Company registration number 01554039 (England and Wales)
GARRARD BUILDING AND CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GARRARD BUILDING AND CONSTRUCTION LIMITED
COMPANY INFORMATION
Director
D J Garrard
Secretary
C Garrard
Company number
01554039
Registered office
22 Boulton Road
Stevenage
Herts
SG1 4QX
Auditor
TC Audit Limited
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
Business address
22 Boulton Road
Stevenage
Herts
SG1 4QX
Bankers
Handlesbanken
Ground floor
252 Capability Green
Luton
LU1 3LU
GARRARD BUILDING AND CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
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
GARRARD BUILDING AND CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The director presents the strategic report for the year ended 31 March 2024.

Review of the business

Over the year the Company continued to grow, both in terms of revenue and personnel. This was mainly as a result of increased work from existing clients but also included winning work from new clients. The main activity of the Company remains with insured repairs, although there was increased activity outside of this field. The Company continued with efforts to strengthen its trading position by expanding its client base and developing internal procedure. The level of profit being achieved saw a significant reduction compared to the previous year, largely due to significant increase in resource costs.

Principal risks and uncertainties

The level of trade debtors remains a challenge with this increasing slightly over the year. The Company has increased the time being spent on this and revised procedure to manage aged debt. This is already seeing improvements.

Credit Risk – this is mitigated by checks carried out by the Company prior to taking on new major clients. Currently, this only applies to clients within the insured repair market, who are either a major insurer or act as an intermediary to a major insurer. Where they are an intermediary, the Company checks that any payments made from the insurer to the intermediary are held in a protected bank account.

Liquidity Risk – this is mitigated through formalised procedure for debt recovery together with the provision of cash reserves held by the Company.

Interest Rate Risk – the Company has very little exposure to this as there are no significant loans in place.

Development and performance

The Company continued to diversify its client base and also increase the amount of work received outside of the insurance repair market. The number of new instructions increased by approximately 20%.

Cash flow was relatively steady throughout the year and the Company continued to self-fund and avoid the need of an overdraft.

The management team continued to evolve and mature. There was an Increase in formalised procedure together with an extensive review of the Company documentation. The Company retained ISO accreditation (initially achieved in March 2022).

The Company experienced challenges with recruitment, which was consistent with challenges in the wider industry. However, the Work Teams continued to develop and grow to deal with the increased work load.

Client satisfaction remains good with feedback received from clients being positive. When accounting for completed jobs, our records showed a commendations ratio of over 12% and a complaints ratio of 0.8% (falling to 0.4% when those recorded as ‘not justified’ are removed).

The Company’s continued focus on health & safety saw the number of reported accidents fall from the previous year and remain at a low level. Health & Safety related training continues to be updated regularly for all employees.

On behalf of the board

D J Garrard
Director
29 November 2024
GARRARD BUILDING AND CONSTRUCTION LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The director presents his annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company during the year was that of building and construction.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £60,000. The director does not recommend payment of a further dividend.

Director

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

D J Garrard
Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
D J Garrard
Director
29 November 2024
GARRARD BUILDING AND CONSTRUCTION LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

 

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

 

 

The director is 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. He is 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.

GARRARD BUILDING AND CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GARRARD BUILDING AND CONSTRUCTION LIMITED
- 4 -
Opinion

We have audited the financial statements of Garrard Building and Construction Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

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 director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GARRARD BUILDING AND CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GARRARD BUILDING AND CONSTRUCTION LIMITED (CONTINUED)
- 5 -
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 director's report.

 

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

Responsibilities of director

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

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

 

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to construction contracts, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

GARRARD BUILDING AND CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GARRARD BUILDING AND CONSTRUCTION LIMITED (CONTINUED)
- 6 -

Our audit procedures in relation to fraud included but were not limited to:

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

James Price FCA
Senior Statutory Auditor
For and on behalf of TC Audit Limited
3 December 2024
Statutory Auditor
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
GARRARD BUILDING AND CONSTRUCTION LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
10,159,140
9,302,333
Cost of sales
(8,426,324)
(7,798,860)
Gross profit
1,732,816
1,503,473
Administrative expenses
(1,277,679)
(1,075,915)
Other operating income
2,926
130
Operating profit
4
458,063
427,688
Interest receivable and similar income
8
40,395
34,496
Interest payable and similar expenses
9
(18,486)
(18,159)
Profit before taxation
479,972
444,025
Taxation
10
(120,915)
(107,116)
Profit for the financial year
359,057
336,909

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

GARRARD BUILDING AND CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
£
£
Profit for the year
359,057
336,909
Other comprehensive income
-
-
Total comprehensive income for the year
359,057
336,909
GARRARD BUILDING AND CONSTRUCTION LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
358,238
493,660
Current assets
Debtors
13
4,781,074
4,900,736
Cash at bank and in hand
1,527,959
741,509
6,309,033
5,642,245
Creditors: amounts falling due within one year
14
(1,781,564)
(1,409,914)
Net current assets
4,527,469
4,232,331
Total assets less current liabilities
4,885,707
4,725,991
Creditors: amounts falling due after more than one year
15
(4,904)
(111,190)
Provisions for liabilities
Deferred tax liability
17
89,446
122,501
(89,446)
(122,501)
Net assets
4,791,357
4,492,300
Capital and reserves
Called up share capital
19
70
70
Capital redemption reserve
30
30
Profit and loss reserves
4,791,257
4,492,200
Total equity
4,791,357
4,492,300

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 29 November 2024
D J Garrard
Director
Company registration number 01554039 (England and Wales)
GARRARD BUILDING AND CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
70
30
4,726,691
4,726,791
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
336,909
336,909
Dividends
11
-
-
(571,400)
(571,400)
Balance at 31 March 2023
70
30
4,492,200
4,492,300
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
359,057
359,057
Dividends
11
-
-
(60,000)
(60,000)
Balance at 31 March 2024
70
30
4,791,257
4,791,357
GARRARD BUILDING AND 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
1,187,785
259,262
Interest paid
(18,486)
(18,159)
Income taxes paid
(90,497)
(26,341)
Net cash inflow from operating activities
1,078,802
214,762
Investing activities
Purchase of tangible fixed assets
(70,270)
(116,641)
Interest received
40,395
27,955
Other income received from investments
-
0
6,541
Net cash used in investing activities
(29,875)
(82,145)
Financing activities
Payment of finance leases obligations
(202,477)
(161,936)
Dividends paid
(60,000)
(571,400)
Net cash used in financing activities
(262,477)
(733,336)
Net increase/(decrease) in cash and cash equivalents
786,450
(600,719)
Cash and cash equivalents at beginning of year
741,509
1,342,228
Cash and cash equivalents at end of year
1,527,959
741,509
GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Garrard Building and Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is 22 Boulton Road, Stevenage, Herts, SG1 4QX.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in operational existence for the foreseeable future.

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT.

 

The company’s activities involves contractual arrangements that are significant in size and span the company’s year end. In order to determine the stage of completeness, the directors make an assessment of time spent on contracts as at the year end relative to the overall time expected to be spent on the contracts. This assumes a linear progression in respect of revenue and costs through the course of contracts which the directors consider to be a reasonable policy in the context of the nature of its work. Using the stage of completeness assessments the requisite adjustments are made to revenue, costs, debtors and creditors so that an appropriate measure of profit is recognised in these financial statements.

 

Where onerous contracts exist the total expected loss is recorded as a provision within these financial statements.

 

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.

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:

Plant and equipment
25% straight line
Fixtures and fittings
10% straight line
Equipment
25% straight line
Motor vehicles
25% straight line

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

GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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.

1.6
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
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.

GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.

1.10
Employee benefits

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.

1.11
Retirement benefits

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

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.13
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.

GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revenue Stage of Completion

The level of costs incurred relative to the total expected costs is used as an estimate for the stage of completion of the company's construction contracts. This estimate is subject to regular review and updated where the nature and scope of the work to be undertaken is subject to material change.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Revenue from insured repairs
10,122,373
8,600,240
Revenue from private clients
36,767
702,093
10,159,140
9,302,333
2024
2023
£
£
Turnover analysed by geographical market
UK
10,159,140
9,302,333
2024
2023
£
£
Other revenue
Interest income
40,395
27,955
Grants received
600
130
Sundry income
2,326
-
GARRARD BUILDING AND 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):
£
£
Government grants
(600)
(130)
Depreciation of owned tangible fixed assets
66,676
43,948
Depreciation of tangible fixed assets held under finance leases
139,014
136,309
Loss on disposal of tangible fixed assets
2
-
Operating lease charges
54,100
53,919
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
10,000
10,000
Additional services
5,850
5,500
15,850
15,500
6
Employees

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

2024
2023
Number
Number
60
58

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,599,344
2,370,195
Social security costs
296,086
129,675
Pension costs
182,313
165,926
3,077,743
2,665,796
Key management compensation
Key management includes the director and members of senior management. The compensation paid or payable to key management for employee services is shown below:
2024
2023
£
£
Remuneration for qualifying services
65,997
66,170
Company pension contributions to defined contribution schemes
100,000
40,000
165,997
106,170
GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
46,227
50,000
Company pension contributions to defined contribution schemes
60,000
40,000
106,227
90,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
18,620
8,026
Interest receivable from connected companies
15,638
19,604
Other interest income
6,137
325
Total interest revenue
40,395
27,955
Income from fixed asset investments
Income from other loans
-
0
6,541
Total income
40,395
34,496
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
18,486
18,159
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
153,970
90,497
Deferred tax
Origination and reversal of timing differences
(33,055)
16,619
Total tax charge
120,915
107,116
GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 19 -

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
479,972
444,025
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
119,993
84,365
Tax effect of expenses that are not deductible in determining taxable profit
8
-
0
Effect of change in corporation tax rate
-
0
29,400
Super-deduction
-
0
(6,649)
Other timing differences
914
-
0
Tax expense for the year
120,915
107,116
11
Dividends
2024
2023
£
£
Final paid
60,000
571,400
12
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
54,391
53,439
83,109
766,186
957,125
Additions
-
0
3,628
12,683
53,959
70,270
Disposals
-
0
-
0
(12,416)
-
0
(12,416)
At 31 March 2024
54,391
57,067
83,376
820,145
1,014,979
Depreciation and impairment
At 1 April 2023
27,855
45,710
54,401
335,499
463,465
Depreciation charged in the year
9,098
2,210
12,073
182,309
205,690
Eliminated in respect of disposals
-
0
-
0
(12,414)
-
0
(12,414)
At 31 March 2024
36,953
47,920
54,060
517,808
656,741
Carrying amount
At 31 March 2024
17,438
9,147
29,316
302,337
358,238
At 31 March 2023
26,536
7,729
28,708
430,687
493,660
GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 20 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
17,438
26,535
Motor vehicles
188,989
318,906
206,427
345,441
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,289,889
1,549,984
Gross amounts owed by contract customers
2,249,295
2,051,732
Other debtors
179,329
1,240,055
Prepayments and accrued income
62,561
58,965
4,781,074
4,900,736
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
97,962
194,153
Trade creditors
428,673
421,373
Corporation tax
153,970
90,497
Other taxation and social security
535,419
283,144
Other creditors
559,690
415,247
Accruals and deferred income
5,850
5,500
1,781,564
1,409,914
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
4,904
111,190
GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
97,962
194,153
In two to five years
4,904
111,190
102,866
305,343

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles.

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:
£
£
ACAs
89,560
123,415
Provisions
(114)
(914)
89,446
122,501
2024
Movements in the year:
£
Liability at 1 April 2023
122,501
Credit to profit or loss
(33,055)
Liability at 31 March 2024
89,446

The deferred tax liability set out above is expected to reverse within future periods and relates to accelerated capital allowances that are expected to mature within the same periods.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
182,313
165,926

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.

GARRARD BUILDING AND CONSTRUCTION LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
70
70
70
70
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
54,100
54,100
Between two and five years
216,400
216,400
In over five years
108,200
162,300
378,700
432,800
21
Related party transactions

At the balance sheet date the company was owed £nil (2023: £1,039,738) from Blue Bulb Investments Limited, a connected company by virtue of D Garrard and C Garrard having common control. Interest of 2.55% per annum was charged on the balance of this loan however the full balance was repaid during the financial year.

 

The company was also owed £176,250 (2023: £199,750) by a IPM Pension Trustees Limited at the balance sheet date in relation to self invested personal pensions in which D Garrard and C Garrard are beneficiaries. Interest is charged at market rates.

22
Ultimate controlling party

The company was controlled throughout the period by D J Garrard.

GARRARD BUILDING AND 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
359,057
336,909
Adjustments for:
Taxation charged
120,915
107,116
Finance costs
18,486
18,159
Investment income
(40,395)
(34,496)
Loss on disposal of tangible fixed assets
2
-
Depreciation and impairment of tangible fixed assets
205,690
180,257
Movements in working capital:
Decrease/(increase) in debtors
119,662
(145,592)
Increase/(decrease) in creditors
404,368
(203,091)
Cash generated from operations
1,187,785
259,262
24
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
741,509
786,450
1,527,959
Obligations under finance leases
(305,343)
202,477
(102,866)
436,166
988,927
1,425,093
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