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Registered number: 02829893









Argyle (North West) Construction Limited









Annual report and financial statements

For the Year Ended 31 August 2024

 
Argyle (North West) Construction Limited
 
 
Company Information


Directors
D T Smith 
M R Qureshi 
B Shaw 
C Wood 
J M Morgan 




Registered number
02829893



Registered office
47 Gibfield Park Avenue
Atherton

Manchester

M46 0SY




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

SK1 3GG





 
Argyle (North West) Construction Limited
 

Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 24


 
Argyle (North West) Construction Limited
 
 
Strategic Report
For the Year Ended 31 August 2024

Introduction
 
The Directors present the Strategic Report for the year ended 31 August 2024.

Business review
 
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.

Page 1

 
Argyle (North West) Construction Limited
 

Strategic Report (continued)
For the Year Ended 31 August 2024

Principal risks and uncertainties (continued)
 
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:

2024
2023
        %
        %
EBITDA margin

20

18
 
Revenue movement

(13)

1
 
Gross profit margin

37

30
 
Operating profit margin

18

18
 


This report was approved by the board and signed on its behalf.



................................................
J Morgan
Director

Date: 19 December 2024

Page 2

 
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.

Principal activity

The principal activity of the Company continued to be that of road construction and tarmacadaming.

Directors

The directors who served during the year were:

D T Smith 
M R Qureshi 
B Shaw 
C Wood 
J M Morgan 

Results and dividends

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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 2006They 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.

Future developments

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.

Page 3

 
Argyle (North West) Construction Limited
 
 
 
Directors' Report (continued)
For the Year Ended 31 August 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHurst Accountants Limitedwill 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.
 





................................................
J Morgan
Director

Date: 19 December 2024


Page 4

 
Argyle (North West) Construction Limited
 
 
 
Independent auditors' report to the members of Argyle (North West) Construction Limited
 

Opinion


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 policiesThe 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 31 August 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 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.


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 Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
Argyle (North West) Construction Limited
 
 
 
Independent auditors' report to the members of Argyle (North West) Construction Limited (continued)


Opinion 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 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.


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:


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 Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
Argyle (North West) Construction Limited
 
 
 
Independent auditors' report to the members of Argyle (North West) Construction Limited (continued)


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 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
Page 7

 
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.


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 2006Our 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.





John Glover (Senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
SK1 3GG

19 December 2024
Page 8

 
Argyle (North West) Construction Limited
 
 
Statement of Income and Retained Earnings
For the Year Ended 31 August 2024

2024
2023
Note
£
£

  

Turnover
 4 
23,070,092
26,369,029

Cost of sales
  
(14,574,216)
(18,351,902)

Gross profit
  
8,495,876
8,017,127

Administrative expenses
  
(4,288,673)
(3,397,267)

Operating profit
 5 
4,207,203
4,619,860

Interest payable and similar expenses
 9 
(31,078)
(28,115)

Profit before tax
  
4,176,125
4,591,745

Tax on profit
 10 
(850,580)
(855,000)

Profit after tax
  
3,325,545
3,736,745

  

  

Retained earnings at the beginning of the year
  
9,293,033
8,035,142

  
9,293,033
8,035,142

Profit for the year
  
3,325,545
3,736,745

Dividends declared and paid
  
(4,647,203)
(2,478,854)

Retained earnings at the end of the year
  
7,971,375
9,293,033

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 12 - 25  form part of these financial statements.

Page 9

 
Argyle (North West) Construction Limited
Registered number: 02829893

Balance Sheet
As at 31 August 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
259,029
253,987

Tangible assets
 13 
839,423
998,640

  
1,098,452
1,252,627

Current assets
  

Stocks
 14 
79,000
180,407

Debtors: amounts falling due within one year
 15 
5,989,521
7,194,761

Cash at bank and in hand
 16 
4,428,431
3,961,865

  
10,496,952
11,337,033

Creditors: amounts falling due within one year
 17 
(3,321,999)
(2,986,107)

Net current assets
  
 
 
7,174,953
 
 
8,350,926

Total assets less current liabilities
  
8,273,405
9,603,553

Creditors: amounts falling due after more than one year
 18 
(176,999)
(233,819)

Provisions for liabilities
  

Deferred tax
 20 
(125,079)
(76,749)

Net assets
  
7,971,327
9,292,985


Capital and reserves
  

Called up share capital 
 21 
50
50

Capital redemption reserve
  
(98)
(98)

Profit and loss account
  
7,971,375
9,293,033

  
7,971,327
9,292,985


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J Morgan
Director

Date: 19 December 2024

The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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.

Page 11

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Contracts
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.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. 

Page 12

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

Page 13

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Plant and machinery
-
25%
reducing balance
Motor vehicles
-
25%
reducing balance

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.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress includes labour costs.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment.

Work in progress at the balance sheet date relates to un-invoiced sales at the year end for construction works carried out and completed before the balance sheet date. The value of these are determined by net cash in-flows the company is expected to receive.

 
2.13

Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)

 
2.15

Financial instruments

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.

Page 15

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

2.Accounting policies (continued)

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make significant judgements and estimates that
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.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Construction of roads and tarmacadaming
23,070,092
26,369,029


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
76,995
74,115

Page 16

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
25,725
24,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,930,193
2,497,319

Social security costs
377,838
157,956

Cost of defined contribution scheme
24,029
26,887

3,332,060
2,682,162


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Management and administrative
41
35



Workforce
30
22

71
57

Page 17

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
644,280
599,133

Company contributions to defined contribution pension schemes
2,642
2,642

646,922
601,775


The highest paid director received remuneration of £169,483 (2023 -£164,351).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 -£NIL).


9.


Interest payable and similar expenses

2024
2023
£
£


Finance lease contracts
31,078
28,115


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
802,250
879,094


Total current tax
802,250
879,094

Deferred tax


Origination and reversal of timing differences
48,330
(24,094)

Total deferred tax
48,330
(24,094)


Taxation on profit on ordinary activities
850,580
855,000
Page 18

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 -lower than) the standard rate of corporation tax in the UK of 25% (2023 -25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
4,176,125
4,591,745


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -25%)
1,044,031
1,147,936

Effects of:


Expenses not deductible for tax purposes
3,810
11,795

Capital allowances for year in excess of depreciation
-
(142,794)

Super-deduction
-
(577)

Group relief
(197,261)
(161,360)

Total tax charge for the year
850,580
855,000


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

11.


Dividends

2024
2023
£
£


Ordinary paid
4,647,203
2,478,854


12.


Intangible assets




Computer software

£



Cost


At 1 September 2023
253,987


Additions
56,848



At 31 August 2024

310,835



Amortisation


Charge for the year
51,806



At 31 August 2024

51,806



Net book value



At 31 August 2024
259,029



At 31 August 2023
253,987





Page 20

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Total

£
£
£



Cost


At 1 September 2023
659,785
1,544,303
2,204,088


Additions
15,032
109,200
124,232


Disposals
(4,500)
(83,244)
(87,744)



At 31 August 2024

670,317
1,570,259
2,240,576



Depreciation


At 1 September 2023
386,275
819,173
1,205,448


Charge for the year
68,737
188,372
257,109


Disposals
(3,432)
(57,972)
(61,404)



At 31 August 2024

451,580
949,573
1,401,153



Net book value



At 31 August 2024
218,737
620,686
839,423



At 31 August 2023
273,510
725,130
998,640

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
108,449
162,674

Motor vehicles
387,789
457,520

496,238
620,194


14.


Stocks

2024
2023
£
£

Raw materials and consumables
79,000
180,407


Page 21

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

15.


Debtors

2024
2023
£
£


Trade debtors
4,016,366
5,333,183

Other debtors
222,084
468,523

Prepayments
212,085
127,497

Amounts recoverable on long term contracts
1,538,986
1,265,558

5,989,521
7,194,761



16.


Cash

2024
2023
£
£

Cash at bank and in hand
4,428,431
3,961,865



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
2,385,314
2,148,282

Amounts owed to group undertakings
91,182
-

Corporation tax
318,414
245,859

Other taxation and social security
-
64,861

Obligations under finance leases
141,363
203,116

Other creditors
115,634
4,923

Accruals and deferred income
270,092
319,066

3,321,999
2,986,107


The Company's assets are subject to a fixed and floating charge in favor of Santander UK PLC. This charge secures the existing bank loan of the parent company, Argyle Construction (Holdings) Limited, and includes a negative pledge restricting the creation of further charges on the secured assets.
Obligations under finance leases are secured on the assets to which they relate.

Page 22

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
176,999
233,819


Obligations under finance leases are secured on the assets to which they relate.


19.


Finance leases


Minimum lease payments under finance leases fall due as follows:

2024
2023
£
£


            Within one year
141,363
203,116

            Between 1-5 years
176,999
233,819

318,362
436,935


20.


Deferred taxation




2024


£






At beginning of year
(76,749)


Charged to profit or loss
(48,330)



At end of year
(125,079)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
131,257
77,730

Short term timing differences
(6,178)
(981)

(125,079)
(76,749)

Page 23

 
Argyle (North West) Construction Limited
 
 
 
Notes to the Financial Statements
For the Year Ended 31 August 2024

21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



50 (2023 -50) Ordinary shares of £1.00 each
50
50



22.


Pension commitments

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.


23.


Commitments under operating leases

At 31 August 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
60,825
40,957

Later than 1 year and not later than 5 years
156,375
73,200

217,200
114,157


24.


Related party transactions

During the year, lease rentals of £1,666 (2023: £10,000) for use of a property were paid to another company owned and controlled by a Director of the Company.
During the year, non-executive director fees of £98,054 (
2023: £44,369) were paid to Foresight Regional Investment General Partner LLP, the ultimate controlling party.


25.


Controlling party

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.
Page 24