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RED CONSTRUCTION SOUTH WEST LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST MARCH 2024






RED CONSTRUCTION SOUTH WEST LIMITED (REGISTERED NUMBER: 13628775)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


RED CONSTRUCTION SOUTH WEST LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST MARCH 2024







DIRECTORS: R Brooks
J A Devey
G J Millar
D A Quinn
G J Sturge



REGISTERED OFFICE: Oakley House
The Drive, Church Lane
Oakley
Bedford
Bedfordshire
MK43 7ST



REGISTERED NUMBER: 13628775 (England and Wales)



SENIOR STATUTORY AUDITOR: Alberto Di Lorenzo FCA



AUDITORS: HW Bedford Limited
First Floor, Woburn Court
2 Railton Road
Woburn Rd Ind Est
Kempston
Bedfordshire
MK42 7PN

RED CONSTRUCTION SOUTH WEST LIMITED (REGISTERED NUMBER: 13628775)

BALANCE SHEET
31ST MARCH 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 5 37,739 25,502

CURRENT ASSETS
Debtors 6 3,168,878 430,093
Cash at bank 7 3,692,100 178,406
6,860,978 608,499
CREDITORS
Amounts falling due within one year 8 6,546,024 587,756
NET CURRENT ASSETS 314,954 20,743
TOTAL ASSETS LESS CURRENT
LIABILITIES

352,693

46,245

CREDITORS
Amounts falling due after more than one
year

9

(91,282

)

-

PROVISIONS FOR LIABILITIES 11 (2,426 ) (2,426 )
NET ASSETS 258,985 43,819

CAPITAL AND RESERVES
Called up share capital 12 300 300
Retained earnings 258,685 43,519
SHAREHOLDERS' FUNDS 258,985 43,819

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 4th December 2024 and were signed on its behalf by:





G J Sturge - Director


RED CONSTRUCTION SOUTH WEST LIMITED (REGISTERED NUMBER: 13628775)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2024

1. STATUTORY INFORMATION

Red Construction South West Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Critical accounting judgements and key sources of estimation uncertainty
In applying the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions 'in determining the carrying amounts of assets and liabilities. The Directors' Judgements, estimates and assumptions are based on· the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ, however, a conservative position is taken in all such estimates and judgements. The estimates and underlying assumptions are reviewed on an ongoing basis and revisions to accounting estimates are recognised in the period in which the estimate is revised.

Critical judgements in applying the Company's accounting policies
The critical judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

Revenue recognition on long term contracts
Determining the value of turnover to recognise prior to completion of a long term contract requires an estimation of the percentage of !he contract that has been completed at the reporting dale.

Profit recognition on long term contracts
The amount of profit or loss recognised Is based upon the forecast outcome of the contract Whilst every effort is made to ensure profit is only recognised when the outcome of the contract is reasonably certain, there remains a risk that the outcome is less favourable than originally anticipated.

Accruals and provisions
The board makes judgements regarding whether it is appropriate to accrue of provide for various
liabilities, as well as estimating the sums it is appropriate lo provide or accrue.

RED CONSTRUCTION SOUTH WEST LIMITED (REGISTERED NUMBER: 13628775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

2. ACCOUNTING POLICIES - continued

Revenue
Revenue is recognised to the extent that it is probable that the economic benefit will flow to the company and the revenue 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 taxes. The following criteria must be met before revenue is recognised:

Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;
- it is probable that the company will receive consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements- Over the term of the lease
Plant & machinery- 25% straight line
Office equipment- 25% straight line

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

RED CONSTRUCTION SOUTH WEST LIMITED (REGISTERED NUMBER: 13628775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

2. ACCOUNTING POLICIES - continued

Going concern
The directors have considered the budgets and cash flow forecasts for the company. The company has the continued support of Red Construction Group Limited in meeting its liabilities as they fall due. Therefore, the financial statement have been prepared on a going concern basis.

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 risk of with insignificant change in value.

Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Short and long - term contracts
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Trade debtors includes the projects certified value at the year end. This includes both invoiced amounts and uninvoiced amounts in the form of retentions receivable on work certified to date. Payments on accounts, included in creditors, represents where amounts received and receivable for a project exceeds the project's value at the year end.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2023 - 8 ) .

4. AUDITORS' REMUNERATION
2024 2023
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

10,100

6,225

RED CONSTRUCTION SOUTH WEST LIMITED (REGISTERED NUMBER: 13628775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

5. TANGIBLE FIXED ASSETS
Leasehold Plant and Office
improvements machinery equipment Totals
£    £    £    £   
COST
At 1st April 2023 40,489 - 819 41,308
Additions 11,571 15,533 - 27,104
At 31st March 2024 52,060 15,533 819 68,412
DEPRECIATION
At 1st April 2023 15,396 - 410 15,806
Charge for year 12,077 2,517 273 14,867
At 31st March 2024 27,473 2,517 683 30,673
NET BOOK VALUE
At 31st March 2024 24,587 13,016 136 37,739
At 31st March 2023 25,093 - 409 25,502

6. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 2,471,571 130,667
Amounts recoverable on contracts 301,702 9,600
Other debtors 111,528 48,332
Tax 16 -
Called up share capital not paid 120 120
Prepayments and accrued income 5,581 241,374
2,890,518 430,093

Amounts falling due after more than one year:
Other debtors 278,360 -

Aggregate amounts 3,168,878 430,093

7. CASH AT BANK
2024 2023
£    £   
Bank current account 3,692,100 178,406

RED CONSTRUCTION SOUTH WEST LIMITED (REGISTERED NUMBER: 13628775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,669,646 19,214
Amounts owed to group undertakings 139,780 318,951
Corporation tax - 483
Social security and other taxes 50,232 23,823
VAT 528,621 37,582
Other creditors 112,581 54,714
Net wages outstanding 1,529 45
Accruals and deferred income 4,043,635 132,944
6,546,024 587,756

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Other creditors 91,282 -

10. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 8,721 -
Between one and five years 2,960 -
11,681 -

11. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 2,426 2,426

Deferred
tax
£   
Balance at 1st April 2023 2,426
Balance at 31st March 2024 2,426

The deferred tax balance related to accelerated capital allowances.

12. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
300 ORDINARY £1 300 300

RED CONSTRUCTION SOUTH WEST LIMITED (REGISTERED NUMBER: 13628775)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

13. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Alberto Di Lorenzo FCA (Senior Statutory Auditor)
for and on behalf of HW Bedford Limited

14. PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £144,944 (2023: £75,631). Contributions totalling £15,550 (2023: £12,631) were payable to the fund at the balance sheet date and are included in creditors.

15. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year, the company made purchases from RED Construction Group Limited totalling £286,842 (2023 £124,460). The company further incurred recharged costs from RED Construction Group Limited totalling £231,152. Management charges of £388,260 (2023: £Nil) where incurred from RED Construction Group Limited. The company further received tendering costs of £240,000 (2023: £Nil) from RED Construction Group Limited.

At the year end the company was owed £Nil by RED Construction Group Limited and owed a loan balance of £139,780 (2023: £320,925) to RED Construction Group Limited. The highest amount owed during the year was £139,780 (2023: £320,925). There is no interest accruing in respect of this loan.

During the year, the company made sales of £5,384,677 (2023: £214,291) to Zeal Hotels (Exeter) Ltd which is a related party with G Sturge being a common director. At the year end there was a balance due of £Nil (2023: £10,660).

16. ULTIMATE CONTROLLING PARTY

The immediate and ultimate controlling party is RED Construction Group Limited, a company incorporated in England and Wales.

The largest and smallest group in which the results of the company are consolidated is that of Red Construction Group Limited, which can be obtained from Oakley House, The Drive, Church Lane, Oakley, Bedford, England, MK43 7ST.