Registered number:
For the Year Ended
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Argyle (North West) Construction Limited
Company Information
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Argyle (North West) Construction Limited
Contents
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Argyle (North West) Construction Limited
Strategic Report
For the Year Ended 31 August 2024
The Directors present the Strategic Report for the year ended 31 August 2024.
Argyle had another strong year generating turnover of £23m (2023: £26m) and EBITDA of £4.5m (2023: £4.9m). Despite a slowdown in the housebuilding industry, from which a material proportion of Company turnover derives, the Company has continued to deliver robust profits and outperform market expectations.
The Surfacing side of the business performed strongly and the Company continued to secure new customers to mitigate the general downturn in the existing customer base. Work from local authorities saw an increase in the latter part of the year and the Company continues to submit further local authority tenders in order to increase revenue from this area of the business. The Civil Engineering division has seen a significant increase in the number of new housebuilder sites coming to tender stage and expect this to continue to grow over the forthcoming year. This division has secured new sources of work outside of housebuilding in the year and continues to pursue these opportunities. The Company has successfully improved and maintained strong margins throughout the year. Overheads were slightly increased on FY23 levels as the Company invested in people and systems in anticipation of a recovery in the housing market in the forthcoming financial year. Following the July 2024 general election the Company expects the Government focus on housebuilding to result in increased opportunities for all areas of the business and a return to growth in FY25 with a further material step up in FY26. Principal risks and uncertainties As a business working in the development and construction sector, the Company's key inherent risks relate to the macro-economic environment and how changes to this environment (political and environment) may affect future business. The directors of the Company have taken steps to protect the Company from such risks by building strong relationships with a diversified range of clients and having a secure pipeline of work. Other risk affecting the Company are: Health and safety risk This is a natural by-product of construction activities and could directly impact the financial and reputational well-being of the business. This is an area in which the Company continues to invest and focus upon. The business proactively manages and eliminates risks to our people and the general public through strict governance via policies, procedures and reporting mechanisms, alongside regulated training, approved protective equipment and appropriate pastoral support to employees.
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Argyle (North West) Construction Limited
Strategic Report (continued)
For the Year Ended 31 August 2024
The Company's activities expose it to a number of financial risks, which are addressed as follows:
Credit risk Credit checks are carried out where appropriate for new and existing customers and for suppliers to whom payments on account are made. Plant and Fleet risk Managing our fleet drivers and driver risk together with securing our plant from theft continues to be a risk for the business. Liquidity and cash flow risk The Company takes account of cash flow requirements. The Board monitors the level of funds held within the business to ensure that there are sufficient funds available for working capital requirements, capital expenditure and the payment of tax. Consideration is also given to the impact of potential downturns in the level of business. Interest rate risk The Company utilises assets held under finance lease and hire purchase contracts. Interest rate risk is not considered significant as the rates are fixed. Financial key performance indicators Management considers that the Company's key performance indicators are as follows:
This report was approved by the board and signed on its behalf.
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Argyle (North West) Construction Limited
Directors' Report
For the Year Ended 31 August 2024
The directors present their report and the financial statements for the year ended 31 August 2024.
The directors who served during the year were:
The profit for the year, after taxation, amounted to £3,325,545 (2023 -£3,736,745).
Ordinary dividends were paid amounting to £4,647,203 (2023 - £2,478,854). The directors do not recommend payment of a further dividend.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 to 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.
The company will continue to invest in its people, vehicle fleet, equipment and IT systems whilst maintaining its focus on health and safety, delivery, customer service and further development of revenue systems.
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Argyle (North West) Construction Limited
Directors' Report (continued)
For the Year Ended 31 August 2024
There have been no significant events affecting the Company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Argyle (North West) Construction Limited
Independent auditors' report to the members of Argyle (North West) Construction Limited
We have audited the financial statements of Argyle (North West) Construction Ltd. (the 'Company') for the year ended 31 August 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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Argyle (North West) Construction Limited
Independent auditors' report to the members of Argyle (North West) Construction Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
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Argyle (North West) Construction Limited
Independent auditors' report to the members of Argyle (North West) Construction Limited (continued)
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any
actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Antibribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws
and regulations and fraud.
∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud
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Argyle (North West) Construction Limited
Independent auditors' report to the members of Argyle (North West) Construction Limited (continued)
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify
accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the
judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of
business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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 them. 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 collusion.
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 Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
SK1 3GG
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Argyle (North West) Construction Limited
Statement of Income and Retained Earnings
For the Year Ended 31 August 2024
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Argyle (North West) Construction Limited
Registered number: 02829893
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 24 form part of these financial statements.
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
Argyle (North West) Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is 47 Gibfield Park Avenue, Atherton, Manchester, M46 0SY.
The principal activity of the Company is that of road construction and tarmacadaming.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Argyle Construction (Holdings) Limited as at 31 August 2024 and these financial statements may be obtained from Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
2.Accounting policies (continued)
When the outcome of contracts can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion at the end of the reporting period. Reliable estimation of the outcome of contracts requires reliable estimates of the stage of completion, future costs and collectability of billings. The stage of completion is measured by surveys of work performed. When the outcome of a contract cannot be estimated reliably, revenue is only recognised to the extent of contract costs incurred that it is probable will be recoverable. When it is probable that total contract costs will exceed total contract revenue on a contract, the expected loss shall be recognised as an expense immediately, with a corresponding provision for an onerous contract. Revenue in respect of variations to contracts and incentive payments is recognised when it is probable it will be agreed by the customer. Where costs incurred plus recognised profits less recognised losses exceed progress billing, the balance is shown as due from customers on contracts within debtors.
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
All intangible assets are amortised over 3 years straight line
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases:.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
2.Accounting policies (continued)
affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the period. Actual outcomes may differ from these judgements, estimates and assumptions. The directors believe that judgements, estimates and assumptions do not have a significant risk of causing a material difference to the carrying amounts of the assets and liabilities within the next financial year.
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
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Argyle (North West) Construction Limited
Notes to the Financial Statements
For the Year Ended 31 August 2024
The Company operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £24,029 (2023: £26,887). Contributions totalling £24,713 (2023: £3,923) were payable to the fund at balance sheet date.
The parent undertaking is Argyle Construction (Holdings) Limited, a company registered in England. The consolidated financial statements of this group are available to the public and may be obtained from the Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.
The ultimate controlling party is Foresight Regional Investment General Partner LLP.
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