Company registration number 04433925 (England and Wales)
RELIABLE CONTRACTORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
RELIABLE CONTRACTORS LIMITED
COMPANY INFORMATION
Directors
B Greene
P Greene
T Plain
(Appointed 18 March 2024)
Company number
04433925
Registered office
5th Floor
Ashford Commercial Quarter
1 Dover Place
Ashford
Kent
United Kingdom
TN23 1FB
Auditor
Azets Audit Services
5th Floor
Ashford Commercial Quarter
1 Dover Place
Ashford
Kent
United Kingdom
TN23 1FB
Business address
The Firs
Dover Road
Sandwich
Kent
United Kingdom
CT13 0DB
Bankers
National Westminster Bank plc
11 The Parade
Canterbury
Kent
United Kingdom
CT1 2SQ
RELIABLE CONTRACTORS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
RELIABLE CONTRACTORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The directors present the strategic report for the year ended 31 May 2024.true

Review of the business

Turnover for 23/24 shows a significant growth as predicted. Despite economic uncertainty and market conditions we have gained a large portion of market share across various sectors including infrastructure, water, nuclear & energy, defence, tunnelling & utilities, with long term projects awarded.

 

With new offices set up in Birmingham, Ipswich and Scotland we expect the company to continue its growth over the coming years. 2024 saw the launch of our Training Hub which will be crucial for the continued upskilling of our workforce, generating transferable skills between sectors. We continue to invest heavily in software, digitalising all our procedures.

 

Principal risks and uncertainties

Liquidity Risk

 

The company typically has a large number of ongoing live projects each with their own cash cycle. The business’ cashflow can be a variable as a result of the mix of projects and their individual profile, with this being more pronounced on the large, long term civil engineering projects.

 

The company manages its cash and borrowing requirements in order to ensure it has sufficient liquid resources to meet the operating needs of the business. The company is in a strong position with more than adequate cash reserves held, and is not reliant on invoice discounting (which is common in this sector). This means the company is able to fully mitigate risks arising for the current prevailing high interest rates on borrowing.

 

Uncertainty around the outcome of Brexit and how this impacts our ability to trade as well as that of our customer base remains, along with unpredictable timing on government expenditure on infrastructure projects.

Development and performance

The business has continued to invest in employees and has now recruited a number of new roles to support the business. Ongoing training and support of existing employees has ensured staff are well equipped to perform their roles and deliver a high level of service whilst ensuring a high standard of health and safety.

Key performance indicators

Financial Performance Indicators

 

We consider the key financial performance indicators of the company to be revenue and total current assets.

 

Revenue has increased from £25,753,183 to £40,270,522 and current assets have increased from £8,755,015 to £11,007,858 as at 31 May 2024.

On behalf of the board

B Greene
Director
14 January 2025
RELIABLE CONTRACTORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

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

Principal activities
The principal activity of the company continued to be that of manpower provision in the general construction and civil engineering sectors.
Results and dividends

The results for the year are set out on page 8.

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

Directors

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

B Greene
P Greene
T Plain
(Appointed 18 March 2024)
Disabled persons

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Future developments

The company has been successful in seeking out new contracts to maintain its successful position.

 

The UK government plans to reduce its reliance on oil and gas by building as many as eight nuclear reactors including two at Sizewell in Suffolk. Our tier one clients are now targeting Renewable and Green projects and see this and nuclear as a major source of work for the foreseeable future.

 

As a company we are well positioned to grow in these sectors and have previous experience of major nuclear works from our time at Hinkley point.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

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

RELIABLE CONTRACTORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
On behalf of the board
B Greene
Director
14 January 2025
RELIABLE CONTRACTORS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

RELIABLE CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RELIABLE CONTRACTORS LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

RELIABLE CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RELIABLE CONTRACTORS LIMITED
- 6 -
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 directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

RELIABLE CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RELIABLE CONTRACTORS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Swan (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
14 January 2025
Chartered Accountants
Statutory Auditor
5th Floor
Ashford Commercial Quarter
1 Dover Place
Ashford
Kent
United Kingdom
TN23 1FB
RELIABLE CONTRACTORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
Notes
Turnover
3
40,270,522
25,753,183
Cost of sales
(35,912,688)
(22,802,361)
Gross profit
4,357,834
2,950,822
Administrative expenses
(2,655,957)
(1,947,930)
Operating profit
4
1,701,877
1,002,892
Interest receivable and similar income
7
26,714
14,182
Interest payable and similar expenses
8
(3,047)
(5,259)
Profit before taxation
1,725,544
1,011,815
Tax on profit
9
(468,539)
(166,932)
Profit for the financial year
1,257,005
844,883

The profit and loss account has been prepared on the basis that all operations are continuing operations.

RELIABLE CONTRACTORS LIMITED
BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
Fixed assets
Tangible assets
11
172,101
114,863
Current assets
Debtors
12
6,438,346
4,299,934
Cash at bank and in hand
4,569,512
4,455,081
11,007,858
8,755,015
Creditors: amounts falling due within one year
13
(4,202,688)
(3,163,201)
Net current assets
6,805,170
5,591,814
Total assets less current liabilities
6,977,271
5,706,677
Creditors: amounts falling due after more than one year
14
(68,933)
(55,344)
Net assets
6,908,338
5,651,333
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
18
6,908,238
5,651,233
Total equity
6,908,338
5,651,333
The financial statements were approved by the board of directors and authorised for issue on 14 January 2025 and are signed on its behalf by:
B Greene
Director
Company Registration No. 04433925
RELIABLE CONTRACTORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
Share capital
Profit and loss reserves
Total
Balance at 1 June 2022
100
4,806,350
4,806,450
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
844,883
844,883
Balance at 31 May 2023
100
5,651,233
5,651,333
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
1,257,005
1,257,005
Balance at 31 May 2024
100
6,908,238
6,908,338
RELIABLE CONTRACTORS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
2024
2023
Notes
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
588,329
(729,412)
Interest paid
(3,047)
(5,259)
Income taxes paid
(429,927)
(57,871)
Net cash inflow/(outflow) from operating activities
155,355
(792,542)
Investing activities
Purchase of tangible fixed assets
(104,472)
(102,821)
Interest received
26,714
14,182
Net cash used in investing activities
(77,758)
(88,639)
Financing activities
Payment of finance leases obligations
36,834
76,832
Net cash generated from financing activities
36,834
76,832
Net increase/(decrease) in cash and cash equivalents
114,431
(804,349)
Cash and cash equivalents at beginning of year
4,455,081
5,259,430
Cash and cash equivalents at end of year
4,569,512
4,455,081
RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
1
Accounting policies
Company information

Reliable Contractors Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor, Ashford Commercial Quarter, 1 Dover Place, Ashford, Kent, United Kingdom, TN23 1FB.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

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

 

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

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

1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life, which is considered to be 5 years.
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
50% straight line
Computer equipment
50% straight line
Motor vehicles
25% straight line
RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -

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

1.6
Impairment of fixed assets

At each reporting date, fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

 

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of impairment is recognised immediately in profit or loss.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

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

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
1.14

Contract debtors

Included in debtors on the balance sheet are gross amounts owed by contract customers.

 

The amounts held are based on time spent on each project as well as an estimation of future recoverable amounts. As such, this estimation has a significant impact on the results.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
Turnover analysed by class of business
Provision of manpower
40,270,522
25,753,183
2024
2023
Turnover analysed by geographical market
UK
40,270,522
25,753,183
2024
2023
Other revenue
Interest income
26,714
14,182
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
Fees payable to the company's auditor for the audit of the company's financial statements
30,000
28,000
Depreciation of owned tangible fixed assets
47,234
20,458

 

RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
5
Employees

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

2024
2023
Number
Number
Employees
359
282

Their aggregate remuneration comprised:

2024
2023
Wages and salaries
20,925,151
16,110,287
Social security costs
2,419,213
1,895,108
Pension costs
361,897
206,861
23,706,261
18,212,256
6
Directors' remuneration
2024
2023
Remuneration for qualifying services
327,095
317,691
Company pension contributions to defined contribution schemes
12,228
12,018
339,323
329,709

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
Remuneration for qualifying services
263,179
273,569
Company pension contributions to defined contribution schemes
11,635
12,018
7
Interest receivable and similar income
2024
2023
Interest income
Interest on bank deposits
22,636
14,182
Other interest income
4,078
-
0
Total income
26,714
14,182
RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
7
Interest receivable and similar income
(Continued)
- 18 -
2024
2023
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
22,636
14,182
8
Interest payable and similar expenses
2024
2023
Other finance costs:
Interest on finance leases and hire purchase contracts
3,047
5,259
9
Taxation
2024
2023
Current tax
UK corporation tax on profits for the current period
468,539
166,932

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

2024
2023
Profit before taxation
1,725,544
1,011,815
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
431,386
192,245
Tax effect of expenses that are not deductible in determining taxable profit
44,451
17,759
Tax effect of utilisation of tax losses not previously recognised
-
0
(24,408)
Permanent capital allowances in excess of depreciation
(7,298)
(18,664)
Taxation charge for the year
468,539
166,932

The company has no taxable trading losses available to carry forward against future trading profits.

RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
10
Intangible fixed assets
Goodwill
Cost
At 1 June 2023 and 31 May 2024
450,000
Amortisation and impairment
At 1 June 2023 and 31 May 2024
450,000
Carrying amount
At 31 May 2024
-
0
At 31 May 2023
-
0
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
Cost
At 1 June 2023
9,590
-
0
162,727
172,317
Additions
3,877
10,295
90,300
104,472
At 31 May 2024
13,467
10,295
253,027
276,789
Depreciation and impairment
At 1 June 2023
9,180
-
0
48,274
57,454
Depreciation charged in the year
734
2,542
43,958
47,234
At 31 May 2024
9,914
2,542
92,232
104,688
Carrying amount
At 31 May 2024
3,553
7,753
160,795
172,101
At 31 May 2023
410
-
0
114,453
114,863

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
Motor vehicles
160,795
114,453
RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
12
Debtors
2024
2023
Amounts falling due within one year:
Trade debtors
169,793
60,000
Gross amounts owed by contract customers
6,171,651
4,138,783
Other debtors
4,057
6,638
Prepayments and accrued income
92,845
94,513
6,438,346
4,299,934

 

13
Creditors: amounts falling due within one year
2024
2023
Notes
Obligations under finance leases
15
72,925
49,680
Trade creditors
283,901
150,370
Corporation tax
120,539
81,927
Other taxation and social security
1,949,326
1,081,194
Other creditors
1,150,717
1,049,420
Accruals and deferred income
625,280
750,610
4,202,688
3,163,201
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
Obligations under finance leases
15
68,933
55,344

National Westminster Bank Plc has a fixed and floating charge, with the fixed charge covering all fixtures and fittings, plant and machinery, goodwill of the business and the stocks and shares of any related company owned by the directors.

 

Ardsbeg Developments Limited provides a guarantee for a limit of £700,000 to National Westminster Bank Plc in relation to provision of an overdraft for Reliable Contractors Limited.

RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
Within one year
72,925
49,680
In two to five years
68,933
55,344
141,858
105,024

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
361,897
206,861

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The liability in respect of defined contribution schemes at 31 May 2024 is £42,721 (2023: £4,151).

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

The company has one class of ordinary share which carry voting rights and rights to distributions made by the company directors.

18
Profit and loss reserves
2024
2023
At the beginning of the year
5,651,233
4,806,350
Profit for the year
1,257,005
844,883
At the end of the year
6,908,238
5,651,233
RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
19
Operating lease commitments

The company made lease payments during the year amounting to £91,435 (2023: £99,270).

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

2024
2023
Within one year
57,006
62,775
Between two and five years
144,000
152,057
In over five years
207,000
243,000
408,006
457,832
20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
Aggregate compensation
339,322
322,140
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Office rental
2024
2023
Entities over which the entity has control, joint control or significant influence
36,000
36,000

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
Key management personnel
753,648
791,648
21
Ultimate controlling party

The ultimate control of the company lies with the board of directors as collectively they hold 100% of the issued share capital.

RELIABLE CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
22
Cash generated from/(absorbed by) operations
2024
2023
Profit for the year after tax
1,257,005
844,883
Adjustments for:
Taxation charged
468,539
166,932
Finance costs
3,047
5,259
Investment income
(26,714)
(14,182)
Depreciation and impairment of tangible fixed assets
47,234
20,458
Movements in working capital:
Increase in debtors
(2,138,412)
(1,738,683)
Increase/(decrease) in creditors
977,630
(14,079)
Cash generated from/(absorbed by) operations
588,329
(729,412)
23
Analysis of changes in net funds
1 June 2023
Cash flows
31 May 2024
Cash at bank and in hand
4,455,081
114,431
4,569,512
Obligations under finance leases
(105,024)
(36,834)
(141,858)
4,350,057
77,597
4,427,654
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