RED CONSTRUCTION GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31ST MARCH 2024 |
RED CONSTRUCTION GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31ST MARCH 2024 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MARCH 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 7 |
Report of the Independent Auditors | 10 |
Consolidated Statement of Comprehensive Income | 13 |
Consolidated Balance Sheet | 14 |
Company Balance Sheet | 15 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Financial Statements | 20 |
RED CONSTRUCTION GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST MARCH 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Alberto Di Lorenzo |
AUDITORS: |
First Floor, Woburn Court |
2 Railton Road |
Woburn Rd Ind Est |
Kempston |
Bedfordshire |
MK42 7PN |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MARCH 2024 |
The board of directors present their strategic report for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review is construction, working directly with end use clients and property asset owners, as a specialist main contractor. |
REVIEW OF BUSINESS AND GENERAL OUTLOOK |
The board is committed to a cautious, yet ambitious growth plan as demonstrated by the ongoing increase in the scale of the business activities, profitably delivering annual revenue in excess of £100m, for the first time, in the year ended 31 March 2024. |
The expansion of the business by being the contractor of choice in the commercial, residential, hotel and leisure markets has driven an associated evolution of the business, which has seen: |
- The group's operations firmly established across multiple regions and sectors. |
- The restructure of the group by establishing distinct operating companies and launching RED Special Projects, embedding responsibility and accountability in leadership teams. |
- Investment in key areas and processes supporting the businesses' ability to safely deliver scale to meet the needs and requirements of new and existing clients. |
- Creation of long-lasting relationships by delivering great schemes our people and clients are proud of. |
- Early engagement with clients, to ensure that from the onset, sustainable solutions are at the heart of every key decision. |
- A balanced mix of project size up to £50m value, solidifying the group's reputation for effective delivery of quality developments across new build and refurbishment projects in the UK. |
Our values and approach |
RED's core values are driven by relationships, channelling our enthusiasm into delivering on our promises and creating value in all that we do. Our clients choose us for our specialist knowledge, our employees choose us for our ambition and inclusive mindset. It is our mission to operate in an ethical and transparent manner that creates client value, embracing the innovation that keeps us evolving and helps us deliver best outcomes. We believe in creating an enjoyable, inclusive and safe environment, focused on empowering and training our teams to maximise their potential. |
This is our operating model which is built on three key components |
- Relationships building positive trusting, connections with our clients, teams and stakeholders to empower growth and success. |
- Enthusiasm exerting passion and determination for service excellence, through innovation, engagement of positive opportunities and provide solutions to all challenges. |
- Delivery on our promises, with pride, integrity, and transparency, for all stakeholders through the utmost respect for the environment and communities, creating a lasting legacy. |
London, Regional and Sector Footprint |
- RED London |
RED is the solution to construction in the Capital. The city's heritage and scale present unique and complex construction challenges that RED has the expertise, innovation and technical skill sets to resolve. RED's London team have extensive experience delivering new-build, refurbishment and fit-out schemes that enrich surrounding neighbourhoods and boroughs. RED's portfolio in the capital include: 40 Broadway commercial office space, Renaissance Hotel St Pancras and Royal Cambridge Care home. Project values ranged from £10m to £49m. |
- RED South West |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MARCH 2024 |
Based in Bristol, RED South West offers unparalleled regional expertise and market knowledge. The business is led by a respected management team that has worked together for many years, delivering an extensive portfolio of high-profile projects in Bristol and the South West region. |
RED South West delivers across markets consistent with regional requirements, including commercial, residential, hotel & leisure, education and industrial buildings. Whilst dedicated to the South West with specialist regional expertise, the team is fully aligned with RED's straightforward approach, work ethic and exceptional technical capabilities. |
- RED Special Projects |
RED Special Projects focus is on delivering exceptional construction services specialising in structural alterations, refurbishment and fit-out projects up to £10m in London and new build projects £5m to £35m in surrounding regions. RED's highly experienced, creative and agile team is comfortable with complexity, inner-city restricted sites, logistical challenges and stringent technical demands. The division provides our clients with exemplary service and true value in a smart and responsive manner, supported by the resources of the group. |
- ONE MEP |
Launched in 2022, RED's Mechanical, Electrical and Plumbing capability was established to ensure RED could guarantee delivery of these fundamental services. ONE MEP provides integrated services from traditional installation works through to self-delivery, enhancing the breath of service RED can offer on projects and to clients whilst protecting the group from supply chain risks. |
FINANCIAL REVIEW |
The group generated revenue of £114.8 million in the financial year ended 31 March 2024 (2023: £62.1m). |
During the year the group completed projects such as Legoland Windsor for Merlin Entertainments, 80 New Bond Street for Hines and Grosvenor Gardens for Grosvenor Estate. |
A dividend of £251,000 was paid during the year (2023: 251,000). |
The group has secured a strong order book for the financial year ending March 2025 and is forecasting revenues in excess of £130m. The group maintains strong working capital disciplines and finances its requirements from operating activities without the need for recourse to external funding. The group remains confident in the 'pipeline' of known and identified opportunities in its core markets. In the opinion of the directors, the prospects for the business are very positive. |
KEY PERFORMANCE INDICATORS |
The Board uses key performance indicators (KPI's) to monitor the group's performance and the management regularly reviews the key risks and opportunities of the business. |
In addition to regular management reporting, the Board monitors KPI's on a range of activities including health & safety, training competencies, staff turnover, environmental issues, considerate contractors scheme scores, order book, profitability, working capital management and other financial and non-financial measures. |
- Cash generated from operating activities is reviewed through monitoring debtors and work in progress. |
- Profit and total comprehensive income for the financial year is another key measure and is included in the financial review. |
SECTION 172 STATEMENT AND STAKEHOLDER ENGAGEMENT |
The board recognises that the ongoing success of the business is dependent on strong relationships with stakeholders in line with our core values. Accordingly, when making decisions, the directors consider their likely impact on promoting the success of the business for the benefit of stakeholders as a whole, be they employees, clients, suppliers, subcontractors or the wider public. In doing so the board consider; |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MARCH 2024 |
- The likely consequences of any decisions in the long term |
- The interests of employees |
- The need to foster ongoing positive relationships with suppliers, subcontractors, clients and others |
- The impact of the business' operations on the community and the environment. |
- The desire of the business to maintain a reputation for high standards of conduct |
- The need to act fairly between stakeholders. |
Likely long-term consequences of decisions |
The board of directors have invested in developing, communicating, and deploying a coherent strategy for the business, which focuses on long-term objectives and sustainable growth in line with our core values. |
The interests of employees |
Our people are the foundation of RED. The group is an equal opportunity employer and fully accepts its obligations under all relevant legislation. We value the mix of strengths and insights this approach brings and we are proud to have built a team with a diversity of perspectives and backgrounds. All employees are encouraged to work towards additional competencies reflective of their role in the group. Our active in-house graduate recruitment and training programmes play a key role in creating an effective and united team whilst also helping foster the industry's next generation. |
Fostering ongoing, positive relationships |
At RED, investing in relationships is a core value. Building long-term, mutually beneficial relationships is paramount to successfully delivering our projects and our strategy. |
Close relationships with clients from the earliest point in the project lifecycle is integral to the business success and stability. The board meet regularly with clients to ensure that our service delivery meets fully with their needs and requirements. |
We highly value our supply chain partnerships and maintain a select list of preferred subcontractors and suppliers that uphold our agreed-upon standards. We actively engage with our supply chain both before and after tender stages to ensure that when we secure projects, we proceed in a manner that considers the needs of all parties involved. |
Impact on communities and environment |
The group is very aware of the dangers inherent in construction site environments. Health, safety and wellbeing are an integral part of our building process, embedded within the team and running through from planning to procurement and delivery of the scheme. The business has a robust process of regular independent inspections, the results of which are issued directly to the operations directors and the business owners. We are indebted to our people for creating a safe working environment but at the same time, we are not complacent about our desire to drive continuous improvements. |
''RED to Green'' is the group's ESG strategy which provides the roadmap to a sustainable workplace, delivering our construction activities in a sustainable way, minimising our impact on the environment and the communities we support. As a responsible business, we acknowledge the impact construction activities can have on the environment and we are passionate about minimising these whenever possible by taking a proactive, hands-on approach with both internal business activities and project deliverables. Our ''RED to Green'' journey will continue to evolve, building on innovation and targets that will ultimately benefit the group, our clients and the communities we support through construction. We are proud to have specialists that work with our client teams to deliver a more sustainable product. |
High standards of conduct |
Compliance with regulation, legal and ethical standards is a priority for the group. The board is committed to ensuring top-down compliance through a framework of policies, procedures and internal controls. All policies are subject to board approval and ongoing review by management. |
Acting fairly between all stakeholders |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MARCH 2024 |
The board understands that it is only by engaging with key stakeholders that it can truly understand their needs and concerns and the impact of its decision making on those key stakeholders. The business uses a variety of methods to engage both formally and informally, believing that much can be gained from personal interaction. The board acknowledges that situations may arise where stakeholder groups have conflicting priorities. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's operations expose it to various risks including health & safety risk, credit & cash flow risk, and supply chain risk. The group has delegated authorities in place to ensure its commitments are made at the appropriate level. Tenders are reviewed prior to acceptance to identify risk and ensure risks are at an acceptable level or can be managed to an acceptable level. |
Health & Safety Risk |
The responsibility for Health & Safety on a project is with the project lead, underpinning our belief that Health & Safety needs to be owned by the site team as a whole as an integral part of the building process and not just an add-on to our way of working. The ownership embedded within the team runs from planning to procurement and throughout the delivery of the scheme. The group has a dedicated health & safety department which continually strives for improvement in behaviours and processes on site with the aim of achieving zero accident rates. |
Credit & Cash Flow Risk |
New clients are approved as part of the tender process with the aim of ensuring those clients have committed funding in place before contractual commitments are undertaken. Existing clients are monitored for signs of potential credit risk. Debtors and work in progress is closely monitored throughout the construction process. |
Construction is a capital intensive business with significant initial outlays when projects are mobilised. The group maintains a strong focus on working capital management. Cash flow forecasts are reviewed on a frequent basis to ensure that the group is not operating beyond its financial means. |
Supply Chain Risk |
The group monitors its supply chain to ensure that subcontractors have the required technical, operational and financial capabilities before appointment. The availability of materials, subcontract labour and plant can have an impact on construction programmes. Inflationary pressures on those inputs can impact on construction margins as in some instances additional costs cannot be passed on to clients. We therefore continue to monitor subcontractor's financial capabilities, we maintain an open dialogue and offer support where necessary. |
ON BEHALF OF THE BOARD: |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MARCH 2024 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST MARCH 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31st March 2024. |
DIVIDENDS |
Interim dividends totalling £327.0597 per share were paid during the year. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31st March 2024 will be £ 251,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st April 2023 to the date of this report. |
ENGAGEMENT WITH EMPLOYEES |
The details of how the group engages with its employees can be found in the Strategic Report. |
BUSINESS RELATIONSHIPS |
The group works with our clients and supply chain in a collaborative way to deliver our projects. The manner in which the group engages with its stakeholders can be found in the Strategic Report. |
ENERGY AND CARBON EMISSIONS REPORTING |
RED Construction Group have been developing our data gathering and reporting systems over the last twelve months and now have the ability to report company scope 1, 2 & 3 emissions. We are currently using a sub-section of scope 3 and will look to include all elements within the 2024-2025 submittal. |
Emissions with CO2 equivalent |
Scope One |
Scope 1 |
Emissions Type | KG CO2 | Tonnes CO2 e |
Fuel for company owned FF vehicles | 2991 | 2.99 |
KWH | Tonnes CO2 e |
Stationary combustion fuel usage | 396,540 | 59.77 |
Total | 62.76 |
Scope two |
Scope 2 |
Emissions Type | KWH | Tonnes CO2 e |
Purchased Electricity (Site) | 293,361 | 68.02 |
Purchased Electricity (Offices) | 195,277 | 40.44 |
Purchased Electricity (EV Cars) | 1,970.124 | 0.41 |
Total | 108.87 |
Scope Three |
Scope 3 |
Emissions Type | KG CO2 | Tonnes CO2 e |
Business Travel not owned by company | 64,095.05 | 64.10 |
Transport of goods, materials, people and waste | 389,240 | 389.24 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST MARCH 2024 |
Total | 453.34 |
Tonnes CO2 e |
Total Emisions | 624.96 |
Intensity ratio |
Turnover (£) | £114,833,391 |
Total Tonnes CO2 | 624.96 |
Intensity ratio (CO2 per £m Turnover) | 5.44 |
All figures have been sourced and compiled using company verified systems Biosite and Smartwaste, together with data taken from audited BREEAM submittals. The conversion factors used have been taken from the UK Governments GHG Conversion Factors and also the department of Business, Energy and Industrial Strategy. |
Company carbon reporting key actions and commitments FY-2024-2025: |
- All offices and sites to switch to 100% green energy tariffs. |
- All construction sites to switch to HVO fuel. |
- Construction sites to target zero fossil fuels. |
- Construction sites to target renewable power generation. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST MARCH 2024 |
AUDITORS |
The auditors, HW Bedford Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RED CONSTRUCTION GROUP LIMITED |
Opinion |
We have audited the financial statements of Red Construction Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st March 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st March 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RED CONSTRUCTION GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page eight, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Identifying and assessing the controls management has in place to prevent and detect fraud; |
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
- Challenging assumptions and judgments made by management in its significant accounting estimates and judgments pertaining to the assessment and evaluation of revenue recognition and subsequent measurement for the disclosure of client and subcontractor retentions in light of the stage of completion of construction contracts and expected release period of such retentions, amounts recoverable on contract, deferred revenue and accrued expenses recognition. |
- Identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and |
- Assessing the extent of compliance with the relevant laws and regulations. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are 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 collusions. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the accounting policy disclosure pages. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RED CONSTRUCTION GROUP LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
First Floor, Woburn Court |
2 Railton Road |
Woburn Rd Ind Est |
Kempston |
Bedfordshire |
MK42 7PN |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31ST MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 114,833,391 | 62,146,084 |
Cost of sales | 101,941,079 | 54,913,556 |
GROSS PROFIT | 12,892,312 | 7,232,528 |
Administrative expenses | 10,961,426 | 6,158,640 |
OPERATING PROFIT | 5 | 1,930,886 | 1,073,888 |
Interest receivable and similar income | 84,946 | 18,167 |
2,015,832 | 1,092,055 |
Interest payable and similar expenses | 6 | 201 | - |
PROFIT BEFORE TAXATION | 2,015,631 | 1,092,055 |
Tax on profit | 7 | 215,358 | - |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,800,273 |
1,092,055 |
Profit attributable to: |
Owners of the parent | 1,714,206 | 1,076,281 |
Non-controlling interests | 86,067 | 15,774 |
1,800,273 | 1,092,055 |
Total comprehensive income attributable to: |
Owners of the parent | 1,714,206 | 1,076,281 |
Non-controlling interests | 86,067 | 15,774 |
1,800,273 | 1,092,055 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
CONSOLIDATED BALANCE SHEET |
31ST MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 1,059,342 | 917,810 |
Investments | 11 | - | - |
1,059,342 | 917,810 |
CURRENT ASSETS |
Debtors | 12 | 33,072,438 | 27,077,494 |
Cash at bank | 9,546,186 | 5,142,569 |
42,618,624 | 32,220,063 |
CREDITORS |
Amounts falling due within one year | 13 | 34,913,942 | 29,912,597 |
NET CURRENT ASSETS | 7,704,682 | 2,307,466 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,764,024 |
3,225,276 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(3,882,749 |
) |
- |
PROVISIONS FOR LIABILITIES | 16 | (115,760 | ) | (9,034 | ) |
NET ASSETS | 4,765,515 | 3,216,242 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 1,504 | 1,504 |
Share premium | 18 | 7,996 | 7,996 |
Retained earnings | 18 | 4,658,690 | 3,195,484 |
SHAREHOLDERS' FUNDS | 4,668,190 | 3,204,984 |
NON-CONTROLLING INTERESTS | 19 | 97,325 | 11,258 |
TOTAL EQUITY | 4,765,515 | 3,216,242 |
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 GROUP LIMITED (REGISTERED NUMBER: 09802945) |
COMPANY BALANCE SHEET |
31ST MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,300,295 | 747,051 |
The financial statements were approved by the Board of Directors and authorised for issue on |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST MARCH 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1st April 2022 | 1,500 | 2,370,203 | - |
Changes in equity |
Issue of share capital | 4 | - | 7,996 |
Dividends | - | (251,000 | ) | - |
Total comprehensive income | - | 1,076,281 | - |
Balance at 31st March 2023 | 1,504 | 3,195,484 | 7,996 |
Changes in equity |
Dividends | - | (251,000 | ) | - |
Total comprehensive income | - | 1,714,206 | - |
Balance at 31st March 2024 | 1,504 | 4,658,690 | 7,996 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1st April 2022 | 2,371,703 | (4,516 | ) | 2,367,187 |
Changes in equity |
Issue of share capital | 8,000 | - | 8,000 |
Dividends | (251,000 | ) | - | (251,000 | ) |
Total comprehensive income | 1,076,281 | 15,774 | 1,092,055 |
Balance at 31st March 2023 | 3,204,984 | 11,258 | 3,216,242 |
Changes in equity |
Dividends | (251,000 | ) | - | (251,000 | ) |
Total comprehensive income | 1,714,206 | 86,067 | 1,800,273 |
Balance at 31st March 2024 | 4,668,190 | 97,325 | 4,765,515 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST MARCH 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st April 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st March 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st March 2024 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 5,147,969 | (1,031,238 | ) |
Interest paid | (201 | ) | - |
Tax paid | 108,133 | - |
Net cash from operating activities | 5,255,901 | (1,031,238 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (807,751 | ) | (646,117 | ) |
Sale of tangible fixed assets | 210,801 | 17,999 |
Interest received | 84,946 | 18,167 |
Net cash from investing activities | (512,004 | ) | (609,951 | ) |
Cash flows from financing activities |
Amount introduced by directors | - | 107,566 |
Amount withdrawn by directors | (89,280 | ) | (25,167 | ) |
Share issue | - | 8,000 |
Equity dividends paid | (251,000 | ) | (251,000 | ) |
Net cash from financing activities | (340,280 | ) | (160,601 | ) |
Increase/(decrease) in cash and cash equivalents | 4,403,617 | (1,801,790 | ) |
Cash and cash equivalents at beginning of year |
2 |
5,142,569 |
6,944,359 |
Cash and cash equivalents at end of year | 2 | 9,546,186 | 5,142,569 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST MARCH 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,015,631 | 1,092,055 |
Depreciation charges | 455,418 | 380,499 |
Profit on disposal of fixed assets | - | (1,451 | ) |
Finance costs | 201 | - |
Finance income | (84,946 | ) | (18,167 | ) |
2,386,304 | 1,452,936 |
Increase in trade and other debtors | (6,264,926 | ) | (16,949,666 | ) |
Increase in trade and other creditors | 9,026,591 | 14,465,492 |
Cash generated from operations | 5,147,969 | (1,031,238 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 9,546,186 | 5,142,569 |
Year ended 31st March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 5,142,569 | 6,944,359 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/23 | Cash flow | At 31/3/24 |
£ | £ | £ |
Net cash |
Cash at bank | 5,142,569 | 4,403,617 | 9,546,186 |
5,142,569 | 4,403,617 | 9,546,186 |
Total | 5,142,569 | 4,403,617 | 9,546,186 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MARCH 2024 |
1. | STATUTORY INFORMATION |
Red Construction Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Rendering of services |
Turnover 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 probably 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. |
Retentions |
Retentions represent amounts withheld by clients & suppliers under construction contracts until the completion of the project and the rectification of any defects. These amounts typically range from 2.5% - 5% of the contract value. Retentions receivable are initially recorded at fair value and subsequently measured at amortised cost as reduced by allowances for estimated irrecoverable amounts and expected credit losses.Retentions payable are initially recognised at cost. Retentions are disclosed in line with the expected completion and rectification release period specific to each contract. |
Tangible fixed assets |
Long leasehold | - |
Motor vehicles | - |
Computer equipment | - |
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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
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. |
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management. |
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. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Going concern |
The directors have considered the budgets and cash flow forecasts for the Group. The Group 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. |
3. | TURNOVER |
The total revenue of the group for the period has been derived from its principal activities wholly undertaken in the United Kingdom. |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 12,004,703 | 11,283,357 |
Social security costs | 1,507,686 | 129,523 |
Other pension costs | 1,157,609 | - |
14,669,998 | 11,412,880 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Employees |
2024 | 2023 |
£ | £ |
Directors' remuneration | 1,168,625 | 1,014,212 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 7 | 7 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 213,750 | 211,371 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 61,132 | 34,386 |
Depreciation - owned assets | 455,418 | 380,499 |
Profit on disposal of fixed assets | - | (1,451 | ) |
Auditors' remuneration | 46,500 | 48,646 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest payable | 201 | - |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Deferred tax | 215,358 | - |
Tax on profit | 215,358 | - |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,015,631 | 1,092,055 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
503,908 |
207,490 |
Effects of: |
Expenses not deductible for tax purposes | 67,053 | 19,298 |
Capital allowances in excess of depreciation | (74,257 | ) | - |
Depreciation in excess of capital allowances | - | 10,700 |
Movement in deferred tax | 215,358 | - |
Research and Development tax credit | (496,704 | ) | (237,488 | ) |
Total tax charge | 215,358 | - |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim | 251,000 | 251,000 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1st April 2023 | 575,898 | 24,000 | 21,537 |
Additions | 64,481 | 67,033 | - |
Disposals | - | - | - |
At 31st March 2024 | 640,379 | 91,033 | 21,537 |
DEPRECIATION |
At 1st April 2023 | 260,278 | 12,941 | 5,384 |
Charge for year | 201,208 | 12,547 | 7,778 |
Eliminated on disposal | - | - | - |
At 31st March 2024 | 461,486 | 25,488 | 13,162 |
NET BOOK VALUE |
At 31st March 2024 | 178,893 | 65,545 | 8,375 |
At 31st March 2023 | 315,620 | 11,059 | 16,153 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st April 2023 | 730,528 | 153,391 | 1,505,354 |
Additions | 666,775 | 9,462 | 807,751 |
Disposals | (331,260 | ) | - | (331,260 | ) |
At 31st March 2024 | 1,066,043 | 162,853 | 1,981,845 |
DEPRECIATION |
At 1st April 2023 | 240,352 | 68,589 | 587,544 |
Charge for year | 189,660 | 44,225 | 455,418 |
Eliminated on disposal | (120,459 | ) | - | (120,459 | ) |
At 31st March 2024 | 309,553 | 112,814 | 922,503 |
NET BOOK VALUE |
At 31st March 2024 | 756,490 | 50,039 | 1,059,342 |
At 31st March 2023 | 490,176 | 84,802 | 917,810 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1st April 2023 |
Additions |
Disposals |
At 31st March 2024 |
DEPRECIATION |
At 1st April 2023 |
Charge for year |
Eliminated on disposal |
At 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st March 2024 |
DEPRECIATION |
At 1st April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st April 2023 |
and 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Red Construction South West Limited |
Registered office: Oakley House, The Drive, Church Lane, Oakley, Bedford, England, MK43 7ST |
Nature of business: |
% |
Class of shares: | holding |
Ordinary | 60.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 201,230 | 43,819 |
Profit for the year | 157,411 | 54,810 |
One MEP Limited |
Registered office: Oakley House, The Drive, Church Lane, Oakley, Bedford, England, MK43 7ST |
Nature of business: |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 31/3/23 |
£ | £ |
Aggregate capital and reserves | 516,559 | 296,841 |
Profit for the year/period | 219,718 | 296,741 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
12. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 18,820,023 | 19,529,589 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 7,535,746 | 5,473,131 |
Other debtors | 836,875 | 100,159 |
Directors' current accounts | 19 | - | 19 | - |
Tax | 16 | - |
Deferred tax | - | 108,632 | - | 108,632 |
Prepayments and accrued income | 768,254 | 729,729 |
27,960,933 | 25,941,240 |
Amounts falling due after more than one | year: |
Retentions | 5,111,505 | 1,136,254 |
Aggregate amounts | 33,072,438 | 27,077,494 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 14,541,080 | 6,724,243 |
Amounts owed to group undertakings | - | - |
Corporation tax | - | 483 |
Social security and other taxes | 532,661 | 430,591 |
VAT | 3,291,903 | 1,847,127 | 3,089,210 | 1,823,165 |
Other creditors | 547,745 | 2,197,226 |
Net wages outstanding | 1,529 | 48 | - | 4 |
Directors' current accounts | 75,027 | 164,288 | 75,027 | 164,288 |
Accruals and deferred income | 15,923,997 | 18,548,591 |
34,913,942 | 29,912,597 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Subcontractor retentions | 3,882,749 | - |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
15. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
16. | PROVISIONS FOR LIABILITIES |
Group |
2024 |
£ |
At Beginning of year | 99,598 |
Charged to profit and loss | (215,358 | ) |
At end of year | (115,760 | ) |
Company |
2024 |
£ |
At beginning of year | 102,024 |
Charged to profit and loss | (204,299 | ) |
At end of year | (102,275 | ) |
The deferred tax balance is made up as follows: |
Group | Group | Company | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Accelerated capital allowances | (115,760 | ) | (9,034 | ) | (102,275 | ) | (6,608 | ) |
Tax losses carried forward | - | 108,632 | - | 108,632 |
(115,760 | ) | 99,598 | (102,275 | ) | 102,024 |
Comprising: |
Asset - due within one year | - | 108,632 | - | 108,632 |
Liability | (115,760 | ) | (9,034 | ) | (102,275 | ) | (9,034 | ) |
(115,760 | ) | 99,598 | (102,275 | ) | 102,024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1,504 | 1,504 |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
18. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st April 2023 | 3,195,484 | 7,996 | 3,203,480 |
Profit for the year | 1,714,206 | 1,714,206 |
Dividends | (251,000 | ) | (251,000 | ) |
At 31st March 2024 | 4,658,690 | 7,996 | 4,666,686 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st April 2023 | 2,881,024 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31st March 2024 | 3,930,319 |
19. | NON-CONTROLLING INTERESTS |
The following minority interests exists at the balance sheet date: |
Minority interest |
B/fwd reserves |
P & L movement |
C/fwd |
Red Construction South West Limited | 11,258 | 86,067 | 97,325 |
All of the above represent equity minority interests. |
20. | PENSION COMMITMENTS |
The group operates a defined pension scheme. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents the contributions payable by the company to the funds. |
Actual contributions payable by the company was £1,087,320 (2023: £749,889). |
Payments outstanding at the period-end amounted to £108,584 (2023: £83,048). |
RED CONSTRUCTION GROUP LIMITED (REGISTERED NUMBER: 09802945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MARCH 2024 |
21. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £251,000 (2023: £251,000) were paid to the shareholders. |
During the year, the group purchased goods and services amounting to £55,285 (2023: £364,253) from Form (Midlands) Limited, a company in which Mr S Lousada has a participating interest. At the end of the year, the group owed Form (Midlands) Limited £nil (2023: £72,253). |
The group also purchased goods and services amounting to £12,264 (2023: £16,419) from Lousada (Midlands) Limited, a company in which Mr S Lousada has a participating interest. At the end of the year the group owed Lousada (Midlands) Limited £314 (2023: £14,145). |
The group further made sales to Lousada Investments Limited of £nil (2023: £3,816). At the end of the year Lousada Investments Limited owed the group £4,579 (2023: £4,579). |
During the year, the group made purchases from Imperial Bathrooms Limited of £nil (2023: £129,372), the balance due at the year end is £895 (2023: £895). |
During the year, the group made sales of £5,384,677 (2023: £2,277,600) to Zeal Hotels (Exeter) Limited which is a related party with G Sturge being a common director. |
During the year, the group made sales to Lousada PLC of £525 (2023: £nil). |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are Mr IM Hopkinson, Mr GJ Struge and Mr SC Lousada who have significant influence over Red Construction Group Limited. |