Company registration number 09988660 (England and Wales)
BROSTE RIVERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
BROSTE RIVERS LIMITED
COMPANY INFORMATION
Directors
Zayd Neil Al-Jawad
Matthew Lawrence Bunyon
Steven James Crowley
Douglas Cooper
James Doe
Christopher Edward Carter
(Appointed 17 April 2023)
Sara Elizabeth Saunders
Alison Scott
(Appointed 23 November 2023)
Secretary
Palmira Ryder
Company number
09988660
Registered office
Welwyn Hatfield Borough Council Office
The Campus
Welwyn Garden City
United Kingdom
AL8 6AE
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
BROSTE RIVERS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
BROSTE RIVERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The Directors present their Strategic Report of the group for the year ended 31 March 2024.

Principal activity

The Group's primary focus is on ensuring building compliance and supporting local authorities in their regulatory functions, while also providing a range of complementary services centred around building compliance. The principal activities of the Group by each company are:

 

Hertfordshire Building Control Limit principal activities are of building control services, ensuring regulatory compliance through comprehensive plan assessments and building inspections on behalf of 8 local authorities, supporting these local authorities in fulfilling their statutory building control obligations. Other core services include air and acoustic testing, standard assessment procedures and acts as the central administration for Warm Roofing Manufacturers. It also supplies building control services to neighbouring boroughs.

The Building Control (Hertfordshire) Company oversees and manages disabled facility grants on behalf of some Local Authorities. It has also expanded to a consulting service which offers private individuals access to a range of home adaptations services.
Build Insight Limited carries out building control work under an approved inspector license. They also carry out warranty work.

Business Review

Broste Rivers Limited is owned by eight Hertfordshire district councils: (Borough of Broxbourne Council, Dacorum Borough Council, East Hertfordshire District Council, Hertsmere Borough Council, North Hertfordshire District Council, Stevenage Borough Council, Three Rivers District Council and Welwyn and Hatfield Borough Council). The eight councils have provided a working capital loan of £856,000.

 

The Group operates three subsidiaries, Hertfordshire Building Control (HBC), Build Insight Limited, and The Building Control (Hertfordshire) Company and owns 100% of the shares in all of them. The Build Insight group of companies was acquired on the 15th of January 2022. HBC carries out building control services on behalf of local authorities, Build Insight Limited carries out building control work under an approved inspector license, and The Building Control (Hertfordshire) Company manages the funding and build processes for disabled facilities grant work and now expanded its services to consulting.

 

HBC and Build Insight Ltd are now both ISO 9001 accredited. The quality management system was

implemented to ensure that the work the Company’s surveyors carry out is consistent and properly audited. There are regular ISO audits which the Group continues to pass to a high standard. HBC has also achieved ISO 45001 accreditation and is the first and only local authority building control body to achieve this Health & Safety accreditation. Business focus is on risk based thinking and continuous improvement to ensure best service and regulatory compliance.

We continue to monitor and review our processes and knowledge to ensure that we meet the requirements of the Building Safety Act 2022 for HBC and Building Safety Act 2010 for Build Insight. and are both compliant with the Building Safety Regulator Operating Standards Rules (OSRs) and Codes of conduct. All technical surveyors are registered with the Building Safety Regulators at appropriate Classes and workload is allocated accordingly. A robust process is followed for Management of conflicts of interest and for supervision of those staff members who are registered as trainees. Training and support are provided for upgrading Registered class as per the BSR OSRs. to ensure HBC and Build Insight maintains a competent, knowledgeable, professional, ethical workforce.

 

The Group company prioritises investment in continued professional development and supports new entrants into the Building Control profession through supporting degree apprenticeship programs, to ‘grow-our-own’ experienced personnel and improving the knowledge and understanding of both surveying and operations team staff. This has included regular in-house training sessions combined with training being offered by LABC through their virtual learning environment and specialist courses as well as CABE and other specialist providers. Continuous Professional Development (CPD) records are maintained for each employee. Our in-house CPD webinar sessions continue to grow in popularity with employees, architects, builders and other Building Control Bodies (BCBs) who value the expertise the Group has to offer.

BROSTE RIVERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
We maintain an active pipeline of building control talent through partnerships with leading academic institutions. Currently, there are undergraduates at various stages of their Building Control degree programs at both the University of Wolverhampton and the University of Westminster.
Looking ahead, we are preparing to enrol additional undergraduates at UCEM (University College of Estate Management) to undertake Building Control degrees under the government-supported Advanced Apprenticeship Scheme, which covers a significant portion of the tuition fees.
To further strengthen our talent pipeline, we host an annual recruitment event and sponsor an apprenticeship program, onboarding two new apprentices each year. These initiatives ensure a continuous flow of skilled professionals entering the building control field and support the long-term growth and capabilities of our organisation. By partnering with leading academic institutions and proactively developing new talent, we are well-positioned to meet the evolving needs of our clients and the broader construction industry.
In FY 2024, we strengthened our commitment to customer service excellence by reintroducing same-day inspections and implementing strategic improvements. Under new leadership from our CEO, who brings extensive building control expertise, we restructured our team in January 2024 and enhanced our partner relationships. These changes position us to deliver better value and service to our customers.
We were national winners in 4 categories at the LABC Grand Finals 2023 for Best New Small Housing Development, Newcomer of the Year, Public Service Superstar and LABC Team of the Year. We were also accredited with a Gold Award by the 5% Club for our commitment to earn and learn schemes.
Applications received declined in FY 2024.This downward trend, which began in the latter half of FY 2023, persisted throughout FY 2024. The decline was primarily driven by macroeconomic factors affecting construction activity:
o Peak inflation rates of 12%
o Interest rates exceeding 5%
o Elevated construction costs due to industry-wide skills shortages
These combined factors impacted project affordability, resulting in reduced demand for building work. This decline reflects shifting market dynamics during the economic downturn, with competitors expanding into the smaller projects segment traditionally served by our business. In response, we have developed and begun implementing a strategic initiative targeting a recovery to increase our market share, focusing on reinforcing our competitive position across all project segments. We also started offering consulting services and this will provide a new revenue stream under BCC.
We continue to leverage technology to enhance operational efficiency and customer experience. A key improvement has been the implementation of a new surveyor reporting system in HBC, which delivers more professional client documentation while reducing surveyor administrative time. In Build Insight we have brought in a new CRM which is more efficient to operate and interfaces with the accounting system.
Process improvements across departments have increased efficiency, enabling us to manage costs through natural attrition rather than new recruitment. Challenges remain with our current HBC and BCC system, particularly regarding data consistency and reporting capabilities. We are also looking for a new CRM system for HBC and BCC.
Our commitment to sustainability has progressed with ten staff now using electric vehicles, and we offer hybrid working arrangements for non-technical roles. The relocation to new offices within our partner's building, accommodating approximately 25% of our workforce, has significantly improved staff morale and workplace environment.
Health and Safety performance remained strong with no major incidents reported. While we experienced a non-material GDPR breach that was managed internally, and saw a slight increase in complaints and claims, including two settled court claims, these were handled effectively within our risk management framework.

We maintained exceptional operational performance throughout the year, achieving 97-100% across all building control Key Performance Indicators (KPIs), demonstrating our continued commitment to service excellence and regulatory compliance.
BROSTE RIVERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

Principal risks and uncertainties

This is dealt with in note 19 of these financial statements. While the final quarter showed modest improvement, FY 2024 revenue fell £1.5M below budget. To mitigate this shortfall, we implemented cost control measures, including a recruitment freeze and organizational restructure before Christmas, though the year still concluded with an operational loss. The new financial year has shown early promise, with profits recorded at the second quarter; however, we maintain a prudent approach to cost management while protecting our core surveying and operations teams to maintain service excellence.

 

The insurance market continues to be impacted by the Grenfell tragedy aftermath, particularly regarding professional indemnity coverage for fire risk assessments. We have successfully secured adequate coverage through a new provider.

 

A significant judicial review has determined that garden and communal roof spaces must be included in building height calculations, potentially expanding the scope of high-risk building (HRB) regulations.

The Grenfell Tower Inquiry recommendations are driving substantial building control system reforms, including potential establishment of a national oversight body and reviews of both private and public sector capabilities. These changes require strategic planning to maintain operational capacity and service delivery.

 

Staff retention remains crucial as building control service risks increase under the Building Safety Act. We are actively benchmarking salaries against market rates and implementing competitive compensation adjustments to maintain our position as an employer of choice in this evolving landscape.

Financial Review

FY 2023/24 proved challenging for the Group Broste Rivers, with turnover declining 14.7% to £4.33m (2023: £5.07m). Despite efforts to manage costs, gross profit decreased to £1.28m (2023: £1.62m), though gross margin remained relatively stable at 29.7% (2023: 32.0%).

Administrative expenses increased 6.7% to £1.65m (2023: £1.54m). Other operating income of £15k provided minimal offset to operational costs. The combination of lower revenue and higher administrative costs resulted in an operating loss of £348k, compared to an operating profit of £80k in the previous year.

Net interest position improved significantly to a net cost of £5k (2023: £92k cost), variation beyond our control as it is interest on pension contribution liability. The year concluded with a loss before taxation of £353k (2023: £12k loss), primarily driven by the operational performance challenges.

The substantial increase in loss year-on-year reflects the impact of market headwinds on revenue generation, while maintaining necessary operational infrastructure. Management actions taken during the latter part of the year are focused on realigning the cost base with current market conditions while preserving core service capabilities.

The Group Balance sheet includes £1,171,092 in relation to the LGPS pension asset as per the valuation by the fund actuaries and represents an increase of £855,000 compared to the prior year's value of £286,092.

On behalf of the board

Matthew Lawrence Bunyon
Director
22 November 2024
BROSTE RIVERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

Principal activities

The principal activity of the company and group continued to be that of carrying out inspections of building plans to ensure that they are compliant with building regulations. The Group also carries out work on behalf of local authorities, supporting those authorities in the fulfilment of their statutory responsibilities. The Group provides complementary services including air and acoustic testing of buildings and Standard Assessment Procedures (SAP)

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Zayd Neil Al-Jawad
Matthew Lawrence Bunyon
Steven James Crowley
Douglas Cooper
James Doe
Hannah Doney
(Resigned 23 November 2023)
Chris Barnes
(Resigned 17 April 2023)
Christopher Edward Carter
(Appointed 17 April 2023)
Sara Elizabeth Saunders
Alison Scott
(Appointed 23 November 2023)
Auditor

In accordance with the company's articles, a resolution proposing that KLSA LLP be reappointed as auditor of the group was put at the Annual General Meeting.

Statement of disclosure to auditor

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

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
Matthew Lawrence Bunyon
Director
22 November 2024
BROSTE RIVERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

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

 

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

 

 

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

BROSTE RIVERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BROSTE RIVERS LIMITED
- 6 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

BROSTE RIVERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROSTE RIVERS LIMITED
- 7 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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:

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We also considered potential fraud drivers: including financial or other pressures, opportunity, override of controls and personal or corporate motivations. We considered the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing journals, evaluating the business rationale of significant transactions outside the normal course of business and validating the appropriateness of internal controls and significant accounting estimations based on our fraud risk criteria;

 

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

BROSTE RIVERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROSTE RIVERS LIMITED
- 8 -

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

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

We obtained understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those related to the financial reporting framework, tax regulations in the jurisdictions in which the company operates.

 

Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: making enquiries of management, those responsible for legal and compliance procedures, reviewing minutes, and reviewing other correspondence.

 

We communicated identified fraud risks and non-compliance with laws and regulations with those charged with governance, throughout the audit team and remained alert to any indications throughout the audit.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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, 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.

Harsheel Dodhia (Senior Statutory Auditor)
For and on behalf of KLSA LLP
22 November 2024
Chartered Accountants
Statutory Auditor
Kalamu House
11 Coldbath Square
London
EC1R 5HL
BROSTE RIVERS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
4,326,549
5,070,353
Cost of sales
(3,042,874)
(3,446,626)
Gross profit
1,283,675
1,623,727
Administrative expenses
(1,647,344)
(1,543,345)
Other operating income
3
15,450
-
Operating (loss)/profit
(348,219)
80,382
Interest receivable and similar income
6
32,642
40
Interest payable and similar expenses
7
(37,359)
(92,001)
Amounts written off investments
8
-
(126)
Loss before taxation
(352,936)
(11,705)
Tax on loss
9
-
0
-
0
Loss for the financial year
19
(352,936)
(11,705)
Loss for the financial year is all attributable to the owners of the parent company.
BROSTE RIVERS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
Loss for the year
(352,936)
(11,705)
Other comprehensive income
Actuarial gain on defined benefit pension schemes
877,000
2,540,000
Total comprehensive income for the year
524,064
2,528,295
Total comprehensive income for the year is all attributable to the owners of the parent company.
BROSTE RIVERS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
23,725
32,223
Other intangible assets
10
64,527
121,948
Total intangible assets
88,252
154,171
Tangible assets
11
140,984
120,095
229,236
274,266
Current assets
Debtors
14
666,323
643,701
Cash at bank and in hand
1,034,362
1,815,135
1,700,685
2,458,836
Creditors: amounts falling due within one year
15
(1,307,556)
(1,749,801)
Net current assets
393,129
709,035
Total assets less current liabilities
622,365
983,301
Creditors: amounts falling due after more than one year
16
(856,000)
(856,000)
Net assets excluding pension surplus
(233,635)
127,301
Defined benefit pension surplus
17
1,171,092
286,092
Net assets
937,457
413,393
Capital and reserves
Called up share capital
18
8
8
Profit and loss reserves
19
937,449
413,385
Total equity
937,457
413,393
The financial statements were approved by the board of directors and authorised for issue on 22 November 2024 and are signed on its behalf by:
22 November 2024
Matthew Lawrence Bunyon
Director
BROSTE RIVERS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
46,643
46,643
Current assets
Debtors
14
47,500
47,500
Cash at bank and in hand
6
6
47,506
47,506
Creditors: amounts falling due within one year
15
(96,507)
(94,154)
Net current liabilities
(49,001)
(46,648)
Net liabilities
(2,358)
(5)
Capital and reserves
Called up share capital
18
8
8
Profit and loss reserves
19
(2,366)
(13)
Total equity
(2,358)
(5)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,353 (2023 - £13 loss).

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

The financial statements were approved by the board of directors and authorised for issue on 22 November 2024 and are signed on its behalf by:
22 November 2024
Matthew Lawrence Bunyon
Director
Company registration number 09988660 (England and Wales)
BROSTE RIVERS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
8
(2,114,910)
(2,114,902)
Year ended 31 March 2023:
Loss for the year
-
(11,705)
(11,705)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
2,540,000
2,540,000
Total comprehensive income
-
2,528,295
2,528,295
Balance at 31 March 2023
8
413,385
413,393
Year ended 31 March 2024:
Loss for the year
-
(352,936)
(352,936)
Other comprehensive income:
Actuarial gains on defined benefit plans
-
877,000
877,000
Total comprehensive income
-
524,064
524,064
Balance at 31 March 2024
8
937,449
937,457
BROSTE RIVERS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
8
-
0
8
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
(13)
(13)
Balance at 31 March 2023
8
(13)
(5)
Year ended 31 March 2024:
Profit and total comprehensive income
-
(2,353)
(2,353)
Balance at 31 March 2024
8
(2,366)
(2,358)
BROSTE RIVERS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(676,593)
205,530
Interest paid
(51,359)
(33,001)
Net cash (outflow)/inflow from operating activities
(727,952)
172,529
Investing activities
Purchase of intangible assets
(7,232)
(60,956)
Proceeds from disposal of intangibles
(120)
-
Purchase of tangible fixed assets
(78,432)
(49,147)
Proceeds from disposal of tangible fixed assets
321
2,410
Purchase of subsidiaries, net of cash acquired
-
(1)
Proceeds from disposal of subsidiaries, net of cash disposed
-
(2)
Proceeds from disposal of investments
-
(125)
Repayment of loans
-
(17,917)
Interest received
32,642
40
Net cash used in investing activities
(52,821)
(125,698)
Financing activities
Repayment of borrowings
-
17,918
Net cash (used in)/generated from financing activities
-
17,918
Net (decrease)/increase in cash and cash equivalents
(780,773)
64,749
Cash and cash equivalents at beginning of year
1,815,135
1,750,386
Cash and cash equivalents at end of year
1,034,362
1,815,135
BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information

Broste Rivers Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Welwyn Hatfield Borough Council Office, The Campus, Welwyn Garden City, United Kingdom, AL8 6AE.

 

The group consists of Broste Rivers Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Broste Rivers Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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

 

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

At the time of approving the financial statements, the directors have a reasonable expectation that the company, with support of its ultimate shareholders, has adequate resources to continue in operational existence for the foreseeable future. The directors also assess that the group has sufficient resources and assets to meet its liabilities and support also available from other associated companies controlled by the directors. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The group is reliant on the continued financial support from its ultimate shareholders, the 8 Hertfordshire Councils, in order to meet its obligations as they fall due.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

Amortisation 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:

Software
4 to 5 years straight line basis
1.8
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:

Leasehold improvements
10 years straight line basis
Plant and equipment
5 years straight line basis
Fixtures and fittings
5 years straight line basis

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

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.10
Impairment of fixed assets

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

 

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

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

 

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

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

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include 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.

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
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.

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities 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 group 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.

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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 group's contractual obligations expire or are discharged or cancelled.

1.13
Employee benefits

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

 

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.

1.14
Retirement benefits

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

 

The Company shares in a multi-employer defined benefit plan Local Government Pension Scheme ('LGPS') which is available for certain employees. The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
1.15
Leases

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

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,326,549
5,070,353
2024
2023
£
£
Other revenue
Interest income
32,642
40
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
21,392
30,398
BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
81
78
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,201,978
3,165,312
-
0
-
0
Social security costs
281,290
306,406
-
-
Pension costs
295,812
405,199
-
0
-
0
3,779,080
3,876,917
-
0
-
0
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
32,642
40
7
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
50,887
32,990
Net interest on the net defined benefit liability
(14,000)
59,000
Other interest
472
11
Total finance costs
37,359
92,001
8
Amounts written off investments
2024
2023
£
£
Gain/(loss) on disposal of fixed asset investments
-
(125)
Amounts written back to/(written off) current loans
-
(17,917)
Amounts written back to financial liabilities
-
17,918
Other gains and losses
-
(2)
-
(126)
9
Taxation
BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)
- 25 -

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

2024
2023
£
£
Loss before taxation
(352,936)
(11,705)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(67,058)
(2,224)
Tax effect of expenses that are not deductible in determining taxable profit
12,992
28,881
Tax effect of utilisation of tax losses not previously recognised
-
0
(12,250)
Unutilised tax losses carried forward
39,304
12,416
Group relief
-
0
(27,830)
Permanent capital allowances in excess of depreciation
13,243
1,007
Other adjustments
1,519
-
0
Taxation charge
-
-
10
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2023
42,491
286,358
328,849
Additions
-
0
7,232
7,232
Disposals
-
0
(52,100)
(52,100)
At 31 March 2024
42,491
241,490
283,981
Amortisation and impairment
At 1 April 2023
10,268
164,410
174,678
Amortisation charged for the year
8,498
34,269
42,767
Disposals
-
0
(21,716)
(21,716)
At 31 March 2024
18,766
176,963
195,729
Carrying amount
At 31 March 2024
23,725
64,527
88,252
At 31 March 2023
32,223
121,948
154,171
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2023
-
0
244,625
31,976
276,601
Additions
56,638
16,295
5,499
78,432
Disposals
-
0
(556)
-
0
(556)
At 31 March 2024
56,638
260,364
37,475
354,477
Depreciation and impairment
At 1 April 2023
-
0
132,871
23,635
156,506
Depreciation charged in the year
1,801
52,005
3,416
57,222
Eliminated in respect of disposals
-
0
(235)
-
0
(235)
At 31 March 2024
1,801
184,641
27,051
213,493
Carrying amount
At 31 March 2024
54,837
75,723
10,424
140,984
At 31 March 2023
-
0
111,754
8,341
120,095
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
46,643
46,643
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
46,643
Carrying amount
At 31 March 2024
46,643
At 31 March 2023
46,643
BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
13
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Hertfordshire Building Control Limited
United Kingdom
Ordinary
100.00
The Building Control (Hertfordshire) Company Limited
United Kingdom
Ordinary
100.00
Build Insight Limited
United Kingdom
Ordinary
100.00
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
284,950
202,685
-
0
-
0
Other debtors
199,352
242,689
-
0
-
0
Prepayments and accrued income
134,521
150,827
-
0
-
0
618,823
596,201
-
-
Amounts falling due after more than one year:
Other debtors
47,500
47,500
47,500
47,500
Total debtors
666,323
643,701
47,500
47,500
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
46,516
137,425
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
96,507
94,154
Other taxation and social security
133,239
147,072
-
-
Other creditors
210,688
194,453
-
0
-
0
Accruals and deferred income
917,113
1,270,851
-
0
-
0
1,307,556
1,749,801
96,507
94,154
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
856,000
856,000
-
0
-
0
BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Creditors: amounts falling due after more than one year
(Continued)
- 28 -

The loans bear interest at 6% per annum. The shareholders confirm the loan will not be repayable within 12 months from the date of authorisation of these accounts.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
262,107
122,401

The group 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.

 

Contributions amounting to Nil (2023: £Nil) were payable to the NEST pension scheme at 31 March 2024 and included within creditors. In the year, the Group contributed £262,107 (2023: £122,401) on behalf of 57 (2023: 57) employees.

Defined benefit scheme - company
The company operates a defined benefit scheme for qualifying employees. The Scheme is a salary-related defined benefit scheme which guarantees to provide benefits which are a specified fraction of a Scheme member's pay. Benefits are not affected by variations in investment performance. The normal pension age in the Scheme is linked to State Pension Age, with a minimum of age 65. The Scheme also makes provisions for the early payment of benefits and members can choose to retire and draw their pension at any time from age 55. Benefits paid before normal pension age will be reduced to reflect that benefits will be paid over a longer period of time. From 1 April 2014, the Scheme moved from a final salary scheme to a Career Average Revalued Earnings (CARE) scheme. For membership after 1 April 2014, members build up a pension at a rate of 1/49th of the amount of pensionable pay they receive in each scheme year. The amount of pension built up during the scheme year is added to their pension account and revalued at the end of each year in line with inflation. Up to 25% of the capital value of benefits can be taken as a lump sum at a 12:1 commutation rate, i.e. £12 lump sum for every £1 of annual pension given.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 31 March 2024 by Hymans Robertson LLP, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.
The amounts included in the balance sheet arising from the group's assets/(obligations) in respect of defined benefit plans is £1,171,092 (2023: (£286,092)).
2024
2023
Key assumptions
%
%
Discount rate
4.85
4.75
Expected rate of increase of pensions in payment
2.75
2.95
Expected rate of salary increases
3.25
3.45
Mortality assumptions

Assumed life expectations on retirement at age 65:

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Retirement benefit schemes
(Continued)
- 29 -
Group
2024
2023

Amounts recognised in the profit and loss account

£
£
Current service cost
168,000
280,000
Net interest on net defined benefit liability/(asset)
(14,000)
59,000
Total costs
154,000
339,000
Group
2024
2023

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(468,000)
(296,000)
Less: calculated interest element
468,000
296,000
Return on scheme assets excluding interest income
-
-
Actuarial changes related to obligations
(402,000)
(3,633,000)
Other gains and losses
(475,000)
1,093,000
Total costs/(income)
(877,000)
(2,540,000)
2024
2023
£
£
Present value of defined benefit obligations
9,472,000
9,696,000
Fair value of plan assets
(10,643,092)
(9,982,092)
(Surplus)/Deficit in scheme
(1,171,092)
(286,092)
Group
2024

Movements in the present value of defined benefit obligations

£
Liabilities at 1 April 2023
9,696,000
Current service cost
168,000
Benefits paid
(495,000)
Contributions from scheme members
51,000
Actuarial gains and losses
(402,000)
Interest cost
454,000
At 31 March 2024
9,472,000
BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Retirement benefit schemes
(Continued)
- 30 -
Group
2024

Movements in the fair value of plan assets

£
Fair value of assets at 1 April 2023
9,982,092
Interest income
468,000
Benefits paid
(495,000)
Contributions by the employer
162,000
Contributions by scheme members
51,000
Other
475,000
At 31 March 2024
10,643,092

Fair value of plan assets at the reporting period end

Group
2024
2023
£
£
Equity instruments
6,385,855
4,991,046
Debt instruments
2,235,049
2,295,881
Property
1,277,172
1,497,314
745,016
1,197,851
10,643,092
9,982,092
18
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8
8
8
8
19
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
413,385
(2,114,910)
(13)
-
Loss for the year
(352,936)
(11,705)
(2,353)
(13)
Actuarial differences recognised in other comprehensive income
877,000
2,540,000
-
0
-
0
At the end of the year
937,449
413,385
(2,366)
(13)
BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
20
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
50,289
47,500
-
-
Between two and five years
242,403
7,917
-
-
292,692
55,417
-
-
21
Related party transactions

Group and Company

Other than the transactions disclosed below, the company's other related party transactions were with wholly owned subsidiaries and so have not been disclosed.

 

At the balance sheet date, loan from the eight shareholders amounts to £856,000 (2023: £856,000). The loans carry interest of 6% per annum.

 

The interest on loan payable amounted to £51,360 (2023: £34,240) and is included in other creditors.

 

The balance due from the shareholders at the year end amounted to £53,580 (2023: £34,792) and is included in trade debtors.

 

The Group provided services to the shareholders and received service fees amounting to £389,271 (2023: £401,704).

 

The Group paid £66,000 (2023: £120,930) to the shareholders for services availed during the year.

BROSTE RIVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
22
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Loss for the year after tax
(352,936)
(11,705)
Adjustments for:
Finance costs
37,359
92,001
Investment income
(32,642)
(40)
(Gain)/loss on disposal of tangible fixed assets
-
7,166
Loss on disposal of intangible assets
30,504
-
Amortisation and impairment of intangible assets
42,767
41,464
Depreciation and impairment of tangible fixed assets
57,222
50,087
(Gain)/loss on sale of investments
-
125
Other gains and losses
-
1
Pension scheme non-cash movement
6,000
127,000
Movements in working capital:
(Increase)/decrease in debtors
(22,622)
44,421
Decrease in creditors
(442,245)
(144,990)
Cash (absorbed by)/generated from operations
(676,593)
205,530
23
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,815,135
(780,773)
1,034,362
Borrowings excluding overdrafts
(856,000)
-
(856,000)
959,135
(780,773)
178,362
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