The directors present the strategic report for the year ended 31 July 2024.
The fiscal year ending 31st July 2024 marked another strong performance, with pre-tax profits rising to £2.3m (from £2.0m) and turnover increasing to £90.6m (from £71.1m). Managing Director Chris Wynne attributed the results to high-quality operations and staff, despite a challenging UK construction sector marked by inflation, labour shortages, and Brexit's long-term impact on workforce availability. This success highlights our operational excellence and the dedication of our team, despite a challenging economic environment.
Sector and Regional Challenges
Market conditions eased in 2023, and strategic progress positioned the company well for the next financial year. With an average daily cash surplus, decisions focused on sustainable growth. While the construction sector is projected to grow by 8% in 2024, driven by large-scale infrastructure projects like HS2, pressures from inflation, labour shortages, and financial constraints remain.
The 2024 budget introduced adjustments to employer National Insurance contributions, likely increasing costs and impacting project budgets already strained by rising material costs and tighter margins. Wales, in particular, has faced local authority budget constraints, delaying infrastructure projects, including school construction. While initiatives like the 21st Century Schools Programme provide some relief, councils often struggle to meet funding requirements, causing delays or scaling down of projects.
Across the UK, similar trends show that rising costs and austerity measures are squeezing local authority budgets. The outlook for 2025 depends on inflation management, government policies, and workforce development support. As a group we remain must focused on cost management and efficiency to maintain profitability.
Brexit continues to exacerbate skilled labour shortages, impacting project costs and timelines. The Construction Industry Training Board estimates an annual requirement of 45,000 new workers through 2027. Rising National Insurance contributions will increase employment costs, potentially deterring hiring and impact smaller firms.
Legislative Changes
The Building Safety Act 2022 is set to reshape the UK construction industry from 2025 onward. Stricter safety standards and extended liability will raise operational costs, including insurance premiums. Contractors, particularly small firms, may face increased financial burdens.
Meeting the Act’s requirements will require specialised skills, training, and new roles such as Building Safety Managers. Regulatory compliance will also demand investment in digital tools and safety management expertise.
The Act's emphasis on safety standards and extended liability will likely lead to increased costs, especially for smaller contractors. Professional indemnity insurance premiums for high-risk projects are expected to rise, straining contractors already operating with tight margins.
Over the past year, Wynne Construction has made transformative strides, including enhanced IT infrastructure for better financial control and streamlined project management, benefiting clients with improved service. New office facilities with modern management suites and state-of-the-art meeting spaces enhance internal and client interactions. In line with our sustainability goals, we’ve increased our renewable energy investments by adding solar panels, hybrid vehicles, and eco-friendly office practices, reflecting our commitment to an environmentally responsible future.
By integrating advanced construction methods, digital tools, and data-driven practices, we aim to elevate standards in efficiency, quality, and sustainability, aligning with client goals such as carbon reduction. This commitment to innovation and quality has helped cement Wynne Construction’s reputation as a reliable and forward-thinking partner.
Strategic Direction, Innovation and Expansion
With a robust balance sheet and a forward-thinking strategy, Wynne Construction is well-positioned for sustainable, disciplined growth. We are focused on long-term client relationships and regionally focused operations, with 60% of our current turnover derived from framework agreements. These partnerships offer clients efficient procurement while supporting our growth with stable, recurring work. Our strategic expansion into England allows us to diversify our portfolio with projects addressing housing, extra care facilities, and other high-impact developments. Through these initiatives, we aim to deliver positive social outcomes and foster sustainable communities across a broader geographic area.
Innovation remains at the core of operations. Advanced construction methods and data-driven tools are raising standards in quality, efficiency, and sustainability, helping clients achieve carbon reduction goals.
As 2025 approaches, sustainability efforts focus on six areas:
health and safety,
environmental resilience,
people,
community engagement,
client satisfaction, and
supply chain stewardship.
The group is dedicated to decarbonising operations, embedding social value, and adhering to ESG principles to meet stakeholder expectations.
Our Carbon Reduction Plan and initiatives like renewable energy sourcing, hybrid fleet additions, and green site policies align with our commitment to a greener construction industry and our goal to achieve net-zero emissions by 2040. By embedding social and environmental values into our operations, we are committed to creating positive impacts for our clients, partners, and communities.
In collaboration with Welsh Government initiatives, we align our practices with regional policies, balancing growth with responsible governance. Our proactive ESG approach positions us as leaders in sustainable construction, with ISO 19650 BIM Level 2 accreditation underscoring our commitment to quality and client satisfaction.
Workforce Development and Supply Chain Collaboration
Our team is our most valuable asset, and talent development is at the core of our strategy. Through apprenticeships and educational initiatives, we’re committed to nurturing a skilled and dedicated workforce. In FY24, over 160 apprentices participated in our training programs, representing 4.1% of our workforce. Our Supply Chain Development Program aligns our partners with our values, providing them with training and insights to enhance efficiency, innovation, and growth. By adhering to the Prompt Payment Code, we strengthen trust within our supply chain, reflecting our commitment to sustainable business practices.
Health and Safety
Health and safety investments protect employees and elevate project quality. Our commitment to workplace safety is underscored by the introduction of new health and safety initiatives, including advanced risk assessment protocols, enhanced PPE provisions, and digital monitoring tools to ensure compliance. Comprehensive and ongoing training programs prepare our workforce for evolving challenges, while fostering a culture of safety-first thinking. These efforts not only maintain but continuously improve our industry-leading safety record, ensuring a secure and productive environment for all.
Creating Social Value and Inclusivity
Our commitment to social value is deeply embedded in our culture, focusing on local employment, workforce development, and community support. We actively promote diversity and inclusion, extending opportunities to young people and those facing long-term unemployment. By fostering a culture of inclusivity, we enhance both our organisation and the communities we serve.
Group revenue has increased year-on-year, with net reserves and cash in the bank seeing notable growth. Despite the challenges of inflation and external economic pressures, our performance demonstrates resilience and stability.
Looking ahead our year-end order book has grown to £72 million, reflecting the strength of our project pipeline and consistent new contract wins. However, I am not complacent and the construction sector in Wales faces a mix of challenges, including rising material costs, inflation, and increased demand for modern methods of construction (MMC). Legislative changes like the Building Safety Act 2022 will reshape industry standards. By embracing innovative construction methods, committing to sustainability, and investing in workforce development, Wynne Construction is well-prepared to navigate these challenges and create a forward-thinking industry for future generations.
In summary, our vision is clear: to establish a legacy of innovation, responsibility, and collaboration that will contribute to a sustainable, resilient construction sector in Wales and beyond.
The directors, in accordance with Section 172(1) of the Companies Act 2006, have acted to promote the long-term success of the company while considering stakeholder interests. This statement highlights how these considerations influenced decisions and strategies during the financial year.
Promoting Long-Term Success
The company focused on sustainable growth and operational excellence by investing in IT infrastructure, renewable energy, and hybrid vehicles. These efforts enhanced efficiency, reduced environmental impact, and aligned with stakeholder expectations for decarbonisation and long-term resilience. Geographic expansion into England diversified markets, strengthened the business’s foundation, and captured growth opportunities while maintaining high standards.
Employees: Workforce development remained a priority, with investments in training and apprenticeship programmes to address skills gaps and ensure readiness for future challenges.
Clients: Long-term frameworks and partnerships fostered trust and collaboration, strengthening the pipeline of high-quality, profitable work while helping clients achieve their sustainability goals.
Suppliers: The group’s Supply Chain Development Program aligned partners with its values, promoting innovation and efficiency. Adherence to the Prompt Payment Code reinforced ethical practices and long-term trust.
Community: Engagement efforts included training, inclusivity initiatives, and local projects addressing societal needs like affordable housing and care facilities, demonstrating the company’s commitment to social value.
The board prioritised Environmental, Social, and Governance (ESG) principles, reflected in decisions such as:
Advancing the Carbon Reduction Plan toward net-zero emissions by 2040.
Investing in renewable energy and sustainable materials.
Aligning projects with social value goals, including community-focused developments.
Managing Challenges
In a year marked by inflation, labour shortages, and legislative changes, the group took strategic actions to mitigate risks and remain resilient:
Adjusting budgets for rising material and labour costs.
Expanding talent acquisition efforts to address workforce challenges.
Preparing for compliance with the Building Safety Act 2022 through training and digital safety tools.
The board’s decisions balanced immediate operational needs with long-term goals, fostering sustainable growth and positive stakeholder relationships. These efforts ensure the company remains a trusted, forward-thinking partner, poised for continued success in a challenging industry landscape.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 July 2024.
The results for the year are set out on page 13.
Ordinary dividends were paid amounting to £250,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Mitchell Charlesworth (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
The group has followed the 2023 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £M revenue, the recommended ratio for the sector.
As part of our commitment to reaching net zero, Wynne Construction has implemented the following systems and technologies:
100% renewable energy supplied to head office
Installation of a 29kWh PV system
Re-roofing of existing offices to reduce heat loss and increase thermal values
Promotion of car sharing and hybrid meetings to reduce travel to and from sites
Sustainable supplier engagement workshops to educate subcontractors and supply chain
Installation of hybrid generators on site to reduce diesel consumption
Introduction of a hybrid van to reduce emissions from conventional diesel vans
Implementation of “Green Site Policies” to ensure that mains connected sites have renewable energy included within the supply
We have audited the financial statements of Wynne Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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).
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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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:
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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance;
• the group’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
• the results of our enquiries of management and directors of their own identification and assessment of the risks of irregularities;
• any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
• identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
• the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the group's Statement of Comprehensive Income and (ii) the group's accounting policy for revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Employment Laws such as National Minimum Wage Act, Employment Rights Act and the Health and Safety at Work Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection.
As a result of performing the above, we identified revenue recognition and work in progress as the key audit matters related to the potential risk of fraud.
Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
• enquiring of management and directors concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; 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.
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.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £337,826 (2023 - £282,141 profit).
Wynne Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Charles House, Kimnel Park, Abergele Road, Bodelwyddan Denbighshire, LL18 5TY.
The group consists of Wynne Group Limited and all of its subsidiaries.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Wynne Group Limited and all of its subsidiary undertakings.
All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
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.
Revenue from contracts is recognised by either one of two methods. 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 contracted services and materials, as a proportion of total costs to complete.
If the stage of completion method cannot produce a reliable estimate, then revenue is recognised only to the extent of the expenses recognised that it will be possible to recover.
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 recognised in the profit and loss account.
Equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. No indications of impairment have been found during the current or previous year.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
The group 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.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, and loans from fellow group companies, 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.
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 at transaction.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
In the application of the group’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.
Retentions
In the construction industry it is a common feature of construction contracts for the customer to retain part of the contract fee over a maintenance period pending the satisfactory completion of any remedial work required by the contractor. Typically this may be a 12-month period between a certificate of completion being given and the issue of a maintenance certificate. Retentions are included within debtors and turnover. Provision for remedial work is included within accruals; provision for amounts expected to be unrecoverable from retentions are deducted from work in progress.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
The fair value of the investment properties have been arrived at on the basis of a valuation carried out at 22 October 2024 by Jonathan Owen of JO Real Estate, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. Therefore this value has been used for the year ended 31 July 2024.
Details of the company's subsidiaries at 31 July 2024 are as follows:
Registered office addresses (all UK unless otherwise indicated):
The split between work in progress and debtors is a simple function of the impact of changes in the normal billing cycle from year to year and contract to contract.
We are committed to complying with and indeed bettering the requirements of the Prompt Payment Code as an element of strengthening and deepening the relationship with our suppliers and contractors. The change, therefore, in creditors accounts falling due within one year and accruals arises purely as a result of the impact of changes in the normal billing cycle from year to year and contract to contract.
Performance Bonds issued by the group's bankers to customers are secured by way of a fixed and floating charge over all property and undertaking of the company.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.