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Registered number: 03959213










CIVILS CONTRACTING LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2024

 
CIVILS CONTRACTING LIMITED
 
 
COMPANY INFORMATION


Directors
P Medhurst 
N Weaver 
T Meenan 
J Hilder 
D Toone (appointed 11 August 2023)




Company secretary
P Medhurst



Registered number
03959213



Registered office
3 Archers Park
Branbridges Road

East Peckham

Kent

TN12 5HP




Independent auditor
MHA

Victoria Court

17-21 Ashford Road

Maidstone

United Kingdom

ME14 5DA





 
CIVILS CONTRACTING LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditor's Report
 
 
5 - 8
Statement of Income and Retained Earnings
 
 
9
Balance Sheet
 
 
10 - 11
Notes to the Financial Statements
 
 
12 - 29


 
CIVILS CONTRACTING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Introduction
 
The function of the strategic report is to provide a balanced review of the Company’s objectives, its performance and development during the year, and its position at the year end.

Business review
 
Civils is a highly successful and accomplished British construction company providing construction services across a wide variety of sectors. We are proud of our reputation for non-confrontational contracting, an approach which enables us to obtain the majority of our work through recommendation and negotiation with our clients.

Development and performance of the Company
The Company’s profit for the year after taxation amounted to £4,297,077 (2023 – £3,951,232). The performance of the business has continued to be very good in 2023/2024, with increases in inflation, supply chain and resourcing being overcome by a very good staff work ethic and the property market remaining strong especially in the industrial sector. 
The major contracts being undertaken in the industrial development and commercial sectors have formed the foundation for the business throughout the year and this continues to be the case in 2023/2024. Looking forward to 2024/2025 we expect to see continuing volumes of work in both sectors with slightly lower margins however volumes should increase. 

Principal risks and uncertainties
 
The Company’s principal risks can broadly be defined as competitive, legislative and financial.
 
Competitive risks and market. The Company faces pressures from other organisations in execution of its business. This is addressed by the depth of expertise in the industry of the management team, a detailed understanding of the market and environment, and a commitment to quality. 
Regulatory and legislative risks. Any breach of regulations and applicable law may result in fines for the Company. Consequently robust compliance and legal monitoring controls minimise the Company’s exposure.
Financial instruments risk. Apart from working capital the Company does not have any financial instruments.  It is the Company’s policy that no trading in complex financial instruments shall be undertaken. The main risks arising from the Company’s financial instruments are price, credit, liquidity and cash flow risk. Risk management policies are regularly reviewed by the board.
 
Price risks are managed through the commercial process.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company’s policies are aimed at minimising such a risk by conducting credit checks where appropriate and by other established credit control procedures. 
Liquidity risk is the risk that an entity may encounter difficulties in meeting obligations associated with financial liabilities. The Company aims to mitigate liquidity risk by robust budgeting.
Cash flow risk lies in the exposure to variability in cash flows that are attributable to a particular risk associated with a recognised asset or liability such as future interest payments. The Company manages this risk through cash flow planning, and strict management of working capital.

Page 1

 
CIVILS CONTRACTING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Financial key performance indicators
 
The KPIs used to determine the progress and performance of the Company are set out below:
 

2024
2023
Turnover (£)       
25,032,310
24,655,160
Average monthly staff (number)     
26
28
Operating Profit       
5,640,223
4,348,850

During the year the Company continued to perform well particularly due to development work and various short and long term contracts.  The tenacity of the staff in finding and creating solutions has been instrumental in delivering the good results.  Total revenue has increased compared to last year which has also helped to deliver an excellent overall performance with higher profit levels than last year.
Staff numbers reflect the efficiency of the Company and its operations. Operating profit is a measure of the profitability of underlying operations of the business.

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



................................................
P Medhurst
Director

Date: 30 January 2025

Page 2

 
CIVILS CONTRACTING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

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

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 judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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.

Principal activity

The principal activity of the Company is that of civil engineering and building contracting.

Results and dividends

The profit for the year, after taxation, amounted to £4,297,077 (2023 - £3,951,232).

During the year the Company declared and paid dividends amounting to £4,000,000 (2023: £3,000,000).

Directors

The directors who served during the year were:

P Medhurst 
N Weaver 
T Meenan 
J Hilder 
D Toone (appointed 11 August 2023)

Future developments

There have been no future developments affecting the Company since the year end other than those referred to in the strategic report.

Page 3

 
CIVILS CONTRACTING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Matters covered in the Strategic Report

Certain items required under Schedule 7 to be disclosed in the Directors' Report are set out in the Strategic Report in accordance with S.414C(II) of the Companies Act 2006; these being an analysis of the Company's principal risks and uncertainties.

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Post balance sheet events

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

Auditor

The auditor, MHAwill 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.
 





................................................
P Medhurst
Director

Date: 30 January 2025

Page 4

 
CIVILS CONTRACTING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CIVILS CONTRACTING LIMITED
 

Opinion


We have audited the financial statements of Civils Contracting Limited (the 'Company') for the year ended 31 January 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 January 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.


Page 5

 
CIVILS CONTRACTING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CIVILS CONTRACTING LIMITED (CONTINUED)


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 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.


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

 
CIVILS CONTRACTING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CIVILS CONTRACTING LIMITED (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

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


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:
 
enquiry of management around actual and potential litigation and claims;
enquiry of management to identify and instances of non-compliance with laws and regulations;
performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulation.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's Report.


Page 7

 
CIVILS CONTRACTING LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CIVILS CONTRACTING LIMITED (CONTINUED)


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 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.





Duncan Cochrane-Dyet BSc BFP FCA (Senior Statutory Auditor)
for and on behalf of
MHA
Statutory Auditor
Maidstone
United Kingdom

31 January 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Page 8

 
CIVILS CONTRACTING LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£
£

  

Turnover
 4 
25,032,310
24,655,160

Cost of sales
  
(17,967,458)
(18,921,441)

Gross profit
  
7,064,852
5,733,719

Administrative expenses
  
(1,424,629)
(1,384,869)

Operating profit
 5 
5,640,223
4,348,850

Interest receivable and similar income
 9 
31,518
196

Interest payable and similar expenses
 10 
(6,635)
(33,314)

Profit before tax
  
5,665,106
4,315,732

Tax on profit
 11 
(1,368,029)
(364,500)

Profit after tax
  
4,297,077
3,951,232

  

  

Retained earnings at the beginning of the year
  
6,602,534
5,651,302

Profit for the year
  
4,297,077
3,951,232

Dividends declared and paid
 12 
(4,000,000)
(3,000,000)

Retained earnings at the end of the year
  
6,899,611
6,602,534

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 to 29 form part of these financial statements.

Page 9

 
CIVILS CONTRACTING LIMITED
REGISTERED NUMBER: 03959213

BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
902,606
560,709

Investments
 14 
1
1

  
902,607
560,710

Current assets
  

Stocks
 15 
676,881
792,385

Debtors: amounts falling due within one year
 16 
7,243,817
8,634,445

Cash at bank and in hand
 17 
4,320,323
8,407,242

  
12,241,021
17,834,072

Creditors: amounts falling due within one year
 18 
(5,838,560)
(11,413,863)

Net current assets
  
 
 
6,402,461
 
 
6,420,209

Total assets less current liabilities
  
7,305,068
6,980,919

Creditors: amounts falling due after more than one year
 19 
(33,634)
(98,095)

Provisions for liabilities
  

Deferred tax
 21 
(186,823)
(95,290)

  
 
 
(186,823)
 
 
(95,290)

Net assets
  
7,084,611
6,787,534


Capital and reserves
  

Called up share capital 
 22 
185,000
185,000

Profit and loss account
  
6,899,611
6,602,534

  
7,084,611
6,787,534


Page 10

 
CIVILS CONTRACTING LIMITED
REGISTERED NUMBER: 03959213
    
BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2024

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



................................................
P Medhurst
................................................
N Weaver
Director
Director


Date: 30 January 2025

The notes on pages 12 to 29 form part of these financial statements.

Page 11

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

Civils Contracting Limited is a private Company limited by shares incorporated in England and Wales within the United Kingdom.  The address of the registered office is 3 Archers Park, Branbridges Road, East Peckham, Kent, England, TN12 5HP.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to the nearest £1.

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 judgement 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 Civils Contracting Holding Company Limited as at 31 January 2024 and these financial statements may be obtained from 3 Archers Park, Branbridges Road, East Peckham, Kent, England, TN12 5HP.

 
2.3

Going concern

The directors have assessed that there is no material uncertainty in the Company's ability to continue as a going concern. As a result, the financial statements have been prepared on a going concern basis.

Page 12

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.4

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:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably; and
where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Any costs whose recovery is not probable, are immediately recognised as an expense. When it is probable that the total contract costs will exceed total contract revenue on a construction contract, the expected loss is recognised as an expense immediately, with a corresponding provision for an onerous contract.

Revenue from the sale of properties is recognised in the accounting period in which legal title is transferred. 

 
2.5

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.

 
2.6

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.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 13

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.8

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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

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.

 
2.10

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.

 
2.11

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.

Page 14

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant and machinery
-
20%
reducing balance
Motor vehicles
-
25%
reducing balance
Office equipment
-
20%
straight line

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.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks representing work in progress on long term contracts are valued at the lower of cost and net realisable value after making due allowance for recovery, less any amounts billed in advance.
Stock held as property to be disposed of in the short term is held at the lower of cost and net realisable value.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

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 15

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.
 
 
2.18

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.

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.
 
Page 16

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

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.

 
2.19

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.


Judgements in applying accounting policies and key sources of estimation uncertainty

Reliable estimation of the eventual outcome of specific contracts requires reliable estimates of the stage of completion, future costs and collectibility of billings.  The stage of completion of long term contracts is determined based on the total percentage of expected project costs that have been incurred.
The directors are required to make an assessment with regard to the future costs the Company is likely to incur so as to fulfil its obligations under contracts, including remedial work necessary to guarantee the release of retention balances.  Only specific provisions against contracts where such a provision is required or where specific remedial work is required are recognised.  No general provisions are recognised.  


4.


Turnover

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


2024
2023
£
£

Long term contracts
25,032,310
23,455,160

Property sales
-
1,200,000

25,032,310
24,655,160


All turnover arose within the United Kingdom.

Page 17

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
44,650
50,320


6.


Auditor's remuneration

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


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
44,500
44,135

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


7.


Employees

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


2024
2023
£
£

Wages and salaries
1,644,579
1,827,968

Social security costs
197,589
228,995

Cost of defined contribution scheme
66,108
67,725

1,908,276
2,124,688


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


        2024
        2023
            No.
            No.







Management
5
5



Administration
1
1



Direct
20
22

26
28

Page 18

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
492,442
450,047

Company contributions to defined contribution pension schemes
3,172
2,512

495,614
452,559


During the year retirement benefits were accruing to 2 directors (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £142,616 (2023 - £141,917).

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 receivable

2024
2023
£
£


Other interest receivable
31,518
196

31,518
196


10.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
6,635
6,795

Other interest payable
-
26,519

6,635
33,314

Page 19

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,276,211
827,912

Adjustments in respect of previous periods
285
(449,550)


1,276,496
378,362


Total current tax
1,276,496
378,362

Deferred tax


Origination and reversal of timing differences
91,533
(13,862)

Total deferred tax
91,533
(13,862)


Taxation on profit on ordinary activities
1,368,029
364,500
Page 20

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
 
11.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 24.03% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
5,665,106
4,315,732


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.03% (2023 - 19%)
1,361,325
819,989

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,054
2,055

Fixed asset differences
(2,193)
6,345

Adjustments to tax charge in respect of prior periods
285
105,450

Short-term timing difference leading to an increase (decrease) in taxation
-
(477)

Other timing differences leading to an increase (decrease) in taxation
7
(13,862)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(555,000)

Remeasurement of deferred tax for changes in tax rates
3,551
-

Total tax charge for the year
1,368,029
364,500


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Ordinary dividends
4,000,000
3,000,000

4,000,000
3,000,000

Page 21

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 February 2023
700,826
362,089
116,839
1,179,754


Additions
430,495
117,919
10,223
558,637



At 31 January 2024

1,131,321
480,008
127,062
1,738,391



Depreciation


At 1 February 2023
368,195
156,403
94,447
619,045


Charge for the year
141,680
66,311
8,749
216,740



At 31 January 2024

509,875
222,714
103,196
835,785



Net book value



At 31 January 2024
621,446
257,294
23,866
902,606



At 31 January 2023
332,631
205,686
22,392
560,709

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


2024
2023
£
£



Plant and machinery
133,910
167,387

Motor vehicles
53,526
76,976

187,436
244,363

Page 22

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 February 2023
1



At 31 January 2024
1





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Archers Park (Management Company) Limited
Victoria Court, 17-21 Ashford Road, Maidstone, Kent, ME14 5DA
Ordinary
100%

The aggregate of the share capital and reserves as at 31 January 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Archers Park (Management Company) Limited
8
-


15.


Stocks

2024
2023
£
£

Property held for sale
192,257
726,256

Long-term contract balances
484,624
66,129

676,881
792,385


Page 23

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

16.


Debtors

2024
2023
£
£


Trade debtors
3,150,640
1,916,663

Other debtors
88,664
24,051

Prepayments and accrued income
1,083,436
5,650,071

Amounts recoverable on long-term contracts
2,921,077
1,043,660

7,243,817
8,634,445



17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
4,320,323
8,407,242

4,320,323
8,407,242



18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Payments received on account
3,419,999
6,637,923

Trade creditors
1,591,559
2,447,189

Amounts owed to group undertakings
300
300

Corporation tax
218,113
1,603,888

Other taxation and social security
61,786
228,385

Obligations under finance lease and hire purchase contracts
64,412
66,744

Other creditors
79,682
84,256

Accruals and deferred income
402,709
345,178

5,838,560
11,413,863


Page 24

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
33,634
98,095

33,634
98,095



20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
73,391
73,391

Between 1-5 years
37,000
107,998

110,391
181,389


21.


Deferred taxation




2024
2023


£

£






At beginning of year
(95,290)
(109,152)


Charged to profit or loss
(91,533)
13,862



At end of year
(186,823)
(95,290)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(186,850)
(95,357)

Pension surplus
27
67

(186,823)
(95,290)

Page 25

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



185,000 (2023 - 185,000) Ordinary shares of £1.00 each
185,000
185,000

There are no restrictions attached to the Ordinary shares.



23.


Pension commitments

The Company operates a stakeholder pension scheme and small self-administered scheme for certain directors and staff. The assets of the schemes are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to these funds and also to amounts paid to individual directors' personal pension plans.
Contributions payable by the Company to the stakeholder pension scheme amounted to £66,108 (2023 - £67,725). Contributions totalling £269 (2023 - £269) were payable to the fund at the balance sheet date.
No amounts were payable by the Company to the self-administered scheme during the current or prior year.


24.


Commitments under operating leases

At 31 January 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
86,500
28,500

Later than 1 year and not later than 5 years
155,000
114,000

Later than 5 years
-
9,500

241,500
152,000


25.Other financial commitments

The company is party to a cross corporate guarantee and set-off agreement with YEP Property Ltd, whereby any party to this arrangement could be liable to settle liabilities outstanding with Lloyds Bank PLC. YEP Property Ltd is a related party as disclosed in note 26.
A debenture agreement is in place between the Group (headed by Civils Contracting Holding Company Limited, in which the company is a subsidiary) and Bank of Scotland PLC, which contains fixed and floating charges over the assets of the Group. The assets could be discharged in the event of default of payment for current or future liabilities owed by the Group to the bank. 

Page 26

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

26.


Related party transactions

The Company has taken advantage of the exemption not to disclose transactions with other members of
the group headed by The CC Trust.
The following transactions occurred during the year which are classified as related party transactions:

Movement on directors' current account balances during the year were as follows: 


Opening Balance
Amounts received
Amounts repaid
Closing balance
£
£
£
£

J Hilder
-
10,066
(9,866)
201
T Meenan
-
4,455
(4,419)
36
-
14,521
(14,285)
237

M & M Pension Fund (P Medhurst, a director and shareholder, is a trustee and member)
Purchases totalling:
2024: £34,000
2023: £21,386
Repayments made:
2024: £41,840
2023: £21,386
Balance due from related party:
2024: £Nil
2023: £7,840
CCL Pension Fund (N Weaver, T Meenan and J Hilder, directors and shareholders, are trustees and
members):
Rent, rates and insurance costs paid to:
2024: £Nil
2023: £20,000
Balance due (to)/from related party:
2024: £762
2023: £762
YEP Property Ltd (P Medhurst, N Weaver, T Meenan and J Hilder, directors, were also directors and shareholders of YEP Property Ltd during the year):
Unbilled revenue on long term contracts:
2024: £2,456,540
2023: £782,915

Page 27

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024



Sales totalling:
2024: £1,150,000
2023: £Nil
Balance due from related party:
2024: £1,380,000
2023: £Nil
Civils Design Services Ltd (P Medhurst and N Weaver, directors, were also directors and shareholders of
this company during the year):
Loan repayments received totalling:
2024: £Nil
2023: £44,255
Expenditure incurred:
2024: £185,000 (accrued expenditure)
2023: £120,000 (accrued expenditure)
Balance due from related party (excluding accruals):
2024: £30,000
2023: £Nil
Sales receipts
2024: £25,000
2023: £Nil
On Grade Earthworks and Stabilisation Limited (P Medhurst and N Weaver, directors, were also directors and shareholders of this company during the year. D Toone, a director, was also a director of this company during the year)
Loans advanced:
2024: £87,000
2023: £Nil
Loan repayments received:
2024: £10,000
2023: £Nil
Balance due from related party:
2024: £77,000
2023: £Nil
Fiduchi Trust (Trustee of The CC Trust):
Expenditure incurred:
2024: £13,202
2023: £14,735
Balance due to related party:
2024: £8,411
2023: £5,476

Page 28

 
CIVILS CONTRACTING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

27.


Controlling party

The smallest and largest group in which the results of the Company are consolidated is that headed by the immediate parent undertaking Civils Contracting Holding Company Limited, a Company registered in England and Wales at the registered office address of 3 Archers Park, Branbridges Road, East Peckham, Kent, England, TN12 5HP.
In the opinion of the directors, the ultimate controlling party is The CC Trust.

Page 29