Company registration number 02704758 (England and Wales)
BELL CONTRACTING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
BELL CONTRACTING LIMITED
COMPANY INFORMATION
DIRECTORS
Jason Bell
Peter Bell
Stephen Jelf
SECRETARY
Jason Bell
COMPANY NUMBER
02704758
REGISTERED OFFICE
Whimsey Industrial Estate
Cinderford
Gloucestershire
GL14 3JA
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
BELL CONTRACTING LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 8
Independent auditor's report
9 - 13
Statement of comprehensive income
14
Balance sheet
15 - 16
Statement of changes in equity
17
Statement of cash flows
18 - 19
Notes to the financial statements
20 - 37
BELL CONTRACTING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The directors present the strategic report for the year ended 31 May 2024.
REVIEW OF THE BUSINESS
The company is one of the largest privately owned contractors in its geographic area, which covers South Wales, the South West and The Midlands. The company undertakes infrastructure and house construction as a subcontractor for major developers such as Persimmon, Redrow Homes, Taylor Wimpey, Barratt Homes, Bellway Homes, Crest Nicholson and Bloor Homes.
The company's objective is to be the preferred choice for existing and new customers, delivering high quality service and performance whilst ensuring and preserving the health and safety of all employees.
PRINCIPAL RISKS AND UNCERTAINTIES
The main risk facing the company is the continued difficult economic conditions globally and in the UK which is having a negative affect the house building industry. Recent changes in government, and the resultant fluctuating regulatory frameworks applying to the sector, make development starts for the company’s key clients difficult for them to plan and manage, which has a knock on effect to the company’s production levels. There are also the continued shortages of skilled labour and some remaining inflationary pressures. The company's strategy is to actively mitigate and manage these risks and any consequences of changes in demand and supply within its control, and to ultimately ensure adequate cash is available to cover all circumstances.
DEVELOPMENT AND PERFORMANCE
The results for the financial period under review are set out on page 14.
The year saw a continuation of a subdued housing sector, with a contraction in property sales and a slight fall in average house prices. This resulted in pressure from clients for saving on existing orders and pressure on pricing and availability of new tenders. The company was also affected by extreme regulatory issues for our Welsh clients resulting in workloads in that region contracting significantly. Our strong management and long term relationships with our key client base allowed us to manage these changes, maintain our very strong cash position, and still show a profit, which many of our competitors could not.
The trading results for the period are summarised as follows:
2024
2023
£'000
£'000
Turnover
50,192
64,024
Gross profit
7,041
7,144
Gross profit (%)
14.03%
11.16%
Operating profit
1,226
1,642
BELL CONTRACTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Total revenue has decreased by some 22% but, even with the market conditions described above, the company managed to achieve both a gross profit and a profit before tax that were broadly the same as last year’s. The above results have been achieved through strong and stable management. The cash position of the company, which the director’s consider key, still stands at some £13.9m. Considering the extreme headwinds the company has continued to encountering, the directors are very content with the results and extremely strong position the company continues to be in, especially compared to many of its competitors.
Trading since year end has continued to be somewhat difficult but the company continues to manage matters very well and maintains its strong partnerships with its major clients and suppliers. The company is showing signs of a notable upturn in its order book at the time of filing these results, having secured some very large contracts with its key clients in recent months.
The directors monitor the performance of the company's sales levels and profitability, both of which are shown above. The directors are of the opinion that further analysis using KPI's is not necessary for an understanding of the development, performance or position of the business.
BELL CONTRACTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
PROMOTING THE SUCCESS OF THE COMPANY
The directors of the company acts in a way that considers and promotes the success of the company in line with the requirements of s172 of the Companies Act 2006.
When making decisions, the directors consider all stakeholders and the wider impacts of such decisions, including the impact of the company's operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term. The size of the company enables the directors to regularly consult with other senior managers in the company, aiding in the decision-making process.
The company is subject to external quality control audits to ensure compliance with relevant health and safety laws and regulations and have adopted a wellbeing policy to ensure our colleagues have the tools to keep themselves healthy.
A number of the management team hold academic and professional qualifications specifically related to the business which the company operates.
The directors recognise the importance of staff engagement in the company, and participates programmes designed to increase and maintain staff engagement, ultimately improving all aspects of the customer interaction with the company.
The Company mission statement is to innovate the provision of groundworks & civil engineering services. To achieve this the company continues to hold direct meetings with employees from all areas of the company. As a family run Company, employees have direct access to the senior management team on a day to day basis.
Good working relationships with suppliers are important to the success of the company. The company at all times acts responsibly and ethically in its dealings with suppliers.
Four years ago, the shareholders of the business created a subsidiary company called AccXel Limited. AccXel is the UK’s first industry-led construction school, and is a recognised center of excellence in construction-related education and training. AccXel is situated in a purpose built £3m training centre. AccXel provides training and apprenticeships to Bell Contracting’s workforce, addressing the skills shortage in the industry, and putting Bell Contracting at a standing well above most of its competitors.
BELL CONTRACTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 4 -
SOCIAL RESPONSIBILITY: STRENGTHENING COMMUNITIES
Bell Contracting Limited believe giving back and supporting the community, and community activities, is a core component of its identity. Being a multi-generation family business they are stewards of a legacy that extends well beyond financial success, and the company feel a profound sense of responsibility to contribute positively to its local community that was instrumental in its growth.
By supporting local causes, Bell Contracting Limited build goodwill and foster a positive relationship with stakeholders, including employees, customers, and local community leaders. It believes its community support creates a sense of purpose among their employees, who feel proud to be part of an organisation that makes a positive difference.
Bell Contracting Limited’s community engagement is also vital for fostering a sustainable future for both the business and the community. By investing in local initiatives, it contributes to economic development and social welfare. This, in turn, supports a favourable business environment and ensures that future generations benefit from a thriving and equitable society.
Bell Contracting Limited are deeply committed to supporting local community projects through charitable donations, sponsorships, volunteer efforts, and partnerships with nonprofit organizations. It plans to continue and expand its efforts in what it believes to be a vital area for both the local community and its future business success.
.............................................
Peter Bell
Director
19 February 2025
BELL CONTRACTING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 5 -
The directors present their annual report and financial statements for the year ended 31 May 2024.
PRINCIPAL ACTIVITIES
The principal activity of the company continued to be that of the provision of groundworks and civil engineering services.
RESULTS AND DIVIDENDS
The results for the year are set out on page 14.
Ordinary dividends were paid amounting to £500,520. The directors do not recommend payment of a further dividend.
DIRECTORS
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Jason Bell
Peter Bell
Stephen Jelf
Keith Bell
(Deceased 20 March 2024)
FINANCIAL INSTRUMENTS
Financial risk management
The company's operations expose it to a variety of financial risks that include the effects of the changes in the construction industry driven by the economy. The company has in place a risk management programme that seeks to limit adverse effects on the financial performance of the company by monitoring the economy for indications of volatility. The company's principal financial instruments comprise trade debtors, trade creditors, finance lease agreements and related company loans. Given the size of the company the directors have not delegated the responsibility of monitoring financial risk to a sub-committee of the board. The policies set by the board are implemented by the company's finance department.
Price risk management
Due to the nature of the financial instruments used by the company there is no exposure to price risk.
Credit risk management
The company has implemented policies that requires appropriate credit checks to be carried out prior to price tenders being submitted to new contractors and ensuring regular meetings regarding site measurement and contract variations are attended on a regular basis.
Liquidity risk and cash flow management
The company actively monitors its liquidity and cash flow position by maintaining a balance between the continuity of funding and related company loans to ensure it has sufficient cash in order to fund its activities.
BELL CONTRACTING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
ENERGY AND CARBON REPORT
The below figures make up the baseline reporting for Bell Contracting Limited.
Scope 1 - Emissions associated with gas usage and transportation fuels (under the company's control).
Scope 2 - Emissions associated with the consumption of purchased electricity are presented on both a location-based (using country average electricity emission factors) and market-based (considering any purchased renewable generated electricity) approach.
Scope 3 - Company's value chain emissions, divided into 5 categories, as established by the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting & Reporting Standard. Under SECR this is limited to emissions resulting from sources not directly owned by the Bell Contracting Limited. For example, grey fleet business travel undertaken in employee-owned vehicles only.
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
18,258,939
20,266,894
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
16.00
17.00
- Fuel consumed for owned transport
4,285.00
4,776.00
4,301.00
4,793.00
Scope 2 - indirect emissions
- Electricity purchased
10.00
12.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
42.00
41.00
Total gross emissions
4,353.00
4,846.00
Intensity ratio
Tonnes CO2e per employee (FTE)
52
64
BELL CONTRACTING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
Quantification and reporting methodology
The figures (including the Scope 1, 2 and 3 kWh consumption and CO2e emissions data) have been developed and calculated using the GHG Protocol – A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development, 2004); Greenhouse Gas Protocol – Scope 2 Guidance (World Resources Institute, 2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO, 2019); Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019).
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee (FTE), the recommended ratio for the sector.
Intensity metrics have been calculated utilising the 2023/24 reportable figures for the following metrics, and tCO2e for both individual sources and total emissions were then divided by this figure to determine the tCO2e per metric:
- Employees (FTE) 215 (2023: 214)
Measures taken to improve energy efficiency
Bell Contracting Limited is committed to year-on-year improvements in its operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years.
Measures ongoing and undertaken through 2023/24
- Electric Vehicle Uptake:
Two additional electric vehicles have been leased to access emissions-free transportation between sites.
- Solar Panel Pricing:
Solar panels were quoted to understand the cost of implementation, alongside the benefits of carbon emissions reduction and electricity independence.
- LED Lighting:
Halogen tubes have been replaced with LEDs to improve electricity efficiency as well as cost saving strategies.
Measures to be addressed in 2024/25
- Replacing Diesel Vehicles with Electric:Plans are in motion to lease a further five electric vehicles to replace the diesel vehicles currently in the fleet.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
BELL CONTRACTING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the 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.
STRATEGIC REPORT
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 we set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
STATEMENT OF DISCLOSURE TO AUDITOR
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
..............................................
Peter Bell
Director
19 February 2025
BELL CONTRACTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BELL CONTRACTING LIMITED
- 9 -
Opinion
We have audited the financial statements of Bell Contracting Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
BELL CONTRACTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BELL CONTRACTING LIMITED (CONTINUED)
- 10 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the 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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
BELL CONTRACTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BELL CONTRACTING LIMITED (CONTINUED)
- 11 -
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
BELL CONTRACTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BELL CONTRACTING LIMITED (CONTINUED)
- 12 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
BELL CONTRACTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BELL CONTRACTING LIMITED (CONTINUED)
- 13 -
Simon Tee
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
19 February 2025
BELL CONTRACTING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
2024
2023
Notes
£
£
TURNOVER
3
50,191,507
64,023,709
Cost of sales
(43,150,271)
(56,879,874)
GROSS PROFIT
7,041,236
7,143,835
Administrative expenses
(5,927,176)
(5,815,615)
Other operating income
112,000
314,270
OPERATING PROFIT
4
1,226,060
1,642,490
Interest receivable and similar income
8
557,974
153,184
Interest payable and similar expenses
9
(9,268)
(8,726)
PROFIT BEFORE TAXATION
1,774,766
1,786,948
Tax on profit
10
(104,223)
(361,026)
PROFIT FOR THE FINANCIAL YEAR
1,670,543
1,425,922
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BELL CONTRACTING LIMITED
BALANCE SHEET
- 15 -
2024
2023
as restated
Notes
£
£
FIXED ASSETS
Tangible assets
12
3,981,610
4,338,294
Investments
13
499
499
3,982,109
4,338,793
CURRENT ASSETS
-
-
Stocks
15
1,068,640
1,379,952
Debtors
16
11,272,595
9,970,223
Cash at bank and in hand
13,919,002
15,614,551
26,260,237
26,964,726
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
17
(12,582,527)
(14,670,547)
NET CURRENT ASSETS
13,677,710
12,294,179
TOTAL ASSETS LESS CURRENT LIABILITIES
17,659,819
16,632,972
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
18
(37,042)
(112,610)
PROVISIONS FOR LIABILITIES
Deferred tax liability
20
(330,326)
(397,934)
GOVERNMENT GRANTS
21
(1,573,730)
(1,573,730)
NET ASSETS
15,718,721
14,548,698
CAPITAL AND RESERVES
Called up share capital
23
129,030
129,030
Capital redemption reserve
21,000
21,000
Profit and loss reserves
15,568,691
14,398,668
TOTAL EQUITY
15,718,721
14,548,698
BELL CONTRACTING LIMITED
BALANCE SHEET (CONTINUED)
- 16 -
The financial statements were approved by the board of directors and authorised for issue on 19 February 2025 and are signed on its behalf by:
..............................................
Peter Bell
Director
Company registration number 02704758 (England and Wales)
BELL CONTRACTING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
AS RESTATED FOR THE PERIOD ENDED 31 MAY 2023:
BALANCE AT 1 JUNE 2022
129,030
21,000
14,469,146
14,619,176
YEAR ENDED 31 MAY 2023:
Profit and total comprehensive income
-
-
1,425,922
1,425,922
Dividends
11
-
-
(1,496,400)
(1,496,400)
BALANCE AT 31 MAY 2023
129,030
21,000
14,398,668
14,548,698
YEAR ENDED 31 MAY 2024:
Profit and total comprehensive income
-
-
1,670,543
1,670,543
Dividends
11
-
-
(500,520)
(500,520)
BALANCE AT 31 MAY 2024
129,030
21,000
15,568,691
15,718,721
BELL CONTRACTING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
2024
2023
as restated
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year after tax
1,670,543
1,425,922
Adjustments for:
Taxation charged
104,223
361,026
Finance costs
9,268
8,726
Investment income
(557,974)
(153,184)
Gain on disposal of tangible fixed assets
(2,961)
(50,517)
Depreciation and impairment of tangible fixed assets
333,331
480,236
Movements in working capital:
Decrease/(increase) in stocks
311,312
(75,002)
(Increase)/decrease in debtors
(839,365)
3,533,986
Decrease in creditors
(1,633,248)
(1,623,369)
Cash (absorbed by)/generated from operations
(604,871)
3,907,824
Interest received
557,974
153,184
Interest paid
(9,268)
(8,726)
Income taxes paid
(637,500)
(718,157)
Net cash (outflow)/inflow from operating activities
(693,665)
3,334,125
INVESTING ACTIVITIES
Purchase of tangible fixed assets
(35,048)
(301,565)
Proceeds from disposal of tangible fixed assets
61,362
50,517
Purchase of investment property
(4,050)
Net cash generated from/(used in) investing activities
26,314
(255,098)
FINANCING ACTIVITIES
Payment of finance leases obligations
(107,560)
(146,471)
Dividends paid
(500,520)
(1,496,400)
(Repayment)/funds introduced by directors
(167,878)
603,149
(Payment)/proceeds from loan to related company
(252,240)
1,924,840
Net cash (used in)/generated from financing activities
(1,028,198)
885,118
BELL CONTRACTING LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
2024
2023
as restated
Notes
£
£
- 19 -
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(1,695,549)
3,964,145
Cash and cash equivalents at beginning of year
15,614,551
11,650,406
CASH AND CASH EQUIVALENTS AT END OF YEAR
13,919,002
15,614,551
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
1
ACCOUNTING POLICIES
Company information
Bell Contracting Limited is a private company limited by shares incorporated in England and Wales. The registered office is Whimsey Industrial Estate, Cinderford, Gloucestershire, GL14 3JA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from construction contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by quantity surveyors who assess the value of works completed. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Buildings over 25 years, freehold land is not depreciated
Plant and equipment
10% - 25% Straight line
Equipment
10% - 25% Straigh line
Motor vehicles
25% Straight line
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 21 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 22 -
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 23 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 24 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 25 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Research and development tax relief
Tax relief on R&D expenditure is recognised at the point in which a claims has been submitted and accepted by HMRC.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
ACCOUNTING POLICIES
(Continued)
- 26 -
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amounts recoverable on contact are measured by reference to stage of completion which is calculated by carrying out valuations of works completed as a point in time and, where applicable estimating the value of works carried out after this point in time up to the balance sheet date. This requires management to estimate the value of work done on a job by job basis. The carrying value of amounts recoverable on contract at the year end was £6,127,032.
Provisions against amounts recoverable on contracts are made against the value of works completed and also for future costs. Provisions are calculated and agreed following internal discussions with relevant personnel and represent management's best estimate based on a review of expected contract profitability. The carrying value of contract provisions at the balance sheet date was £4,695,000.
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
3
TURNOVER AND OTHER REVENUE
2024
2023
£
£
Turnover analysed by class of business
Construction contracts
50,191,507
64,023,709
2024
2023
£
£
Other revenue
Interest income
557,974
153,184
Grants received
-
202,270
4
OPERATING PROFIT
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(202,270)
Depreciation of owned tangible fixed assets
333,331
480,236
Profit on disposal of tangible fixed assets
(2,961)
(50,517)
5
AUDITOR'S REMUNERATION
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
16,500
15,975
For other services
Taxation compliance services
2,100
2,000
All other non-audit services
7,425
11,375
9,525
13,375
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 28 -
6
EMPLOYEES
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production staff
170
169
Management staff
45
45
Total
215
214
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,815,381
8,093,042
Social security costs
849,194
910,810
Pension costs
388,010
535,536
9,052,585
9,539,388
7
DIRECTORS' REMUNERATION
2024
2023
£
£
Remuneration for qualifying services
105,650
126,617
Company pension contributions to defined contribution schemes
10,914
10,914
116,564
137,531
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
8
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Interest on bank deposits
557,974
153,184
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
8
INTEREST RECEIVABLE AND SIMILAR INCOME
(Continued)
- 29 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
557,974
153,184
9
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
6,702
3,712
Other finance costs:
Interest on finance leases and hire purchase contracts
2,566
5,014
9,268
8,726
10
TAXATION
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
520,295
331,564
Adjustments in respect of prior periods
(348,464)
Total current tax
171,831
331,564
Deferred tax
Origination and reversal of timing differences
(67,608)
29,462
Total tax charge
104,223
361,026
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
TAXATION
(Continued)
- 30 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,774,766
1,786,948
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
443,692
446,737
Tax effect of expenses that are not deductible in determining taxable profit
7,656
12,781
Adjustments in respect of prior years
(348,464)
Effect of change in corporation tax rate
(82,835)
Depreciation on assets not qualifying for tax allowances
1,339
Capital allowances super deduction
(15,657)
Taxation charge for the year
104,223
361,026
11
DIVIDENDS
2024
2023
£
£
Final paid
500,520
1,496,400
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
12
TANGIBLE FIXED ASSETS
As restated (note 29)
Freehold land and buildings
Plant and equipment
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
3,281,961
938,111
1,336,689
394,510
5,951,271
Additions
23,265
11,783
35,048
Disposals
(336,674)
(87,396)
(27,586)
(451,656)
At 31 May 2024
3,281,961
624,702
1,261,076
366,924
5,534,663
Depreciation and impairment
At 1 June 2023
500,293
953,103
159,581
1,612,977
Depreciation charged in the year
42,373
110,662
91,676
88,620
333,331
Eliminated in respect of disposals
(298,959)
(87,396)
(6,900)
(393,255)
At 31 May 2024
42,373
311,996
957,383
241,301
1,553,053
Carrying amount
At 31 May 2024
3,239,588
312,706
303,693
125,623
3,981,610
At 31 May 2023
3,281,961
437,818
383,586
234,929
4,338,294
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
189,898
251,494
Motor vehicles
4,637
23,771
Equipment
35,955
36,500
230,490
311,765
13
FIXED ASSET INVESTMENTS
2024
2023
Notes
£
£
Investments in associates
14
499
499
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 32 -
14
ASSOCIATES
Details of the company's associates at 31 May 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Accxel Limited
Whimsey Industrial Estate,
Cinderford, Gloucestershire, GL14 3JA
Ordinary
49
15
STOCKS
2024
2023
£
£
Raw materials and consumables
998,271
1,294,226
Work in progress
70,369
85,726
1,068,640
1,379,952
16
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
560,291
435,375
Gross amounts owed by contract customers
6,127,032
5,885,371
Corporation tax recoverable
334,105
Other debtors
2,071,851
1,933,002
Prepayments and accrued income
41,914
59,894
9,135,193
8,313,642
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
2,137,402
1,656,581
Total debtors
11,272,595
9,970,223
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 33 -
17
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
Notes
£
£
Obligations under finance leases
19
77,792
109,784
Trade creditors
5,741,638
5,430,221
Corporation tax
131,564
Other taxation and social security
276,299
241,557
Other creditors
5,767,255
8,757,421
Accruals and deferred income
719,543
12,582,527
14,670,547
The hire purchase liabilities are secured on the assets to which they relate.
18
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
Notes
£
£
Obligations under finance leases
19
37,042
112,610
The hire purchase liabilities are secured on the assets to which they relate.
19
FINANCE LEASE OBLIGATIONS
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
77,792
110,106
In two to five years
38,267
116,063
116,059
226,169
Less: future finance charges
(1,225)
(3,775)
114,834
222,394
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 34 -
20
DEFERRED TAXATION
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
726,114
795,665
Retirement benefit obligations
(2,355)
(4,298)
Deferred grant income
(393,433)
(393,433)
330,326
397,934
2024
Movements in the year:
£
Liability at 1 June 2023
397,934
Credit to profit or loss
(67,608)
Liability at 31 May 2024
330,326
The net deferred tax liability is expected to reduce in 2025 by £80,000. This is mainly due to reversal of existing timing differences between depreciation and capital allowances claimed on fixed assets.
21
GOVERNMENT GRANTS
2024
2023
£
£
Arising from government grants
1,573,730
1,573,730
22
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
388,010
535,536
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 35 -
23
SHARE CAPITAL
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
129,000
129,000
129,000
129,000
G Ordinary shares of 1p each
3,000
3,000
30
30
132,000
132,000
129,030
129,030
The ordinary share capital is non-redeemable have full voting rights and the right to participate in all approved dividend and capital distributions.
The G ordinary share capital is non-redeemable, have no voting rights, no right to receive dividends and on capital distribution has the right to receive dividend accruals and then, between ordinary and G shares, only participate above the agreed hurdle value.
24
OPERATING LEASE COMMITMENTS
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
34,623
34,623
Between two and five years
15,777
50,400
50,400
85,023
25
RELATED PARTY TRANSACTIONS
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
680,609
648,540
Transactions with related parties
During the year the company entered into the following transactions with related parties:
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
25
RELATED PARTY TRANSACTIONS
(Continued)
- 36 -
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities controlled by key management
4,052,600
4,907,960
6,164,804
6,476,319
2024
2023
Amounts due to related parties
£
£
Entities controlled by key management
1,226,978
1,350,316
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities controlled by key management
806,019
864,617
26
DIRECTORS' TRANSACTIONS
Dividends totalling £500,520 (2023 - £1,496,400) were paid in the year in respect of shares held by the company's directors.
Included within other creditors is a total balance of £553,329 (2023 - £721,207 ) due to the directors. The directors' loans are unsecured, interest free and repayable on demand.
27
ULTIMATE CONTROLLING PARTY
In the opinion of the directors the company is controlled by Mr P Bell.
28
ANALYSIS OF CHANGES IN NET FUNDS
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
15,614,551
(1,695,549)
13,919,002
Obligations under finance leases
(222,394)
107,560
(114,834)
15,392,157
(1,587,989)
13,804,168
BELL CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 37 -
29
PRIOR PERIOD ADJUSTMENT
The comparative figures have been restated to correctly account for Freehold Property that was previously accounted for as Investment Property. There is no impact on profit or reserves brought forward as a result of this adjustment.
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