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Registered number: 02988261









CLARET CIVIL ENGINEERING LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024







































 
CLARET CIVIL ENGINEERING LIMITED
 
 
COMPANY INFORMATION


Directors
A R Gibbons 
K P Potter 
P F Norman 
T C E Pettitt 




Registered number
02988261



Registered office
Old Mission House
St Botolph's Lane

Bury St Edmunds

Suffolk

IP33 2AX




Independent auditors
Whitings LLP
Chartered Accountants & Statutory Auditor

Greenwood House

Greenwood Court

Skyliner Way

Bury St Edmunds

Suffolk

IP32 7GY





 
CLARET CIVIL ENGINEERING 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
Statement of Cash Flows
12
Analysis of Net Debt
13
Notes to the Financial Statements
14 - 26

 
CLARET CIVIL ENGINEERING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The directors present their strategic report for the year ended 31 May 2024.

Business review
 
The directors are pleased with the performance of the company.
Turnover increased by 17% in the period. The company continued to navigate a changing economic climate and faced challenges due to the cost of living crisis such as increased direct costs. However, the company maintained its ability to react to changes as they arose remaining profitable throughout the year.
The directors are continuing to streamline the business, including continued investment in technology and innovative solutions. During the year the company has also invested heavily in plant and equipment, in order to facilitate continued expansion and growth.
Given the factors referred to above the directors are pleased with the performance of the company and the profit before tax reported.
This profit together with consistent careful cash flow management leaves the company in a good position at the end of the reporting period with strong cash balances.
The company continues to work towards a sustainable future as they develop new technology and are involved in several initiatives to form sound workforce resilience. These include our significant involvement and leadership within the following further education programmes: Apprenticeships, T Levels, and Training School alongside our clients.
Promotion and celebration of good practice, development and progression is key to our business and we thank our staff for another successful year.

Principal risks and uncertainties
 
The commercial environment is expected to remain competitive, particularly in respect of client affordability challenges and the imminent commencement of new investment cycles within the water industry. However the directors remain confident of delivering against the company’s growth objective.
The directors recognise the need to ensure the ready availability of suitably skilled resources to underpin the delivery capability of the business and will look to facilitate adequate development pathways for individuals within the company and for those who arrive with us. 
The company is exposed to credit risk which is mitigated through careful management including credit checks in respect of new clients and the setting of credit limits.

Page 1

 
CLARET CIVIL ENGINEERING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Financial key performance indicators
 
The company's key performance indicators are turnover, gross profit margin and operating profit.
Turnover increased during the period by 17% compared with the previous year.
The gross profit for the year saw an increase from £5,784,269 to £7,417,232 in this reporting period, and operating profit remained strong.
Future development strategy
The company will be continuing to invest in technology, innovation equipment, all leading to greener solutions reducing Carbon impact.


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





A R Gibbons
Director

Date: 26 February 2025
Page 2

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

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

Directors' 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 £1,543,106 (2023 - £994,777).

Directors

The directors who served during the year were:

A R Gibbons 
M S Gray (resigned 30 September 2023)
K P Potter 
P F Norman 
T C E Pettitt 

Future developments

Future developments are included in the Strategic Report.

Page 3

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 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 auditorsWhitings LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





A R Gibbons
Director

Date: 26 February 2025
Page 4

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARET CIVIL ENGINEERING LIMITED
 

Opinion


We have audited the financial statements of Claret Civil Engineering Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, 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 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARET CIVIL ENGINEERING 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

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARET CIVIL ENGINEERING 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:
Enquiry of management about any known or suspected instances of non-compliance with laws and regulations, accidents in the workplace, and fraud;
Enquiry of management around actual and potential litigation and claims;
Reviewing compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Challenging assumptions and judgments made by management in their significant accounting estimates; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the course of normal business.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.
Page 7

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARET CIVIL ENGINEERING LIMITED (CONTINUED)


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 Moore ACCA (Senior Statutory Auditor)
  
for and on behalf of
Whitings LLP
 
Chartered Accountants
Statutory Auditor
  
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY

26 February 2025
Page 8

 
CLARET CIVIL ENGINEERING LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
21,550,717
18,389,652

Cost of sales
  
(14,133,485)
(12,605,383)

Gross profit
  
7,417,232
5,784,269

Administrative expenses
  
(5,449,442)
(4,515,098)

Other operating income
 5 
9,356
1,040

Operating profit
 6 
1,977,146
1,270,211

Interest receivable and similar income
 10 
142,150
62,319

Interest payable and similar expenses
 11 
(55,955)
(53,012)

Profit before tax
  
2,063,341
1,279,518

Tax on profit
 12 
(520,235)
(284,741)

Profit for the financial year
  
1,543,106
994,777

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 14 to 26 form part of these financial statements.

Page 9

 
CLARET CIVIL ENGINEERING LIMITED
REGISTERED NUMBER: 02988261

BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
2,242,217
2,355,962

  
2,242,217
2,355,962

Current assets
  

Stocks
 15 
5,000
5,000

Debtors: amounts falling due within one year
 16 
3,138,287
3,578,372

Cash at bank and in hand
 17 
3,732,817
3,909,012

  
6,876,104
7,492,384

Creditors: amounts falling due within one year
 18 
(4,384,467)
(3,170,985)

Net current assets
  
 
 
2,491,637
 
 
4,321,399

Total assets less current liabilities
  
4,733,854
6,677,361

Creditors: amounts falling due after more than one year
 19 
(429,958)
(862,254)

Provisions for liabilities
  

Deferred tax
 21 
(506,538)
(560,855)

  
 
 
(506,538)
 
 
(560,855)

Net assets
  
3,797,358
5,254,252


Capital and reserves
  

Called up share capital 
 22 
1,000
1,000

Capital redemption reserve
 23 
1,000
1,000

Profit and loss account
 23 
3,795,358
5,252,252

  
3,797,358
5,254,252


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


A R Gibbons
Director

Date: 26 February 2025

The notes on pages 14 to 26 form part of these financial statements.

Page 10

 
CLARET CIVIL ENGINEERING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 June 2022
1,000
1,000
4,357,475
4,359,475



Profit for the year
-
-
994,777
994,777

Dividends: Equity capital
-
-
(100,000)
(100,000)



At 1 June 2023
1,000
1,000
5,252,252
5,254,252



Profit for the year
-
-
1,543,106
1,543,106

Dividends: Equity capital
-
-
(3,000,000)
(3,000,000)


At 31 May 2024
1,000
1,000
3,795,358
3,797,358
Page 11

 
CLARET CIVIL ENGINEERING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,543,106
994,777

Adjustments for:

Depreciation of tangible assets
880,944
903,616

Profit on disposal of tangible assets
(58,283)
(30,006)

Interest paid
55,955
53,012

Interest received
(142,150)
(62,319)

Taxation charge
520,235
284,741

Decrease/(increase) in debtors
440,083
(818,290)

Increase in creditors
707,746
1,070,056

Corporation tax (paid)
(20,161)
(182,346)

Net cash generated from operating activities

3,927,475
2,213,241


Cash flows from investing activities

Purchase of tangible fixed assets
(805,954)
(1,590,252)

Sale of tangible fixed assets
97,037
255,495

Interest received
142,150
62,319

HP interest paid
(55,856)
(53,012)

Net cash from investing activities

(622,623)
(1,325,450)

Cash flows from financing activities

Repayment of finance leases
(480,948)
204,624

Dividends paid
(3,000,000)
(100,000)

Interest paid
(99)
-

Net cash used in financing activities
(3,481,047)
104,624

Net (decrease)/increase in cash and cash equivalents
(176,195)
992,415

Cash and cash equivalents at beginning of year
3,909,012
2,916,597

Cash and cash equivalents at the end of year
3,732,817
3,909,012


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,732,817
3,909,012


Page 12

 
CLARET CIVIL ENGINEERING LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024




At 1 June 2023
Cash flows
At 31 May 2024
£

£

£

Cash at bank and in hand

3,909,012

(176,195)

3,732,817

Finance leases

(1,250,134)

480,948

(769,186)


2,658,878
304,753
2,963,631

The notes on pages 14 to 26 form part of these financial statements.
Page 13

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Claret Civil Engineering Limited is a private company limited by shares and is incorporated in England and Wales. 
The address of its registered office is Old Mission House, St Botolph's Lane, Bury St Edmunds, Suffolk, IP33 2AX. The company provides civil engineering services.
The company's principal activities are those of civil engineering and building works contractor.

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

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.

Turnover in respect of long term contracts is recognised based on cost plus attributable profits based on the stage of completion, and where these can be reasonably foreseen. Provision is made for losses when foreseen.

 
2.3

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 14

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

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.

 
2.7

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.


Page 15

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.8

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Short-term leasehold property
-
10 years straight line
Plant and machinery
-
25% reducing balance
Motor vehicles
-
Between 33.33% and 40% reducing balance
Fixtures and fittings
-
Between 25% and 35% reducing balance

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.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 16

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.
 
2.14

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
Page 17

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)

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 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.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.15

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.

Page 18

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Useful economic lives of tangible assets:-
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Valuation of amounts recoverable on contracts:-
The directors review ongoing contracts at the balance sheet date and use experience and relevant knowledge to assess profits to be recognised when assessing the amounts recoverable on contracts.
Impairment of debtors:-
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, its financial circumstances, the ageing profile of debtors and historical experience.


4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
9,356
1,040



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
40,554
10,000

Page 19

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

7.


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
11,000
9,700

8.


Employees

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


2024
2023
£
£

Wages and salaries
6,520,914
4,766,378

Social security costs
716,559
442,039

Cost of defined contribution scheme
223,843
127,649

7,461,316
5,336,066


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


        2024
        2023
            No.
            No.







Operatives
83
59



Management and administrative staff
70
45

153
104

Page 20

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
1,503,196
544,605

Company contributions to defined contribution pension schemes
112,217
40,127

1,615,413
584,732


During the year retirement benefits were accruing to 2 directors (2023 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £1,158,694 (2023 - £151,643).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).


10.


Interest receivable

2024
2023
£
£


Bank and other interest receivable
142,150
62,319


11.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
55,856
53,012

Other interest payable
99
-

55,955
53,012

Page 21

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
574,552
20,260


Total current tax
574,552
20,260

Deferred tax


Origination and reversal of timing differences
(54,317)
264,481

Total deferred tax
(54,317)
264,481


Tax on profit
520,235
284,741

Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
2,063,340
1,279,518


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19-25%)
515,835
255,903

515,835
255,903

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
4,400
1,091

Remeasurement of deferred tax rates
-
52,862

Other differences leading to an increase/(decrease) in the tax charge
-
(25,115)

Total tax charge for the year
520,235
284,741


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 22

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

13.


Dividends

2024
2023
£
£


Dividends on ordinary shares
3,000,000
100,000

14.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 June 2023
443,357
1,850,331
2,645,238
253,435
5,192,361


Additions
-
157,267
638,812
9,875
805,954


Disposals
-
(59,583)
(233,113)
-
(292,696)



At 31 May 2024

443,357
1,948,015
3,050,937
263,310
5,705,619



Depreciation


At 1 June 2023
443,357
943,094
1,300,445
149,504
2,836,400


Charge for the year on owned assets
-
245,269
598,904
36,772
880,945


Disposals
-
(37,104)
(216,839)
-
(253,943)



At 31 May 2024

443,357
1,151,259
1,682,510
186,276
3,463,402



Net book value



At 31 May 2024
-
796,756
1,368,427
77,034
2,242,217



At 31 May 2023
-
907,238
1,344,793
103,931
2,355,962

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
359,715
482,267

Motor vehicles
424,705
624,620

784,420
1,106,887

Page 23

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


Stocks

2024
2023
£
£

Raw materials and consumables
5,000
5,000



16.


Debtors

2024
2023
£
£


Trade debtors
1,593,826
990,294

Prepayments and accrued income
64,534
57,592

Amounts recoverable on long-term contracts
1,479,927
2,530,486

3,138,287
3,578,372



17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
3,732,817
3,909,012



18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
852,314
1,634,883

Corporation tax
574,510
20,118

Other taxation and social security
898,666
503,658

Obligations under finance lease and hire purchase contracts
339,228
387,880

Other creditors
131,662
17,271

Accruals and deferred income
1,588,087
607,175

4,384,467
3,170,985


Page 24

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
429,958
862,254


Finance lease and hire purchase obligations are secured on the assets concerned.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
370,398
420,457

Between 1-5 years
438,575
904,920

808,973
1,325,377


21.


Deferred taxation




2024
2023


£

£






At beginning of year
(560,855)
(296,374)


Charged to the profit or loss
54,317
(264,481)



At end of year
(506,538)
(560,855)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(530,283)
(562,720)

Other short term timing differences
23,745
1,865


The net deferred tax expected to reverse next year is £121,941 (2023 - £172,810) relating to the reversal of timing differences on tangible fixed assets and other short term timing differences.
Page 25

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000 (2023 - 1,000) ordinary shares of £1.00 each
1,000
1,000



23.


Reserves

Capital redemption reserve

Capital redemption reserve - records the nominal value of the shares repurchased by the company.

Profit and loss account

Profit and loss account - includes all current and prior related retained profits and losses.


24.


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 £179,899 (2023 - £147,649)Contributions totalling £94,978 (2023 - £17,271) were payable to the fund at the balance sheet date.


25.


Commitments under operating leases

At 31 May 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
86,394
65,035

Later than 1 year and not later than 5 years
251,113
253,336

Later than 5 years
-
62,223

337,507
380,594


26.


Related party transactions

Included in the financial statements is rent payable of £10,000 (2023 - £10,000) to a company in which a close family member of a director has an interest.
During the year the company incurred management charges of £250,000 (2023 - £125,000) from a company in which a director holds an interest.

 
Page 26