Company registration number 07721503 (England and Wales)
VASCROFT HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
VASCROFT HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr S K Vekaria
Mr M S Vekaria
Secretary
Mrs C Vora
Company number
07721503
Registered office
Vascroft Estate
861 Coronation Road
Park Royal
London
NW10 7PT
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
Bankers
Barclays Bank Plc
Acorn House
36/38 Park Royal Road
London
NW10 7JA
Solicitors
Hill Dickinson LLP
The Broadgate Tower
20 Primrose Street
London
EC2A 2EW
VASCROFT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 11
Income statement
12
Group statement of comprehensive income
13
Group statement of financial position
14 - 15
Company statement of financial position
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Company statement of cash flows
20
Notes to the financial statements
21 - 38
VASCROFT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The directors present the strategic report for the year ended 31 August 2024.

Business Review

The year ended 31 August 2024 marked another milestone in the continued growth and success of Vascroft Holdings Limited and its subsidiaries. Turnover for the year rose to £53.41m, a 18% increase from £45.27m in 2023, reflecting increased client acquisition and retention. Operating profit grew to £8.82m (2023: £6.97m), highlighting improved operational efficiencies and strategic cost management. The group’s net assets at year-end stood at £31.33m, a notable 8% improvement over the prior year’s £28.84m. These results align closely with the board’s strategic goals and expectations.

 

As we slowly approach our 50th year anniversary, the group continues to demonstrate excellence across the construction sector. This year, we secured several high-value projects in core sectors such as hotels, residential and commercial developments, reinforcing our reputation as a trusted contractor. Through a blend of innovative construction solutions and a client-centric approach, Vascroft continues to expand its market presence while maintaining high standards of quality, sustainability, and efficiency. The group also retained its long-standing ISO 9001 and ISO 14001 certifications, reaffirming our commitment to quality management and environmental stewardship.

Financial risk management objectives and policies

The group uses various financial instruments including loans, cash and various items which arise directly from its operations such as trade debtors, trade creditors and bank loans. The main purpose of these are to raise working capital and carry out business operations.

The main risks arising from these financial instruments are market risk, liquidity risk, cash flow risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below.

Market risk

Market risk encompasses two types of risk being interest rate risk and price risk.

Interest rate

The group finances its operations through a mixture of retained profits and bank overdraft facility. The overdraft bear interest at a floating rate and the interest expense is therefore affected by movements in interest rates.

Price risk

Price risk mainly arises from the time delay between the start of a tendering process for any materials to when they are actually purchased. This risk is mitigated by factoring inflation rate into tender prices for any project. Any increase in the price of materials is notified to the group by our specialist buyer and suppliers in advance.

Liquidity risk

The group seeks to manage financial risk by ensuring sufficient liquidity is available through an overdraft facility to meet foreseeable needs at any given point. The directors review weekly cash reports which enable them to plan accordingly for any significant expenditure.

Credit risk

The principal financial assets are debtors and the principal credit risk arises from these debtors. In order to manage credit risk the directors have introduced a credit checking facility by subscribing to an independent agency. This provides all financial details and trading history needed to consider the risk associated with new clients and especially with fast track projects e.g. restaurants. On larger projects invoices are raised on a monthly basis and collection made accordingly. The group also seeks deposits upfront for some projects.

VASCROFT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Key Perfomance Indicators

The group’s key performance indicators are revenue, gross margin and net assets. These allow the directors and the management to monitor the growth as well as the profitability of the group. Turnover for the year generated from the principal business activities amounted to £53m (2023: £45m) whilst our headline gross margin was £16.3m (2023: £10.8m). The net assets position as at the year-end was £31.3m (2023: £29m). Our focus remains of not chasing higher turnover levels with compromised margins and as such the performance is in line with the expectations as set by the board. The directors consider these performance indicators to be satisfactory. The group maintains a satisfactory order book that entails all current secured jobs which is used as an indicator of future business activity levels.

 

The key non-financial performance indicators of the group are timely and quality delivery of the provision of construction services as per agreements with customers, and stakeholder relationships.

 

The directors are of the belief that the monitoring of the above-mentioned indicators is an effective aspect of business performance review.

Outlook and future developments

The group’s strategic focus is to enhance its market position, to invest in and to continue developing its core strengths across the hotel, residential, commercial and community sectors. It continues to see challenging turbulent conditions predominate across the industry, with competitive pressures impacting on margins and profitability. Despite the macro-economic conditions, the group’s track record on deliverance and integrated offer of design, construction, boutique, and be-spoke solutions has enabled it to secure significant projects.

 

Our people remain at the heart of our business. They have shown great resilience and dedication during the construction industry's prolonged period of adverse conditions.

 

Vision, mission and values

Our vision is exciting and ambitious. We aim to target profitable growth, build business within our key markets and with our existing clients, whilst also exploring further opportunities to broaden our client base and pursue new markets. We will also build on our considerable success and expertise to provide a truly integrated service for our clients.

 

Mission — To be the contractor of choice for all our clients and to continue to build positive relationships to deliver excellence.

 

Values - The guiding principles behind the growth of Vascroft Holdings Ltd & its subsidiaries have been to provide quality, value, experience, partnership, service excellence and consistency. Living and working by these principles, is at the heart of our success. Our team of dedicated professionals are enhanced with continuous professional developments through various mediums of training. Coupled with our commitment to putting our clients’ needs first, we derive great pleasure in exceeding their expectations. We continue to build on the principles of being accountable, with a can-do approach to deliver as one integrated team.

 

We strive to offer an unbeatable range of advisory, construction and refurbishment services and thrill at taking on challenges that have defeated others. Providing a truly integrated one stop shop solution for clients, our approach to all of these challenges has remained consistent over the decades.

 

A team of approximately 100 professionals is also integral to our success. Our staff are undoubtedly our greatest assets. They are committed to putting our customers’ needs first and all share a passion for the group. Many of them have been with us for years and they know it’s more important to do what’s right rather than what's easy. We know it’s important to employ the best because, that way, we deliver the best. We provide continuous staff development through training, seminars and exhibitions. This ensures our staff are up to date with current legislation, technological changes and modern methods of construction.

VASCROFT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
Section 172 statement

The directors, in good faith and in line with their duties have complied with the requirements of s172 of the Companies Act 2006, in promoting the long-term success of the group for the benefit of all stakeholders. The following disclosure describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) and forms the directors’ statement required under section 414CZA of The Companies Act 2006.

 

Engagement with stakeholders

The directors consider its shareholders, employees, clients, suppliers, sub-contractors and local communities to be its core stakeholder groups. We are committed to effective engagement with all our stakeholders. We are mindful that success depends on our ability to engage effectively, work together constructively, and to take all stakeholder views into account. We engage regularly with our stakeholders and address matters which concern them.

 

Shareholder

The group is headed by Vascroft Holdings Ltd. We create value for the Group by generating strong and sustainable results that translate into dividends. We discuss our performance in management meetings. The directors routinely engage with the Group on the performance of the business and develop a clear understanding of their needs and assess their perspectives through regular dialogue.

 

Employees

In line with group’s ethos, protecting the health, safety and wellbeing of everyone who engages with our business is our number one priority. It continues to be our core focus, and we have sought to promote health and safety awareness updates to our employees and other stakeholders. This has also involved extensive training programs as well as an expansion of our health and safety team. Furthermore, we are committed to a diverse and inclusive work environment and helping our employees gain skills that support their personal ambitions and drive the business forward. The group is conscious of the need to ensure effective training for employees and has developed various training initiatives inclusive of apprenticeships programs and supply chain CPD seminars of product and processes. All new employees attend a formal induction from our HR team, which includes a presentation on the group’s vision, mission and values.

 

Clients

We aim to develop long-term relationships with our clients by retaining their business as well as obtaining new clients through recommendations and tendering. Our order book remains resilient with secured projects to the value of £51m. Our mission statement is ‘to be the contractor of choice for all our clients and to continue to build positive relationships to deliver excellence’. We have a dedicated ‘After care’ department that specifically provides aftercare support to enhance client experience and ensure our projects are delivered to the highest possible standard.

 

Suppliers and Subcontractors

Our suppliers and subcontractors are critical to our operations, and we take a long-term collaborative approach to working with them. They take pride in representing our brand in the market. In addition to operating tender processes for a fair selection, we also strive to ensure payments are done in a timely manner to our supply chain and have continued doing so throughout the current challenging times.

Other information and explanations

As well as working on community projects such as temples, we also proactively engage with the local communities impacted by our projects to alleviate any concerns they may have. We engage with the local communities close to where we work in a number of ways, including regular project updates through letters and newsletters as well as visits to and from local schools and universities to build engagement. We encourage people to get in touch with us if they have any concerns.

 

Principal decisions

We define principal decisions as those that are material to the group and those that are significant to our stakeholders. The Directors have considered the outcomes from our stakeholder engagement as well as the need to maintain the group’s reputation for high standards of business conduct and to act fairly. As stated above, a significant amount of our workload is undertaken for existing and retained clients. As part of the procurement process for securing these projects there is normally a lot of emphasis on how we engage with our employers, suppliers, sub-contractors and the local communities we work in.

VASCROFT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

This report was approved by the board and signed on its behalf.

Mr M S Vekaria
Director
29 November 2024
VASCROFT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company is that of a holding company.

 

The principal activity of the group companies during the period was that of carrying out construction activities. It continues to specialise in the construction and refurbishment of high end residential projects, elegant hotels, prestigious restaurants, commercial developments, schools, religious buildings and medical centres.

 

The group is also involved in the rental of investment properties.

 

The group has achieved a high profile reputation since inception and aims to maintain this into the next financial year by continuing to provide its excellence in service during these challenging times which face the sector in general. The group stands by its mission as set out in strategic report.

Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £4,874,744. 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 S K Vekaria
Mr M S Vekaria
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

The auditor, KLSA LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As per the requirements of the Companies (Directors’ Report and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 which came into force on 1 April 2019, the group is required to present the carbon footprint of its operations and measures introduced to improve efficiency.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
1,025,112
1,034,611
VASCROFT HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
65.83
65.49
- Fuel consumed for owned transport
64.22
69.05
130.05
134.54
Scope 2 - indirect emissions
- Electricity purchased
98.47
94.06
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
228.52
228.60
Intensity ratio
Kilogram CO2e per £
0.0043
0.0051
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric Kg CO2e per £ Turnover, the recommended ratio for the sector.

 

Data Assumptions

• Assumption made that fleet and company owned vehicles are all medium engine sized.

• Sites excluded in this report are energy consumption controlled by Client.

Measures taken to improve energy efficiency

We have implemented the policies below for the purpose of increasing energy efficiency.

 

 

We are committed to responsible energy management and will practice energy efficiency throughout our organization, wherever it is cost effective. We recognize that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions. Company operates to ISO 14001:2015 Environment Management System and promotes sustainability in built environment design.

VASCROFT HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr M S Vekaria
Director
29 November 2024
VASCROFT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VASCROFT HOLDINGS LIMITED
- 8 -
Opinion

We have audited the financial statements of Vascroft Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group income statement, 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, the company 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:

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 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.

Emphasis of matter

External valuation with material valuation uncertainty

We draw attention to Note 11 and 12 in the financial statements which describes material valuation uncertainly clause in the external valuation report. The property valuation in investment property of £5.66m and property, plant and equipment of £9.75m which cumulatively represents 25% of total assets, is fundamental to the user’s understandability of the financial statements as the one of the activity of the group is to lease out its properties for rental income. Our opinion is not modified in respect of this matter.

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 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 directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group's ability to continue as going concern.

 

VASCROFT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VASCROFT HOLDINGS LIMITED
- 9 -

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 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:

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 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:

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 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 directors either intend to liquidate the parent 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.

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

VASCROFT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VASCROFT HOLDINGS LIMITED
- 10 -
Extent to which the audit was considered capable of detecting irregularities , including fraud and non-compliance with laws and regulations

To identify risks of material misstatement due to any irregularities, including fraud and non-compliance with laws and regulations, we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

 

 

 

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

 

Secondly, the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the subsidiary company’s license to operate. We identified the following areas as those most likely to have such an effect: Buildings Regulations, 2010 and healthcare and safety legislation regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

VASCROFT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VASCROFT HOLDINGS LIMITED
- 11 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Shilpa Chheda (Senior Statutory Auditor)
For and on behalf of KLSA LLP
29 November 2024
Chartered Accountants
Statutory Auditor
Kalamu House
11 Coldbath Square
London
EC1R 5HL
VASCROFT HOLDINGS LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
2024
2023
Notes
£
£
Revenue
3
53,411,681
45,278,797
Cost of sales
(37,065,189)
(34,451,739)
Gross profit
16,346,492
10,827,058
Administrative expenses
(7,563,263)
(3,890,719)
Other operating income
43,171
37,642
Operating profit
4
8,826,400
6,973,981
Investment income
7
866,749
934,056
Profit before taxation
9,693,149
7,908,037
Tax on profit
8
(2,328,853)
(1,486,181)
Profit for the financial year
7,364,296
6,421,856
Profit for the financial year is all attributable to the owners of the parent company.
VASCROFT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
2024
2023
£
£
Profit for the year
7,364,296
6,421,856
Other comprehensive income
-
-
Total comprehensive income for the year
7,364,296
6,421,856
Total comprehensive income for the year is all attributable to the owners of the parent company.
VASCROFT HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024
31 August 2024
- 14 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
9,574,233
9,614,262
Investment property
12
5,660,000
5,660,000
Investments
13
117
-
0
15,234,350
15,274,262
Current assets
Trade and other receivables falling due after more than one year
15
535,602
9,802,514
Trade and other receivables falling due within one year
15
13,401,308
9,542,428
Cash and cash equivalents
22,262,592
9,110,461
36,199,502
28,455,403
Current liabilities
16
(13,661,160)
(9,874,764)
Net current assets
22,538,342
18,580,639
Total assets less current liabilities
37,772,692
33,854,901
Non-current liabilities
17
(365,224)
(434,561)
Provisions for liabilities
Provisions
18
4,052,872
2,579,000
Deferred tax liability
19
2,015,439
1,991,697
(6,068,311)
(4,570,697)
Net assets
31,339,157
28,849,643
Equity
Called up share capital
21
5
5
Revaluation reserve
5,509,542
5,600,042
Capital redemption reserve
5
5
Other reserves
5,799,991
5,799,991
Retained earnings
20,029,614
17,449,562
Equity attributable to owners of the parent company
31,339,157
28,849,605
Non-controlling interests
-
38
31,339,157
28,849,643
VASCROFT HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 AUGUST 2024
31 August 2024
- 15 -
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
29 November 2024
Mr S K Vekaria
Mr M S Vekaria
Director
Director
Company registration number 07721503 (England and Wales)
VASCROFT HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024
31 August 2024
- 16 -
2024
2023
Notes
£
£
£
£
Non-current assets
Investment property
12
9,750,000
9,750,000
Investments
13
13,800,063
13,800,063
23,550,063
23,550,063
Current assets
Trade and other receivables
15
2,039,087
2,000,001
Cash and cash equivalents
9,527,711
3,232,616
11,566,798
5,232,617
Current liabilities
16
(11,818,435)
(6,095,373)
Net current liabilities
(251,637)
(862,756)
Total assets less current liabilities
23,298,426
22,687,307
Provisions for liabilities
Deferred tax liability
19
1,241,025
1,241,025
(1,241,025)
(1,241,025)
Net assets
22,057,401
21,446,282
Equity
Called up share capital
21
5
5
Capital redemption reserve
5
5
Other reserves
5,799,991
5,799,991
Retained earnings
16,257,400
15,646,281
Total equity
22,057,401
21,446,282

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £5,485,864 (2023 - £4,607,162 profit).

The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
29 November 2024
Mr S K Vekaria
Mr M S Vekaria
Director
Director
Company registration number 07721503 (England and Wales)
VASCROFT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
Share capital
Revaluation reserve
Capital redemption reserve
Retained earnings
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
£
Balance at 1 September 2022
10
5,690,542
-
0
5,799,991
29,750,891
41,241,434
-
41,241,434
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
-
-
6,421,856
6,421,856
-
6,421,856
Dividends
9
-
-
-
-
(1,813,685)
(1,813,685)
-
(1,813,685)
Own shares acquired
-
-
-
-
(17,000,000)
(17,000,000)
-
(17,000,000)
Redemption of shares
21
(5)
-
5
-
-
-
0
-
-
Transfers
-
(90,500)
-
-
90,500
-
-
-
Acquisition of subsidiary
-
-
-
-
-
-
38
38
Balance at 31 August 2023
5
5,600,042
5
5,799,991
17,449,562
28,849,605
38
28,849,643
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
-
-
7,364,296
7,364,296
-
7,364,296
Dividends
9
-
-
-
-
(4,874,744)
(4,874,744)
-
(4,874,744)
Transfers
-
(90,500)
-
-
90,500
-
-
-
Disposal of subsidiary
-
-
-
-
-
-
(38)
(38)
Balance at 31 August 2024
5
5,509,542
5
5,799,991
20,029,614
31,339,157
-
0
31,339,157
VASCROFT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 September 2022
10
-
0
5,799,991
29,852,804
35,652,805
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
-
4,607,162
4,607,162
Dividends
9
-
-
-
(1,813,685)
(1,813,685)
Own shares acquired
-
-
-
(17,000,000)
(17,000,000)
Redemption of shares
21
(5)
5
-
-
-
0
Balance at 31 August 2023
5
5
5,799,991
15,646,281
21,446,282
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
-
5,485,863
5,485,863
Dividends
9
-
-
-
(4,874,744)
(4,874,744)
Balance at 31 August 2024
5
5
5,799,991
16,257,400
22,057,401
VASCROFT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
15,778,148
4,239,685
Income taxes paid
(2,092,819)
(1,500,319)
Net cash inflow from operating activities
13,685,329
2,739,366
Investing activities
Purchase of property, plant and equipment
(262,379)
(39,819)
Proceeds from disposal of property, plant and equipment
26,417
4,000
Purchase of subsidiaries, net of cash acquired
(117)
-
Repayment of loans
3,749,962
1,150,000
Interest received
827,663
934,056
Net cash generated from investing activities
4,341,546
2,048,237
Financing activities
Purchase of own shares
-
0
(17,000,000)
Dividends paid to equity shareholders
(4,874,744)
(1,813,685)
Net cash used in financing activities
(4,874,744)
(18,813,685)
Net increase/(decrease) in cash and cash equivalents
13,152,131
(14,026,082)
Cash and cash equivalents at beginning of year
9,110,461
23,136,543
Cash and cash equivalents at end of year
22,262,592
9,110,461
VASCROFT HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
6,189,614
3,596,750
Income taxes paid
(189,725)
(91,704)
Net cash inflow from operating activities
5,999,889
3,505,046
Investing activities
Purchase of subsidiaries
-
0
(62)
Repayment of loans
-
0
100,000
Interest received
169,950
442,840
Dividends received
5,000,000
4,000,000
Net cash generated from investing activities
5,169,950
4,542,778
Financing activities
Purchase of own shares
-
0
(17,000,000)
Dividends paid to equity shareholders
(4,874,744)
(1,813,685)
Net cash used in financing activities
(4,874,744)
(18,813,685)
Net increase/(decrease) in cash and cash equivalents
6,295,095
(10,765,861)
Cash and cash equivalents at beginning of year
3,232,616
13,998,477
Cash and cash equivalents at end of year
9,527,711
3,232,616
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
1
Accounting policies
Company information

Vascroft Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Vascroft Estate, 861 Coronation Road, Park Royal, London, NW10 7PT.

 

The group consists of Vascroft Holdings Limited and all of its subsidiaries.

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 investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of Vascroft Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

 

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and so continue to prepare to prepare these financial statements on the going concern basis. They believe the company has sufficient funding to be able to meet its liabilities as and when they fall due for the foreseeable future, being a period of not less than twelve months from the date of approval of these financial statements.

 

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 22 -
1.5
Revenue

Turnover is recognised to the extent that is possible that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxed. The following criteria must also be met before turnover is recognised:

 

Rendering of services

 

In respect of long-term contracts, turnover represents the value of the work done in the year, including estimates of amounts not invoiced and is recognised by reference to the stage of completion of each contract, once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to the balance sheet date of each project. Full provision is made for losses estimated by the directors on all contracts in the year in which the loss is first foreseen. Such estimates are based upon the directors' experience and relevant professional advice.

 

Turnover in respect of rental income from investment properties is recognised on straight line basis over the period of the lease.

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is recognised on receipt as per contractual terms.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.7
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% on Building valuation (Straight line)
Plant and equipment
10% on Reducing balance
Fixtures and fittings
15% on Reducing balance
Motor vehicles
25% on Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 23 -
1.9
Non-current 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. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issues together with the fair value of any additional consideration paid.

 

In the parent company financial statements, investments in subsidiaries 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.

1.10
Impairment of non-current assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 

In the consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 24 -
1.12
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 trade and other receivables 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.

Impairment of financial assets

Financial assets 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 group 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 are classified according to the substance of the contractual arrangements entered into.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 25 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 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.

 

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 if, and only if, there is 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.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

Provisions are charged as an expense to the consolidated statement of comprehensive income in the year that the group becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

 

When payments are eventually made, they are charged to the provision carried in the statement of financial position.

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 26 -
1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the statement of financial position date and carried forward to the future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the statement of financial position date.

 

Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

 

The contributions are recognised as an expense in the consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in the accruals as a liability in the statement of financial position. The assets of the plan are held separately from the group in independently administered funds.

1.18
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19

Finance cost

Finance cost are charged to the Consolidated statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

1.20

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.21

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

The Group provides a one-year warranty covering defects specific to its portion of contracts on construction projects, and accrues future estimated expenses against current operations.

 

The stage of completion of each contract is measured by work done which is certified by the internal and external valuers so that the appropriate amount is recognise in a given period.

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Debtor recoverability

Where outstanding customer debt from 31 August 2021 has still to be wholly or partially recovered by the date of the approval of these financial statements, management have exercised judgment in providing for any bad or doubtful debt. Management has individually considered each outstanding remaining debt in terms of payment history, the status of the current commercial relationship and any future committed business in reaching their decision of the appropriate level of provision to make for each customer.

Rendering of services and loss-making contracts

In respect of long-term contracts, turnover represents the value of the work done in the year, including estimates of amounts not invoiced and is recognised by reference to the stage of completion of each contract, once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to the Statement of Financial Position date on each project.

 

Full provision is made for losses estimated by the directors on all contracts in the year in which the loss is first foreseen. Such estimates are based upon the directors' experience and relevant professional advice.

Useful life of Intangible Assets, Property, Plant and Equipment and Investment Properties

Management reviews the useful lives, depreciation methods and residual values of the items of intangible assets, property, plant and equipment and investment property on a regular basis. During the financial year, the directors determined no significant changes in the useful lives and residual values. The carrying amounts of intangible assets, property, plant and equipment and investment property are disclosed in note 10, 11 and 12 respectively.

 

Valuation of properties

Investment properties and revalued freehold properties are carried at fair value and revalued amounts respectively. Fair value is ascertained through review of a number of factors and information flows, including market knowledge, recent market movements, recent sales of similar properties, historical experience and rent levels and flows of cash for the respective investment property. There is an inevitable degree of judgement involved and value can only be reliably tested ultimately in the market itself. Given the property market knowledge and expertise of the directors valuations are carried out by a mixture of external independent valuers and internal specialists.

Valuation of work in progress

The stage of completion of each contract is measured by work done which is certified by the internal valuers so that the appropriate amount is recognise in a given period.

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 28 -
3
Revenue

An analysis of the group's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Property construction
53,131,844
45,008,321
Rental income
279,837
270,476
53,411,681
45,278,797
2024
2023
£
£
Other revenue
Interest income
866,749
934,056
Rent receivable
23,101
23,487
Other income
20,070
14,155
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned property, plant and equipment
231,149
201,937
Loss/(profit) on disposal of property, plant and equipment
44,842
(2,402)
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 group and company
32,500
22,000
6
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
Production staff
27
27
-
-
Administrative staff
35
33
-
-
Directors
6
6
2
2
Total
68
66
2
2
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Employees
(Continued)
- 29 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,490,144
3,576,268
-
0
-
0
Social security costs
135,883
138,782
-
-
Pension costs
374,392
368,061
-
0
-
0
4,000,419
4,083,111
-
0
-
0
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
250,565
474,376
Other interest income
616,184
459,680
Total income
866,749
934,056
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
250,565
474,376
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,305,110
1,492,818
Deferred tax
Origination and reversal of timing differences
23,743
(6,637)
Total tax charge
2,328,853
1,486,181
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Taxation
(Continued)
- 30 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
9,693,149
7,908,037
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.75%)
2,423,287
1,719,689
Tax effect of expenses that are not deductible in determining taxable profit
264
390
Permanent capital allowances in excess of depreciation
10,008
34,755
Research and development tax credit
(128,449)
(261,724)
Deferred tax
23,743
(6,637)
Effect of super tax deduction
-
0
(292)
Taxation charge
2,328,853
1,486,181
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
4,874,744
1,813,685
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 September 2023 and 31 August 2024
8,259,133
Amortisation and impairment
At 1 September 2023 and 31 August 2024
8,259,133
Carrying amount
At 31 August 2024
-
0
At 31 August 2023
-
0
The company had no intangible fixed assets at 31 August 2024 or 31 August 2023.
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 31 -
11
Property, plant and equipment
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 September 2023
9,750,000
501,588
179,714
384,810
10,816,112
Additions
-
0
38,431
19,619
204,329
262,379
Disposals
-
0
(130,404)
(75,451)
(109,089)
(314,944)
At 31 August 2024
9,750,000
409,615
123,882
480,050
10,763,547
Depreciation and impairment
At 1 September 2023
540,000
268,200
121,131
272,519
1,201,850
Depreciation charged in the year
135,000
27,184
11,732
57,233
231,149
Eliminated in respect of disposals
-
0
(89,653)
(56,412)
(97,620)
(243,685)
At 31 August 2024
675,000
205,731
76,451
232,132
1,189,314
Carrying amount
At 31 August 2024
9,075,000
203,884
47,431
247,918
9,574,233
At 31 August 2023
9,210,000
233,388
58,583
112,291
9,614,262
The company had no property, plant and equipment at 31 August 2024 or 31 August 2023.

The investment property was valued during the previous year at £9,750,000 by Bellevue Mortlakes, RICS on 10 September 2021 on a fair value basis. The desktop valuation was performed as an addendum to the previous full valuation performed on 30 June 2020. The previous valuation has been recognised on the basis of ‘material valuation uncertainty’ which was as per RICS guidance due to the impact of COVID-19 on the real estate and hence this uncertainity has been brought forward in the current valuation. The directors consider that these valuations remain appropriate as at 31 August 2024.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2024
2023
£
£
Group
Cost
3,225,000
3,225,000
Accumulated depreciation
(222,500)
(178,000)
Carrying value
3,002,500
3,047,000
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 32 -
12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 September 2023 and 31 August 2024
5,660,000
9,750,000

The investment property was valued during the previous year at £5,660,000 by Bellevue Mortlakes, RICS on 10 September 2021 on a fair value basis. The desktop valuation was performed as an addendum to the previous full valuation performed on 30 June 2020. The previous valuation has been recognised on the basis of ‘material valuation uncertainty’ which was as per RICS guidance due to the impact of COVID-19 on the real estate and hence this uncertainity has been brought forward in the current valuation. The directors consider that these valuations remain appropriate as at 31 August 2024.

 

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
117
-
0
13,800,063
13,800,063
Movements in non-current investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023
-
Additions
117
At 31 August 2024
117
Carrying amount
At 31 August 2024
117
At 31 August 2023
-

The group has taken advantage of the exemption in "The Companies Act 2006 s405" from the requirement to consolidate the accounts of subsidiaries, Brentford Ventures Limited and Uxbridge Ventures Limited.

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
13
Fixed asset investments
(Continued)
- 33 -
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023 and 31 August 2024
13,800,063
Carrying amount
At 31 August 2024
13,800,063
At 31 August 2023
13,800,063
14
Subsidiaries

Details of the company's subsidiaries at 31 August 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Vascroft Estates Limited
England and Wales
Property rental
Ordinary
100.00
-
Vascroft Contractors Limited
England and Wales
Building contractors
Ordinary
100.00
-
Brentford Ventures Limited
England and Wales
Finance company
Ordinary
62.00
-
Uxbridge Ventures Limited
England and Wales
Finance company
Ordinary
0
54.54
15
Trade and other receivables
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade receivables
2,677,499
1,364,651
-
0
-
0
Gross amounts owed by contract customers
3,467,031
1,881,608
-
0
-
0
Amounts owed by group undertakings
3,000,000
-
-
-
Other receivables
4,002,563
5,956,277
2,039,087
2,000,001
Prepayments and accrued income
254,215
339,892
-
0
-
0
13,401,308
9,542,428
2,039,087
2,000,001
Amounts falling due after more than one year:
Trade receivables
535,602
2,302,514
-
0
-
0
Other loans
-
7,500,000
-
0
-
0
Total debtors
13,936,910
19,344,942
2,039,087
2,000,001
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 34 -
16
Current liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade payables
1,950,659
2,096,257
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
11,656,480
5,905,648
Corporation tax payable
1,105,110
892,818
161,955
189,725
Other taxation and social security
2,768,809
1,043,704
-
-
Other payables
-
0
1,250,000
-
0
-
0
Accruals and deferred income
7,836,582
4,591,985
-
0
-
0
13,661,160
9,874,764
11,818,435
6,095,373
17
Non-current liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade payables
365,224
434,561
-
0
-
0
18
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Provision for contract losses
4,052,872
2,579,000
-
-
Movements on provisions:
Provision for contract losses
Group
£
At 1 September 2023
2,579,000
Additional provisions in the year
4,052,872
Reversal of provision
(2,579,000)
At 31 August 2024
4,052,872
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 35 -
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
124,808
101,066
Revaluations
1,890,631
1,890,631
2,015,439
1,991,697
Liabilities
Liabilities
2024
2023
Company
£
£
Revaluations
1,241,025
1,241,025
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
1,991,697
1,241,025
Charge to profit or loss
23,742
-
Liability at 31 August 2024
2,015,439
1,241,025
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
374,392
368,061

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.

VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 36 -
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
500
1,000
5
10
Purchase of own shares of 1p each
-
500
-
(5)
500
500
5
5
22
Reserves

Revaluation Reserve

 

The revaluation reserve includes all revaluation surpluses of freehold property for current and prior periods.

 

Merger Reserve

 

The merger relief reserve arises on the acquisition of subsidiaries.

 

Profit & loss account

 

The profit and loss account includes all current and prior period retained profit and losses.

23
Operating lease commitments

The group and the company had no commitments under the non-cancellable operating leases as at the reporting date.

24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
788,367
764,416
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
2024
2023
£
£
Group
Entities over which the group has control, joint control or significant influence
49,684
80,646
Key management personnel
3,652
13,722
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
24
Related party transactions
(Continued)
- 37 -

Loan amounting to £5,000,000 (2023: £9,500,000) were granted to group companies on commercial terms which are secured against debenture on the assets of the borrowing company.

25
Controlling party

The ultimate controlling party is considered to be the SAV Trust.

 

26
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
7,364,296
6,421,856
Adjustments for:
Taxation charged
2,328,853
1,486,181
Investment income
(866,749)
(934,056)
Loss/(gain) on disposal of property, plant and equipment
44,842
(2,402)
Depreciation and impairment of property, plant and equipment
231,149
201,937
Increase/(decrease) in provisions
1,473,872
(3,974,143)
Movements in working capital:
Decrease in trade and other receivables
1,697,118
442,828
Increase in trade and other payables
3,504,767
597,484
Cash generated from operations
15,778,148
4,239,685
27
Cash generated from operations - company
2024
2023
£
£
Profit for the year after tax
5,485,863
4,607,162
Adjustments for:
Taxation charged
161,955
189,725
Investment income
(5,209,036)
(4,442,840)
Movements in working capital:
Increase in trade and other payables
5,750,832
3,242,703
Cash generated from operations
6,189,614
3,596,750
VASCROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 38 -
28
Analysis of changes in net funds - group
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
9,110,461
13,152,131
22,262,592
29
Analysis of changes in net funds - company
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
3,232,616
6,295,095
9,527,711
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