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Registration number: 00533232

Devon Contractors Limited

Annual Report and Financial Statements

for the Year Ended 31 May 2024

 

Devon Contractors Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 25

 

Devon Contractors Limited

Company Information

Directors

Mr A Hoare

Mr S Bennington

Mr P Alderson

Mr N Whelan

Mr S O'Higgins

Registered office

Clyst Court
Hill Barton Business Park
Clyst St Mary Exeter
Devon
EX5 1SA

Auditors

ML Audit LLP
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

 

Devon Contractors 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 company is main contractor for construction projects.

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 company's key financial and other performance indicators during the year were as follows:

 

Unit

2024

2023

Turnover

£

20,198,686

22,615,861

Operating profit

£

293,088

32,349

Profit after tax

£

257,461

36,671

Shareholders funds

£

1,254,562

1,046,021

Current assets as a % of current liabilities

%

124

118

 

Devon Contractors Limited

Strategic Report for the Year Ended 31 May 2024

Principal risks and uncertainties

The directors have reviewed the industry in which the company 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 economic impact of this worldwide pandemic, the directors have reviewed budgets to assist with the effect on the company. 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 impact as a going concern. The company 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 company has sufficient number of tenders and future secured workload.

Price risk - The company is exposed to price risk as a result of its operations. However, given the size of the company'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 company's operations change in size or nature. The company has no exposures to equity securities price risk as it holds no listed or other equity investments.

Credit risk - The company 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 company actively maintains a mixture of finance, designed to ensure the company has sufficient available funds for operations.

Interest rate flow risk - The company is not exposed to interest bearing liabilities.

Environmental and Social Matters

Information about environmental matters, the company's employees, social community and human rights issues have not been provided as the directors do not believe that this is fundamental to gain an understanding of the business.

Approved and authorised by the Board on 7 February 2025 and signed on its behalf by:
 

.........................................
Mr S Bennington
Director

 

Devon Contractors Limited

Directors' Report for the Year Ended 31 May 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr N England (resigned 13 June 2024)

Mr S Bennington

Mr D Hunt (resigned 13 June 2024)

Mr P Alderson

The following directors were appointed after the year end:

Mr A Hoare (appointed 13 June 2024)

Mr N Whelan (appointed 13 June 2024)

Mr S O'Higgins (appointed 13 June 2024)

Financial instruments
The company has procedures to identify risk and manage risks that may hinder its financial performance objectives. The objective is to limit counterparty exposure, ensure sufficient weekly capital and to mitigate the risk identified. The company does not consider it necessary to employ derivatives to manage risk based on the current activities of the company.

Objectives and policies

The company'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 company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company.

Future developments

The directors aim to maintain the management policies going forward. They consider that the next period profitability will be marginally increased with maintenance of market share against a backdrop of economic uncertainty.

Research and development

There has been no research and development for the company in the year ended 31 May 2024 or 31 May 2023.

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 the parent company of Devon Contractors Limited, Devon Contractors (Holdings) Limited.

 

Devon Contractors Limited

Directors' Report for the Year Ended 31 May 2024

Disclosure of information to the auditors

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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 7 February 2025 and signed on its behalf by:

Mr S Bennington
Director

   
     
 

Devon Contractors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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 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.

 

Devon Contractors Limited

Independent Auditor's Report to the Members of Devon Contractors Limited

Opinion

We have audited the financial statements of Devon Contractors Limited (the 'company') for the year ended 31 May 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 company's affairs as at 31 May 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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.

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.

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.

 

Devon Contractors Limited

Independent Auditor's Report to the Members of Devon Contractors Limited

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, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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 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.

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 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.

 

Devon Contractors Limited

Independent Auditor's Report to the Members of Devon Contractors 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.

......................................
Nigel Fry (Senior Statutory Auditor)
For and on behalf of ML Audit LLP, Statutory Auditor
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

12 February 2025

 

Devon Contractors Limited

Profit and Loss Account for the Year Ended 31 May 2024

Note

2024
£

2023
£

Turnover

3

20,198,686

22,615,861

Cost of sales

 

(19,229,131)

(21,970,383)

Gross profit

 

969,555

645,478

Administrative expenses

 

(676,467)

(613,129)

Operating profit

4

293,088

32,349

Other interest receivable and similar income

5

56,513

13,735

Interest payable and similar expenses

6

(34)

(868)

   

56,479

12,867

Profit before tax

 

349,567

45,216

Tax on profit

10

(92,106)

(8,545)

Profit for the financial year

 

257,461

36,671

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above and therefore a separate statement of other comprehensive income has not been presented.

 

Devon Contractors Limited

(Registration number: 00533232)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

11

103,581

118,796

Current assets

 

Debtors

12

1,962,701

2,942,885

Cash at bank and in hand

13

4,074,245

3,132,500

 

6,036,946

6,075,385

Creditors: Amounts falling due within one year

14

(4,866,079)

(5,128,767)

Net current assets

 

1,170,867

946,618

Total assets less current liabilities

 

1,274,448

1,065,414

Provisions for liabilities

15

(19,886)

(19,393)

Net assets

 

1,254,562

1,046,021

Capital and reserves

 

Called up share capital

17

15,000

15,000

Capital redemption reserve

18

15,000

15,000

Profit and loss account

18

1,224,562

1,016,021

Total equity

 

1,254,562

1,046,021

Approved and authorised by the Board on 7 February 2025 and signed on its behalf by:
 

Mr S Bennington
Director

   
     
 

Devon Contractors Limited

Statement of Changes in Equity for the Year Ended 31 May 2024

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 June 2023

15,000

15,000

1,016,021

1,046,021

Profit for the year

-

-

257,461

257,461

Dividends

-

-

(48,920)

(48,920)

At 31 May 2024

15,000

15,000

1,224,562

1,254,562

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 June 2022

15,000

15,000

1,014,544

1,044,544

Profit for the year

-

-

36,671

36,671

Dividends

-

-

(35,194)

(35,194)

At 31 May 2023

15,000

15,000

1,016,021

1,046,021

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Clyst Court
Hill Barton Business Park
Clyst St Mary Exeter
Devon
EX5 1SA

These financial statements were authorised for issue by the Board on 7 February 2025.

2

Accounting policies

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 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.

Summary of disclosure exemptions

The company is a member of a group where the parent of that group prepares publicly available consolidated financial statements which are intended to give a true and fair view and that member is included in the consolidation. Therefore, the company has adopted the exemption from requirement to present a statement of cash flows and related notes.

Furthermore, in line with FRS102.33.1A, the company has adopted the exemption from disclosing transactions with members of the the above referenced group.

Name of parent of group

These financial statements are consolidated in the financial statements of Devon Contractors (Holdings) Limited.

The financial statements of Devon Contractors (Holdings) Limited may be obtained from Hill Barton Business Park, Clyst St Mary, Exeter, EX5 1SA.

Going concern

The directors have reviewed projections and forecasts for the next twelve months, given the level of cash held by the company, levels of reserves, lack of external financing and support of the shareholders, the directors consider the company 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 Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

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 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).

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and value added tax.

When the outcome of a construction contract can be estimated reliably, the company recognises contract revenue and contract costs associated with the construction contract as revenue and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period.

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 company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the 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.

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

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

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.

Long term contracts

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.

Debtors

Trade debtors are amounts due from customers for 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 company will not be able to collect all amounts due according to the original terms of the receivables.

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 company 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 profit and loss statement. Any anticipated losses in respect of onerous contracts are expensed in the accounting period in which such losses become probable.

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

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 profit or loss on a straight-line basis over the period of the lease.

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 company’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 company 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.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2024
£

2023
£

Construction contracts

20,198,686

22,615,861

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4

Operating profit

Arrived at after charging/(crediting):

2024
£

2023
£

Depreciation expense

54,580

54,992

Profit on disposal of property, plant and equipment

(7,199)

(17,943)

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

54,425

13,735

Other finance income

2,088

-

56,513

13,735

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

-

8

Interest expense on other finance liabilities

34

860

34

868

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,726,260

1,797,977

Social security costs

6,689

9,414

Pension costs, defined contribution scheme

374,885

237,024

2,107,834

2,044,415

The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:

2024
No.

2023
No.

Directors

4

4

Administration

7

7

Construction workers

25

28

36

39

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

317,944

312,213

Contributions paid to money purchase schemes

220,000

126,000

537,944

438,213

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

4

4

In respect of the highest paid director:

2024
£

2023
£

Remuneration

82,046

71,116

Company contributions to money purchase pension schemes

107,500

37,166

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

19,000

16,050

Other fees to auditors

Accountancy and tax compliance services

20,612

6,045


 

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

10

Taxation

Tax charged/(credited) in the income statement:

2024
£

2023
£

Current taxation

UK corporation tax

91,613

-

Deferred taxation

Arising from origination and reversal of timing differences

493

8,545

Tax expense in the income statement

92,106

8,545

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 20%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

349,567

45,216

Corporation tax at standard rate

87,392

9,044

Effect of revenues exempt from taxation

-

(3,659)

Effect of expense not deductible in determining taxable profit (tax loss)

4,714

1,452

Deferred tax expense relating to changes in tax rates or laws

-

1,708

Total tax charge

92,106

8,545

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

20,906

Other short-term timing differences

1,020

-

1,020

20,906

2023

Asset
£

Liability
£

Accelerated capital allowances

-

21,998

Tax losses carried forward

1,750

-

Other short-term timing differences

855

-

2,605

21,998

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

11

Tangible assets

Furniture, fittings and equipment
 £

Plant and machinery
 £

Motor vehicles
 £

Total
£

Cost

At 1 June 2023

175,162

215,745

201,223

592,130

Additions

9,370

-

29,995

39,365

Disposals

-

-

(38,920)

(38,920)

At 31 May 2024

184,532

215,745

192,298

592,575

Depreciation

At 1 June 2023

164,992

159,235

149,107

473,334

Charge for the year

10,856

13,755

29,969

54,580

Eliminated on disposal

-

-

(38,920)

(38,920)

At 31 May 2024

175,848

172,990

140,156

488,994

Carrying amount

At 31 May 2024

8,684

42,755

52,142

103,581

At 31 May 2023

10,170

56,510

52,116

118,796

Restriction on title and pledged as security

Property, plant and equipment with a carrying amount of £103,581 (2023 - £118,796) has the following restriction on title:
Amounts included in tangible assets are secured by a debenture incorporating a fixed and floating charge.

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

12

Debtors

Current

Note

2024
£

2023
£

Amounts owed by related parties

23

521,435

448,839

Other debtors

 

51,016

63,418

Gross amount due from customers for contract work

 

1,390,250

2,412,306

Income tax asset

10

-

18,322

   

1,962,701

2,942,885

The carrying amount of 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.

13

Cash and cash equivalents

2024
£

2023
£

Cash at bank

4,074,245

3,132,500

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.

14

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

3,809,345

3,397,621

Amounts due to related parties

23

234,929

250,000

Social security and other taxes

 

147,551

719,386

Other creditors

 

2,184

-

Accruals

 

309,429

693,446

Corporation tax liability

10

91,613

-

Payments in advance

 

271,028

68,314

 

4,866,079

5,128,767

There is an unlimited debenture dated 11 July 2013 incorporating a fixed and floating charge over all of the company's assets.

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

15

Provisions for liabilities

Deferred tax
£

Total
£

At 1 June 2023

19,393

19,393

Increase (decrease) in existing provisions

493

493

At 31 May 2024

19,886

19,886

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £374,885 (2023 - £237,024).

Contributions totalling £7,908 (2023 - £6,644) were payable to the scheme at the end of the year and are included in creditors.

17

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

15,000

15,000

15,000

15,000

       

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
- Each share is entitled to one vote at all general meetings of the company and on a written resolution.
- Each share is entitled to dividends, to be paid as the company may determine, and each share has equal rights to dividends.
- Each share is entitled to equal rights, a return of capital on liquidation or otherwise.
- The shares are non-redeemable.

18

Reserves

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.

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

39,530

28,097

Later than one year and not later than five years

73,594

62,789

113,124

90,886

The amount of non-cancellable operating lease payments recognised as an expense during the year was £43,755 (2023 - £38,472).

20

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £3.26 (2023 - £2.35) per each Ordinary share

48,920

35,194

 

 

21

Commitments

Capital commitments

A capital commitment was entered into at the year end to acquire a new telecommunications system.
The total amount contracted for but not provided in the financial statements was £Nil (2023 - £3,926).

22

Contingent liabilities

At the year end the company's underwriters have given bonds to certain customers of the company to guarantee completion of the projects undertaken. The amount of these bonds varied throughout the year and as at the year end there are £1,427,656 outstanding (2023 - £379,433). This facility is held in the sole name of Devon Contractors Limited.

 

Devon Contractors Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

23

Related party transactions

Income and receivables from related parties

2024

Other related parties
£

Sale of goods

-

2023

Other related parties
£

Sale of goods

43,789

Loans to related parties

2024

Key management
£

Total
£

At start of period

13,184

13,184

Advanced

77,471

77,471

Repaid

(5,270)

(5,270)

At end of period

85,385

85,385

2023

Key management
£

Total
£

At start of period

10,000

10,000

Advanced

9,999

9,999

Repaid

(6,815)

(6,815)

At end of period

13,184

13,184

Terms of loans to related parties

Interest has been charged on the above loan to key management at a commercial rate and the loan is repayble on demand.
 

 

Devon Contractors 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

250,000

250,000

Advanced

103,407

103,407

Repaid

(118,478)

(118,478)

At end of period

234,929

234,929

2023

Other related parties
£

Total
£

Advanced

250,000

250,000

At end of period

250,000

250,000

Terms of loans from related parties

Loans from other related parties are interest free and repayable on demand.

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.

24

Parent and ultimate parent undertaking

There is no ultimate controlling party of Devon Contractors Limited.

 The company's immediate parent is Devon Contractors (Holdings) Limited, incorporated in England & Wales.

 The most senior parent entity producing publicly available financial statements is Devon Contractors (Holdings) Limited. These financial statements are available upon request from Clyst Court, Hill Barton Business Park, Clyst St Mary Exeter, Devon, EX5 1SA.

25

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 the parent company of Devon Contractors Limited, Devon Contractors (Holdings) Limited.