vote in any circumstances. Ordinary B shareholders are not entitled to vote in any circumstances and only entitled to one pound per share in the event of a distribution or disposal. Ordinary C shareholders are not entitled to vote in any circumstances and are only entitled to one pound per share in the event of a winding up or sale of the company.
22
Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
7,464
7,464
Between two and five years
9,330
16,794
16,794
24,258
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
115,721
25
Related party transactions
Mr R H Irving operates a plant hire business, where he hires out plant to R H Irving Construction Limited. Plant hire costs of £171,300 (2023: £147,500) were charged to the company during the year, and £15,840 (2023: £15,840) was outstanding at the year end.
R. H. IRVING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 26 -
26
Cash (absorbed by)/generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(78,612)
693,642
Adjustments for:
Taxation (credited)/charged
(26,833)
155,052
Finance costs
24,405
12,674
Investment income
(125,207)
(25,808)
Gain on disposal of tangible fixed assets
(43,544)
(61,478)
Amortisation and impairment of intangible assets
4,857
4,594
Depreciation and impairment of tangible fixed assets
278,722
222,092
Movements in working capital:
(Increase)/decrease in debtors
(673,202)
79,741
Increase in creditors
54,904
686,822
Increase in deferred income
20,000
-
Cash (absorbed by)/generated from operations
(564,510)
1,767,331
27
Analysis of changes in net funds
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
5,274,605
(1,007,414)
4,267,191
Obligations under finance leases
(469,571)
(1,219)
(470,790)
4,805,034
(1,008,633)
3,796,401
R. H. IRVING CONSTRUCTION LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 29 FEBRUARY 2024
2024-02-292023-03-01falseCCH SoftwareCCH Accounts Production 2024.210No description of principal activityMr B S H FieldMr J W BirkettMr M A MoodycliffeMrs J C BrownleeMr Craig KingsleyJ C BrownleeMr Craig KingsleyMs A M Doddfalsefalse029035302023-03-012024-02-2902903530bus:Chairman2023-03-012024-02-2902903530bus:Director12023-03-012024-02-2902903530bus:Director22023-03-012024-02-2902903530bus:Director32023-03-012024-02-2902903530bus:CompanySecretaryDirector12023-03-012024-02-2902903530bus:Director42023-03-012024-02-2902903530bus:Director52023-03-012024-02-2902903530bus:CompanySecretary12023-03-012024-02-2902903530bus:Director62023-03-012024-02-2902903530bus:Director72023-03-012024-02-2902903530bus:RegisteredOffice2023-03-012024-02-29029035302024-02-29029035302022-03-012023-02-2802903530core:RetainedEarningsAccumulatedLosses2022-03-012023-02-2802903530core:RetainedEarningsAccumulatedLosses2023-03-012024-02-2902903530core:OtherResidualIntangibleAssets2024-02-2902903530core:OtherResidualIntangibleAssets2023-02-2802903530core:ComputerSoftware2024-02-2902903530core:ComputerSoftware2023-02-28029035302023-02-2802903530core:LandBuildingscore:OwnedOrFreeholdAssets2024-02-2902903530core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-02-2902903530core:PlantMachinery2024-02-2902903530core:ComputerEquipment2024-02-2902903530core:MotorVehicles2024-02-2902903530core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-2802903530core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-02-2802903530core:PlantMachinery2023-02-2802903530core:ComputerEquipment2023-02-2802903530core:MotorVehicles2023-02-2802903530core:CurrentFinancialInstrumentscore:WithinOneYear2024-02-2902903530core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2802903530core:Non-currentFinancialInstrumentscore:AfterOneYear2024-02-2902903530core:Non-currentFinancialInstrumentscore:AfterOneYear2023-02-2802903530core:CurrentFinancialInstruments2024-02-2902903530core:CurrentFinancialInstruments2023-02-2802903530core:ShareCapital2024-02-2902903530core:ShareCapital2023-02-2802903530core:CapitalRedemptionReserve2024-02-2902903530core:CapitalRedemptionReserve2023-02-2802903530core:RetainedEarningsAccumulatedLosses2024-02-2902903530core:RetainedEarningsAccumulatedLosses2023-02-2802903530core:ShareCapital2022-02-2802903530core:CapitalRedemptionReserve2022-02-2802903530core:RetainedEarningsAccumulatedLosses2022-02-2802903530core:ShareCapitalOrdinaryShares2024-02-2902903530core:ShareCapitalOrdinaryShares2023-02-28029035302023-02-28029035302022-02-2802903530core:IntangibleAssetsOtherThanGoodwill2023-03-012024-02-2902903530core:ComputerSoftware2023-03-012024-02-2902903530core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-012024-02-2902903530core:LandBuildingscore:LongLeaseholdAssets2023-03-012024-02-2902903530core:PlantMachinery2023-03-012024-02-2902903530core:ComputerEquipment2023-03-012024-02-2902903530core:MotorVehicles2023-03-012024-02-2902903530core:UKTax2023-03-012024-02-2902903530core:UKTax2022-03-012023-02-280290353012023-03-012024-02-290290353012022-03-012023-02-280290353022023-03-012024-02-290290353022022-03-012023-02-280290353032023-03-012024-02-290290353032022-03-012023-02-2802903530core:ComputerSoftware2023-02-2802903530core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-2802903530core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-02-2802903530core:PlantMachinery2023-02-2802903530core:ComputerEquipment2023-02-2802903530core:MotorVehicles2023-02-2802903530core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-012024-02-2902903530core:Non-currentFinancialInstruments2024-02-2902903530core:Non-currentFinancialInstruments2023-02-2802903530core:WithinOneYear2024-02-2902903530core:WithinOneYear2023-02-2802903530core:BetweenTwoFiveYears2024-02-2902903530core:BetweenTwoFiveYears2023-02-2802903530bus:PrivateLimitedCompanyLtd2023-03-012024-02-2902903530bus:FRS1022023-03-012024-02-2902903530bus:Audited2023-03-012024-02-2902903530bus:FullAccounts2023-03-012024-02-29xbrli:purexbrli:sharesiso4217:GBP