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Registration number: 13668327

Devon Contractors (Holdings) Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 May 2024

 

Devon Contractors (Holdings) 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

Consolidated Profit and Loss Account

10

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Statement of Cash Flows

17

Notes to the Financial Statements

18 to 36

 

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

Hill Barton Business Park
Clyst St Mary
Exeter
EX5 1SA

Auditors

ML Audit LLP
Chartered Accountants and Statutory Auditors
Winchester House
Deane Gate Avenue
Taunton
Somerset
TA1 2UH

 

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

.........................................
Mr Shaun Bennington
Director

 

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:

Mr Shaun Bennington

Mr Daryn Hunt

Mr Nicholas England

Mr Peter Alderson

The following directors were appointed after the year end:

Mr Andrew Victor Hoare (appointed 13 June 2024)

Mr Stuart O'Higgins (appointed 13 June 2024)

Mr Nigel Robert Whelan (appointed 13 June 2024)

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

Mr Shaun Bennington
Director

   
     
 

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.

......................................
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 (Holdings) Limited

Consolidated 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

 

(19,236,330)

(21,970,383)

Gross profit

 

962,356

645,478

Administrative expenses

 

(703,961)

(653,762)

Operating profit/(loss)

5

258,395

(8,284)

Other interest receivable and similar income

6

56,553

13,735

Interest payable and similar expenses

7

(34)

(868)

   

56,519

12,867

Profit before tax

 

314,914

4,583

Tax on profit

11

(89,547)

(5,859)

Profit/(loss) for the financial year

 

225,367

(1,276)

Profit/(loss) attributable to:

 

Owners of the company

 

225,367

(1,276)

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

225,367

(1,276)

Total comprehensive income for the year

225,367

(1,276)

Total comprehensive income attributable to:

Owners of the company

225,367

(1,276)

 

Devon Contractors (Holdings) Limited

(Registration number: 13668327)
Consolidated Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

190,050

217,200

Tangible assets

13

103,581

118,796

 

293,631

335,996

Current assets

 

Debtors

15

1,526,651

2,507,230

Cash at bank and in hand

16

4,074,319

3,132,597

 

5,600,970

5,639,827

Creditors: Amounts falling due within one year

17

(4,877,039)

(5,139,442)

Net current assets

 

723,931

500,385

Total assets less current liabilities

 

1,017,562

836,381

Provisions for liabilities

18

(14,641)

(16,707)

Net assets

 

1,002,921

819,674

Capital and reserves

 

Called up share capital

20

12,000

12,000

Capital redemption reserve

21

15,000

15,000

Other reserves

21

(197,000)

(197,000)

Profit and loss account

21

1,172,921

989,674

Equity attributable to owners of the company

 

1,002,921

819,674

Total equity

 

1,002,921

819,674

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

Mr Shaun Bennington
Director

   
     
 

Devon Contractors (Holdings) Limited

(Registration number: 13668327)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

14

483,500

483,500

Current assets

 

Cash at bank and in hand

16

74

97

Creditors: Amounts falling due within one year

17

(447,010)

(446,330)

Net current liabilities

 

(446,936)

(446,233)

Total assets less current liabilities

 

36,564

37,267

Provisions for liabilities

18

5,245

2,686

Net assets

 

41,809

39,953

Capital and reserves

 

Called up share capital

20

12,000

12,000

Profit and loss account

21

29,809

27,953

Total equity

 

41,809

39,953

The company made a profit after tax for the financial year of £43,976 (2023 - profit of £24,397).

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

Mr Shaun Bennington
Director

   
     
 

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

12,000

15,000

(197,000)

989,674

Profit for the year

-

-

-

225,367

Dividends

-

-

-

(42,120)

At 31 May 2024

12,000

15,000

(197,000)

1,172,921

Total
£

Total equity
£

At 1 June 2023

819,674

819,674

Profit for the year

225,367

225,367

Dividends

(42,120)

(42,120)

At 31 May 2024

1,002,921

1,002,921

Share capital
£

Capital redemption reserve
£

Merger reserve
£

Retained earnings
£

At 1 June 2022

12,000

15,000

(197,000)

998,990

Loss for the year

-

-

-

(1,276)

Dividends

-

-

-

(8,040)

At 31 May 2023

12,000

15,000

(197,000)

989,674

Total
£

Total equity
£

At 1 June 2022

828,990

828,990

Loss for the year

(1,276)

(1,276)

Dividends

(8,040)

(8,040)

At 31 May 2023

819,674

819,674

 

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

12,000

27,953

39,953

Profit for the year

-

43,976

43,976

Dividends

-

(42,120)

(42,120)

At 31 May 2024

12,000

29,809

41,809

Share capital
£

Retained earnings
£

Total
£

At 1 June 2022

12,000

11,596

23,596

Profit for the year

-

24,397

24,397

Dividends

-

(8,040)

(8,040)

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

 

225,367

(1,276)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

81,730

82,142

Profit on disposal of tangible assets

4

(7,199)

(17,943)

Finance income

6

(56,553)

(13,735)

Finance costs

7

34

868

Income tax expense

11

89,547

5,859

 

332,926

55,915

Working capital adjustments

 

Decrease in trade debtors

15

962,257

1,420,266

Decrease in trade creditors

17

(354,016)

(3,448,105)

Cash generated from operations

 

941,167

(1,971,924)

Income taxes received/(paid)

11

18,322

(26,602)

Net cash flow from operating activities

 

959,489

(1,998,526)

Cash flows from investing activities

 

Interest received

56,513

13,735

Acquisitions of tangible assets

(39,365)

(73,198)

Proceeds from sale of tangible assets

 

7,199

44,603

Dividend income

40

-

Net cash flows from investing activities

 

24,387

(14,860)

Cash flows from financing activities

 

Interest paid

7

(34)

(868)

Dividends paid

(42,120)

(8,040)

Net cash flows from financing activities

 

(42,154)

(8,908)

Net increase/(decrease) in cash and cash equivalents

 

941,722

(2,022,294)

Cash and cash equivalents at 1 June

 

3,132,597

5,154,891

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

 

43,976

24,397

Adjustments to cash flows from non-cash items

 

Finance income

(48,960)

(35,194)

Income tax expense

11

(2,559)

(2,686)

 

(7,543)

(13,483)

Working capital adjustments

 

Increase/(decrease) in trade creditors

17

680

(13,605)

Net cash flow from operating activities

 

(6,863)

(27,088)

Cash flows from investing activities

 

Dividend income

48,960

35,194

Cash flows from financing activities

 

Dividends paid

(42,120)

(8,040)

Net (decrease)/increase in cash and cash equivalents

 

(23)

66

Cash and cash equivalents at 1 June

 

97

31

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

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:
Hill Barton Business Park
Clyst St Mary
Exeter
EX5 1SA
UK

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

2

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
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

20,198,686

22,615,861

The amount of contract revenue recognised as Turnover in the year was £20,198,686 (2023 - £22,615,861).

4

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

7,199

17,943

5

Operating profit/(loss)

Arrived at after charging/(crediting):

2024
£

2023
£

Depreciation expense

54,580

54,992

Amortisation expense

27,150

27,150

Profit on disposal of property, plant and equipment

(7,199)

(17,943)

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

54,425

13,735

Dividend income

40

-

Other finance income

2,088

-

56,553

13,735

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

-

8

Interest expense on other finance liabilities

34

860

34

868

 

Devon Contractors (Holdings) Limited

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

8

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 group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Construction workers

25

28

Administration

7

7

Directors

4

4

36

39

9

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

 

Devon Contractors (Holdings) Limited

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

10

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

22,540

29,010

Other fees to auditors

Taxation compliance services

20,612

6,324


 

11

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

(2,066)

5,859

Tax expense in the income statement

89,547

5,859

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 25% (2023 - 20%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

314,914

4,583

Corporation tax at standard rate

78,729

917

Effect of revenues exempt from taxation

(10)

(3,659)

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

11,502

6,901

Decrease in UK and foreign current tax from unrecognised temporary difference from a prior period

-

(8)

Deferred tax (credit)/expense relating to changes in tax rates or laws

(674)

1,708

Total tax charge

89,547

5,859

 

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

-

20,906

Tax losses carried forward

5,245

-

Other short-term timing differences

1,020

-

6,265

20,906

2023

Asset
£

Liability
£

Accelerated capital allowances

-

21,998

Tax losses carried forward

4,436

-

Other short-term timing differences

855

-

5,291

21,998

Company

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Tax losses carried forward

5,245

-

5,245

-

2023

Asset
£

Liability
£

Tax losses carried forward

2,686

-

2,686

-

 

Devon Contractors (Holdings) Limited

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

12

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 June 2023

271,500

271,500

At 31 May 2024

271,500

271,500

Amortisation

At 1 June 2023

54,300

54,300

Amortisation charge

27,150

27,150

At 31 May 2024

81,450

81,450

Carrying amount

At 31 May 2024

190,050

190,050

At 31 May 2023

217,200

217,200

 

Devon Contractors (Holdings) Limited

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

13

Tangible assets

Group

Furniture, fittings and equipment
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

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

 

Devon Contractors (Holdings) Limited

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

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.

14

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

Devon Contractors Limited*

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

Ordinary shares

100%

100%

England and Wales

* indicates direct investment of the company

Subsidiary undertakings

Devon Contractors Limited

The principal activity of Devon Contractors Limited is building contracting and civil engineering

Company

2024
£

2023
£

Investments in subsidiaries

483,500

483,500

Subsidiaries

£

Cost or valuation

At 1 June 2023

483,500

Provision

At 31 May 2024

-

Carrying amount

At 31 May 2024

483,500

At 31 May 2023

483,500

 

Devon Contractors (Holdings) Limited

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

15

Debtors

   

Group

Company

Current

Note

2024
£

2023
£

2024
£

2023
£

Gross amount due from customers for contract work

 

1,390,250

2,412,306

-

-

Other debtors

 

136,401

76,602

-

-

Income tax asset

11

-

18,322

-

-

   

1,526,651

2,507,230

-

-

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.

16

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash at bank

4,074,319

3,132,597

74

97

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.

17

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Trade creditors

 

3,809,345

3,397,621

-

-

Amounts due to related parties

26

235,089

250,080

436,210

435,735

Social security and other taxes

 

147,551

719,386

-

-

Other creditors

 

2,184

-

-

-

Accruals

 

320,229

704,041

10,800

10,595

Corporation tax liability

11

91,613

-

-

-

Payments in advance

 

271,028

68,314

-

-

 

4,877,039

5,139,442

447,010

446,330

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

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 June 2023

16,707

16,707

Increase (decrease) in existing provisions

(2,066)

(2,066)

At 31 May 2024

14,641

14,641

Company

Deferred tax
£

Total
£

At 1 June 2023

(2,686)

(2,686)

Increase (decrease) in existing provisions

(2,559)

(2,559)

At 31 May 2024

(5,245)

(5,245)

19

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 £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.

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary share capital of £1 each

12,000

12,000

12,000

12,000

       

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.

 

Devon Contractors (Holdings) Limited

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

21

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.

22

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

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).

23

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £3.51 (2023 - £0.67) per each Ordinary share

42,120

8,040

 

 

24

Commitments

Group

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).

 

Devon Contractors (Holdings) Limited

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

25

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.

26

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

43,789

Loans to related parties

2024

Key management
£

Total
£

At start of period

13,104

13,104

Advanced

77,471

77,471

Repaid

(5,350)

(5,350)

At end of period

85,225

85,225

2023

Key management
£

Total
£

At start of period

9,960

9,960

Advanced

9,999

9,999

Repaid

(6,855)

(6,855)

At end of period

13,104

13,104

 

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)

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.

27

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.