Company registration number 12486864 (England and Wales)
H H Civils Holdings Limited
Annual Report and
Consolidated Financial Statements
for the year ended 29 February 2024
H H Civils Holdings Limited
Company Information
Director
J Handforth
Company number
12486864
Registered office
12 Methley Road
Castleford
West Yorkshire
United Kingdom
WF10 1LX
Auditor
B M Howarth Ltd
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
Bankers
Lloyds Bank PLC
PO Box 1000
Oldham
Greater Manchester
BX1 1LT
H H Civils Holdings Limited
Contents
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 22
H H Civils Holdings Limited
Strategic Report
for the year ended 29 February 2024
- 1 -
The director presents the strategic report for the year ended 29 February 2024.
Fair review of the business
The director is pleased to see an increase in turnover to £30m for the current year. Despite challenging trading conditions, the company has achieved an operating profit of £1.76m.
The company continues to invest in top quality plant and equipment. Capital expenditure for the year was £1.8m and the repair and maintenance program for this equipment has continued with annual expenditure of £620,000.
Prospects for the current year look positive with a strong order book and continued demand from key customers.
Key performance indicators
2024
2023
£000
£000
Turnover
30,100
29,177
Net profit before tax
1,736
2,358
Net assets
10,579
9,609
Principal risks and uncertainties
The director is aware of the risks involved in long term contracting and this risk is mitigated by careful and prudent management of the whole contracting process, from tendering to agreeing the final accounts.
The company is also subject to the forces of competition and wider economic factors. These economic factors include workforce shortages affecting the sector, increasing interest rates and inflationary pressures on the supply chain.
Environmental policy
The group and company recognises the importance of its environmental responsibilities and attempts to minimise its impact on the environment, including safe disposal of waste, recycling and reducing energy consumption.
Payment to creditors
It is the group's policy to ensure that suppliers are aware of the terms of payment, and that these terms are agreed at the commencement of business with each supplier. Payments are made in accordance with the payment terms and conditions agreed.
J Handforth
Director
11 October 2024
H H Civils Holdings Limited
Director's report
for the year ended 29 February 2024
- 2 -
The director presents his annual report and financial statements for the group for the year ended 29 February 2024.
Principal activities
The principal activity of the company continues to be that of a property holding company. The principal activity of the group continued to be that of groundwork contractors.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £250,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
J Handforth
Auditor
The auditor, B M Howarth Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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' reporttrue.
H H Civils Holdings Limited
Director's report (continued)
for the year ended 29 February 2024
- 3 -
Statement of disclosure to auditor
So far as the director is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the director has taken all the necessary steps that he ought to have taken as director in order to make himself aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
J Handforth
Director
11 October 2024
H H Civils Holdings Limited
Independent auditor's Report
to the members of H H Civils Holdings Limited
- 4 -
Opinion
We have audited the financial statements of H H Civils Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's affairs as at 29 February 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
H H Civils Holdings Limited
Independent auditor's Report (continued)
to the members of H H Civils Holdings Limited
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the group and the sectors in which it operates, our audit work considers the risk of material misstatement on the financial statements as a result of non-compliance with laws and regulations, this includes fraud. These laws and regulations include, but are not limited to, those that relate to the form and content of the financial statements, such as the Company accounting policies, the financial reporting framework and the UK Companies Act 2006.
We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks related to management bias in accounting estimates and understatement or overstatement of revenue. Our audit procedures included, but were not limited to:
Agreement of the financial statements disclosures to underlying supporting documentation;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions, accounting estimates and judgements made by Directors;
Identifying and testing journal entries to ensure they are appropriate.
Sample testing of income and expenditure to ensure correct cut-off has been applied.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
There are inherent limitations in audit procedures, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
H H Civils Holdings Limited
Independent auditor's Report (continued)
to the members of H H Civils Holdings Limited
- 6 -
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.
Charles R Moorby
Senior Statutory Auditor
For and on behalf of
B M Howarth Ltd
Chartered Accountants
Statutory Auditor
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
11 October 2024
H H Civils Holdings Limited
Group Statement of Comprehensive Income
for the year ended 29 February 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
30,100,083
29,176,889
Cost of sales
(20,999,356)
(20,224,870)
Gross profit
9,100,727
8,952,019
Administrative expenses
(7,371,971)
(6,557,694)
Other operating income
39,889
18,201
Operating profit
4
1,768,645
2,412,526
Interest receivable
6
33,707
6,646
Interest payable
7
(66,076)
(61,491)
Profit before taxation
1,736,276
2,357,681
Tax on profit
8
(515,988)
(166,804)
Profit for the financial year
1,220,288
2,190,877
Profit for the financial year is all attributable to the owners of the parent company.
H H Civils Holdings Limited
Group Statement of financial position
as at 29 February 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
6,936,936
6,725,971
Current assets
Stocks
13
149,932
160,000
Debtors
14
7,016,090
5,829,198
Cash at bank and in hand
3,268,698
3,018,706
10,434,720
9,007,904
Creditors: amounts falling due within one year
15
(4,148,615)
(3,784,676)
Net current assets
6,286,105
5,223,228
Total assets less current liabilities
13,223,041
11,949,199
Creditors: amounts falling due after more than one year
16
(1,013,382)
(1,142,207)
Provisions for liabilities
Deferred tax liability
19
(1,630,512)
(1,198,133)
Net assets
10,579,147
9,608,859
Capital and reserves
Called up share capital
21
100
100
Other reserves
5,783,857
5,783,857
Profit and loss reserves
4,795,190
3,824,902
Total equity
10,579,147
9,608,859
The financial statements were approved and signed by the director and authorised for issue on 11 October 2024
11 October 2024
J Handforth
Director
Company registration number 12486864 (England and Wales)
H H Civils Holdings Limited
Company Statement Of Financial Position
as at 29 February 2024
29 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
306,311
312,897
Investments
11
100
100
306,411
312,997
Current assets
Debtors
14
1,137,058
Cash at bank and in hand
2,620,862
258
3,757,920
258
Creditors: amounts falling due within one year
15
(84,922)
(154,500)
Net current assets/(liabilities)
3,672,998
(154,242)
Total assets less current liabilities
3,979,409
158,755
Creditors: amounts falling due after more than one year
16
(138,880)
(160,483)
Net assets/(liabilities)
3,840,529
(1,728)
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
3,840,429
(1,828)
Total equity
3,840,529
(1,728)
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £4,092,257 (2023 - £169,867 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 11 October 2024
11 October 2024
J Handforth
Director
Company registration number 12486864 (England and Wales)
H H Civils Holdings Limited
Group Statement Of Changes In Equity
for the year ended 29 February 2024
- 10 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
100
5,782,642
1,814,025
7,596,767
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
2,190,877
2,190,877
Dividends
9
-
-
(180,000)
(180,000)
Other movements
-
1,215
-
1,215
Balance at 28 February 2023
100
5,783,857
3,824,902
9,608,859
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
1,220,288
1,220,288
Dividends
9
-
-
(250,000)
(250,000)
Balance at 29 February 2024
100
5,783,857
4,795,190
10,579,147
H H Civils Holdings Limited
Company Statement of Changes in Equity
for the year ended 29 February 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
100
8,305
8,405
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
169,867
169,867
Dividends
9
-
(180,000)
(180,000)
Balance at 28 February 2023
100
(1,828)
(1,728)
Year ended 29 February 2024:
Profit and total comprehensive income
-
4,092,257
4,092,257
Dividends
9
-
(250,000)
(250,000)
Balance at 29 February 2024
100
3,840,429
3,840,529
H H Civils Holdings Limited
Group Statement of Cash Flows
for the year ended 29 February 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
2,574,729
3,463,860
Interest paid
(66,076)
(61,491)
Tax repaid
244,629
167,843
Net cash inflow from operating activities
2,753,282
3,570,212
Investing activities
Purchase of tangible fixed assets
(1,814,835)
(1,539,903)
Proceeds from disposal of tangible fixed assets
797,087
597,664
Interest received
33,707
6,646
Net cash used in investing activities
(984,041)
(935,593)
Financing activities
Repayment of bank loans
(31,055)
(25,281)
Payment of hire purchase obligations
(145,743)
(367,434)
Director's loan account movement
(1,092,451)
-
Dividends paid to equity shareholders
(250,000)
(180,000)
Net cash used in financing activities
(1,519,249)
(572,715)
Net increase in cash and cash equivalents
249,992
2,061,904
Cash and cash equivalents at beginning of year
3,018,706
956,802
Cash and cash equivalents at end of year
3,268,698
3,018,706
H H Civils Holdings Limited
Notes to the Group Financial Statements
for the year ended 29 February 2024
- 13 -
1
Accounting policies
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions available in respect of disclosure requirements for parent company information presented within the consolidated financial statements.
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company H H Civils Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 29 February 2024.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
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 the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
H H Civils Holdings Limited
Notes to the Group 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
2% Straight Line
Plant and equipment
10% Straight Line
Fixtures and fittings
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 recognised in the income statement.
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
H H Civils Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 29 February 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover
All revenue is generated through the group's principal activity in the UK.
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
755,967
606,178
Loss/(profit) on disposal of tangible fixed assets
50,816
(95,307)
Audit fee
23,000
22,250
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
48
42
2
2
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,832,695
1,714,133
9,847
9,879
Social security costs
209,170
184,324
-
-
Pension costs
72,269
65,993
2,114,134
1,964,450
9,847
9,879
H H Civils Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 29 February 2024
- 16 -
6
Interest receivable
2024
2023
£
£
Interest on bank deposits
30,772
118
Other interest income
2,935
6,528
Total income
33,707
6,646
7
Interest payable
2024
2023
£
£
Interest on bank loans
5,774
11,548
Interest on finance leases and hire purchase contracts
60,302
49,943
Total finance costs
66,076
61,491
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
148,738
69,928
Adjustments in respect of prior periods
(65,129)
(44,241)
Total current tax
83,609
25,687
Deferred tax
Origination and reversal of timing differences
71,614
141,117
Adjustment in respect of prior periods
360,765
Total deferred tax
432,379
141,117
Total tax charge
515,988
166,804
H H Civils Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 29 February 2024
8
Taxation
(continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,736,276
2,357,681
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
434,069
447,959
Tax effect of expenses that are not deductible in determining taxable profit
19,464
6,894
Deferred tax adjustments in respect of prior years
360,765
8
Adjustments in respect of prior years
(65,129)
(44,249)
Effect of change in corporation tax rate
(3,096)
-
Effect of enhanced allowances
(69,271)
Utilisation of tax losses arising from prior year research and development
(229,653)
Marginal relief
(432)
Prior year loss carry back adjustment
-
(174,537)
Taxation charge
515,988
166,804
9
Dividends
2024
2023
£
£
Interim paid
250,000
180,000
H H Civils Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 29 February 2024
- 18 -
10
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
329,302
6,867,665
56,737
88,269
1,326,890
8,668,863
Additions
1,536,238
25,550
22,728
230,319
1,814,835
Disposals
(908,430)
(313,195)
(1,221,625)
At 29 February 2024
329,302
7,495,473
82,287
110,997
1,244,014
9,262,073
Depreciation and impairment
At 1 March 2023
16,405
1,220,832
23,327
48,203
634,125
1,942,892
Depreciation charged in the year
6,586
549,793
16,982
18,980
163,626
755,967
Eliminated in respect of disposals
(182,206)
(191,516)
(373,722)
At 29 February 2024
22,991
1,588,419
40,309
67,183
606,235
2,325,137
Carrying amount
At 29 February 2024
306,311
5,907,054
41,978
43,814
637,779
6,936,936
At 28 February 2023
312,897
5,646,833
33,410
40,066
692,765
6,725,971
Company
Freehold land and buildings
£
Cost
At 1 March 2023 and 29 February 2024
329,302
Depreciation and impairment
At 1 March 2023
16,405
Depreciation charged in the year
6,586
At 29 February 2024
22,991
Carrying amount
At 29 February 2024
306,311
At 28 February 2023
312,897
H H Civils Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 29 February 2024
- 19 -
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
100
100
12
Subsidiaries
The company owns 100% of the ordinary share capital of H H Construction (Groundworks Contactors) Limited at 29 February 2024, a company registered in the UK.
The registered office for the subsidiary is 12 Methley Road, Castleford, West Yorkshire, WF10 1LX.
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
149,932
160,000
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,823,889
1,530,529
Gross amounts owed by contract customers
3,359,170
3,562,532
Corporation tax recoverable
108,707
313,528
Director's loan account
1,137,058
-
1,137,058
VAT recoverable
421,526
334,655
-
Prepayments and accrued income
165,740
87,954
7,016,090
5,829,198
1,137,058
-
H H Civils Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 29 February 2024
- 20 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
17
31,056
30,508
21,056
20,508
Obligations under hire purchase
18
466,400
514,921
Trade creditors
3,194,611
2,978,968
Amounts owed to group undertakings
2,322
125,077
Corporation tax payable
193,345
69,928
51,768
Taxation and social security
111,248
34,606
-
-
Director's loan account
8,107
Accruals and deferred income
151,955
147,638
9,776
8,915
4,148,615
3,784,676
84,922
154,500
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
17
152,213
183,816
138,880
160,483
Obligations under hire purchase
18
861,169
958,391
1,013,382
1,142,207
138,880
160,483
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
183,269
214,324
159,936
180,991
Payable within one year
31,056
30,508
21,056
20,508
Payable after one year
152,213
183,816
138,880
160,483
Bank loans include a long term loan from Lloyds Bank plc repayable in monthly instalments over 10 years. This loan is secured by a fixed charge over the property and a floating charge over the company's assets. Additionally, a cross guarantee is in place between H H Construction (Groundwork Contractors) Limited and H H Civils Holdings Limited.
H H Civils Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 29 February 2024
- 21 -
18
Hire purchase obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum payments due under hire purchase:
Within one year
466,400
514,921
In two to five years
861,169
958,391
1,327,569
1,473,312
-
-
Obligations under hire purchase are secured on the assets to which they relate.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,630,512
1,198,133
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
1,198,133
-
Charge to profit or loss
432,379
-
Liability at 29 February 2024
1,630,512
-
The deferred tax liability set out above is expected to reverse over the life of the assets to which the accelerated capital allowances relate. These allowances are expected to mature within the same period
20
Retirement benefit schemes
2024
2023
£
£
Charge to profit or loss
72,269
65,993
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
H H Civils Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 29 February 2024
- 22 -
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
22
Controlling party
The ultimate controlling party is the director by virtue of his 100% shareholding.
23
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,220,288
2,190,877
Adjustments for:
Taxation charged
515,988
166,804
Finance costs
66,076
61,491
Investment income
(33,707)
(6,646)
Loss/(gain) on disposal of tangible fixed assets
50,816
(95,307)
Depreciation and impairment of tangible fixed assets
755,967
606,178
Movements in working capital:
Decrease/(increase) in stocks
10,068
(66,000)
(Increase)/decrease in debtors
(299,262)
456,303
Increase in creditors
288,495
150,160
Cash generated from operations
2,574,729
3,463,860
24
Company information
H H Civils Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 12 Methley Road, Castleford, West Yorkshire, United Kingdom, WF10 1LX.
The group consists of H H Civils Holdings Limited and all of its subsidiaries.
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