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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: J C Hayes
I M Hopkinson
S C Lousada
G J Sturge



SECRETARY: Mrs S A Hunt



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



REGISTERED NUMBER: 09802945 (England and Wales)



SENIOR STATUTORY AUDITOR: Alberto Di Lorenzo



AUDITORS: HW Bedford Limited
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

G J Sturge - Director


4th December 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.

J C Hayes
I M Hopkinson
S C Lousada
G J Sturge

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:





G J Sturge - Director


4th December 2024

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.




Alberto Di Lorenzo (Senior Statutory Auditor)
for and on behalf of HW Bedford Limited
First Floor, Woburn Court
2 Railton Road
Woburn Rd Ind Est
Kempston
Bedfordshire
MK42 7PN

4th December 2024

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 1,800,273 1,092,055

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 10 977,368 892,308
Investments 11 280 280
977,648 892,588

CURRENT ASSETS
Debtors 12 28,800,583 26,124,674
Cash at bank 5,696,553 4,964,163
34,497,136 31,088,837
CREDITORS
Amounts falling due within one year 13 27,855,516 29,092,289
NET CURRENT ASSETS 6,641,620 1,996,548
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,619,268

2,889,136

CREDITORS
Amounts falling due after more than one
year

14

(3,585,170

)

-

PROVISIONS FOR LIABILITIES 16 (102,275 ) (6,608 )
NET ASSETS 3,931,823 2,882,528

CAPITAL AND RESERVES
Called up share capital 17 1,504 1,504
Share premium 18 7,996 7,996
Retained earnings 18 3,922,323 2,873,028
SHAREHOLDERS' FUNDS 3,931,823 2,882,528

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 4th December 2024 and were signed on its behalf by:





G J Sturge - Director


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 1,500 2,376,977 - 2,378,477

Changes in equity
Issue of share capital 4 - 7,996 8,000
Dividends - (251,000 ) - (251,000 )
Total comprehensive income - 747,051 - 747,051
Balance at 31st March 2023 1,504 2,873,028 7,996 2,882,528

Changes in equity
Dividends - (251,000 ) - (251,000 )
Total comprehensive income - 1,300,295 - 1,300,295
Balance at 31st March 2024 1,504 3,922,323 7,996 3,931,823

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

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

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

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

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

Critical judgements in applying the Company's accounting policies

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

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

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

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

RED CONSTRUCTION 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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - straight line over lease term
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost and 25% on cost

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 172 132

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 535,409 24,000 21,537
Additions 52,911 - -
Disposals - - -
At 31st March 2024 588,320 24,000 21,537
DEPRECIATION
At 1st April 2023 244,882 12,941 5,384
Charge for year 189,131 2,765 7,778
Eliminated on disposal - - -
At 31st March 2024 434,013 15,706 13,162
NET BOOK VALUE
At 31st March 2024 154,307 8,294 8,375
At 31st March 2023 290,527 11,059 16,153

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1st April 2023 730,528 152,571 1,464,045
Additions 666,775 9,462 729,148
Disposals (331,260 ) - (331,260 )
At 31st March 2024 1,066,043 162,033 1,861,933
DEPRECIATION
At 1st April 2023 240,351 68,179 571,737
Charge for year 189,660 43,953 433,287
Eliminated on disposal (120,459 ) - (120,459 )
At 31st March 2024 309,552 112,132 884,565
NET BOOK VALUE
At 31st March 2024 756,491 49,901 977,368
At 31st March 2023 490,177 84,392 892,308

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 280
NET BOOK VALUE
At 31st March 2024 280
At 31st March 2023 280

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 15,760,964 17,908,437
Amounts owed by group undertakings - - 139,780 784,143
Amounts recoverable on contract 7,535,746 5,473,131 7,039,511 5,401,845
Other debtors 836,875 100,159 720,151 49,667
Directors' current accounts 19 - 19 -
Tax 16 - - -
Deferred tax - 108,632 - 108,632
Prepayments and accrued income 768,254 729,729 770,014 735,696
27,960,933 25,941,240 24,430,439 24,988,420

Amounts falling due after more than one year:
Retentions 5,111,505 1,136,254 4,370,144 1,136,254

Aggregate amounts 33,072,438 27,077,494 28,800,583 26,124,674

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade creditors 14,541,080 6,724,243 11,977,929 6,753,812
Amounts owed to group undertakings - - 528,198 -
Corporation tax - 483 - -
Social security and other taxes 532,661 430,591 428,583 361,357
VAT 3,291,903 1,847,127 3,089,210 1,823,165
Other creditors 547,745 2,197,226 427,253 2,341,062
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 11,329,316 17,648,601
34,913,942 29,912,597 27,855,516 29,092,289

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Subcontractor retentions 3,882,749 - 3,585,170 -

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 154,395 205,951
Between one and five years 290,951 409,715
445,346 615,666

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: £    £   
1,504 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 2,873,028 7,996 2,881,024
Profit for the year 1,300,295 1,300,295
Dividends (251,000 ) (251,000 )
At 31st March 2024 3,922,323 7,996 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.