REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2024 |
FOR |
EAST COAST CONSTRUCTION (N.E.) LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2024 |
FOR |
EAST COAST CONSTRUCTION (N.E.) LIMITED |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Energy and Carbon Report forming part of the Report of the Directors |
7 |
Report of the Independent Auditors | 9 |
Statement of Income and Retained Earnings | 13 |
Statement of Financial Position | 14 |
Statement of Cash Flows | 15 |
Notes to the Statement of Cash Flows | 16 |
Notes to the Financial Statements | 17 |
EAST COAST CONSTRUCTION (N.E.) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JULY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
Medina House |
2 Station Avenue |
Bridlington |
East Yorkshire |
YO16 4LZ |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2024 |
The directors present their strategic report for the year ended 31 July 2024. |
MANAGEMENT BUY OUT |
For the majority of the reporting year, the company was part of the Ashcourt Group, being a wholly owned subsidiary of Ashcourt Group Limited. However, on 25 July 2024, a management buy out was completed in which the company's management bought the entire share capital of the company, through a new holding company, ECCNE Holdings Limited. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the reporting year continued to be that of providing civil engineering and groundworks construction services, principally in the house building sector. |
REVIEW OF BUSINESS |
Whilst remaining profitable, the company experienced a fall in revenue to £40.2m (2023: £46.8m) and a reduction in profit before tax to £1,020,974 (2023: £4,363,262). |
The directors attribute this mainly to the extreme wet weather suffered in the UK during 2024, and also to the uncertain political and economic climate in the run up to the general election. |
Profitability has improved in the latter part of 2024 and the business continues to tender for and win new construction contracts. The directors are confident of the future success of the business. |
As at 31 July 2024 the company had shareholders' funds of £5,331,504 (2023: £27,633,389). This reduction was mainly due to a final dividend payment of £23,531,118 made to the Ashcourt Group as part of the management buy out arrangements. |
KEY PERFORMANCE INDICATORS |
The company uses a range of financial indicators to monitor performance. The key performance indicators (KPI's) used by the company are as follows: |
- Revenue: £40,220,940 (2023: £46,779,751) |
- Revenue decrease: 14% |
- EBITDA: (earnings before interest, tax, depreciation and amortisation): £2,232,539 (2023: £5,312,895) |
- Operating profit £1,203,958 (2023: £4,459,037) |
- Operating profit change: reduction of £3,255,079 |
To ensure the company continues to operate effectively, cost control measures have been implemented and are constantly monitored across the company, working with our customer base to react to market factors. |
The company has positioned itself as a valued partner to its customers and is expected to achieve growth through it's expertise and dedicated workforce and we look forward to progressing our long term objectives and opportunities. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company is subject to a number of trading and operational risks including employment, health & safety and public liability risks. The company mitigates these risks by ensuring that good working practices are always followed, and by maintaining adequate insurance cover where necessary. |
The company also faces risk from competitive pressures and general economic conditions in the UK. Management constantly monitor the actions of their competitors and target customer base in order to be able to react quickly to changing conditions when necessary. |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2024 |
SECTION 172(1) STATEMENT |
The board of directors consider that they have at all times acted in a 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 Section 172 (1) (a-f) of the Companies Act 2006) when performing their duty as directors during the year. |
The strategy of the board is to focus on providing excellent service and nurture client relationships. We strive to maintain high levels of client satisfaction by maintaining regular and open lines of communication with clients, seeking feedback and making improvements to the client experience where necessary. The company endeavours to resolve any issues arising in a timely and suitable manner. This has helped ensure that the company's customer base has continued to grow and developed and strengthened the company's position as one of the leading construction groups in the North of England. |
The company seeks to maintain good working relationships with its suppliers by maintaining close and regular contact. |
The company's employees are fundamental to the delivery of our strategy. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations. |
Our strategy considers the impact of the company's operations on the environment, and our wider social responsibilities, and how we impact on our local community. We seek to support our local communities wherever possible. |
As a board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating with the high standards of business conduct and governance expected for a business such as ours. In doing so, we believe these behaviours will contribute to the delivery of our plans. The intention is to nurture our reputation, through the development and delivery of our strategy, reflecting our responsible behaviour. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The business values its relationships with its key stakeholders, placing a high reliance on integrity. Our supplier and customer relationships are long term in nature and closely monitored, and the company has clearly defined policies and training on ethics. |
EMPLOYEES |
The company can only succeed if it surpasses the expectations of customers with the quality and timeliness of services provided. The company's employees play a key role in ensuring that high standards are achieved. |
The company ensures that its employees possess the skills, equipment and training they need to flourish in their individual areas of responsibility. The board recognise the contribution that employees make on a daily basis and encourage them to strive to achieve their full potential. |
DISABLED PERSONS |
It is the company's policy to give full and fair consideration to applications for employment received from disabled persons, having regard to their particular aptitudes and abilities. |
The company is committed to providing equal opportunities of employment, training, career development and promotion of disabled existing and potential employees, including employees whose disability status may change whilst employed by the company. |
FIXED ASSETS |
The company invested £1,077,185 in construction plant, machinery and vehicles during the reporting year. |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2024 |
ENVIRONMENTAL AND SOCIAL ISSUES |
The company carries out construction activities in such a way as to cause the minimum possible impact on the local environment. |
ON BEHALF OF THE BOARD: |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2024 |
The directors present their report with the financial statements of the company for the year ended 31 July 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 July 2024 was £23,531,118. As described in the Strategic Report, this was paid to the Ashcourt Group as part of the management buy out arrangements. |
FUTURE DEVELOPMENTS |
The company plans to continue existing marketing strategies with a view to expanding its current customer base. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise bank balances, trade debtors, loans to and from group companies, trade creditors and hire purchase agreements. The main purpose of these instruments is to raise funds to finance the company's operations. |
Due to the nature of the financial instruments used by the company there is no significant exposure to price or currency risk. The company's approach to managing other risks applicable to the financial instruments is as follows: |
Cash flow and liquidity risk is managed by careful management of bank balances, and monitoring of future expected cash receipts and payments to ensure that the company remains within the terms of agreed bank facilities. Potential construction projects are carefully assessed at the outset to ensure that the timing of customer receipts are sufficient to ensure that supplier payments, company overheads and other commitments can be met on time. |
Credit risks are managed through stringent credit control and monitoring, and by assessing credit terms offered to customers. |
Hire purchase agreements are used to fund the acquisition of plant, machinery and other fixed assets. Repayment terms are negotiated at the outset of the agreements and monitored throughout the repayment period to ensure they continue to be appropriate to the overall financial structure. |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Lloyd Dowson Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
ENERGY AND CARBON REPORT |
FORMING PART OF THE REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2024 |
Baseline Emissions Footprint |
Baseline Emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured. |
Baseline Year: 2021/22 |
East Coast Construction (N.E.) Ltd collected emissions data for the period 1st August 2021 to 31st July 2022 for the purpose of their first Carbon report for the reporting year 2021/22. This data has been verified by ESG PRO Limited. The data evidence is required by PPN06/21. |
Baseline year emissions: Carbon emission for Baseline Year 2021/22 is as follows |
EMISSIONS |
TOTAL (tCO2e) |
TOTAL (kwh) |
Scope 1 - East Coast Construction (N.E) Ltd vehicles, equipment or resources. | 3,527.17 | 14,626,669 |
Scope 2 - Electricity purchased from a supplier. | 7.13 | 36,883 |
Total Emissions / Energy usage | 3,534.30 | 14,663,552 |
Intensity Ratio (tCO2e and kwh per FTE) | 126.23 | 523,698 |
Previous Reporting Period Emissions Footprint |
The following figures represent the emissions for the prior financial year. They show the energy usage and carbon emissions for the SECR year 2 (SECR 2023). |
Reporting Year: 2022/23 |
East Coast Construction (N.E.) Ltd have been collecting emissions data for the period 1st August 2022 to 31st July 2023 for the purpose of their second Carbon report for reporting year 2022/23. This data has been verified by ESG PRO Limited. The data evidence is required by PPN06/21. |
EMISSIONS |
TOTAL (tCO2e) |
TOTAL (kwh) |
Scope 1 - East Coast Construction (N.E) Ltd vehicles, equipment or resources. | 4,197.45 | 16,516,997 |
Scope 2 - Electricity purchased from a supplier. | 8.28 | 40,010 |
Total Emissions | 4,205.73 | 16,557,007 |
Intensity Ratio (tCO2e per FTE) | 107.84 | 424,539 |
Current Reporting Period Emissions Footprint |
The following figures represent the emissions for the latest completed financial year (FY ending 31 July 2024). They show the energy usage and carbon emissions for the SECR year 3 (SECR 2024). |
Reporting Year: 2023/24 |
East Coast Construction (N.E.) Ltd have been collecting emissions data for the period 1st August 2023 to 31st July 2024 for the purpose of their third Carbon report for reporting year 2023/24. This data has been verified by ESG PRO Limited. The data evidence is required by PPN06/21. |
EMISSIONS |
TOTAL (tCO2e) |
TOTAL (kwh) |
Scope 1 - East Coast Construction (N.E) Ltd vehicles, equipment or resources. | 3,546.87 | 13,961,417 |
Scope 2 - Electricity purchased from a supplier. | 9.53 | 46,015 |
Total Emissions | 3,556.40 | 14,007,432 |
Intensity Ratio (tCO2e per FTE) | 80.83 | 318,351 |
Emissions Reductions and Carbon Reduction Projects |
We are committed to investing in initiatives that reduce our carbon emissions wherever possible. |
East Coast Construction is actively looking to continue to reduce its energy consumption and associated greenhouse gas emissions by striving to become more energy conscious by continuing to reduce carbon emissions and being committed to its energy efficiency actions. |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
ENERGY AND CARBON REPORT |
FORMING PART OF THE REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2024 |
The primary focus has been on the following areas: |
1. We have replaced 12 vehicles in our fleet with electric vehicles and installed EV charging points at our offices. We will continue to do this whenever possible as our fleet vehicles become due for replacement. |
2. We are investing in renewable energy sources with the addition of solar panels at our offices. |
3. We are also reviewing processes and operator habits to identify where efficiency, and thus fuel usage, can be reduced. |
Declaration |
This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and associated guidance and reporting standard for Carbon Reduction Plans. |
Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard and uses the appropriate Government emission conversion factors for greenhouse gas company reporting. |
Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements. |
This Carbon Reduction Plan has been reviewed and signed off by the board of directors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORMING PART OF THE REPORT OF THE DIRECTORS |
EAST COAST CONSTRUCTION (N.E.) LIMITED |
Opinion |
We have audited the financial statements of East Coast Construction (N.E.) Limited (the 'company') for the year ended 31 July 2024 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORMING PART OF THE REPORT OF THE DIRECTORS |
EAST COAST CONSTRUCTION (N.E.) LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page six, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORMING PART OF THE REPORT OF THE DIRECTORS |
EAST COAST CONSTRUCTION (N.E.) LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which the audit was considered capable of detecting irregularities, including fraud |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- | obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in, including whether the company is complying with those legal and regulatory frameworks; |
- | inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and |
- | discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are tax compliance regulations and FRS 102. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with relevant tax authorities and evaluating advice received from third party advisors. |
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety, data protection and employment laws. We performed audit procedures to inquire of management whether the company is in compliance with these laws. |
The audit engagement team identified the risk of management override of controls and the risk of fraud in revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to; |
- | testing material journal entries throughout the year and evaluating their business rationale; |
- | reviewing key controls and account reconciliations; |
- | testing material bank transactions for business rationale; and |
- | on a sample basis, reviewing authorisation procedures of business expenditure, including review of supporting documentation. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORMING PART OF THE REPORT OF THE DIRECTORS |
EAST COAST CONSTRUCTION (N.E.) LIMITED |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
Medina House |
2 Station Avenue |
Bridlington |
East Yorkshire |
YO16 4LZ |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 31 JULY 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ |
REVENUE |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,190,827 | 4,446,742 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
1,205,484 | 4,459,037 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 7 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
STATEMENT OF FINANCIAL POSITION |
31 JULY 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 8 |
CURRENT ASSETS |
Inventories | 9 |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Capital redemption reserve | 17 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 JULY 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax refunded/(paid) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Advances from/(to) group members | 20,266,034 | (212,269 | ) |
Advances from/(to) associates | (71,795 | ) | 36,019 |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,016,171 |
Cash and cash equivalents at end of year | 2 | 3,376,544 | 4,050,223 |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 JULY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.7.24 | 31.7.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 184,510 | 95,775 |
Finance income | (1,526 | ) | - |
2,232,539 | 5,312,895 |
Decrease in inventories |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 July 2024 |
31.7.24 | 1.8.23 |
£ | £ |
Cash and cash equivalents | 3,376,544 | 4,050,223 |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 |
£ | £ |
Cash and cash equivalents | 4,050,223 | 3,016,171 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
Other |
non-cash |
At 1.8.23 | Cash flow | changes | At 31.7.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 4,050,223 | (673,679 | ) | 3,376,544 |
4,050,223 | ( |
) | 3,376,544 |
Debt |
Finance leases | (3,019,861 | ) | 1,428,882 | (1,013,789 | ) | (2,604,768 | ) |
(3,019,861 | ) | 1,428,882 | (1,013,789 | ) | (2,604,768 | ) |
Total | 1,030,362 | 755,203 | (1,013,789 | ) | 771,776 |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2024 |
1. | STATUTORY INFORMATION |
East Coast Construction (N.E.) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The presentation and functional currency of the financial statements is the Pound Sterling (£). |
Going concern |
The financial statements have been prepared on the going concern basis of accounting, which assumes that the company is able to continue operating as a going concern. |
Having considered all relevant factors, the board are of the opinion that the going concern basis of accounting remains appropriate. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
In the application of the company's accounting policies, which are described further in this note, management are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Key sources of estimation and uncertainty |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
Useful economic lives of tangible assets |
The annual amortisation and depreciation charges for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See the notes to the financial statements for the carrying amount of the property, plant and equipment and the useful economic lives of each class of assets. |
Amounts recoverable on contracts |
The company makes applications for payments based on valuations on works done. Until the contract is completed in full this can include a small estimate of the recoverable value of amounts recoverable on contracts. When assessing valuations, management considers factors including the current position of the contract, the ageing profile of the contract and historical experience. |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
In respect of long term construction contracts, revenue represents the value of work done in the year, including amounts certified by customers as being completed, amounts for works completed for which applications for certification have been made, and also works done which are partly complete where it is considered these works are recoverable. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Inventories |
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The company's main financial instruments comprise hire purchase agreements and bank balances. The function of these instruments is to maintain funds to finance the company's operations. |
Due to the nature of the financial instruments used by the company, there is no exposure to price or currency risk. The company's approach to managing other risks applicable to the financial instruments is detailed below. |
The company does not use bank loans and manages its liquidity risk by monitoring cash flows to ensure it has sufficient funds to meet liabilities as they fall due. |
The company uses hire purchase agreements to finance the acquisition of fixed assets. Interest is paid at a fixed rate on a monthly basis, together with capital repayments. |
The company manages liquidity risk by agreeing appropriate payment terms with customers and matching those terms with those granted by suppliers. The company always aims to maintain a cash reserve to guard against customer payments not being received on time. New fixed asset additions are critically analysed before committing to finance agreements, to ensure that there are always sufficient funds available to meet repayment obligations. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the statement of income and retained earnings in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
31.7.24 | 31.7.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.7.24 | 31.7.23 |
Directors | 7 | 7 |
Management and administration | 39 | 34 |
31.7.24 | 31.7.23 |
£ | £ |
Directors' remuneration |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Defined benefit schemes |
Information regarding the highest paid director is as follows: |
31.7.24 | 31.7.23 |
£ | £ |
Emoluments etc |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.7.24 | 31.7.23 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Auditors' remuneration |
Auditors' remuneration for non audit work |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.7.24 | 31.7.23 |
£ | £ |
Bank interest |
Hire purchase |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
31.7.24 | 31.7.23 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustments re prior years | (259,724 | ) | 9,815 |
Group relief transfer | - | 665,637 |
Total current tax | ( |
) |
Deferred tax |
Tax on profit | ( |
) |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
6. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.7.24 | 31.7.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
Group relief adjustment | (221,118 | ) | - |
Total tax (credit)/charge | (208,259 | ) | 967,113 |
7. | DIVIDENDS |
31.7.24 | 31.7.23 |
£ | £ |
Ordinary shares of £1 each |
Interim |
8. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Reclassification/transfer | ( |
) |
At 31 July 2024 |
DEPRECIATION |
At 1 August 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
The net book value of property, plant and equipment includes £ 4,400,154 (2023 - £ 4,861,055 ) in respect of assets held under hire purchase contracts. |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
9. | INVENTORIES |
31.7.24 | 31.7.23 |
£ | £ |
Materials on site |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.24 | 31.7.23 |
£ | £ |
Trade debtors and amounts recoverable on contracts |
Amounts owed by group undertakings |
Other debtors |
VAT |
Prepayments |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.24 | 31.7.23 |
£ | £ |
Hire purchase contracts (see note 13) |
Trade creditors |
Amounts owed to associates | - | 71,795 |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.7.24 | 31.7.23 |
£ | £ |
Hire purchase contracts (see note 13) |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.7.24 | 31.7.23 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
31.7.24 | 31.7.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.7.24 | 31.7.23 |
£ | £ |
Hire purchase contracts | 2,604,768 | 3,019,861 |
Hire purchase contract liabilities are secured by charges over the individual items of plant, machinery and vehicles being financed. |
15. | PROVISIONS FOR LIABILITIES |
31.7.24 | 31.7.23 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 1,074,057 | 1,043,713 |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
15. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 August 2023 |
Provided during year |
Balance at 31 July 2024 |
16. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 31.7.24 | 31.7.23 |
value: | £ | £ |
Ordinary | £1 | 200,001 | 1 |
NIL | Ordinary A | £1 | - | 200,000 |
200,001 | 200,001 |
On 25 July 2024 the company passed an ordinary resolution to re-designate the one ordinary £1 share and the 200,000 A ordinary shares into a single class of ordinary £1 shares. |
17. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 August 2023 | 27,433,388 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
At 31 July 2024 | 5,131,503 |
EAST COAST CONSTRUCTION (N.E.) LIMITED (REGISTERED NUMBER: 05113335) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
18. | RELATED PARTY DISCLOSURES |
During the year the company incurred costs of £1,235,511 (2023: £1,185,083) for consultancy services and £22,782 (2023: £9,686) for rent, of which £253,513 was outstanding at the year end to Reed Consultancy N.E. Limited, a company controlled by P A Reed, a director of the company. The company provided services to Reed Consultancy N.E. Limited at a value of £105,172 (2023: £140,755), of which £8,046 was outstanding at the year end. Three vehicles were purchased from this company for a total of £37,000 and six vehicles were sold to this company for £130,000. All vehicle sales and purchases were made at market value. |
Also during the year the company sponsored a racing team incurring costs of £41,667 (2023: £100,000) to Reed Racing Limited, a company in which P A Reed has joint control of. A vehicle was purchased from this company for its market value of £22,000. A balance of £26,400 was outstanding at the year end. |
The company incurred direct costs of £1,386,500 (2023: £1,540,172) relating to labour and consultancy services supplied by Leo Construction (UK) Limited. A vehicle was also sold to this company during the year at a market value of £68,040. As at 31 July 2024 the company owed Leo Construction (UK) Limited £180,345 (2023: £254,349). This company was acquired by East Coast Construction (N.E.) Limited in late 2024 and its activities brought into the company. The director of Leo Construction (UK) Limited throughout the year to 31 July 2024, R Dabbs, became a director of the company on 1 November 2024. |
All of the above transactions were conducted under normal commercial terms. |
19. | POST BALANCE SHEET EVENTS |
On 29 October 2024 the company purchased 100% of the share capital of Leo Construction (UK) Limited. |
20. | ULTIMATE CONTROLLING PARTY |
The controlling party is ECCNE Holdings Limited. |
The ultimate controlling party is |
On 25 July 2024 ECCNE Holdings Limited purchased 100% of the company's share capital. |