Company registration number 2801429 (England and Wales)
GARIFF CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GARIFF CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
G S Chew
D Langshaw
D Haworth
N Hampson
S Doran
Secretary
D M Langshaw
Company number
2801429
Registered office
Village House
Eleventh Street
Trafford Park
Manchester
United Kingdom
M17 1JF
Auditor
Azets Audit Services
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
GARIFF CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
GARIFF CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Review of the Business

The principal activity of the company continued to be joinery and fit out contracts.

The company has enjoyed positive operating results for the year to 31 March 2024, continuing the performance for the 6 months to 31 March 2023.

Contracts completed in the current period have performed very well due to efficient execution and delivery to program.

The company continues to focus on its core specialism of bespoke, high end joinery fitout packages for a diverse range of clients. Profitability has been assisted by the increase in locally based projects which reduces the logistical costs and helps to keep the company's carbon footprint to a minimum.

The company enjoys a high level of colleague retention and this in turn contributes to an efficient, dedicated and co-ordinated team culture.

Inflation remains a concern, however, due to a shorter term duration of most of our projects our company risk profile in this area is well controlled.

Management are mindful of the decline in economic outlook and impact of higher interest rates. Management remains cautious in managing cashflow, working capital and managing credit risks.

Results and performance

The results for the year are set out on pages 8 and 9.

 

The period has seen a slight decrease in Gross Profit margin;

2024: 15.37% £2,680,219

2023: 17.61% £1,392,899

2022: 2.79% £322,621

2021: 13.94% £2,141,823

The pre-tax profit for the period is £998,239 (2023: profit £697,998). The directors recognise the conditions in the current operating environment, how this has had an impact on the periods performance and are satisfied with the performance achieved. The directors fully understand that this period represents 12 months of trading, whilst the prior period figure only represents 6 months of trading and does not represent a full comparison for the year ended 31st March 2024.

Business environment and strategy

The market places in which the company operates are highly competitive. The company strives to protect its market positions by creating value for its customers through, product quality, delivery service and innovation.

The business is trading successfully in its established specialisms and enjoys repeat business with numerous blue chip clients. The business continues to pursue a policy of quality work at acceptable margins rather than volume at any price.

GARIFF CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators

The key performance indicators are as follows:

 

 

The performance against KPI's is considered a strong achievement. Consideration needs to be made for a 6 month prior trading period,

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks, which have been considered by the directors.

 

The company has an unprecedented level of secured work for year to 31 March 2025 due to successful tenders.

As such the directors are optimistic that the Gariff proposition of quality work at sensible prices remains a much sought after service in scarce supply.

On behalf of the board

D Langshaw
Director
30 November 2024
GARIFF CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G S Chew
D Langshaw
D Haworth
N Hampson
S Doran
Results and dividends

The results for the year are set out on pages 8 and 9.

Ordinary dividends were paid amounting to £100,000. The directors do not recommend payment of a final dividend.

Auditor

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

In carrying out their duties in respect of going concern, the directors have carried out a review of the Company's financial position and cash flow forecast for a period of 12 months from the date of approval of these financial statements.

 

The forecasts have been based on a comprehensive review of revenue, expenditure and cash flows, taking into account specific business risks and the uncertainties brought about by the current economic environment.

 

To ensure the continuation of the Company the directors regularly review the cash flows of the Company both in the short and medium term, have a thorough approach to managing the working capital and hold regular reviews, which includes an assessment of any bad debt risk or work in progress impairment concerns. This is supported by regular monitoring of key performance indicators.

 

The Company’s ability to continue as a going concern depends on the it being able to respond to market trends and to capture new business opportunities arising in the market. The business continues to evolve in response to customers’ needs with a strong pipeline of secured work and are cautiously optimistic for the next 12 months.

 

On behalf of the board
D Langshaw
Director
30 November 2024
GARIFF CONSTRUCTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GARIFF CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GARIFF CONSTRUCTION LIMITED
- 5 -
Opinion

We have audited the financial statements of Gariff Construction Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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:

GARIFF CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GARIFF CONSTRUCTION LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

GARIFF CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GARIFF CONSTRUCTION LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Jonathan Ward
Senior Statutory Auditor
For and on behalf of Azets Audit Services
2 December 2024
Chartered Accountants
Statutory Auditor
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
GARIFF CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Year
Period
ended
ended
31 March
31 March
2024
2023
Notes
£
£
Turnover
3
17,443,642
7,907,632
Cost of sales
(14,763,423)
(6,514,733)
Gross profit
2,680,219
1,392,899
Administrative expenses
(1,677,726)
(694,901)
Operating profit
4
1,002,493
697,998
Interest receivable and similar income
8
4,808
-
0
Interest payable and similar expenses
9
(19,062)
-
0
Profit before taxation
988,239
697,998
Tax on profit
10
(251,468)
(130,400)
Profit for the financial year
736,771
567,598

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GARIFF CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
79,758
5,885
Current assets
Stocks
13
20,800
130,802
Debtors
14
5,236,187
3,566,308
Cash at bank and in hand
911,601
547,025
6,168,588
4,244,135
Creditors: amounts falling due within one year
15
(4,387,906)
(2,973,507)
Net current assets
1,780,682
1,270,628
Total assets less current liabilities
1,860,440
1,276,513
Creditors: amounts falling due after more than one year
16
(151,250)
(211,896)
Provisions for liabilities
Deferred tax liability
17
3,257
(4,545)
(3,257)
4,545
Net assets
1,705,933
1,069,162
Capital and reserves
Called up share capital
19
1
1
Profit and loss reserves
1,705,932
1,069,161
Total equity
1,705,933
1,069,162
The financial statements were approved by the board of directors and authorised for issue on 30 November 2024 and are signed on its behalf by:
D Langshaw
Director
Company Registration No. 2801429
GARIFF CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
1
501,563
501,564
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
567,598
567,598
Balance at 31 March 2023
1
1,069,161
1,069,162
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
736,771
736,771
Dividends
11
-
(100,000)
(100,000)
Balance at 31 March 2024
1
1,705,932
1,705,933
GARIFF CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
530,978
481,496
Interest paid
(19,062)
-
0
Income taxes refunded/(paid)
33,055
(50,000)
Net cash inflow from operating activities
544,971
431,496
Investing activities
Purchase of tangible fixed assets
(85,203)
-
0
Proceeds on disposal of tangible fixed assets
-
0
87,756
Receipts arising from loans made
-
0
12,578
Interest received
4,808
-
0
Net cash (used in)/generated from investing activities
(80,395)
100,334
Financing activities
Dividends paid
(100,000)
-
0
Net cash used in financing activities
(100,000)
-
Net increase in cash and cash equivalents
364,576
531,830
Cash and cash equivalents at beginning of year
547,025
15,195
Cash and cash equivalents at end of year
911,601
547,025
GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Gariff Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Village House, Eleventh Street, Trafford Park, Manchester, United Kingdom, M17 1JF.

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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

In carrying out their duties in respect of going concern, the directors have carried out a review of the Company's financial position and cash flow forecast for a period of 12 months from the date of approval of these financial statements. The forecasts have been based on a comprehensive review of revenue, expenditure and cash flows, taking into account specific business risks and the uncertainties brought about by the current economic environment.true

 

To ensure the continuation of the Company the directors regularly review the cash flows of the Company both in the short and medium term, have a thorough approach to managing the working capital and hold regular reviews, which includes an assessment of any bad debt risk or work in progress impairment concerns. This is supported by regular monitoring of key performance indicators.

 

The Company’s ability to continue as a going concern depends on the it being able to respond to market trends and to capture new business opportunities arising in the market. The business continues to evolve in response to customers’ needs.

1.3
Turnover

Profit is recognised at the fair value of the consideration received for installation and completion work for fit out and joinery projects. This is measured reference to the stage of completion of each contract where there is reasonable certainty that the contract will be profitable and is shown net of VAT and other sales related taxes. Where the outcome of the contract cannot be established with reasonable certainty no profit is recognised. Foreseeable losses are provided for to the extent they are anticipated.

 

Where the value of work done exceeds the amounts invoiced, the excess is accounted for as amounts recoverable on contracts and is included within debtors.

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.

1.4
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.

GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

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:

Fixtures, fittings & equipment
15% - 33% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks which comprise of work in progress, are stated at the lower of cost and estimated selling price less costs to complete. Cost comprises direct materials and, where applicable, direct labour costs and relevant overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of work in progress the estimated project revenue is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash at bank and in hand

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.

GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Equity instruments

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.11
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 fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Amounts recoverable on contracts

Management make an estimate of the level of completion of a contract and make a provision of the recoverable element of that contract. This is calculated on a percentage completion basis and takes into consideration surveyor values.

3
Turnover and other revenue

 

£
£
Turnover analysed by geographical market
UK
17,443,642
7,907,632

Turnover is generated from one class of business.

GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
8,250
Depreciation of owned tangible fixed assets
11,329
3,418
Profit on disposal of tangible fixed assets
-
(57,606)
Direct costs
13,013,384
5,589,227
Operating lease charges
39,270
18,020
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,500
8,250
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production
36
42
Administration
10
12
Management
10
8
Total
56
62

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,426,472
1,196,596
Social security costs
251,999
109,938
Pension costs
129,703
61,725
2,808,174
1,368,259
GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
375,028
122,885
Company pension contributions to defined contribution schemes
37,929
18,370
412,957
141,255
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
86,901
34,470
Company pension contributions to defined contribution schemes
4,145
8,463
91,046
42,933
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,550
-
0
Other interest income
2,258
-
0
Total income
4,808
-
0
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,550
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
19,062
-
0
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
243,666
141,561
GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
7,802
(11,161)
Total tax charge
251,468
130,400

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
988,239
697,998
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
247,060
132,620
Tax effect of expenses that are not deductible in determining taxable profit
3,830
201
Tax effect of income not taxable in determining taxable profit
(1,202)
-
0
Provisions tax adjustment
(1,899)
2,396
Deferred tax
7,802
(11,161)
Qualifying donation
1,780
-
0
Balancing charges
-
0
16,674
Fixed asset profit on disposals
-
0
(10,945)
Fixed asset depreciation
2,833
649
Capital items expensed
208
-
0
Capital allowances
(8,944)
(34)
Taxation charge for the year
251,468
130,400
11
Dividends
2024
2023
£
£
Dividends paid
100,000
-
0
GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
12
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023
98,798
-
0
98,798
Additions
-
0
85,203
85,203
At 31 March 2024
98,798
85,203
184,001
Depreciation and impairment
At 1 April 2023
92,913
-
0
92,913
Depreciation charged in the year
3,123
8,207
11,330
At 31 March 2024
96,036
8,207
104,243
Carrying amount
At 31 March 2024
2,762
76,996
79,758
At 31 March 2023
5,885
-
0
5,885
13
Stocks
2024
2023
£
£
Work in progress
20,800
130,802
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,745,166
817,290
Gross amounts due from contract customers
3,027,078
2,448,148
Corporation tax recoverable
-
0
124,616
Other debtors
244,431
-
0
Prepayments and accrued income
219,512
176,254
5,236,187
3,566,308

Debtors in relation to retentions had a balance of £153,172 due in more than one year (2023 : £728).

GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,003,509
1,314,515
Corporation tax
243,666
91,561
Other taxation and social security
85,010
94,485
Other creditors
274,926
81,150
Accruals and deferred income
780,795
1,391,796
4,387,906
2,973,507
16
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
151,250
211,896
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
3,257
(4,545)
2024
Movements in the year:
£
Asset at 1 April 2023
(4,545)
Charge to profit or loss
7,802
Liability at 31 March 2024
3,257
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
129,703
61,725

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
19
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary of £1 each
1
1
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
49,889
31,167
Between two and five years
148,750
7,165
198,639
38,332
21
Related party transactions

During the year there were transactions with Gariff Joinery Limited, a company of which Mr G Chew is a director and shareholder.

 

Sales recharges were raised totalling £794,812 (2023: £438,801) and amounts receivable were £419,656 (2023: £Nil). Purchases incurred were £5,486,728 (2023: £1,385,318) and amounts payable were £1,456,516 (2023: £224,919).

 

During the year there were transactions with Gariff Solid Surfaces Limited, a company that is associated with Gariff Construction Limited.

Sales recharges raised were raised totalling £33,979 (2023: £13,353) and amounts receivable were £43,818 (2023: £Nil). Purchases incurred were £908,052 (2023: £281,108) and amounts payable were £257,051 (2023: £76,903).

 

During the year rent (prior to inter company recharges) was paid to the Gariff Construction Pension Fund of £277,200 (2023: £127,000) and amounts payable were £281,250 (2023: £324,850), this included £151,250 (2023 £211,896) due over 1 year. Interest of £5,077 (2023: £Nil) was paid to the Gariff Construction Pension Fund in the year. Gariff Construction Pension Fund is the pension fund of a director of Gariff Construction Limited.

22
Directors' transactions

Dividends totalling £100,000 were paid in the year in respect of shares held by the company's directors.

GARIFF CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
736,771
567,598
Adjustments for:
Taxation charged
251,468
130,400
Finance costs
19,062
-
0
Investment income
(4,808)
-
0
Gain on disposal of tangible fixed assets
-
(57,606)
Depreciation and impairment of tangible fixed assets
11,330
3,418
Movements in working capital:
Decrease in stocks
110,002
88,657
Increase in debtors
(1,794,495)
(406,195)
Increase in creditors
1,201,648
155,224
Cash generated from operations
530,978
481,496
24
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
547,025
364,576
911,601
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