REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
FOR |
BETHELL CONSTRUCTION LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
FOR |
BETHELL CONSTRUCTION LIMITED |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30 September 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Financial Statements | 14 |
BETHELL CONSTRUCTION LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 September 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
BANKERS: |
PO Box 1000 |
Market Street |
Manchester |
BX11 1LT |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
STRATEGIC REPORT |
for the Year Ended 30 September 2024 |
The directors present their strategic report for the year ended 30 September 2024. |
The principal activities of the Company continue to be that of civil engineering work, with three core revenue streams of Highways, Infrastructure and Water. The Company has been established for over 150 years and is a well-respected contractor operating across several market sectors including local authority highways, public utilities, private industry and aviation. Future growth is also being targeted from a strong entrance into the renewables markets and shaft sinking and tunnelling "no dig activities" as part of the strategic ten-year business plan. |
REVIEW OF BUSINESS |
The Company is able to offer its clients intelligent solutions from initial design collaboration through to construction and ongoing infrastructure maintenance services. The Company places great emphasis on self-delivery of projects through its large base of skilled and semi-skilled staff. Attracting and retaining such a skill base is challenging, especially in the current economic environment, but the Company has the advantage of established training and development strategies including apprenticeship and graduate programmes. |
The Company enjoyed a strong operational performance this year with an 36% increase in turnover to £53.5m (2023: £39.3m). With focus on cost control, business processes and strong commercial acumen this enabled the gross profit return to increase by 31% to £8.7m (2023: £6.6m), which represented a margin of 16% (2023: 17%). The Company's indirect overheads increased this year by 22% to £5.4m (2023: £4.5m) due mainly to the recruitment of key senior managers to support business growth. In the financial year business overheads represented 10% of turnover (2023: 11%) which enabled the Company to report a strong 52% increase in operating profit to £3.3m (2023: £2.2m) with an increased operating margin of 6.1% (2023: 5.5%). |
Continued growth throughout 2024 was underpinned by relationships sustained with United Utilities (UU), Manchester Airport Group (MAG) and various Local Highways Authorities. In all client engagement, collaborative relationships and infrastructure delivery is assisting future growth as the Company aims to support asset maintenance and renewable energy sectors. The Company is also pleased to report further engagement with UU via the NMS framework and a recent appointment to the Design & Build AMP8 Framework, offering a potential ten-year preferred contractor relationship across a high expenditure capital works programme. This includes several design and build opportunities which will allow diversification across regional water boundaries, with the potential for both Tier 1 and Tier 2 contractor status. |
The Company continues to maintain a strong brand recognition and profile within the sector, achieving recognition as a solutions provider with a strong emphasis on safety, quality and management of the well-being of all its people and those who interact with its activities. This is also recognised through industry award including Investors in People Gold Status. This approach has increased overall client confidence and engagement, allowing the Company to increase average order values from £2.5m. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The backdrop of political change has not affected trading in the immediate period, with all revenue streams experiencing and anticipating growth. Accordingly, there is currently no concern regarding future business performance. The high levels of investment in UK infrastructure reported last year have continued, as have demand pressures within the skilled labour market. There has been no abatement to the well-publicised and significant impact of inflation in recent times which, although now reduced, does remain a risk to our operations with the potential to impact labour and material costs as well as fuel and utility material prices throughout the market. The Company therefore continues to monitor such impacts with increases been passed onto clients in tendering submissions wherever possible. |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
STRATEGIC REPORT |
for the Year Ended 30 September 2024 |
FUTURE DEVELOPMENTS |
Key successes gained throughout 2024 provide a robust foundation for 2025 and beyond, with placement on the Manchester City Council major projects framework, UU AMP 8 D&B, anticipated placement on the UU AMP8 Minor Works, amongst several other procurement processes the potential forward work pipeline forecast is very strong. Together with key client development in the renewables energy sector this gives confidence in business forecasting and planning. A further area of focus for strategic growth comes from the aviation industry where capital investment programmes from MAG are buoyant across both airside and landside opportunities |
. |
The new financial year has begun well, with in excess of 82% of budgeted turnover already secured or accounted for in anticipated awards, and with an exceptional cash position. This base can be used for appropriate investment in further regional growth across the North West and Yorkshire areas with growth focussed on key development areas supporting green energy investment, heavy civil engineering water assets and non-motorised user infrastructure. |
FINANCIAL INSTRUMENTS |
The Company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are only conducted in sterling. The Company does not enter into any hedging transactions. |
ON BEHALF OF THE BOARD: |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 September 2024 |
The directors present their report with the financial statements of the company for the year ended 30 September 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of civil engineering work. With three core revenue streams of Highways, Infrastructure and Water. The company has been established for over 150 years and is a well respected contractor operating across several market segments including local authority highways, public utilities, private industry and aviation. No change in activities is anticipated in the foreseeable future with a strong strategic outlook established under a clear 10-year business plan. |
DIVIDENDS |
The Company has paid interim dividends of £1,942,914 (2023: £840,000). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 of the profit or loss of the company 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; |
- | 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 company'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 company's auditors are aware of that information. |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 September 2024 |
AUDITORS |
The auditors, Fairhurst Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BETHELL CONSTRUCTION LIMITED |
Opinion |
We have audited the financial statements of Bethell Construction Limited (the 'company') for the year ended 30 September 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and 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 company's affairs as at 30 September 2024 and of its 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 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 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 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 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 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 |
BETHELL CONSTRUCTION LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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 four, 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 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 company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BETHELL CONSTRUCTION LIMITED |
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: |
Extent to which the audit was considered capable of detecting irregularities including fraud |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect in the determination of material amounts and disclosures in the financial statement, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatements of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. As a result of these procedures we consider that the most significant laws and regulations that have a direct impact on the financial statements are FRS 102 and the Companies Act 2006. |
- | We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing minutes of meetings and inspecting legal correspondence. |
In assessing the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur; |
- | We gained an understanding of the controls that management have in place to prevent and detect fraud. |
- | We enquired of management about any instances of fraud that had taken place during the year. |
To address the risk of fraud through management bias and override of controls; |
- | We performed analytical procedures to identify any unusual or unexpected relationships; |
- | We tested journal entries to identify unusual transactions; and |
- | We assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of |
internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BETHELL CONSTRUCTION LIMITED |
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. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the Year Ended 30 September 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,225,203 | 2,162,118 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income | 6 |
3,463,891 | 2,215,170 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
STATEMENT OF FINANCIAL POSITION |
30 September 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 September 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2024 |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
STATEMENT OF CASH FLOWS |
for the Year Ended 30 September 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Intercompany loans | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
24 |
5,975,558 |
Cash and cash equivalents at end of year | 24 | 7,997,235 | 3,439,516 |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30 September 2024 |
1. | STATUTORY INFORMATION |
Bethell Construction Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is based on the invoiced value of all goods despatched and services provided prior to the period end, excluding VAT and other sales-based taxes and net of trade discounts. |
Turnover also includes the proportion of the sales value of long-term contracts relevant to their state of completion. The turnover and pre-tax profit, all of which arises in the United Kingdom, is attributable to the principal activity of the Company. |
Tangible fixed assets |
Tangible fixed assets are stated at historic cost. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Finance costs are not capitalised. Depreciation is provided on cost in equal annual instalments over the estimated useful lives of the assets. The rates of depreciation are as follows: |
Plant and machinery | 2-5 years |
Fixtures and fittings | 3-10 years |
Motor vehicles | 3-5 years |
Stocks |
Stocks are valued at the lower of cost, including materials, direct labour and overheads, and net realisable value. |
Financial instruments |
Short term debtors and amounts recoverable on contracts are measured at transaction price, less any impairment. Short term trade creditors are measured at transaction price. The following assets and liabilities are classified as financial instruments, trade debtors (including amounts recoverable on contracts), Directors' loan accounts, trade creditors, accruals and hire purchase agreements. |
Financial instruments that are payable or receivable within one year, typically Directors' loan accounts, trade creditors, accruals and trade debtors, are measured initially and subsequently at the undiscounted amount of the cash or other consideration that is expected to be paid or received. |
Financial instruments repayable in more than one year such as hire purchase agreements are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method unless the effect of discounting would be immaterial. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date. |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Leases |
Assets obtained under finance leases and hire purchase contracts are capitalised at the present value of the minimum lease payments on acquisition and depreciation over their estimated useful lives. The finance charges are allocated over the period of the lease in proportion to the capital element outstanding. operating lease rentals are charged to income in equal amounts over the lease term. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Amounts recoverable on contracts |
In respect of long-term contracts, the attributable profit is recognised once the final outcome can be assessed with reasonable certainty and reflects the proportion of work completed to date on the project. Variations in contract work and claims are included to the extent that the amount can be measured reliably and its receipt is considered probable. Full provision is made for losses on any contract in the period the loss is first foreseen. |
The difference between work done and invoices raised on a contract is recognised as amounts recoverable on contracts. Any excess payments on account over and above the value of work done are included within creditors. |
Contract costs are recognised as expenses in the period in which they are incurred. Any bid costs or tender costs are expensed as incurred until the stage is reached when it is virtually certain that the contract will be won. |
Long term staff incentive scheme |
The Bethell Construction Shadow Equity Plan (SHEP) is valued in line with the scheme documents. |
The value of the SHEP is to be determined annually using a multiple of the weighted average pre-tax "normalised profits" for the three trading years inclusive of the current year less the base value of each unit. |
The movement year on year is to be recognised as administrative expenses. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Preparation of the financial statements require management to make significant judgements and estimates. the items in the financial statements where these judgements and estimates have been made include: |
- | Depreciation and residual value. the directors have reviewed the asset lives and associated residual values of |
- | The stage of completion as noted in the turnover policy is subject to estimation and judgement and the directors make use of the information available to them at the balance sheet date to formulate their calculation, this is implemented on a contract by contract basis.. |
- | The valuation of the future liability of the SHEP is based upon the current and previous 2 years normalised profits. The directors have assessed this as the most appropriate estimate of the liability at the balance sheet date. |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Direct labour | 117 | 120 |
Contracting supervision and admin. | 121 | 100 |
In addition to the staff costs above the company also operates a long term incentive scheme, Shadow Equity Participation Plan (SHEP) for key senior management. As of 30th September the scheme valuation is £740,144 (recognised in accruals) with a charge in the year of £488,034 recognised in administrative costs. |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Auditors' remuneration |
Taxation compliance services |
Other non- audit services |
Costs recharged to fellow group companies and related parties | ( |
) | ( |
) |
Rentals for short term hire of plant and machinery |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Bank and similar interest |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
8. | TAXATION - continued |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Permanent timing differences | ( |
) | ( |
) |
Total tax charge | 819,002 | 481,515 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2023 |
Additions |
At 30 September 2024 |
DEPRECIATION |
At 1 October 2023 |
Charge for year |
At 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 30 September 2023 |
The net book value of tangible fixed assets includes £ 492,780 (2023 - £ 520,671 ) in respect of assets held under hire purchase contracts. |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contracts |
Other debtors |
Deferred tax asset |
Prepayments |
Included in trade debtors are retentions of £322,412 which are due after one year (2023: £340,000). |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 15) |
Payments on account |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
Hire purchase creditors are secured on the assets to which they relate. |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 15) |
Accruals and deferred income |
Hire purchase creditors are secured on the assets to which they relate. |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Hire purchase creditors are secured on the assets to which they relate. |
16. | PROVISIONS FOR LIABILITIES |
2023 |
£ |
Deferred tax | 29,982 |
Deferred |
tax |
£ |
Balance at 1 October 2023 |
Deferred tax not provided |
in prior year | 9,793 |
Decrease in accelerated |
capital allowances | (91,912 | ) |
Increase in other timing |
differences | (122,008 | ) |
Balance at 30 September 2024 | ( |
) |
There are no unprovided amounts in respect of deferred tax for the Company (2023: £Nil). |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 950,000 | 950,000 |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 October 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 September 2024 |
19. | CONTINGENT LIABILITIES |
The Company's bankers hold an unlimited cross guarantee dated 17th August 2022 between certain members of the Bethell group of companies. There is also a supplemental fixed charge on book debts and other debts. At the year-end the company had a contingent liability under this cross guarantee of £nil (2023 £nil). |
20. | OTHER FINANCIAL COMMITMENTS |
The company operates defined contribution pension schemes for its employees. The assets of the schemes are held separately from those of the Company in independently administered funds. The amount owing to the schemes at the year end was £112,000 (2023:£89,000), including employer contributions of £83,000 (2023:£64,000). |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
21. | RELATED PARTY DISCLOSURES |
During the year the Company transacted cost recharges, purchases and sales with Bethell Group plc ("BGP") ,Bethell Utility Services Ltd ("BUSL") and Bethell Plant Services Ltd ("BETPLA") , which are related parties being member of the Bethell Group Holdings Ltd, group of companies. Details of the transactions are as follows: |
2024 | 2023 |
£ | £ |
Sales to BGP | 209,947 | 146,674 |
Cost recharges from BGP | 369,229 | 486,521 |
Purchases from BGP | 1,280,440 | 800,000 |
Balance outstanding at year-end included within Debtors | 29,530 | 43,256 |
Sales were re-charges of certain costs incurred by the Company on behalf of BGP. Cost recharges were principally overheads and sundry costs incurred by BGP on behalf of the Company and recharged. Purchases were management charges invoiced by BGP to the Company for directors' services. |
2024 | 2023 |
£ | £ |
Sales to BUSL | 72,158 | 266,961 |
Cost recharges to BUSL | 1,445,143 | 882,864 |
Purchases from BUSL | 299,330 | 6,438 |
Balances outstanding at year-end included within Debtors | 1,482,462 | 919,235 |
Purchases were principally sub-contract costs incurred by the Company on contracting activities and cost recharges were principally overheads and sundry costs incurred by the Company and recharged to BUSL. |
2024 | 2023 |
£ | £ |
Sales of assets to BETPLA | - | 479,275 |
Purchases from BETPLA | 1,063,771 | 625,379 |
Cost recharges to BETPLA | 258,155 | 100,255 |
Balances outstanding at year-end included within Debtors | 19,258 | 306,694 |
Purchases were principally costs incurred by the Company on plant hire from BETPLA. |
Cost recharges were principally overheads and sundry costs incurred by the Company and recharged to BETPLA. |
22. | ULTIMATE CONTROLLING PARTY |
BETHELL CONSTRUCTION LIMITED (REGISTERED NUMBER: 00264322) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 September 2024 |
23. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 8,376 | 12,180 |
Finance income | (181,784 | ) | (53,052 | ) |
3,626,968 | 2,454,912 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
24. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 September 2024 |
30/9/24 | 1/10/23 |
£ | £ |
Cash and cash equivalents | 7,997,235 | 3,439,516 |
Year ended 30 September 2023 |
30/9/23 | 1/10/22 |
£ | £ |
Cash and cash equivalents | 3,439,516 | 5,975,558 |
25. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/10/23 | Cash flow | At 30/9/24 |
£ | £ | £ |
Net cash |
Cash at bank | 3,439,516 | 4,557,719 | 7,997,235 |
3,439,516 | 7,997,235 |
Debt |
Finance leases | (235,911 | ) | 91,332 | (144,579 | ) |
(235,911 | ) | 91,332 | (144,579 | ) |
Total | 3,203,605 | 4,649,051 | 7,852,656 |