107 false false false false true false false false false false false true false false false false false false No description of principal activity 2023-03-01 Sage Accounts Production Advanced 2023 - FRS102_2023 111,165 73,246 195,797 195,797 45,980 45,980 45,980 114,942 163,462 xbrli:pure xbrli:shares iso4217:GBP 03726044 2023-03-01 2024-02-29 03726044 2024-02-29 03726044 2023-02-28 03726044 2022-03-01 2023-02-28 03726044 2023-02-28 03726044 2022-02-28 03726044 core:NetGoodwill 2023-03-01 2024-02-29 03726044 bus:RegisteredOffice 2023-03-01 2024-02-29 03726044 bus:OrdinaryShareClass1 2023-03-01 2024-02-29 03726044 bus:LeadAgentIfApplicable 2023-03-01 2024-02-29 03726044 bus:Director3 2023-03-01 2024-02-29 03726044 bus:Director1 2023-03-01 2024-02-29 03726044 core:WithinOneYear 2024-02-29 03726044 core:WithinOneYear 2023-02-28 03726044 core:NetGoodwill 2024-02-29 03726044 core:LandBuildings 2023-02-28 03726044 core:PlantMachinery 2023-02-28 03726044 core:FurnitureFittings 2023-02-28 03726044 core:MotorVehicles 2023-02-28 03726044 core:LandBuildings 2024-02-29 03726044 core:PlantMachinery 2024-02-29 03726044 core:FurnitureFittings 2024-02-29 03726044 core:MotorVehicles 2024-02-29 03726044 core:LandBuildings 2023-03-01 2024-02-29 03726044 core:PlantMachinery 2023-03-01 2024-02-29 03726044 core:FurnitureFittings 2023-03-01 2024-02-29 03726044 core:MotorVehicles 2023-03-01 2024-02-29 03726044 core:AfterOneYear 2024-02-29 03726044 core:AfterOneYear 2023-02-28 03726044 core:RetainedEarningsAccumulatedLosses 2023-02-28 03726044 core:RetainedEarningsAccumulatedLosses 2022-02-28 03726044 core:RetainedEarningsAccumulatedLosses 2024-02-29 03726044 core:RetainedEarningsAccumulatedLosses 2023-02-28 03726044 core:ShareCapital 2024-02-29 03726044 core:ShareCapital 2023-02-28 03726044 core:SharePremium 2024-02-29 03726044 core:SharePremium 2023-02-28 03726044 core:CapitalRedemptionReserve 2024-02-29 03726044 core:CapitalRedemptionReserve 2023-02-28 03726044 core:BetweenOneFiveYears 2024-02-29 03726044 core:BetweenOneFiveYears 2023-02-28 03726044 core:CostValuation core:Non-currentFinancialInstruments 2024-02-29 03726044 core:Non-currentFinancialInstruments 2024-02-29 03726044 core:Non-currentFinancialInstruments 2023-02-28 03726044 core:AcceleratedTaxDepreciationDeferredTax 2024-02-29 03726044 core:AcceleratedTaxDepreciationDeferredTax 2023-02-28 03726044 core:TaxLossesCarry-forwardsDeferredTax 2024-02-29 03726044 core:RetirementBenefitObligationsDeferredTax 2024-02-29 03726044 core:RetirementBenefitObligationsDeferredTax 2023-02-28 03726044 core:LandBuildings 2023-02-28 03726044 core:PlantMachinery 2023-02-28 03726044 core:FurnitureFittings 2023-02-28 03726044 core:MotorVehicles 2023-02-28 03726044 core:DeferredTaxation 2023-02-28 03726044 core:DeferredTaxation 2024-02-29 03726044 bus:LeadAgentIfApplicable 2022-03-01 2023-02-28 03726044 bus:MediumEntities 2023-03-01 2024-02-29 03726044 bus:Audited 2023-03-01 2024-02-29 03726044 bus:Medium-sizedCompaniesRegimeForAccounts 2023-03-01 2024-02-29 03726044 bus:PrivateLimitedCompanyLtd 2023-03-01 2024-02-29 03726044 bus:FullAccounts 2023-03-01 2024-02-29 03726044 bus:OrdinaryShareClass1 2024-02-29 03726044 bus:OrdinaryShareClass1 2023-02-28 03726044 core:LandBuildings core:LongLeaseholdAssets 2023-03-01 2024-02-29 03726044 core:DeferredTaxation 2023-03-01 2024-02-29
COMPANY REGISTRATION NUMBER: 03726044
AGETUR (UK) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
29 February 2024
AGETUR (UK) LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 29 FEBRUARY 2024
Contents
Page
Strategic report
1
Director's report
3
Independent auditor's report to the members
5
Profit and loss account
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11
AGETUR (UK) LIMITED
STRATEGIC REPORT
YEAR ENDED 29 FEBRUARY 2024
Principal activities The company is a contractor to large, nationally renowned companies in the house building sector. Its main activities are associated with new housing projects of varying sizes and are groundworks, drainage works and roadworks. Results for the financial year The audited financial statements for the year ended 29 February 2024 showed a profit of £111,165 (2023: £73,246). The balance sheet shows net assets of £4,139,211 (2023: £4,028,046). During the year ended 29 February 2024 the company achieved turnover of £21.2m (2023 £27.7m). Business review and future developments The business environment continues to be challenging and the rising prices of materials and equipment caused by macroeconomic issues post coronavirus and the conflict in Ukraine, coupled with increasing competition within the construction sector puts pressure on gross profit and the business faces challenges passing these costs on when contracts are in a fixed price period. There has been no significant change in the client base during the year and we continue to focus on 10 to 20 contracts at any one time and are always looking for new opportunities with new customers and sites. The Directors, employees and supply chain remain key to our success and we continue to invest in the business through appropriate plant and invest in our staff through ongoing training, apprenticeship schemes, support for professional qualifications and promotion opportunities. Key financial performance indicators We consider that our key financial performance indicators are those that communicate the performance and strength of the company as a whole, these being turnover and gross margin as follows:
2024 2023
£ £
Turnover 21,238,768 27,712,522
Gross profit margin 12.4% 9.1%
Principal risks and uncertainties Health, safety and environmental risks are of paramount importance to the company's management. It is the company's policy to undertake necessary steps to comply with all requirements under the 'Health and Safety at Work Act' and other relevant codes of practice and they are continuing to invest in this area to minimise the risk. Liquidity risk - The company manages financial risk by continually monitoring and forecasting cashflows to ensure sufficient liquidity is available to meet foreseeable needs and to invest in cash assets safely and profitably. Credit risk - The main asset from which credit risk arises is amounts recoverable from long term contracts which is mitigated by maintaining close relationships with customers and related parties and applying good credit control practices. Price risk - The company's exposure to price risk consists mainly of movements in the underlying raw material, wages and salary costs. The directors keep under review the price fluctuations and agree contract prices to reduce the risk.
This report was approved by the board of directors on 26 February 2025 and signed on behalf of the board by:
R J Rexton
Director
Registered office:
2 Crossways Business Centre
Bicester Road
Kingswood
Aylesbury
Bucks
HP18 0RA
AGETUR (UK) LIMITED
DIRECTOR'S REPORT
YEAR ENDED 29 FEBRUARY 2024
The director presents his report and the financial statements of the company for the year ended 29 February 2024 .
Directors
The directors who served the company during the year were as follows:
C D Dickens
R J Rexton
C D Dickens resigned as a director on 11 March 2024.
Dividends
The director does not recommend the payment of a dividend.
Qualifying indemnity provision
The company has qualifying third party indemnity provisions for the benefit of the directors. These provisions remain in place at the time of approval.
Disclosure of information in the strategic report
The company has chose in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of future developments and financial risk management.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
- select suitable accounting policies 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 director is 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. He is 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.
Statement of disclosure of information to auditors
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 26 February 2025 and signed on behalf of the board by:
R J Rexton
Director
Registered office:
2 Crossways Business Centre
Bicester Road
Kingswood
Aylesbury
Bucks
HP18 0RA
AGETUR (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGETUR (UK) LIMITED
YEAR ENDED 29 FEBRUARY 2024
Opinion
We have audited the financial statements of Agetur (UK) Limited (the 'company') for the year ended 29 February 2024 which comprise the profit and loss account, balance sheet, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 29 February 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor'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
We have nothing to report in respect of the following matters in relation to which the ISAs(UK) require us to report to you where:
- the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's 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 director's 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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: - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; - Challenging assumptions and judgements made by management in their significant accounting estimates; - Identifying and testing journal entries, in particular any manual journal entries posted by unexpected users, posted with descriptions indicating a higher level of risk, or posted late with a favourable impact on financial performance. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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. 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 auditor’s report. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
W J E Kerr
(Senior Statutory Auditor)
For and on behalf of
Xeinadin Audit Limited
Chartered Accountants & Statutory Auditor
2 Crossways Business Centre
Bicester Road
Kingswood
Aylesbury
Bucks
HP18 0RA
26 February 2025
AGETUR (UK) LIMITED
PROFIT AND LOSS ACCOUNT
YEAR ENDED 29 FEBRUARY 2024
2024
2023
Note
£
£
Turnover
4
21,238,768
27,712,522
Cost of sales
18,601,166
25,173,969
------------
------------
Gross profit
2,637,602
2,538,553
Administrative expenses
2,468,647
2,418,137
-----------
-----------
Operating profit
5
168,955
120,416
Other interest receivable and similar income
9
1,940
1,341
Interest payable and similar expenses
10
11,210
939
-----------
-----------
Profit before taxation
159,685
120,818
Tax on profit
11
48,520
47,572
--------
--------
Profit for the financial year and total comprehensive income
111,165
73,246
--------
--------
Retained earnings at the start of the year
3,903,044
3,829,798
-----------
-----------
Retained earnings at the end of the year
4,014,209
3,903,044
-----------
-----------
All the activities of the company are from continuing operations.
AGETUR (UK) LIMITED
BALANCE SHEET
29 February 2024
2024
2023
Note
£
£
£
£
Fixed assets
Tangible assets
13
1,004,951
836,091
Investments
14
45,980
45,980
-----------
--------
1,050,931
882,071
Current assets
Debtors
15
5,282,487
5,822,875
Cash at bank and in hand
1,580,546
1,680,468
-----------
-----------
6,863,033
7,503,343
Creditors: amounts falling due within one year
16
3,414,607
4,220,844
-----------
-----------
Net current assets
3,448,426
3,282,499
-----------
-----------
Total assets less current liabilities
4,499,357
4,164,570
Creditors: amounts falling due after more than one year
17
196,684
21,582
Provisions
Taxation including deferred tax
19
163,462
114,942
-----------
-----------
Net assets
4,139,211
4,028,046
-----------
-----------
Capital and reserves
Called up share capital
22
3,000
3,000
Share premium account
23
120,002
120,002
Capital redemption reserve
23
2,000
2,000
Profit and loss account
23
4,014,209
3,903,044
-----------
-----------
Shareholders funds
4,139,211
4,028,046
-----------
-----------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 26 February 2025 , and are signed on behalf of the board by:
R J Rexton
Director
Company registration number: 03726044
AGETUR (UK) LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 29 FEBRUARY 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
111,165
73,246
Adjustments for:
Depreciation of tangible assets
279,456
223,360
Other interest receivable and similar income
( 1,940)
( 1,341)
Interest payable and similar expenses
11,210
939
Gains on disposal of tangible assets
( 152,529)
( 110,141)
Tax on profit
48,520
47,572
Changes in:
Trade and other debtors
540,388
259,416
Trade and other creditors
( 832,645)
( 243,753)
--------
--------
Cash generated from operations
3,625
249,298
Tax received
12,462
------
--------
Net cash from operating activities
3,625
261,760
------
--------
Cash flows from investing activities
Purchase of tangible assets
( 654,645)
( 178,833)
Proceeds from sale of tangible assets
358,858
187,508
Interest received
1,940
1,341
--------
--------
Net cash (used in)/from investing activities
( 293,847)
10,016
--------
--------
Cash flows from financing activities
Payments of finance lease liabilities
( 67,140)
( 7,115)
Interest paid
( 11,210)
( 938)
New finance leases and hire purchase contracts
268,650
40,340
--------
--------
Net cash from financing activities
190,300
32,287
--------
--------
Net (decrease)/increase in cash and cash equivalents
( 99,922)
304,063
Cash and cash equivalents at beginning of year
1,680,468
1,376,405
-----------
-----------
Cash and cash equivalents at end of year
1,580,546
1,680,468
-----------
-----------
AGETUR (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 29 FEBRUARY 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 2 Crossways Business Centre, Bicester Road, Kingswood, Aylesbury, Bucks, HP18 0RA.
2. Statement of compliance
The principal activity of the company during the year was that of a contractor for new house builders undertaking groundworks, brickworks, roads and sewers. These financial statements have been prepared in accordance with the Companies Act 2006 and applicable accounting standards including Financial Reporting Standard 102, 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102').
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest pound. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Going concern After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Distributions to equity holders
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.
Judgements and key sources of estimation uncertainty
In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ. 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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. Critical judgements in applying the company's accounting policies The critical judgements that the directors have made in the progress of applying the company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below. (i) Assessing indicators of impairment In assessing whether there have been any indicators of impairment assets, the directors have considered both internal and external sources of information such as market conditions, counterparty credit ratings and experience recoverability. There have been no indicators of impairments identified during the current financial year. Key sources of estimation uncertainty The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (ii) Estimating value in use Where an indication of impairment exists the directors will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value. (iii) Recoverability of receivables The company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual or groups of customers. (iv) Determining residual values and useful economic lives of property, plant and equipment The company depreciate tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
Revenue recognition
Turnover represents the amounts derived from construction contracts. Revenue for construction contracts is recognised by reference to the percentage of completion of the contract, provided the outcome can be reliably measured. When the outcome cannot be reliably measured, revenue is only recognised to the extent that it is probable that costs are recoverable. When it is probable that a loss will occur on a contract, this is recognised in full immediately as an onerous contract provision.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Operating leases
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
This reflects the excess of the sum payable to a former shareholder and the nominal value of the shares issued over the value of the assets acquired. Goodwill is written off in equal annual instalments over its estimated useful life of 20 years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
5% Straight Line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold Property
-
2% Straight Line
Plant & Machinery
-
25% Reducing Balance
Fixtures and Fittings
-
33% Reducing Balance
Motor Vehicles
-
25% Reducing Balance
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Construction contracts
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.
Financial instruments
The company has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments. Basic financial assets, which include trade and other receivables, cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. Basic financial liabilities, which include trade and other payables and obligations under hire purchase agreements, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year of less. If not, then they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. Employee benefits Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. Distributions to equity holders Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Turnover
Turnover arises from:
2024
2023
£
£
Construction contracts
21,238,768
27,712,522
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
279,456
223,360
Gains on disposal of tangible assets
( 152,529)
( 110,141)
--------
--------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
20,000
20,000
-------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2024
2023
No.
No.
Production staff
70
77
Administrative staff
37
39
----
----
107
116
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
5,184,931
5,161,852
Social security costs
588,462
573,552
Other pension costs
98,556
114,648
-----------
-----------
5,871,949
5,850,052
-----------
-----------
8. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
12,567
12,592
-------
-------
9. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
1,940
1,341
------
------
10. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
667
Interest on obligations under finance leases and hire purchase contracts
10,543
939
-------
----
11,210
939
-------
----
11. Tax on profit
Major components of tax expense
2024
2023
£
£
Deferred tax:
Origination and reversal of timing differences
48,520
47,572
-------
-------
Tax on profit
48,520
47,572
-------
-------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
159,685
120,818
--------
--------
Profit on ordinary activities by rate of tax
39,921
22,955
Effect of expenses not deductible for tax purposes
8,480
5,496
Investment tax credit
119
(6,156)
Adjustments in respect of prior periods - deferred tax
(2,309)
Adjustment to closing deferred tax to average rate
27,586
--------
--------
Tax on profit
48,520
47,572
--------
--------
12. Intangible assets
Goodwill
£
Cost
At 1 March 2023 and 29 February 2024
195,797
--------
Amortisation
At 1 March 2023 and 29 February 2024
195,797
--------
Carrying amount
At 29 February 2024
--------
At 28 February 2023
--------
13. Tangible assets
Leasehold Property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2023
226,281
2,298,657
219,637
805,775
3,550,350
Additions
4,346
336,588
19,156
294,555
654,645
Disposals
( 1,162,280)
( 50,320)
( 286,085)
( 1,498,685)
--------
-----------
--------
--------
-----------
At 29 February 2024
230,627
1,472,965
188,473
814,245
2,706,310
--------
-----------
--------
--------
-----------
Depreciation
At 1 March 2023
29,992
1,920,509
184,231
579,527
2,714,259
Charge for the year
4,612
144,458
16,192
114,194
279,456
Disposals
( 1,025,519)
( 44,808)
( 222,029)
( 1,292,356)
--------
-----------
--------
--------
-----------
At 29 February 2024
34,604
1,039,448
155,615
471,692
1,701,359
--------
-----------
--------
--------
-----------
Carrying amount
At 29 February 2024
196,023
433,517
32,858
342,553
1,004,951
--------
-----------
--------
--------
-----------
At 28 February 2023
196,289
378,148
35,406
226,248
836,091
--------
-----------
--------
--------
-----------
14. Investments
Unquoted investments
£
Cost
At 1 March 2023 and 29 February 2024
45,980
-------
Impairment
At 1 March 2023 and 29 February 2024
-------
Carrying amount
At 29 February 2024
45,980
-------
At 28 February 2023
45,980
-------
15. Debtors
2024
2023
£
£
Amounts owed by customers on construction contracts
3,196,480
4,393,772
Prepayments and accrued income
88,916
69,559
Other debtors
1,997,091
1,359,544
-----------
-----------
5,282,487
5,822,875
-----------
-----------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,928,449
2,897,632
Accruals and deferred income
884,516
822,254
Social security and other taxes
155,501
152,552
Obligations under finance leases and hire purchase contracts
85,867
11,643
Other creditors
360,274
336,763
-----------
-----------
3,414,607
4,220,844
-----------
-----------
The aggregate amount of secured liabilities falling due within one year amount to £85,867 (2023: £11,643). The liabilities are secured on the assets to which they relate.
17. Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases and hire purchase contracts
148,868
21,582
Other creditors
47,816
--------
-------
196,684
21,582
--------
-------
The aggregate amount of secured liabilities falling due after more than one year amounts to £148,868 (2023: £21,582). The liabilities are secured on the assets to which they relate.
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
85,867
11,643
Later than 1 year and not later than 5 years
148,868
21,582
--------
-------
234,735
33,225
--------
-------
Certain plant and machinery and motor vehicles are held under finance lease arrangements. Finance lease liabilities are secured by the related assets held under finance leases (see note 17 and 18). The lease agreements generally include fixed lease payments and a purchase option at the end of the lease term.
19. Provisions
Deferred tax (note 20)
£
At 1 March 2023
114,942
Amounts recognised in profit and loss account
48,520
--------
At 29 February 2024
163,462
--------
20. Deferred tax
The deferred tax included in the balance sheet is as follows:
2024
2023
£
£
Included in provisions (note 19)
163,462
114,942
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
202,586
116,906
Unused tax losses
( 37,128)
Pension plan obligations
( 1,996)
( 1,964)
--------
--------
163,462
114,942
--------
--------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 98,556 (2023: £ 114,648 ).
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary A shares of £ 1 each
3,000
3,000
3,000
3,000
------
------
------
------
23. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Mar 2023
Cash flows
At 29 Feb 2024
£
£
£
Cash at bank and in hand
1,680,468
(99,922)
1,580,546
Debt due within one year
(11,643)
(74,224)
(85,867)
Debt due after one year
(21,582)
(127,286)
(148,868)
-----------
--------
-----------
1,647,243
( 301,432)
1,345,811
-----------
--------
-----------
25. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
83,772
23,200
Later than 1 year and not later than 5 years
92,707
--------
-------
176,479
23,200
--------
-------
The amount recognised in the profit and loss account as an expense in relation to operating leases was £70,109 (2023: £62,060).
26. Related party transactions
Information about related party transactions and outstanding balances are outlined below:
29 Feb 24 28 Feb 23
£ £
Rent purchased from other related parties £40,000 £40,000
Amounts owed to other related parties £96,144 £nil
Amounts due from other related parties £1,765,867 £1,054,029
27. Controlling party
The ultimate controlling party is R J Rexton .