Registration number:
Devon Contractors (Holdings) Limited
for the Year Ended 31 May 2024
Devon Contractors (Holdings) Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Devon Contractors (Holdings) Limited
Company Information
Directors |
Mr Shaun Bennington Mr Daryn Hunt Mr Nicholas England Mr Peter Alderson Mr Andrew Victor Hoare Mr Stuart O'Higgins Mr Nigel Robert Whelan |
Registered office |
|
Auditors |
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Devon Contractors (Holdings) Limited
Strategic Report for the Year Ended 31 May 2024
The directors present their strategic report for the year ended 31 May 2024.
Principal activity
The principal activity of the group is to act as a holding company for Devon Contractors Limited. The principle activities of the group are building contracting and civil engineering contracting.
Fair review of the business
Devon Contractors Limited is a long-established reputable construction company delivering good value, high quality buildings operating in a wide range of sectors, Commercial, Industrial, Education, Community/Leisure, Residential & Healthcare with a high level of repeat customers. A collaborative contractor, we strive to accommodate our clients' wishes in a progressive, positive and expedient manner. We believe that using local labour, subcontractors and suppliers wherever possible, helps to reduce the impact our construction activities have on the environment and also supports the local economy.
The year ended May 2024 with a significant increase in operating Profit, Profit after Tax and shareholders funds this despite a reduction in market share coupled with the volatility of inflation on commodity prices and the already challenging trading conditions.
Financial year end May 2025 heralded the monumental news that the Management team of Nigel Whelan, Andy Hoare & Stuart O’Higgins acquired the majority shareholding in Devon Contractors, this transition will ensure ownership remains in management’s hands and provides continuity and reassurance for Devon Contractors customers, employees and the supply chain. The structure will see Nigel Whelan move to the role of Managing Director, Stuart O’Higgins becoming Construction Director, Andy Hoare becoming Commercial Director, Shaun Bennington continuing in his role as Financial Director and Pete Alderson becoming a Non-Executive Director this move will build on the solid foundation that’s been laid over recent years and will continue to focus on providing a quality service for our customers. With this move the company remains positive for another successful year with expectation of increasing market share and greater levels of profitability.
The directors consider that the company performed in line with expectations.
We continue to invest significantly in the development of our people and the evolution of our employer brand. It is our firm belief that our staff are the overarching differentiator in the service that we provide and the primary driver for our continued success.
The directors do not recommend payment of a final dividend.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Group turnover |
£ |
20,198,686 |
22,615,861 |
Group operating profit |
£ |
258,395 |
(8,284) |
Group profit after tax |
£ |
225,367 |
(1,276) |
Shareholders funds |
£ |
1,002,921 |
819,674 |
Current assets as a % of current liabilities |
% |
115 |
110 |
Devon Contractors (Holdings) Limited
Strategic Report for the Year Ended 31 May 2024
Principal risks and uncertainties
The directors have reviewed the industry in which the group operates and they consider there are no significant risks and uncertainties that need disclosing within this report, other than the below.
Following the outbreak of COVID-19 and the increasing economic impact of this worldwide pandemic, the directors have reviewed budgets to assist with the effect on the group. Due to the nature of the business, there has been an impact on its ability to trade with customers. However, this is not believed to significantly impact going concern. The group will continue to pro-actively manage the effects of the pandemic.
We have considered the potential impact of Brexit on the business and whilst there is uncertainty around the possible wider economic impact, the group has significant number of tenders and future secured workload.
Approved and authorised by the
......................................... |
Devon Contractors (Holdings) Limited
Directors' Report for the Year Ended 31 May 2024
The directors present their report and the for the year ended 31 May 2024.
Directors of the group
The directors who held office during the year were as follows:
The following directors were appointed after the year end:
Financial instruments
Objectives and policies
The group's operations expose it to a variety of financial risks that include the effects of changes in market prices, credit risk, liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
The group is exposed to price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature. The group has no exposures to equity securities price risk as it holds no listed or other equity investments.
Credit risk
The group has implemented policies that require appropriate credit checks on potential customers before contracts are entered. The credit given to customers is subject to limits which are determined and reassessed by the directors.
Liquidity risk
The group actively maintains a mixture of finance, designed to ensure the company has sufficient available funds for operations.
Interest rate flow risk
The group is not exposed to interest bearing liabilities.
Important non adjusting events after the financial period
Following the year end, on 13 June 2024, Devon Contractors (Topco) Limited acquired 100% of the share capital of Devon Contractors (Holdings) Limited.
Devon Contractors (Holdings) Limited
Directors' Report for the Year Ended 31 May 2024
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
|
Devon Contractors (Holdings) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and 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 financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Devon Contractors (Holdings) Limited
Independent Auditor's Report to the Members of Devon Contractors (Holdings) Limited
Opinion
We have audited the financial statements of Devon Contractors (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 May 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. |
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Devon Contractors (Holdings) Limited
Independent Auditor's Report to the Members of Devon Contractors (Holdings) Limited
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept 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 directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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 group’s and 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Devon Contractors (Holdings) Limited
Independent Auditor's Report to the Members of Devon Contractors (Holdings) Limited
Auditor 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• |
Obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
• |
Inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
• |
Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
• |
Undertaken a review of manual journals processed in the accounting system, applying professional scepticism to ensure they are in line with our expectation that they are not unusual in the normal course of business. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
Winchester House
Deane Gate Avenue
Somerset
TA1 2UH
Devon Contractors (Holdings) Limited
Consolidated Profit and Loss Account for the Year Ended 31 May 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit/(loss) |
|
( |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
56,519 |
12,867 |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit/(loss) for the financial year |
|
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
( |
The group has no recognised gains or losses for the year other than the results above.
Devon Contractors (Holdings) Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 May 2024
2024 |
2023 |
|
Profit/(loss) for the year |
|
( |
Total comprehensive income for the year |
|
( |
Total comprehensive income attributable to: |
||
Owners of the company |
|
( |
Devon Contractors (Holdings) Limited
(Registration number: 13668327)
Consolidated Balance Sheet as at 31 May 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Other reserves |
( |
( |
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Total equity |
|
|
Approved and authorised by the
|
Devon Contractors (Holdings) Limited
(Registration number: 13668327)
Balance Sheet as at 31 May 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Cash at bank and in hand |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £43,976 (2023 - profit of £24,397).
Approved and authorised by the
|
Devon Contractors (Holdings) Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 May 2024
Equity attributable to the parent company
Share capital |
Capital redemption reserve |
Merger reserve |
Retained earnings |
|
At 1 June 2023 |
|
|
( |
|
Profit for the year |
- |
- |
- |
|
Dividends |
- |
- |
- |
( |
At 31 May 2024 |
|
|
( |
|
Total |
Total equity |
|
At 1 June 2023 |
|
|
Profit for the year |
|
|
Dividends |
( |
( |
At 31 May 2024 |
|
|
Share capital |
Capital redemption reserve |
Merger reserve |
Retained earnings |
|
At 1 June 2022 |
|
|
( |
|
Loss for the year |
- |
- |
- |
( |
Dividends |
- |
- |
- |
( |
At 31 May 2023 |
|
|
( |
|
Total |
Total equity |
|
At 1 June 2022 |
|
|
Loss for the year |
( |
( |
Dividends |
( |
( |
At 31 May 2023 |
|
|
Devon Contractors (Holdings) Limited
Statement of Changes in Equity for the Year Ended 31 May 2024
Share capital |
Retained earnings |
Total |
|
At 1 June 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 May 2024 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 June 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 May 2023 |
12,000 |
27,953 |
39,953 |
Devon Contractors (Holdings) Limited
Consolidated Statement of Cash Flows for the Year Ended 31 May 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit/(loss) for the year |
|
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease in trade debtors |
|
|
|
Decrease in trade creditors |
( |
( |
|
Cash generated from operations |
|
( |
|
Income taxes received/(paid) |
|
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Dividend income |
|
- |
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 June |
|
|
|
Cash and cash equivalents at 31 May |
4,074,319 |
3,132,597 |
Devon Contractors (Holdings) Limited
Statement of Cash Flows for the Year Ended 31 May 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Finance income |
( |
( |
|
Income tax expense |
( |
( |
|
( |
( |
||
Working capital adjustments |
|||
Increase/(decrease) in trade creditors |
|
( |
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Dividend income |
|
|
|
Cash flows from financing activities |
|||
Dividends paid |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 June |
|
|
|
Cash and cash equivalents at 31 May |
74 |
97 |
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
UK
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.
Summary of disclosure exemptions
Devon Contractors (Holdings) Limited has taken exemption from presenting its unconsolidated profit and loss account under section 408 of Companies Act 2006.
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 May 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method or merger method of accounting is used as appropriate to account for business combinations that result in the acquisition of subsidiaries by the group.
Under the purchase method, the cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Under the merger method, the difference, if any, between the nominal value of the shares issued plus the value of any other consideration geiven, and the nominal value of the shares recieved in the exchange is shown as a movement on other reserves.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The directors have reviewed projections and forecasts for the next twelve months, given the level of cash held by the group, levels of reserves, lack of external financing and support of the shareholders, the directors consider the group to be a going concern and able to continue trading for the foreseeable future and will be able to meet its financial obligations as they become due.
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Key sources of estimation uncertainty
In the application of the group'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 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
The estimates and assumptions which are considered to have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:.
Contract valuation
The directors review the valuation of long term contracts on a regular basis. When the outcome of a construction contract can be estimated reliably, revenue and costs associated with the contract are recognised by reference to the stage of completion and any expected losses are recognised immediately. The carrying amount is £1,119,222 (2023 -£2,343,992).
Investment valuation
The fair value of investments in subsidiaries are determined by the directors using their knowledge of
the sector.
Periodically, the directors assess the value of investments carried at cost less impairment. This
includes a review of the financial performance of the investment, along with consideration of future
projections and expectations.
Where appropriate, a provision is made for the diminution in value of an investment. The carrying amount is £483,500 (2023 -£483,500).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Contract revenue recognition
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
Straight line basis over 2 to 5 years or 40%/50% first year and straight line for the next 3 years |
Fixtures, fittings and equipment |
Straight line basis up to 5 years |
Motor vehicles |
Straight line basis over 5 years |
Business combinations
Business combinations are accounted for using the purchase method or merger accounting as appropriate. For the purchase method the consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions for loss making contracts are recognised immediately in full in the consolidated profit and loss statement. Any anticipated losses in respect of onerous contracts are expensed in the accounting period in which such losses become probable.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the consolidated statement of profit or loss on a straight-line basis over the period of the lease.
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Financial instruments
Classification
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are derecognised when
a) the contractual rights to the cash flows from the asset expire or are settled, or
b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or
c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Basic financial liabilities, including trade and other payables and loans from fellow Group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of estimated cash flows discounted at the liability's original effective interest rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
The amount of contract revenue recognised as Turnover in the year was £
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
Gain on disposal of tangible assets |
|
|
Operating profit/(loss) |
Arrived at after charging/(crediting):
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Dividend income |
|
- |
Other finance income |
|
- |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
- |
|
Interest expense on other finance liabilities |
|
|
|
|
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Construction workers |
|
|
Administration |
|
|
Directors |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
537,944 |
438,213 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
22,540 |
29,010 |
Other fees to auditors |
||
Taxation compliance services |
|
|
Taxation |
Tax charged/(credited) in the income statement:
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
- |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Decrease in UK and foreign current tax from unrecognised temporary difference from a prior period |
- |
( |
Deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
Total tax charge |
|
|
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Tax losses carried forward |
|
- |
Other short-term timing differences |
|
- |
|
|
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Tax losses carried forward |
|
- |
Other short-term timing differences |
|
- |
|
|
Company
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Tax losses carried forward |
|
- |
|
- |
2023 |
Asset |
Liability |
Tax losses carried forward |
|
- |
|
- |
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 June 2023 |
|
|
At 31 May 2024 |
|
|
Amortisation |
||
At 1 June 2023 |
|
|
Amortisation charge |
|
|
At 31 May 2024 |
|
|
Carrying amount |
||
At 31 May 2024 |
|
|
At 31 May 2023 |
|
|
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Tangible assets |
Group
Furniture, fittings and equipment |
Plant and machinery |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 June 2023 |
|
|
|
|
Additions |
|
- |
|
|
Disposals |
- |
- |
( |
( |
At 31 May 2024 |
|
|
|
|
Depreciation |
||||
At 1 June 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
At 31 May 2024 |
|
|
|
|
Carrying amount |
||||
At 31 May 2024 |
|
|
|
|
At 31 May 2023 |
|
|
|
|
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Restriction on title and pledged as security
Amounts included in tangible assets are secured by a debenture incorporating a fixed and floating charge.
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Clyst Court,
|
|
|
|
England and Wales |
* indicates direct investment of the company
Subsidiary undertakings
Devon Contractors Limited The principal activity of Devon Contractors Limited is |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 June 2023 |
|
Provision |
|
At 31 May 2024 |
- |
Carrying amount |
|
At 31 May 2024 |
|
At 31 May 2023 |
|
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Debtors |
Group |
Company |
||||
Current |
Note |
2024 |
2023 |
2024 |
2023 |
Gross amount due from customers for contract work |
|
|
- |
- |
|
Other debtors |
|
|
- |
- |
|
Income tax asset |
- |
|
- |
- |
|
|
|
- |
- |
Group
The carrying amount of trade debtors pledged as security for liabilities amounted to £1,846,300 (2023 - £2,908,761).
Amounts included in debtors are secured by a debenture incorporating a floating charge.
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash at bank |
|
|
|
|
Amounts included in cash and cash equivalents of £4,074,245 (2023 - £3,132,500) have been secured by way of a debenture incorporating a floating charge.
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Other creditors |
|
- |
- |
- |
|
Accruals |
|
|
|
|
|
Corporation tax liability |
91,613 |
- |
- |
- |
|
Payments in advance |
|
|
- |
- |
|
|
|
|
|
There is an unlimited debenture dated 11 July 2013 incorporating a fixed and floating charge over all of the subsidiary's assets.
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 June 2023 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 31 May 2024 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 June 2023 |
( |
( |
Increase (decrease) in existing provisions |
( |
( |
At 31 May 2024 |
( |
( |
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £7,908 (2023 - £6,644) were payable to the scheme at the end of the year and are included in creditors.
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
12,000 |
|
12,000 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Reserves |
Group
Merger reserve
Arising on consolidation under merger accounting, this reserve represents the difference between the par value of shares issued and the shares received as well as the difference between the original 20% investment and the book value of the assets acquired.
Capital redemption reserve
Arising on the buyback of shares, this reserve represents a non-distributable balance arising from share capital purchased from the shareholders. This therefore ensures the maintenance of the capital base of the company.
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
Interim dividends paid
2024 |
2023 |
|||
Interim dividend of £ |
|
|
||
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2023 - £
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Contingent liabilities |
Group
At the year end the group's underwriters have given bonds to certain customers of the subsidiary to guarantee completion of the projects undertaken. The amount of these bonds varied throughout the period and at the period end, there are £1,427,656 outstanding (2023 - £379,433). This facility is held in the sole name of Devon Contractors Limited and is guarenteed by Devon Contractors (Holdings) Limited.
Related party transactions |
Group
Summary of transactions with key management
Income and receivables from related parties
2024 |
Other related parties |
Sale of goods |
- |
|
2023 |
Other related parties |
Sale of goods |
|
|
Loans to related parties
2024 |
Key management |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
2023 |
Key management |
Total |
At start of period |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
Devon Contractors (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 May 2024
Loans from related parties
2024 |
Other related parties |
Total |
At start of period (As restated) |
|
|
Advanced |
|
|
Repaid |
( |
( |
At end of period |
|
|
|
2023 |
Other related parties |
Total |
Advanced |
|
|
At end of period |
|
|
|
Terms of loans from related parties
The company has taken advantage of the exemption conferred by FRS 102 s.33.1A not to disclose transactions with other wholly owned members of the group.
Non adjusting events after the financial period |
|