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Registered number: 03909595









NORTHFIELD CONSTRUCTION LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
COMPANY INFORMATION


Directors
P Bryan (resigned 8 November 2023)
D Oughton 
S Dean 




Company secretary
L Oughton



Registered number
03909595



Registered office
Northfield House
Tilford Road

Newstead Village

Nottinghamshire

NG15 0BS




Independent auditors
Barnett & Turner Accountants Ltd
Chartered Accountants & Registered Auditor

Cromwell House

68 West Gate

Mansfield

Nottinghamshire

NG18 1RR





 
NORTHFIELD CONSTRUCTION LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26


 
NORTHFIELD CONSTRUCTION LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Introduction
 
The directors present their strategic report for the year ended 30 September 2024.

Business review
 
The financial results for the year ended 30 September 2024 are in line with the directors' expectations.
With the ongoing economic uncertainty, the company continues to take a cautious approach and carefully selects tenders and contracts with principal contractors with a proven track record and looks to build strong trading partnerships with its customers.  The company has continued to expand its client base and reputation as the leading reinforced concrete specialist in the Midlands.
Northfield has strengthened relations with key suppliers within the supply chain, ensuring payments to suppliers are within agreed payment terms.  A strong supply chain has been instrumental to Northfield’s continued success.
The company continues to utilise its own assets, ensuring reduced operational expenditure on hired plant and equipment.  Capital expenditure during the year has been reduced as the company has been able to manage its own assets accordingly.
The company has been able to retain its experienced construction workforce despite current economic pressures.  The highly skilled and professional workforce remain key to ensure our three primary objectives - 
Quality-Safety-Success - are achieved.
 

Principal risks and uncertainties
 
The company's principal financial instruments comprise bank balances, trade debtors and creditors, loans to the business and obligations under hire purchase and finance lease agreements. The main purpose of these instruments is to finance the business operations.  The principal risks and uncertainties are described below:
Price risk
Raw materials prices in respect of concrete and rebar have remained fairly stable during the year.  Labour costs are showing a significant increase, especially for highly skilled specialist trades.  The company's objective is to minimise risks and uncertainties to the level of the market place in which it operates.
Cash flow and liquidity risk
Business forecasts identifying, in particular, liquidity requirements are produced frequently whilst internal controls ensure the safeguarding of the company's assets.
Trade creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
The business is a lessee in respect of operating lease agreements.  The liquidity risk in respect of these is managed by ensuring there are sufficient funds to meet the payments through appropriate cash management using cash flow forecasts.




 
Page 1

 
NORTHFIELD CONSTRUCTION LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Credit risk
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.  The amounts presented in the balance sheet are net of allowances for bad and doubtful debts.
In respect of bank balances, surplus cash is held with the company’s bankers, Lloyds.  As an A-rated bank, the directors consider this to be among Britain’s strongest and safest, and feel the company’s short-term cash is consequently in a low-risk category. 

Financial key performance indicators
 
The KPIs that the company use are relevant to the type of business that it operates.  The financial KPIs that the company use are turnover and operating profit.

Other key performance indicators
 
The other KPIs that the company use are operational (staff retention and motivation) and from a customer service perspective (customer feedback and retention, and new customers).  These KPIs are within the targets set for the year.


This report was approved by the board on 13 February 2025 and signed on its behalf.



D Oughton
Director

Page 2

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £251,541 (2023 - loss £276,357).

Dividends of £475,000 (2023 - £NIL) have been paid during the year.

Directors

The directors who served during the year were:

P Bryan (resigned 8 November 2023)
D Oughton 
S Dean 

Future developments

The directors continue to look to the future with positivity despite continued pressures in the construction sector. Northfield's ongoing policy of investing in plant and machinery to reduce its hire charges continues to be a positive strategy.
Northfield prides itself on the quality and expertise of its personnel.  By continued investment in training of its staff and recruiting only the best management, the company is safeguarding its position for the future. 

Page 3

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsBarnett & Turner Accountants Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 13 February 2025 and signed on its behalf.
 





D Oughton
Director

Page 4

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHFIELD CONSTRUCTION LIMITED
 

Opinion


We have audited the financial statements of Northfield Construction Limited (the 'company') for the year ended 30 September 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHFIELD CONSTRUCTION LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters 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 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 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 directors' responsibilities statement set out on page 3, 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.


Page 6

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHFIELD CONSTRUCTION LIMITED (CONTINUED)


Auditors' 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 auditors' 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:

As part of our planning process:

We enquired of management regarding the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.  The company did not inform us of any known, suspected or alleged fraud.

We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and current tax legislation.

We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation depreciation and amounts recoverable on contracts.

Testing key revenue lines, in particular cut-off, for evidence of management bias.

Performing a physical verification of key assets.

Obtaining third-party confirmation of material bank and loan balances.
 
Documenting and verifying all significant related party balances and transactions.
 
Page 7

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTHFIELD CONSTRUCTION LIMITED (CONTINUED)


Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' 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 2006Our 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 auditors' 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.





Jonathan Wilson FCA CTA (senior statutory auditor)
  
for and on behalf of
Barnett & Turner Accountants Ltd
 
Chartered Accountants
Registered Auditor
  
Cromwell House
68 West Gate
Mansfield
Nottinghamshire
NG18 1RR

13 February 2025
Page 8

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
21,230,373
18,330,584

Cost of sales
  
(18,158,548)
(15,997,545)

Gross profit
  
3,071,825
2,333,039

Administrative expenses
  
(2,734,211)
(2,640,698)

Operating profit/(loss)
 5 
337,614
(307,659)

Interest receivable and similar income
 9 
26,333
13,524

Interest payable and similar expenses
 10 
(37,914)
(43,972)

Profit/(loss) before tax
  
326,033
(338,107)

Tax on profit/(loss)
 11 
(74,492)
61,750

Profit/(loss) for the financial year
  
251,541
(276,357)

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 26 form part of these financial statements.

Page 9

 
NORTHFIELD CONSTRUCTION LIMITED
REGISTERED NUMBER: 03909595

BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2024
2023
2023
Note
£
£
£
£

Fixed assets
  

Tangible assets
 13 
1,320,222
1,697,107

Current assets
  

Debtors: amounts falling due within one year
 14 
1,631,143
3,819,211

Cash at bank and in hand
 15 
1,646,341
1,505,097

  
3,277,484
5,324,308

Creditors: amounts falling due within one year
 16 
(1,736,178)
(3,790,194)

Net current assets
  
 
 
1,541,306
 
 
1,534,114

Total assets less current liabilities
  
2,861,528
3,231,221

Creditors: amounts falling due after more than one year
 17 
(178,251)
(378,677)

Provisions for liabilities
  

Deferred tax
 19 
(177,592)
(123,400)

Net assets
  
2,505,685
2,729,144


Capital and reserves
  

Called up share capital 
 20 
8
8

Profit and loss account
 21 
2,505,677
2,729,136

  
2,505,685
2,729,144


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 February 2025.




D Oughton
Director


The notes on pages 12 to 26 form part of these financial statements.

Page 10

 
NORTHFIELD CONSTRUCTION LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2022
8
3,005,493
3,005,501



Loss for the year
-
(276,357)
(276,357)



At 1 October 2023
8
2,729,136
2,729,144



Profit for the year
-
251,541
251,541

Dividends: Equity capital
-
(475,000)
(475,000)


At 30 September 2024
8
2,505,677
2,505,685


The notes on pages 12 to 26 form part of these financial statements.

Page 11

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

Northfield Construction Limited is a private limited company incorporated and domiciled in England.  Its registered office and principal place of business is situated at Northfield House, Tilford Road, Newstead Village, Nottinghamshire NG15 0BS.
The principal activity of the company is that of construction.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Northfield Holdings Limited as at 30 September 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

 
2.3

Going concern

On the basis of their assessment of the company's financial position, the directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of preparation of the financial statements.

Page 12

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 13

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line or reducing balance method as appropriate.

Depreciation is provided on the following basis:

Plant and machinery
-
10-20% on valuation
Motor vehicles
-
25% reducing balance
Office equipment
-
33.33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Amounts recoverable on contracts

Amounts recoverable on contracts are stated at cost, including labour and attributable overheads, plus an element of profit relevant to the stage of completion at the balance sheet date. 

At each balance sheet date, amounts recoverable on contracts are assessed for impairment and, if impaired, the carrying amount is reduced to selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 15

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.12

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted
Page 16

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.12
Financial instruments (continued)

where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates.  The items in the financial statements where these judgements and estimates have been made include:
Revenue recognition and amounts recoverable on contracts:
Contract revenue is recognised as activity progresses, based on certified applications reflecting the stage of completion of the contract.  Profit is recognised as the work is carried out only when the final outcome of the contract can be assessed with reasonable certainty.  Full provision is made for losses on all contracts in the year in which they are first foreseen.
Depreciation of tangible fixed assets:
Determining the appropriate rate of depreciation of tangible fixed assets requires an estimation of the useful economic life and ultimate net realisable value.  The useful economic life is determined to be the period during which each asset will generate positive cash flows for the company.


4.


Turnover

All turnover arose within the United Kingdom.

Page 17

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

5.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2024
2023
£
£

Exchange differences
3,562
-

Other operating lease rentals
248,104
245,880

Depreciation of tangible fixed assets
-
535,715

(Profit)/loss on sale of tangible fixed assets
(139,413)
(39,358)


6.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2024
2023
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
11,500
11,500

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,815,347
2,631,459

Social security costs
316,214
292,712

Cost of defined contribution scheme
200,892
188,669

3,332,453
3,112,840


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Management and administration
24
18



Construction
31
38

55
56

Page 18

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
265,208
296,351

Company contributions to defined contribution pension schemes
13,533
14,800

Compensation for loss of office
-
98,000

278,741
409,151


During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £131,029 (2023 - £156,497).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £5,333 (2023 - £4,000).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
26,333
13,524


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
37,914
43,972

Page 19

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
20,300
-


20,300
-


Total current tax
20,300
-

Deferred tax


Origination and reversal of timing differences
54,192
(61,750)

Total deferred tax
54,192
(61,750)


Tax on profit/(loss)
74,492
(61,750)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
326,033
(338,107)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
81,508
(64,240)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,815
940

Capital allowances for year in excess of depreciation
34,406
(9,690)

Tax losses relieved
(96,041)
-

Book profit on chargeable assets
54,192
(61,752)

Unrelieved tax losses carried forward
-
72,992

Marginal relief
(2,388)
-

Total tax charge for the year
74,492
(61,750)

Page 20

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Dividends

2024
2023
£
£


Dividends paid
475,000
-


13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2023
6,059,343
999,724
126,350
7,185,417


Additions
21,398
154,354
4,843
180,595


Disposals
(717,489)
(191,252)
(22,002)
(930,743)



At 30 September 2024

5,363,252
962,826
109,191
6,435,269



Depreciation


At 1 October 2023
4,840,179
543,158
104,972
5,488,309


Charge for the year on owned assets
328,774
124,664
12,407
465,845


Disposals
(717,489)
(99,616)
(22,002)
(839,107)



At 30 September 2024

4,451,464
568,206
95,377
5,115,047



Net book value



At 30 September 2024
911,788
394,620
13,814
1,320,222



At 30 September 2023
1,219,163
456,566
21,378
1,697,107

Page 21

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


Debtors

2024
2023
£
£


Trade debtors
723,779
762,441

Other debtors
171,423
187,574

Prepayments and accrued income
303,003
298,688

Amounts recoverable on long term contracts
400,538
2,469,573

Tax recoverable
32,400
100,935

1,631,143
3,819,211



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,646,341
1,505,097



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
200,000
200,000

Payments received on account
-
228,000

Trade creditors
1,222,996
2,862,134

Corporation tax
52,700
-

Other taxation and social security
65,348
83,168

Accruals and deferred income
195,134
416,892

1,736,178
3,790,194


The bank loan is a CBILS facility, secured by fixed and floating charges over the assets of the company.

Page 22

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

17.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
166,667
366,667

Accruals and deferred income
11,584
12,010

178,251
378,677



18.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
200,000
200,000

Amounts falling due 1-2 years

Bank loans
166,667
200,000

Amounts falling due 2-5 years

Bank loans
-
166,667


366,667
566,667


The bank loan is a CBILS facility, secured by fixed and floating charges over the assets of the company.


19.


Deferred taxation




2024


£






At beginning of year
(123,400)


Charged/(credited) to the profit or loss
(54,192)



At end of year
(177,592)

Page 23

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
19.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
186,054
220,459

Tax losses carried forward
(4,538)
(92,989)

Other short term timing differences
(3,924)
(4,070)

177,592
123,400

Page 24

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



8 (2023 - 8) Ordinary shares of £1.00 each
8
8



21.


Reserves

Profit and loss account

Profits after dividends and reserve transfers, as noted above, are accumulated and carried forward in the profit and loss account.


22.


Capital commitments

There were no capital commitments at the year end (2023: £Nil).


23.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £200,892 (2023 - £188,669). Contributions totalling £15,697 (2023 - £16,281) were payable to the fund at the balance sheet date and are included in creditors.


24.


Commitments under operating leases

At 30 September 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
14,279
3,222

Later than 1 year and not later than 5 years
64,293
77,089

Later than 5 years
1,017,500
1,202,500

1,096,072
1,282,811


25.


Transactions with directors

During the year the company lent a director £62,815. At the end of the year there was an amount of £48,000 outstanding, which is included in other debtors.

Page 25

 
NORTHFIELD CONSTRUCTION LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

26.


Related party transactions

The company occupies premises owned by D Oughton and P Bryan.  Rentals payable on a normal commercial basis during the year amounted to £185,000 (2023 - £185,000).


27.


Controlling party

The company is a wholly owned subsidiary of Northfield Holdings Limited, a company incorporated and domiciled in England. Northfield Holdings Limited is controlled by D Oughton.
 
Page 26