Company registration number 13698536 (England and Wales)
BRIDGES TOPCO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
BRIDGES TOPCO LIMITED
COMPANY INFORMATION
Director
Mr M L Bridges
Company number
13698536
Registered office
Engineering House
Second Avenue
Westfield Industrial Estate
RADSTOCK
Somerset
BA3 4BH
Auditor
Old Mill Audit Limited
Maltravers House
Petters Way
YEOVIL
Somerset
BA20 1SH
BRIDGES TOPCO LIMITED
CONTENTS
Page
Strategic report
1 - 4
Director's report
5 - 6
Director's responsibilities statement
7
Independent auditor's report
8 - 10
Profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 36
BRIDGES TOPCO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The director presents the strategic report of the group for the year ended 30 September 2024.
Fair review of the business
Bridges remains on track to achieve its 2030 goal to be a national UK water contractor. Our trading year to 30th September 2024 saw another year of growth. The business continued to establish its structure making it fit for our 2030 plans.
Our unwavering focus on our purpose ‘to engineer sustainable assets that our valued customers are proud to own and operate’ continues to culturally unite the people of Bridges, whilst relentlessly pursue our three key values;
SAFE PEOPLE - HAPPY PEOPLE – SUSTAINABLE BUSINESS
We took a different approach to our staff survey in 2024 by entering the ‘Sunday Times best places to work’ which takes its barometer from a detailed staff survey. We were delighted that over 75% of Bridges people supported this survey demonstrating a high level of engagement.
The ultimate accolade was to be recognised as one of Sunday Times Best Places to Work in 2024 with the business being recognised in the Sunday Times Best Places to Work Supplement published on Sunday 12th May, aptly named ‘SHINY HAPPY PEOPLE’
SAFE PEOPLE
Our dedicated colleagues at Bridges demonstrate our relentless commitment to safety and our strong safety culture. We have continued our investment in essential training with a record investment in training during the year, ensuring we fully embed our ‘Safety First’ attitudinal approach. This was recognised for another year by maintaining a ‘gold standard’ with our RoSPSA award.
Our strong safety culture is evident now in its fourth year, by our monthly business-wide standdown where all team members join our online, interactive monthly update. Every month a member of the senior leadership team delivers the monthly safety statistics alongside internal and external learning. In addition to this, every month a senior leadership member runs a monthly safety or wellbeing topic to maintain all aspects of safety and wellbeing at the forefront of our thoughts.
As part of our focused business planning, Bridges has consistently developed a ‘safe people plan’, which sets out a timeline of planned improvements and new initiatives that persistently focus on keeping Bridges people safe.
HAPPY PEOPLE
We continue to build on our team of ‘happy people’ fully recognising the challenges that exist in today’s world of both inside and outside of work. Our support network for our people, originates from our people, with our mental health community growing to 18 team members in the year. We have continued with our mind management programme, now approaching its fifth year and also successfully completed the first two cohorts of our in house ‘Authentic Leadership Programme’ alongside successfully completing the first year of our new VIP appraisal system.
We continue to review metrics against our core value ‘happy people’ and we include highlights of this information below:
Staff Retention continues to hold strong – We continue to be above national average for staff retention (88%) and significantly better than our industry average.
BRIDGES TOPCO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
BRIDGES TOPCO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Business sustainability again this year continues to be at the forefront of our colleagues’ minds at Bridges. We want to ensure we have a business that grows sustainably, delivers a fair and sustainable return alongside looking after the people and planet which we serve.
In the Financial Year 2024, we achieved a favourable increase in turnover and gross profit compared to 2023. During this period, we strategically allocated internal investments towards strengthening our administrative infrastructure and workforce. This deliberate approach has resulted in a slight reduction in operating profit relative to 2023, aligning with our long-term revenue forecasts as we transition into AMP8. We anticipate to see further improvements to our operating profit margin over the next few Financial Years, alongside revenue growth.
Our project delivery model supports working with both main contractors and direct to clients, and during this year we have continued to develop our inhouse capabilities to deliver turnkey solutions. This has resulted in our work delivered directly to water companies increasing to 80%.
In the previous year, we established a dedicated upfront engineering team focused on early contract development. In this year, we have appointed two Principal Engineers further bolstering our inhouse design capabilities and delivery of turnkey solutions.
The industries in which we work support modern methods of construction, and as a result, systems manufactured in our new facilities were installed across the UK in the Water, Wastewater, Nuclear and Materials Handling sectors. This supported our goal to not only be the leading ‘off site manufacturing’ specialist but also have a focus of an ‘all under one roof’ approach. This approach reduces carbon from vehicle movements and provides our clients one place, where they can visit to view their project progressing off site. Our offering now includes Motor Control Centres, Control Panels, DWI approved fabrications, Ferric/Caustic/Orthophosphoric Dosing Systems, Sample Boards, Electrical off-site components, Packaged skids through to major off site manufactured systems.
We continue to recognise the challenges presented over the next decade across the UK water industry to meet the national environmental programme (NEP/WINNEP), and to this end we have increased our production lines enabling us to double our output of chemical dosing packages to meet the demand across our existing and forecast client base.
Our sustainability roadmap remains on track with a growing fleet of electric vehicles, and we are pleased to have installed and commissioned a solar array of 392 panels at our headquarters ‘Engineering House’ where will are now able to generate an estimated 165,892kwh/year of electricity resulting in avoiding carbon dioxide emissions of 77,346kg/year.
Principal risks and uncertainties
During the year the challenges endured, due to COVID, relating back to the start of the water industry cycle AMP7 had resulted in budgetary overspends due to unprecedented cost increases against the agreed budgets. This resulted in a number of projects being delayed to AMP8 which starts 1st April 2025. Bridges have been fortunate to have secured and designed this work which has given us a fantastic workload in excess of £57m, as we start AMP8.
Materials
The water industry along with many other industries has suffered from material shortages and as we move to the year ahead Bridges has remained focused on strategic relationships to ensure any shortages or delays are understood as early as possible and mitigated.
Labour
As a sector, engineering suffers from being under resourced in all areas and this will be amplified by the enormous, forecasted growth. Bridges will continue to attract new talent in multiple ways including: Apprenticeships, skills boot camps, internal promotions and attracting talent from both inside and outside of our sectors.
Balance Sheet Disclosure commentary:
Subsequent to the reporting date, Bridges (Electrical Engineers) Limited transferred a property with a carrying value of £1,084,140 as at 3 January 2025 to a 100% group entity, Objective Holdings Limited. The transfer was made at net book value, and no gain or loss arose on the transaction.
BRIDGES TOPCO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Key performance indicators
The group's key performance indicators during the year were as follows:
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Current assets: current liabilities (current ratio) | | | | |
Mr M L Bridges
Director
7 February 2025
BRIDGES TOPCO LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activities of the group continued to be that of the specialism in the multi-disciplined mechanical, electrical, instrumentation, controls and automation (MEICA) to water, waste water, materials handling & nuclear industries.
Results and dividends
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £159,156.
Preference dividends were paid amounting to £108,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr M L Bridges
Financial instruments
Price risk, credit risk, liquidity risk and cashflow risk
The group is exposed to a moderate level of credit risk, liquidity risk and cash flow risk. The group manages these risks by financing its operations through the continued support of its bankers and financers, supplemented by long term bank borrowings where necessary to fund expansion or capital expenditure programmes. The company is not exposed to price risk as it holds no listed investments.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
Old Mill Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the business and future developments.
BRIDGES TOPCO LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
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 auditor of the company 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 auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M L Bridges
Director
7 February 2025
BRIDGES TOPCO LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BRIDGES TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRIDGES TOPCO LIMITED
- 8 -
Opinion
We have audited the financial statements of Bridges Topco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
BRIDGES TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRIDGES TOPCO LIMITED
- 9 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of 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.
BRIDGES TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRIDGES TOPCO LIMITED
- 10 -
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 Grimster FCA
Senior Statutory Auditor
For and on behalf of
7 February 2025
Old Mill Audit Limited
Statutory Auditor
Maltravers House
Petters Way
YEOVIL
Somerset
BA20 1SH
BRIDGES TOPCO LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
4
40,257,996
37,084,588
Cost of sales
(31,622,268)
(29,459,560)
Gross profit
8,635,728
7,625,028
Administrative expenses
(7,527,055)
(6,476,962)
Other operating income
101,263
118,833
Operating profit
3
1,209,936
1,266,899
Interest receivable and similar income
7
2,785
3,124
Interest payable and similar expenses
8
(284,527)
(290,537)
Profit before taxation
928,194
979,486
Tax on profit
9
440,763
(237,243)
Profit for the financial year
1,368,957
742,243
Profit for the financial year is all attributable to the owners of the parent company.
BRIDGES TOPCO LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
£
£
Profit for the year
1,368,957
742,243
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
1,368,957
742,243
Total comprehensive income for the year is all attributable to the owners of the parent company.
BRIDGES TOPCO LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,894,957
2,165,665
Other intangible assets
11
416,296
385,418
Total intangible assets
2,311,253
2,551,083
Tangible assets
12
4,111,133
3,989,209
6,422,386
6,540,292
Current assets
Stocks
15
473,190
445,620
Debtors
16
11,051,897
8,385,410
Cash at bank and in hand
1,607,049
124,375
13,132,136
8,955,405
Creditors: amounts falling due within one year
17
(10,495,730)
(7,257,740)
Net current assets
2,636,406
1,697,665
Total assets less current liabilities
9,058,792
8,237,957
Creditors: amounts falling due after more than one year
18
(1,963,066)
(2,309,011)
Provisions for liabilities
Deferred tax liability
21
353,498
288,519
(353,498)
(288,519)
Net assets
6,742,228
5,640,427
Capital and reserves
Called up share capital
23
2,200,000
2,200,000
Other reserves
2,740,000
2,740,000
Profit and loss reserves
1,802,228
700,427
Total equity
6,742,228
5,640,427
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved and signed by the director and authorised for issue on 7 February 2025
07 February 2025
Mr M L Bridges
Director
Company registration number 13698536 (England and Wales)
BRIDGES TOPCO LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
2,791,723
2,791,723
Current assets
Debtors
16
157,793
68,000
Creditors: amounts falling due within one year
17
(244,992)
(128,278)
Net current liabilities
(87,199)
(60,278)
Net assets
2,704,524
2,731,445
Capital and reserves
Called up share capital
23
2,200,000
2,200,000
Profit and loss reserves
504,524
531,445
Total equity
2,704,524
2,731,445
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £240,235 (2023 - £652,578 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 7 February 2025
07 February 2025
Mr M L Bridges
Director
Company registration number 13698536 (England and Wales)
BRIDGES TOPCO LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
2,200,000
2,740,000
66,184
5,006,184
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
742,243
742,243
Dividends
10
-
-
(108,000)
(108,000)
Balance at 30 September 2023
2,200,000
2,740,000
700,427
5,640,427
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,368,957
1,368,957
Dividends
10
-
-
(267,156)
(267,156)
Balance at 30 September 2024
2,200,000
2,740,000
1,802,228
6,742,228
BRIDGES TOPCO LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
2,200,000
(13,133)
2,186,867
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
652,578
652,578
Dividends
10
-
(108,000)
(108,000)
Balance at 30 September 2023
2,200,000
531,445
2,731,445
Year ended 30 September 2024:
Profit and total comprehensive income
-
240,235
240,235
Dividends
10
-
(267,156)
(267,156)
Balance at 30 September 2024
2,200,000
504,524
2,704,524
BRIDGES TOPCO LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,823,917
1,032,905
Interest paid
(284,527)
(290,537)
Income taxes (paid)/refunded
(179,930)
333,548
Net cash inflow from operating activities
2,359,460
1,075,916
Investing activities
Purchase of intangible assets
(109,875)
(117,810)
Purchase of tangible fixed assets
(513,729)
(142,661)
Proceeds from disposal of tangible fixed assets
25,496
9,500
Repayment of loans
95,194
5,246
Interest received
2,785
313
Net cash used in investing activities
(500,129)
(245,412)
Financing activities
Repayment of bank loans
(268,703)
(271,468)
Payment of finance leases obligations
(107,954)
(289,559)
Net cash used in financing activities
(376,657)
(561,027)
Net increase in cash and cash equivalents
1,482,674
269,477
Cash and cash equivalents at beginning of year
124,375
(145,102)
Cash and cash equivalents at end of year
1,607,049
124,375
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
1
Accounting policies
Company information
Bridges Topco Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 31a Second Avenue, Westfield Industrial Estate, Midsomer Norton, Radstock, BA3 4BH
The group consists of Bridges Topco Limited and all of its subsidiaries.
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
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Bridges Topco Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated revenue is recognised only to the extent that expenses recognised are recoverable.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
14% straight line
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
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:
Freehold buildings
1% straight line
Leasehold improvements
4% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Office equipment
33% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Freehold land is not depreciated.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
Where statutory merger relief is applicable, the cost has been measured by reference to the nominal value only of the shares issued. Any premium has not been recognised.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
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.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
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.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised 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 group's contractual obligations expire or are discharged or cancelled.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
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 year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
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 fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 24 -
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Doubtful debts
The directors have reviewed all significant debts on a case by case basis and have written off doubtful debs based upon their knowledge of both the specific customer and the current economic conditions within the industry.
Long term contracts
The group has a number of long-term and complex projects which requires the company to exercise judgement over contractual entitlements. The range of potential outcomes in future financial periods could result in a material positive or negative movement to underlying profitability and cash flow.
Estimates are made and revaluated at each reporting date as to the quantum and timing of liabilities arising from completed contracts.
The total income derived from contracts during the year is £40,257,996 (2023: £37,084,588).
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.
Key sources of estimation uncertainty
In determining the estimated useful life the group considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the group reviews the above to establish if there is any change in expected useful life of tangible assets.
Calculation of residual values of tangible assets
Estimated residual value of tangible assets is reviewed annually with consideration given to any changes in market prices and improvements in technology that would alter demand for such tangible assets.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
-
134
Fees payable to the group's auditor for the audit of the group's financial statements
3,253
3,000
Depreciation of owned tangible fixed assets
298,112
202,074
Depreciation of tangible fixed assets held under finance leases
71,272
65,616
Profit on disposal of tangible fixed assets
(3,075)
(3,548)
Amortisation of intangible assets
349,705
332,874
Operating lease charges
269,282
203,806
4
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Electrical services
40,257,996
37,084,588
2024
2023
£
£
Other revenue
Interest income
2,785
3,124
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
7
7
1
1
Production staff
189
168
-
-
Administrative staff
59
51
-
-
Total
255
226
1
1
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5
Employees
(Continued)
- 26 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
11,834,046
9,980,365
Social security costs
1,180,367
1,028,739
-
-
Pension costs
525,654
339,161
13,540,067
11,348,265
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
511,488
97,738
Company pension contributions to defined contribution schemes
59,229
-
570,717
97,738
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
115,839
-
Company pension contributions to defined contribution schemes
11,542
-
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,785
3,124
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
260,266
273,860
Interest on finance leases and hire purchase contracts
24,261
13,963
Other interest
-
2,714
Total finance costs
284,527
290,537
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
255,383
128,557
Adjustments in respect of prior periods
(761,125)
(93,109)
Total current tax
(505,742)
35,448
Deferred tax
Origination and reversal of timing differences
88,851
201,795
Other adjustments
(23,872)
Total deferred tax
64,979
201,795
Total tax (credit)/charge
(440,763)
237,243
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
928,194
979,486
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
232,049
215,585
Tax effect of expenses that are not deductible in determining taxable profit
6,832
2,413
Tax effect of income not taxable in determining taxable profit
69,618
Adjustments in respect of prior years
(761,125)
(93,109)
Effect of change in corporation tax rate
-
25,420
Group relief
(7,080)
Depreciation on assets not qualifying for tax allowances
38,215
25,707
Amortisation on assets not qualifying for tax allowances
75,151
Deferred tax adjustments in respect of prior years
(23,872)
(10,457)
Tax at marginal rate
(1,675)
Permanent and timing differences
4,600
3,238
30% uplift on super deduction allowance
(4,932)
Other differences
-
(98)
Taxation (credit)/charge
(440,763)
237,243
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
267,156
108,000
11
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
Acquisition of subsidiaries
2,707,081
595,957
3,303,038
Additions
109,875
109,875
At 30 September 2024
2,707,081
705,832
3,412,913
Amortisation and impairment
Acquisition of subsidiaries
541,416
210,539
751,955
Amortisation charged for the year
270,708
78,997
349,705
At 30 September 2024
812,124
289,536
1,101,660
Carrying amount
At 30 September 2024
1,894,957
416,296
2,311,253
At 30 September 2023
2,165,665
385,418
2,551,083
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
12
Tangible fixed assets
Group
Freehold buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
Acquisition of subsidiaries
3,080,895
211,100
319,114
68,767
756,151
732,880
5,168,907
Additions
8,551
6,591
77,267
20,779
121,176
279,365
513,729
Disposals
(56,630)
(56,630)
At 30 September 2024
3,089,446
217,691
396,381
89,546
877,327
955,615
5,626,006
Depreciation and impairment
Acquisition of subsidiaries
157,864
8,444
198,485
38,687
529,563
246,655
1,179,698
Depreciation charged in the year
28,320
8,593
38,952
9,826
125,954
157,739
369,384
Eliminated in respect of disposals
(34,209)
(34,209)
At 30 September 2024
186,184
17,037
237,437
48,513
655,517
370,185
1,514,873
Carrying amount
At 30 September 2024
2,903,262
200,654
158,944
41,033
221,810
585,430
4,111,133
At 30 September 2023
2,923,031
202,656
120,629
30,080
226,588
486,225
3,989,209
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Tangible fixed assets
(Continued)
- 30 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
225,706
318,247
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
2,791,723
2,791,723
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
2,791,723
Carrying amount
At 30 September 2024
2,791,723
At 30 September 2023
2,791,723
14
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Objective Holdings Limited
Engineerings House Second Avenue, Westfield Industrial Estate, Radstock, Banes, BA3 4BH
Ordinary, Ordinary A, Ordinary B
100.00
-
Bridges (Electrical Engineering) Limited
Engineerings House Second Avenue, Westfield Industrial Estate, Radstock, Banes, BA3 4BH
Ordinary, Ordinary A, Ordinary B
-
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
473,190
445,620
-
-
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,548,917
7,661,797
Corporation tax recoverable
653,533
Amounts owed by group undertakings
-
-
157,793
68,000
Other debtors
76,271
297,684
Prepayments and accrued income
773,176
425,929
11,051,897
8,385,410
157,793
68,000
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
269,477
272,415
Obligations under finance leases
20
81,479
109,253
Payments received on account
708,891
362,685
Trade creditors
4,880,329
3,868,154
Amounts owed to group undertakings
208,992
52,278
Corporation tax payable
9,340
41,479
Other taxation and social security
1,101,825
477,494
-
-
Other creditors
1,836,588
793,960
36,000
76,000
Accruals and deferred income
1,607,801
1,332,300
10,495,730
7,257,740
244,992
128,278
The hire purchase liabilities of £81,479 (2022 - £109,253) are secured on the assets to which they relate.
The bank loans of £269,477 (2023 - £272,415) are secured by way of a fixed and floating charge in favour of Lloyds Bank Commercial Financial Limited. The fixed charge is secured over the freehold land and buildings.
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,792,289
2,058,054
Obligations under finance leases
20
170,777
250,957
1,963,066
2,309,011
-
-
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
18
Creditors: amounts falling due after more than one year
(Continued)
- 32 -
The hire purchase liabilities of £170,777 (2023: £250,957) are secured on the assets to which they relate.
The bank loans of £1,792,289 (2023: £2,058,054) are secured by way of a fixed and floating charge in favour of Lloyds Bank Commercial Financial Limited. The fixed charge is secured over the freehold land and buildings.
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,144,426
1,407,872
-
-
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,061,766
2,330,469
Payable within one year
269,477
272,415
Payable after one year
1,792,289
2,058,054
Objective Holdings Limited, a group company, has bank loans totalling £1,504,261, these are secured by fixed charges over the freehold land and buildings. The loan duration remaining is 17 years. The rate of interest payable on the loan will be the base rate plus an interest margin of 2.58% per annum.
Bridges (Electrical Engineers) Limited, a group company, has bank loans of £557,504 which are secured by a fixed and floating charge on the assets of the company. The interim parent company, Objective Holdings Limited, is acting as a guarantor for Bridges (Electrical Engineers) Limited.
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
81,479
109,253
In two to five years
170,777
250,957
252,256
360,210
-
-
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
20
Finance lease obligations
(Continued)
- 33 -
Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3.6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The finance lease payments are secured on the fixed assets to which they relate.
The net carrying amount of assets held under finance leases at the end of the period is £225,706 (2023: £318,247).
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
377,604
305,438
Retirement benefit obligations
(24,106)
(16,919)
353,498
288,519
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
288,519
-
Charge to profit or loss
64,979
-
Liability at 30 September 2024
353,498
-
The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.
Deferred tax is provided for at 25% in the financial statements.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
525,654
339,161
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
22
Retirement benefit schemes
(Continued)
- 34 -
The group 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.
At the period end the commitment for defined contribution liabilities was £97,900 (2023: £70,755).
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
1,200,000
1,200,000
1,200,000
1,200,000
Preference shares classified as equity
1,200,000
1,200,000
Total equity share capital
2,200,000
2,200,000
Ordinary shares carry unrestricted rights to vote, receive dividends and to receive repayment of capital invested on the winding up of the company.
The 6% redeemable preference shares are redeemable at the option of the Company. There is no time limit or obligation on the Company to redeem the 6% redeemable preference shares. The shares carry restricted rights to vote, receive dividends and to receive repayment of capital invested only. The right to vote is restricted to one vote per five shares held.
24
Financial commitments, guarantees and contingent liabilities
The company provided a guarantee and security to Lloyds Bank Commercial Finance Ltd in respect of the group. The security given comprises a fixed and floating charge over all property of the group.
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 35 -
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
838,681
315,557
-
-
Between two and five years
1,289,746
472,715
-
-
2,128,427
788,272
-
-
Lessor
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
358,480
118,500
-
-
Between two and five years
546,573
198,622
-
-
905,053
317,122
-
-
26
Related party transactions
Transactions with related parties
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Company
Entities over which the company has control, joint control or significant influence
208,991
52,277
Other related parties
36,000
72,000
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Company
Entities over which the company has control, joint control or significant influence
157,793
68,000
BRIDGES TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 36 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,368,957
742,243
Adjustments for:
Taxation (credited)/charged
(440,763)
237,243
Finance costs
284,527
290,537
Investment income
(2,785)
(3,124)
Gain on disposal of tangible fixed assets
(3,075)
(3,548)
Amortisation and impairment of intangible assets
349,705
332,874
Depreciation and impairment of tangible fixed assets
369,384
267,690
Movements in working capital:
Increase in stocks
(27,570)
(181,375)
Increase in debtors
(2,108,148)
(1,201,712)
Increase in creditors
3,033,685
552,077
Cash generated from operations
2,823,917
1,032,905
28
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
124,375
1,482,674
1,607,049
Borrowings excluding overdrafts
(2,330,469)
268,703
(2,061,766)
Obligations under finance leases
(360,210)
107,954
(252,256)
(2,566,304)
1,859,331
(706,973)
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