Company registration number 10722270 (England and Wales)
DOMIS CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
DOMIS CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
K P Thornton
S A Ismail
P D Done
(Appointed 6 September 2024)
J E Ismail
(Appointed 3 September 2024)
Company number
10722270
Registered office
Douglas House
Green Street
Wigan
WN3 4DQ
Auditor
Sumer Auditco Limited
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
DOMIS CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 27
DOMIS CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Fair review and development of the business

The company is engaged in building construction and development.

The company is a wholly owned subsidiary of Domis Property Group Limited.

The Directors are delighted to report yet another profitable year for the company, with both turnover and EBITDA increasing noticeably.

A number of projects have been successfully delivered in the period with our largest & highest residential tower, The Viadux being completed ahead of time. We have also commenced on several projects including schemes for new clients such as Glenbrook and Fusion Students as we continue to expand our external relationships. The number of live construction projects remains consistent with previous years with the increase in turnover generated from larger value projects rather than more of them, thus ensuring the same level of controls across all our work streams.

Our commercial property portfolio within the Group was enhanced with the acquisition of our new Group Hub facility in Wigan which will now be the home for all our head office support services, the majority of our subsidiary businesses, together with our materials distribution centre & plant facilities. We continue to benefit from our city centre site accommodation office facilities which are perfectly located to support our city centre developments.

The headcount totals 164 employees and as part of our relocation we have bespoke training facilities to help develop our people.

Our partnering approach to all aspects of our business stand us in good stead as our supply chain continue to benefit from prompt payment and financial support and in return we benefit from exceptional levels of service on site.

The company continues to ensure the customers' needs are satisfied as a minimum but exceeded wherever possible and our track recorded for certainty of delivery, quality of the built form, together with representing value for money, places us in the upper echelon of contractors within our chosen sector.

Principal risks and uncertainties

The company continues to undertake regular business assessments which include project and sector wide risk registers. Mitigation measures are put in place to manage these to the lowest residual point.

The principal risks and uncertainties facing the company include the general economic climate in the UK which could impact funding of future developments as well as homeowner mortgage rates & availability. The last 12 months has seen less volatility with material & labour costs stabilising over the period. The introduction of the Building Safety Act will result in delays for new projects becoming live.

 

DOMIS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Key performance indicators

The key performance indicators (KPI’s) that the company regards as important are:

a. gross profit margin;

b. the ratio of administrative expenses to turnover;

c. the ratio of operating profit to turnover; and

d. earnings before interest, tax, depreciation, impairment charge and amortisation (EBITDA). For the year under review, those Key Performance Indicators were:

 

2024

2023

Gross margin

7.5%

7.8%

Administrative expenses to turnover

3.7%

3.7%

Operating profit to turnover

3.7%

4.0%

Earnings before interest, tax, depreciation and amortisation

£6,260,283

£6,116,133

Future developments

The Board are optimistic for the short & medium term with a significant pipeline of opportunities to focus our efforts on.

Current pipeline exceeds £500m with an expectation that a significant % of this will lead to live projects on site within the next 12 to 18 months.

Our goal of being “best in class” continues to drive us and our strategic direction continues to be fluid based on what opportunities present themselves to us, whilst recognising residential development is what we do best.

Section 172 Reporting

This is an overview of how Directors performed their duty to promote the success of the company under section 172 of the Companies Act 2006.

Duty to promote the success of the Group

In executing our strategy, Directors must act in accordance with a set of general duties detailed in section 172 of the Companies Act 2006. These general duties include a duty to promote the success of the Group, and specifically, to act in a way that the Director considers, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so, having regard (amongst other matters) to the:

 

This statement has been prepared in accordance with the requirements of The Companies (Miscellaneous Reporting) Regulations 2018, which require the company to describe how the Directors have had regard to the matters set out in section 172 of the Companies Act 2006 during the financial year under review. It is noted that the Directors have always acted in accordance with such duties in their decision making and they will continue to do so. Considering the additional disclosure requirements, we have set out in the strategic report how the Directors have fulfilled their duties during the year ended 30 April 2024.

DOMIS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

Having regard to the likely consequences of any decisions in the long-term

The Board cultivates strong relationships with key stakeholders so that it is well placed and sufficiently informed to take their considerations into account when making decisions and assessing any likely long-term impact of those decisions. Domis Construction's core strategy is to provide a bespoke boutique operating model and be the best-in-class contractor of choice and this core strategy underpins all Board decisions and the creation of long-term value for all stakeholders.

Having regard to the interest of the Company's employees

The Board understands that the company's employees are fundamental to its long-term success. The health, safety and well-being of the employees are of paramount importance alongside the provision of an ethical workplace. The company engages in an active way with its employees. Many of the staff work on site and senior management regularly complete site visits to maintain timely interaction.

Having regard to the need to foster the Company's business relationships with suppliers, customers, and others
Fostering positive business relationships with key stakeholders, such as suppliers and customers is also important to the success of the company’s businesses. As a result of Domis’ model, engagement with customers is a matter that is largely delegated to the management teams, who know their customers best. The Board has been and continues to be, available to support the business in this area as and when required and will continue to maintain the relationships with key suppliers and customers. Our business has heavily invested in their relationships with suppliers and customers throughout the year ended 30 April 2024.

Having regard to the impact of the Company's operations on the community and environment
In their decision making, the Directors need to have regard to the impact of the company's operations on the community and environment. The Board plays a constructive role in tackling issues through engagement and investment.

It is important for the long-term future of our business that we protect and enhance the environment. Climate change will affect how much non-renewable energy is available, and the stakeholders are rightly concerned about the resilience of supplies and are looking to companies to adapt and take the necessary steps to reduce their climate change risk. We are committed to reducing our carbon footprint and contribution to climate change where economically viable.

Having regards to the desirability of the Company maintaining a reputation for high standards of business conduct
Customer fulfilment and customer satisfaction are essential for us to consistently deliver a high-quality service. The Board recognises that culture, values, and standards are key contributors to how a company creates and sustains value over the long-term, to enable it to maintain a reputation for high standards of business conduct which guide and assist in the Board's decision making, and in doing so, help promote the company's success, recognising, amongst other things, the likely consequences of any decision in the long-term and wider stakeholder considerations.

The standards set by the Board mandate certain requirements and behaviours with regards to the activities of the Directors, the company's employees and others associated with the company.

Having regard to the need to act fairly between shareholders of the Company

The company has one class of ordinary shares, which have the same rights as regards voting, distributions and on a liquidation. Management are shareholders in the company. On this basis the Board feels that the executive Directors are fully aligned with the shareholders.

On the basis of the above, the members of the Board consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies Act 2006) in the decisions taken during the year ended 30 April 2024.

DOMIS CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -

On behalf of the board

K P Thornton
Director
31 January 2025
DOMIS CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company is that of the construction of commercial and domestic buildings.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £3,900,000. The directors do not recommend payment of a final dividend.

Directors

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

L S McCarren
(Resigned 3 September 2024)
S R McCarren
(Resigned 3 September 2024)
K P Thornton
S A Ismail
P D Done
(Appointed 6 September 2024)
J E Ismail
(Appointed 3 September 2024)
Auditor

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Under the Companies (Directors' Report) and Limited Liabilities Partnerships (Energy & Carbon Report) Regulations 2019, we are mandated to disclosure our energy use and associated greenhouse gas emissions. These disclosures are set out below.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
2,580,105
1,240,300
DOMIS CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
2.31
2.36
2.31
2.36
Scope 2 - indirect emissions
- Electricity purchased
552.75
292.12
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
63.55
76.45
Total gross emissions
618.61
370.93
Intensity ratio
Tonnes CO2e per £100,000 turnover
0.380
0.254
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines: Including streamlines energy and carbon reporting guidance. We have used the 2019 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £100,000 of turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

Our sites have continued to use compactors on some sites which offers a more environmentally friendly way of removing waste from sites as well as reducing the frequency of visits to our sites from skip and bin companies.

 

The following energy saving measures have been implemented post year end or are currently being considered.

DOMIS CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

On behalf of the board
K P Thornton
Director
31 January 2025
DOMIS CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DOMIS CONSTRUCTION LIMITED
- 8 -
Opinion

We have audited the financial statements of Domis Construction Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

DOMIS CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DOMIS CONSTRUCTION LIMITED
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's license to operate. We identified the following areas as those most likely to have such an effect: laws related to health and safety, construction, the nature of the company's activities and the regulated nature of the company's activities.

 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance

 

DOMIS CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DOMIS CONSTRUCTION LIMITED
- 10 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

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.

Stuart Stead
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
31 January 2025
Statutory Auditor
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
DOMIS CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
Notes
£
£
Revenue
3
162,632,249
146,267,310
Cost of sales
(150,511,461)
(134,820,660)
Gross profit
12,120,788
11,446,650
Administrative expenses
(6,076,035)
(5,443,230)
Other operating expenses
(58,378)
(90,311)
Operating profit
4
5,986,375
5,913,109
Investment income
8
495,906
298,574
Profit before taxation
6,482,281
6,211,683
Tax on profit
9
(889,459)
1,456,001
Profit for the financial year
5,592,822
7,667,684

The income statement has been prepared on the basis that all operations are continuing operations.

DOMIS CONSTRUCTION LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
781,614
995,670
Current assets
Inventories
12
11,413,199
8,896,378
Trade and other receivables
13
48,821,177
35,060,872
Cash and cash equivalents
6,920,863
5,249,703
67,155,239
49,206,953
Current liabilities
14
(34,622,874)
(28,609,866)
Net current assets
32,532,365
20,597,087
Total assets less current liabilities
33,313,979
21,592,757
Non-current liabilities
15
(10,000,000)
-
0
Provisions for liabilities
Deferred tax liability
17
121,595
93,195
(121,595)
(93,195)
Net assets
23,192,384
21,499,562
Equity
Called up share capital
20
100
100
Retained earnings
23,192,284
21,499,462
Total equity
23,192,384
21,499,562
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
K P Thornton
Director
Company registration number 10722270 (England and Wales)
DOMIS CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 May 2022
100
15,031,778
15,031,878
Year ended 30 April 2023:
Profit and total comprehensive income
-
7,667,684
7,667,684
Dividends
10
-
(1,200,000)
(1,200,000)
Balance at 30 April 2023
100
21,499,462
21,499,562
Year ended 30 April 2024:
Profit and total comprehensive income
-
5,592,822
5,592,822
Dividends
10
-
(3,900,000)
(3,900,000)
Balance at 30 April 2024
100
23,192,284
23,192,384
DOMIS CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(5,490,011)
(2,410,089)
Income taxes refunded/(paid)
625,117
(56,638)
Net cash outflow from operating activities
(4,864,894)
(2,466,727)
Investing activities
Purchase of property, plant and equipment
(132,695)
(866,633)
Proceeds from disposal of property, plant and equipment
72,843
-
0
Interest received
495,906
298,574
Net cash generated from/(used in) investing activities
436,054
(568,059)
Financing activities
Repayment of borrowings
10,000,000
-
0
Dividends paid
(3,900,000)
(1,200,000)
Net cash generated from/(used in) financing activities
6,100,000
(1,200,000)
Net increase/(decrease) in cash and cash equivalents
1,671,160
(4,234,786)
Cash and cash equivalents at beginning of year
5,249,703
9,484,489
Cash and cash equivalents at end of year
6,920,863
5,249,703
DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information

Domis Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Douglas House, Green Street, Wigan, WN3 4DQ.

1.1
Accounting convention

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

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

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

1.2
Going concern

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

1.3
Revenue

Revenue 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.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Plant and equipment
20% straight line
Fixtures and fittings
20% / 25% straight line
Computers
33% straight line
Motor vehicles
20% straight line

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

1.5
Impairment of non-current assets

At each reporting period end date, the company 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.

DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Inventories

Work in progress is valued at the lower of cost and net realisable value.

1.7
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.8
Cash and cash equivalents

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

DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities

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

 

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

 

Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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

Derecognition of financial liabilities

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

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

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

DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
Deferred tax

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

 

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

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

1.14
Leases

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 leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Estimation of costs to complete for construction contracts

In line with accounting standards for construction contracts, the company recognises revenue and profit based on the stage of completion and costs to complete. In doing so, management must make certain estimations. The management review all contracts on a monthly basis and assess financial and operational performance versus budget as well as physically inspecting the work to corroborate the stage of completion. At the balance sheet date there are construction accruals of £5,729,080 (2023: £5,502,533) and work in progress of £11,413,199 (2023: £8,896,378).

Depreciation

Tangible fixed assets are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the tangible fixed assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives, all relevant known factors are taken into account but there is inherent uncertainty present in making this assessment.

 

During the period a depreciation charge of £273,908 (2023: £203,024) was calculated based on accounting policies applied.

 

Refer to note 11, showing the tangible fixed assets carrying values impacted by the key accounting estimate.

3
Revenue

Turnover in the year was £162,632,249 (2023: £146,267,310). All turnover was generated from the principal activity in the United Kingdom.

2024
2023
£
£
Other revenue
Interest income
495,906
298,574
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned property, plant and equipment
273,908
203,024
Operating lease charges
198,140
194,264
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
55,000
54,000
DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
6
Employees

The average monthly number of persons employed by the company during the year was:

2024
2023
Number
Number
Operational
117
106
Management and administration
47
39
Total
164
145

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
9,035,138
9,114,516
Pension costs
468,932
390,937
9,504,070
9,505,453
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
391,667
461,216
Company pension contributions to defined contribution schemes
64,167
62,966
455,834
524,182
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
160,000
180,599
Company pension contributions to defined contribution schemes
41,000
24,871
DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
8
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
55,358
16,917
Other interest income
440,548
281,657
Total income
495,906
298,574
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
55,358
16,917
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,645,689
1,066,825
Adjustments in respect of prior periods
(784,630)
(2,616,021)
Total current tax
861,059
(1,549,196)
Deferred tax
Origination and reversal of timing differences
28,400
93,195
Total tax charge/(credit)
889,459
(1,456,001)

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

2024
2023
£
£
Profit before taxation
6,482,281
6,211,683
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,620,570
1,552,921
Tax effect of expenses that are not deductible in determining taxable profit
59,841
(10,255)
Adjustments in respect of prior years
(790,952)
(2,616,021)
Permanent capital allowances in excess of depreciation
-
0
(81,265)
Tax at marginal rate
-
0
(301,381)
Taxation charge/(credit) for the year
889,459
(1,456,001)
DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
10
Dividends
2024
2023
£
£
Interim paid
3,900,000
1,200,000
11
Property, plant and equipment
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
625,832
673,563
435,394
2,496
1,737,285
Additions
-
0
74,244
58,451
-
0
132,695
Disposals
-
0
(84,602)
-
0
-
0
(84,602)
At 30 April 2024
625,832
663,205
493,845
2,496
1,785,378
Depreciation and impairment
At 1 May 2023
31,292
364,044
344,824
1,455
741,615
Depreciation charged in the year
125,166
88,691
59,552
499
273,908
Eliminated in respect of disposals
-
0
(11,759)
-
0
-
0
(11,759)
At 30 April 2024
156,458
440,976
404,376
1,954
1,003,764
Carrying amount
At 30 April 2024
469,374
222,229
89,469
542
781,614
At 30 April 2023
594,540
309,519
90,570
1,041
995,670
12
Inventories
2024
2023
£
£
Work in progress
11,413,199
8,896,378
DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
13
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
19,756,862
13,781,580
Corporation tax recoverable
-
0
877,216
Amounts owed by group undertakings
21,761,649
14,299,945
Amounts owed by related undertakings
4,447,672
3,229,640
Other receivables
761,993
390,884
Prepayments and accrued income
368,960
505,991
47,097,136
33,085,256
2024
2023
Amounts falling due after more than one year:
£
£
Trade receivables
1,724,041
1,975,616
Total debtors
48,821,177
35,060,872
14
Current liabilities
2024
2023
£
£
Trade payables
15,894,812
9,464,126
Amounts due to group undertakings
4,175,292
4,177,610
Corporation tax
608,960
-
0
Other taxation and social security
661,006
312,822
Deferred income
18
3,958,707
4,897,404
Other payables
3,316,647
2,345,524
Accruals
6,007,450
7,412,380
34,622,874
28,609,866
15
Non-current liabilities
2024
2023
Notes
£
£
Other borrowings
16
10,000,000
-
0
DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
16
Borrowings
2024
2023
£
£
Other loans
10,000,000
-
0
Payable after one year
10,000,000
-
0

Other loans are secured with a corporate guarantee.

 

The loan attracted interest at a rate of 11% per annum, on the original capital element of £10,000,000. The total sum, including all interest, is to be repaid on 31 December 2027.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
121,595
93,195
2024
Movements in the year:
£
Liability at 1 May 2023
93,195
Charge to profit or loss
28,400
Liability at 30 April 2024
121,595

 

18
Deferred income
2024
2023
£
£
Other deferred income
3,958,707
4,897,404
DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
468,932
390,937

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

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

All shares carry no fixed right to income and hold full voting rights.

21
Reserves

Called up share capital

Called up share capital represents the nominal value of the shares issued.

 

Retained earnings

Retained earnings represents cumulative profits and losses net of dividends paid and other adjustments.

22
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
178,425
168,990
Between two and five years
691,200
670,500
In over five years
656,531
824,156
1,526,156
1,663,646
23
Related party transactions

The company has taken advantage of the exemption allowed by Financial Reporting Standard 102, "Related party disclosures" Section 33.1A not to disclose details of related party transactions with entities that are 100% owned members of the same group. There are no other related party transactions other than as disclosed.

DOMIS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
24
Ultimate controlling party

The company is a wholly owned subsidiary of Domis Property Group Limited, which is registered in

England and Wales. Domis Property Group Limited prepares group accounts of which this company is a member. The registered office address of Domis Property Group Limited is Douglas House, Green Street, Wigan, United Kingdom, WN3 4DQ.

Following the year end, the ultimate controlling party changed from Domis Property Group Limited to Domis Property Group Holdings Limited, a company registered in England and Wales.

25
Cash absorbed by operations
2024
2023
£
£
Profit for the year after tax
5,592,822
7,667,684
Adjustments for:
Taxation charged/(credited)
889,459
(1,456,001)
Investment income
(495,906)
(298,574)
Depreciation and impairment of property, plant and equipment
273,908
203,024
Movements in working capital:
Increase in inventories
(2,516,821)
(7,335,200)
Increase in trade and other receivables
(14,637,521)
(4,580,057)
Increase in trade and other payables
6,342,745
7,914,693
Decrease in deferred income
(938,697)
(4,525,658)
Cash absorbed by operations
(5,490,011)
(2,410,089)
26
Analysis of changes in net funds/(debt)
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
5,249,703
1,671,160
6,920,863
Borrowings excluding overdrafts
-
(10,000,000)
(10,000,000)
5,249,703
(8,328,840)
(3,079,137)
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