Company registration number 07534951 (England and Wales)
HARLEQUIN BRICKWORK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
HARLEQUIN BRICKWORK LIMITED
COMPANY INFORMATION
Directors
Mr W Sutcliffe
J McGrail
(Appointed 29 October 2024)
Secretary
Ms T Rooney
Company number
07534951
Registered office
3 Chapel Street
Sunninghill Road
Ascot
SL5 7RF
Senior Statutory Auditor
Deepak Koshal, FCA
Auditor
Koshal Associates (Chartered Accountants)
Gautam House
1-3 Shenley Avenue
Ruislip Manor
Middlesex
HA4 6BP
Business address
3 Chapel Street
Sunninghill Road
Ascot
SL5 7RF
HARLEQUIN BRICKWORK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
HARLEQUIN BRICKWORK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present their strategic report for the year ended 30 November 2023.

Review of the business

During the year ended 30th November 2023 there was a steep fall in the company's turnover . During the year company's director diverted their energies and resource to another company in the Harlequin group of companies. However the margins achieved improved with the company concentrating on projects with higher profit margins.

 

 

Principal risks and uncertainties

The principal risks and uncertainties of the business are as follows:

1. Exposure to new legislation and regulatory requirements.

2. The recruitment and retention of a skilled workforce.

3. The advent of inflationary pressure in key costs of materials and labour.

4. The effects of the cost of living crisis and high interest rates on the construction industry.

Key performance indicators

The directors consider turnover, gross profit margins, net profits and the net balance sheet value of the business as key indicators of the performance of the company.

 

As stated earlier during the year ended 30th November 2023 and beyond, the company directors diverted their energies to another company in the Harlequin group of companies. However on the 27th August 2024 there was a demerger of the group. Following this demerger there has been a healthy growth in the contracts won by the company and the turnover for the next twelve months is expected to exceed pound twenty millions.

Other information and explanations

 

The company has maintained strong supply chain relationships.

The company has sufficient bank of operatives to enables it to ensure completion of contracts on a timely basis to the required budget.

Having taken independent professional advice the company is confident that the Kittel case it is involved in will be satisfactorily settled.

The above position is a result of the company maintaining its faith in its management structure and their continued improvement through training. We remain willing to invest in our people and our information technology to enhance system and provide support to both the head office staff and site teams.

 

Conclusion

The directors are satisfied with the state of affairs of the Company as at the 30th November 2023. With the financial and management structures at its disposal, the directors will continue with the policy of working with quality blue chips clients to ensure the continued development of the Company.

 

HARLEQUIN BRICKWORK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

On behalf of the board

J McGrail
Director
13 February 2025
HARLEQUIN BRICKWORK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the company continued to be that of Construction of domestic buildings.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr W Sutcliffe
J McGrail
(Appointed 29 October 2024)
Mr P Parkhouse
(Resigned 31 August 2024)
Post reporting date events

 

Information relating to events since the end of the year are given in the notes to the financial statements.

 

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of disclosure to auditor

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

On behalf of the board
J McGrail
Director
13 February 2025
HARLEQUIN BRICKWORK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

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

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

In preparing these financial statements, the directors are required to:

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

HARLEQUIN BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARLEQUIN BRICKWORK LIMITED
- 5 -
Opinion

We have audited the financial statements of Harlequin Brickwork Limited (the 'company') for the year ended 30 November 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

HARLEQUIN BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARLEQUIN BRICKWORK LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

 

 

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instance of non-compliance with law and regulations.

We design procedures in line with our responsibilities, outlined above, to detect material misstatement in respect of irregularities, including fraud. The extent to which our procedures are capable to detecting irregularities, including fraud is detailed below.

 

-Enquiries of management, concerning the company's policies and procedures relating to identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance.

Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud.

 

- Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

 

HARLEQUIN BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARLEQUIN BRICKWORK LIMITED (CONTINUED)
- 7 -

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

- Performed analytical procedures to identify any unusual relationships

- Tested journal entries to identify unusual transactions.

 

We also obtained an understanding of the legal and regulatory frameworks that the company operates in.

 

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non- Compliance.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://​www.frc.org.uk/​auditors responsibilities. This description forms part of our auditor's report.

 

Other matters which we are required to address

Limitations on our audit.

On 27th August 2024 the company demerged from the Harlequin group of companies. The demerger has been acrimonious. We have not been able to access the accounting information relating to some of the previously associated companies. There have been errors in the company's accounts for previous years which have been reported as an extraordinary item in the accounts.

The submission of these accounts to Companies House has already been delayed causing pressures on the company. As a result we are not in a position to comment on the comparative for the previous year although from our examination of the company's records we have no reason to doubt the reliability of the previous year's comparatives subject to the note relating to extraordinary item disclosed in the accounts.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Deepak Koshal (FCA) (Senior Statutory Auditor)
For and on behalf of Koshal Associates (Chartered Accountants), Statutory Auditor
Chartered Accountants
Gautam House
1-3 Shenley Avenue
Ruislip Manor
Middlesex
HA4 6BP
13 February 2025
HARLEQUIN BRICKWORK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
10,527,881
18,461,964
Cost of sales
(7,856,587)
(15,249,733)
Gross profit
2,671,294
3,212,231
Administrative expenses
(2,221,836)
(2,260,861)
Operating profit
4
449,458
951,370
Interest receivable and similar income
8
2,603
24
Interest payable and similar expenses
9
(300,568)
(346,607)
Profit before taxation
151,493
604,787
Tax on profit
10
(96,284)
(115,514)
Profit after taxation
55,209
489,273
Extraordinary profit or loss
200,193
-
0
Profit for the financial year
255,402
489,273

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HARLEQUIN BRICKWORK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
255,402
489,273
Other comprehensive income
Tax relating to other comprehensive income
(6,889)
-
0
Total comprehensive income for the year
248,513
489,273
HARLEQUIN BRICKWORK LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
29,943
70,306
Investments
13
90,950
90,950
120,893
161,256
Current assets
Stocks
15
54,080
11,482
Debtors
16
5,844,078
6,042,154
Cash at bank and in hand
46,525
203,655
5,944,683
6,257,291
Creditors: amounts falling due within one year
17
(2,892,912)
(2,603,572)
Net current assets
3,051,771
3,653,719
Total assets less current liabilities
3,172,664
3,814,975
Creditors: amounts falling due after more than one year
18
(449,243)
(1,249,564)
Provisions for liabilities
Provisions
21
927,689
1,025,081
Deferred tax liability
22
4,850
(2,039)
(932,539)
(1,023,042)
Net assets
1,790,882
1,542,369
Capital and reserves
Called up share capital
24
100,000
100,000
Profit and loss reserves
1,690,882
1,442,369
Total equity
1,790,882
1,542,369
The financial statements were approved by the board of directors and authorised for issue on 13 February 2025 and are signed on its behalf by:
J McGrail
Director
Company registration number 07534951 (England and Wales)
HARLEQUIN BRICKWORK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
100,000
1,253,096
1,353,096
Year ended 30 November 2022:
Profit and total comprehensive income
-
489,273
489,273
Dividends
11
-
(300,000)
(300,000)
Balance at 30 November 2022
100,000
1,442,369
1,542,369
Year ended 30 November 2023:
Profit
-
255,402
255,402
Other comprehensive income:
Tax relating to other comprehensive income
-
(6,889)
(6,889)
Total comprehensive income
-
248,513
248,513
Balance at 30 November 2023
100,000
1,690,882
1,790,882
HARLEQUIN BRICKWORK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,096,409
1,428,791
Interest paid
(300,568)
(346,607)
Income taxes paid
(158,531)
(429,682)
Net cash inflow from operating activities
637,310
652,502
Investing activities
Purchase of tangible fixed assets
(669)
(20,739)
Proceeds from disposal of tangible fixed assets
4,250
11,287
Interest received
2,603
24
Net cash generated from/(used in) investing activities
6,184
(9,428)
Financing activities
Repayment of borrowings
-
0
(280,888)
Repayment of bank loans
(382,500)
(200,000)
Payment of finance leases obligations
(418,124)
251,247
Dividends paid
-
0
(300,000)
Net cash used in financing activities
(800,624)
(529,641)
Net (decrease)/increase in cash and cash equivalents
(157,130)
113,433
Cash and cash equivalents at beginning of year
203,655
90,222
Cash and cash equivalents at end of year
46,525
203,655
HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
1
Accounting policies
Company information

Harlequin Brickwork Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Chapel Street, Sunninghill Road, Ascot, SL5 7RF.

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 £.

1.2
Going concern

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

1.3
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 contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
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.

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

Plant and equipment
25% on cost
Fixtures and fittings
25% on cost
Computers
25% on cost
Motor vehicles
25% on cost

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

HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

 

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

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

During the year no provision for impairment was deemed necessary.

1.6
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.7
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.

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

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.

HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
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 company’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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

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

1.13
Retirement benefits

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

1.14
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 leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

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

HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Construction Contracts Sales
9,868,194
17,963,033
Recharges
659,685
498,931
10,527,881
18,461,964
Analysis per statutory database
10,527,879
18,461,964
Statutory database analysis does not agree to the trial balance by:
2
-
2023
2022
£
£
Other revenue
Interest income
2,603
24
Recharges
-
498,931

 

 

 

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
41,032
54,248
Profit on disposal of tangible fixed assets
(4,250)
(11,287)
Operating lease charges
45,000
45,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,500
11,000
For other services
Audit-related assurance services
7,500
-
0

The details of non-audit charges of the previous auditors are not known.

HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
10
6

The aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
193,878
194,039
Social security costs
19,944
-
Pension costs
3,685
-
0
217,507
194,039
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
10,812
-
0
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,603
24
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,603
24
HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
41,002
25,695
Other interest on financial liabilities
69,022
54,196
110,024
79,891
Other finance costs:
Interest on finance leases and hire purchase contracts
190,544
266,716
300,568
346,607
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
58,247
115,514
Adjustments in respect of prior periods
38,037
-
0
Total current tax
96,284
115,514

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

2023
2022
£
£
Profit before taxation
351,686
604,787
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
87,922
114,910
Tax effect of expenses that are not deductible in determining taxable profit
(34,563)
604
Adjustments in respect of prior years
38,037
-
0
Depreciation on assets not qualifying for tax allowances
10,258
-
0
Tax at marginal rate
(5,370)
-
0
Taxation charge for the year
96,284
115,514

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
6,889
-
HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
11
Dividends
2023
2022
£
£
Final paid
-
0
300,000
12
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
10,622
9,620
19,768
243,918
283,928
Additions
669
-
0
-
0
-
0
669
Disposals
-
0
-
0
-
0
(51,571)
(51,571)
At 30 November 2023
11,291
9,620
19,768
192,347
233,026
Depreciation and impairment
At 1 December 2022
3,380
8,418
13,103
188,721
213,622
Depreciation charged in the year
3,281
1,169
3,564
33,018
41,032
Eliminated in respect of disposals
-
0
-
0
-
0
(51,571)
(51,571)
At 30 November 2023
6,661
9,587
16,667
170,168
203,083
Carrying amount
At 30 November 2023
4,630
33
3,101
22,179
29,943
At 30 November 2022
7,242
1,202
6,665
55,197
70,306
13
Fixed asset investments
2023
2022
£
£
Other investments
90,950
90,950
15
Stocks
2023
2022
£
£
Raw materials and consumables
54,080
11,482
HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,022,192
3,301,382
Amounts owed by undertakings
1,769,487
2,554,069
Amount owed by participating interests
1,059,480
-
Other debtors
954,328
152,652
Prepayments and accrued income
38,591
34,051
5,844,078
6,042,154
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
20
417,683
417,986
Trade creditors
1,582,735
611,198
Corporation tax
58,247
120,494
Other creditors
796,599
1,343,764
Accruals and deferred income
37,648
110,130
2,892,912
2,603,572

Included in other creditors £573,212 ( 2022: £804,982 ) was the amount owed to the debt factoring company.

 

Amount of £139,345 (2022: £181,832) was the retention due to subcontractors within the other creditors balance.

18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19
317,500
700,000
Obligations under finance leases
20
131,743
549,564
449,243
1,249,564
19
Loans and overdrafts
2023
2022
£
£
Bank loans
317,500
700,000
Payable after one year
317,500
700,000

 

HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
19
Loans and overdrafts
(Continued)
- 23 -

 

20
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
417,683
417,986
In two to five years
131,743
549,564
549,426
967,550

The bank overdrafts and loans are secured by a registered charge by way of fixed and floating charge over all property.

 

The debt factoring facility is secured by a registered charge by way a fixed and floating charge over all present and future property.

 

Hire purchase contracts represent financing on the purchase of scaffolding equipment. The HP contracts are secured over the relevant assets which have all been passed onto the company's fellow subsidiary, Harlequin Scaffolding Solutions Ltd.

21
Provisions for liabilities
2023
2022
£
£
927,689
1,025,081
Movements on provisions:
£
At 1 December 2022
1,025,081
Additional provisions in the year
(97,392)
At 30 November 2023
927,689
HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
22
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
4,850
(2,039)
2023
Movements in the year:
£
Asset at 1 December 2022
(2,039)
Charge to profit or loss
6,889
Liability at 30 November 2023
4,850

The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,685
-

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

24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100,000
100,000
100,000
100,000
25
Operating lease commitments

After the demerger of 27th August 2024 the operating lease rental came to an end.

HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
26

Extraordinary profit or loss

After the demerger of the Harlequin group of companies an examination of the company’s records showed that in the previous years certain directors’ personal expenses recorded as company’s expenses. These totals found to £200,193.

Details as follows:

Year Ended

Amount ( £)

Corporation Tax (£)

30th November 2022

102,882

19,548

30th November 2021

68,252

12,968

Prior to November 2021

29,059

5,521

 

200,193

38,037

 

27
Cash generated from operations
2023
2022
£
£
Profit after taxation
255,402
489,273
Adjustments for:
Taxation charged
96,284
115,514
Finance costs
300,568
346,607
Investment income
(2,603)
(24)
Gain on disposal of tangible fixed assets
(4,250)
(11,287)
Depreciation and impairment of tangible fixed assets
41,032
54,248
(Decrease)/increase in provisions
(97,392)
1,025,081
Movements in working capital:
(Increase)/decrease in stocks
(42,598)
376,829
Decrease in debtors
198,076
295,460
Increase/(decrease) in creditors
351,890
(1,262,910)
Cash generated from operations
1,096,409
1,428,791
HARLEQUIN BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
28
Analysis of changes in net debt
1 December 2022
Cash flows
30 November 2023
£
£
£
Cash at bank and in hand
203,655
(157,130)
46,525
Borrowings excluding overdrafts
(700,000)
382,500
(317,500)
Obligations under finance leases
(967,550)
418,124
(549,426)
(1,463,895)
643,494
(820,401)
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