Company Registration No. 04680726 (England and Wales)
WILLIAMS HOMES (BALA) LIMITED
Annual report and financial statements
For the year ended 31 May 2024
WILLIAMS HOMES (BALA) LIMITED
Company information
Directors
Mr S K Williams
Mr O K Williams
Mr Anthony Hughes
Secretary
Mr S K Williams
Company number
04680726
Registered office
Eagle House
25 Severn Street
Welshpool
Powys
SY21 7AD
Auditor
WR Partners
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG
Business address
Unit 19
Bala Enterprise Park
Bala
Gwynedd
LL23 7NL
WILLIAMS HOMES (BALA) LIMITED
Contents
Page
Strategic report
1
Directors' responsibilities statement
2
Directors' report
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 27
WILLIAMS HOMES (BALA) LIMITED
Strategic report
For the year ended 31 May 2024
- 1 -
The directors present the strategic report for the year ended 31 May 2024.
Review of the business
Following the continued increase in sales in the previous financial year, the Directors are pleased that the company has maintained the level of turnover it has for this year, with some contracts coming to an end and being replaced with others.
The Directors are satisfied with the returns indicated from the KPI's below, given the reduced turnover and ongoing economic uncertainties that are prevalent across many business sectors. The increase in the gross profit percentage is pleasing
Principal risks and uncertainties
The Board are satisfied that the policies and practices that are in place enable them to deal with cost fluctuations as they arise.
External supply chain issues, both logistically and financially continue to prove challenging at times, but these have been well managed and the board are satisfied with the responses to these challenges.
Key performance indicators
The company monitors its performance using key performance indicators. The company considers its main key performance indicators to be turnover, operating profit, cash at bank and shareholders funds.
Mr O K Williams
Director
26 February 2025
WILLIAMS HOMES (BALA) LIMITED
Directors' responsibilities statement
For the year ended 31 May 2024
- 2 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WILLIAMS HOMES (BALA) LIMITED
Directors' report
For the year ended 31 May 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 May 2024.
Principal activities
The principal activity of the company continued to be that of construction.
Results and dividends
Ordinary dividends were paid amounting to £139,200.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S K Williams
Mr O K Williams
Mr Anthony Hughes
Auditor
WR Partners were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr O K Williams
Director
26 February 2025
WILLIAMS HOMES (BALA) LIMITED
Independent auditor's report
TO THE MEMBERS OF WILLIAMS HOMES (BALA) LIMITED
- 4 -
Opinion
We have audited the financial statements of WILLIAMS HOMES (BALA) LIMITED (the 'company') for the year ended 31 May 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WILLIAMS HOMES (BALA) LIMITED
Independent auditor's report (continued)
TO THE MEMBERS OF WILLIAMS HOMES (BALA) LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Detecting irregularities
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations: and
- we identified the laws and regulations applicable to the company through discussion with directors and senior management, and from our commercial knowledge of the construction sector
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection and employment; and
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances on non- compliance throughout the audit.
WILLIAMS HOMES (BALA) LIMITED
Independent auditor's report (continued)
TO THE MEMBERS OF WILLIAMS HOMES (BALA) LIMITED
- 6 -
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud: and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships.
- tested journal entries to identify unusual transactions.
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias: and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation
- enquiring of management as to actual and potential litigation and claims: and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Helen Pierce FCA
Senior Statutory Auditor
For and on behalf of WR Partners
27 February 2025
Chartered Accountants
Statutory Auditor
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG
WILLIAMS HOMES (BALA) LIMITED
Profit and loss account
For the year ended 31 May 2024
- 7 -
2024
2023
Notes
£
£
Turnover
5
20,017,615
24,179,841
Cost of sales
(16,929,581)
(21,614,073)
Gross profit
3,088,034
2,565,768
Administrative expenses
(1,127,565)
(1,291,550)
Other operating income
46,038
62,810
Operating profit
6
2,006,507
1,337,028
Interest receivable and similar income
9
54,470
242
Interest payable and similar expenses
10
(51,317)
(42,089)
Profit before taxation
2,009,660
1,295,181
Tax on profit
11
(502,684)
(167,965)
Profit for the financial year
1,506,976
1,127,216
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WILLIAMS HOMES (BALA) LIMITED
Statement of comprehensive income
For the year ended 31 May 2024
- 8 -
2024
2023
£
£
Profit for the year
1,506,976
1,127,216
Other comprehensive income
Tax relating to other comprehensive income
(150,329)
Total comprehensive income for the year
1,356,647
1,127,216
WILLIAMS HOMES (BALA) LIMITED
Balance sheet
As at 31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,332,829
2,141,867
Investments
14
10,000
2,342,829
2,141,867
Current assets
Stocks
15
1,663,039
1,365,689
Debtors
16
2,339,237
2,867,047
Cash at bank and in hand
2,959,395
2,143,852
6,961,671
6,376,588
Creditors: amounts falling due within one year
17
(4,739,378)
(4,669,865)
Net current assets
2,222,293
1,706,723
Total assets less current liabilities
4,565,122
3,848,590
Creditors: amounts falling due after more than one year
18
(849,427)
(1,541,052)
Provisions for liabilities
Deferred tax liability
22
496,118
305,408
(496,118)
(305,408)
Net assets
3,219,577
2,002,130
Capital and reserves
Called up share capital
25
120
120
Revaluation reserve
450,989
601,318
Profit and loss reserves
2,768,468
1,400,692
Total equity
3,219,577
2,002,130
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 26 February 2025 and are signed on its behalf by:
Mr O K Williams
Director
Company registration number 04680726 (England and Wales)
WILLIAMS HOMES (BALA) LIMITED
Statement of changes in equity
For the year ended 31 May 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2022
120
519,587
4,981,476
5,501,183
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
1,127,216
1,127,216
Dividends
12
-
-
(155,000)
(155,000)
Transfers
-
81,731
(81,731)
-
Other movements
-
-
(4,471,269)
(4,471,269)
Balance at 31 May 2023
120
601,318
1,400,692
2,002,130
Year ended 31 May 2024:
Profit for the year
-
-
1,506,976
1,506,976
Other comprehensive income:
Tax relating to other comprehensive income
-
(150,329)
(150,329)
Total comprehensive income for the year
-
(150,329)
1,506,976
1,356,647
Dividends
12
-
-
(139,200)
(139,200)
Balance at 31 May 2024
120
450,989
2,768,468
3,219,577
WILLIAMS HOMES (BALA) LIMITED
Statement of cash flows
For the year ended 31 May 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
1
1,891,625
155,063
Interest paid
(51,317)
(42,089)
Income taxes paid
(271,162)
(228,282)
Net cash inflow/(outflow) from operating activities
1,569,146
(115,308)
Investing activities
Purchase of tangible fixed assets
(516,136)
(99,536)
Proceeds from disposal of tangible fixed assets
29,291
2,277,767
Purchase of investments
(10,000)
Repayment of loans
(152,046)
Interest received
54,470
242
Net cash (used in)/generated from investing activities
(594,421)
2,178,473
Financing activities
Repayment of borrowings
(2,205)
(70,114)
Repayment of bank loans
(53,051)
(412,271)
Payment of finance leases obligations
35,274
(154,111)
Dividends paid
(139,200)
(155,000)
Demerger distribution
-
(4,471,269)
Net cash used in financing activities
(159,182)
(5,262,765)
Net increase/(decrease) in cash and cash equivalents
815,543
(3,199,600)
Cash and cash equivalents at beginning of year
2,143,852
5,343,452
Cash and cash equivalents at end of year
2,959,395
2,143,852
WILLIAMS HOMES (BALA) LIMITED
Statement of cash flows (continued)
For the year ended 31 May 2024
- 12 -
1
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,506,976
1,127,216
Adjustments for:
Taxation charged
502,684
167,965
Finance costs
51,317
42,089
Investment income
(54,470)
(242)
Loss/(gain) on disposal of tangible fixed assets
5,855
(1,621)
Depreciation and impairment of tangible fixed assets
290,028
245,717
Movements in working capital:
Increase in stocks
(297,350)
(151,597)
Decrease in debtors
679,856
433,569
Increase/(decrease) in creditors
332,076
(1,118,325)
Decrease in deferred income
(1,125,347)
(589,708)
Cash generated from operations
1,891,625
155,063
2
Analysis of changes in net funds
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
2,143,852
815,543
2,959,395
Borrowings excluding overdrafts
(257,180)
55,256
(201,924)
Obligations under finance leases
(648,432)
(35,274)
(683,706)
1,238,240
835,525
2,073,765
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements
For the year ended 31 May 2024
- 13 -
3
Accounting policies
Company information
WILLIAMS HOMES (BALA) LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is Eagle House, 25 Severn Street, Welshpool, Powys, SY21 7AD.
3.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
3.2
Going concern
Atruet the time of approving the financial statements, the directors are confident that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
3.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
3.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
Plant and machinery
15% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
3.5
Fixed asset investments
Interests in unlisted investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
3.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
3
Accounting policies
(Continued)
- 14 -
3.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
3.8
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
3.9
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
3.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
3
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
3
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
3.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
3.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
3.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
3
Accounting policies
(Continued)
- 17 -
3.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
3.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
4
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
5
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Construction work
20,017,615
24,179,841
2024
2023
£
£
Turnover analysed by geographical market
UK
20,017,615
24,179,841
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
5
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Other revenue
Interest income
54,470
242
Grants received
2,250
2,250
6
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(2,250)
(2,250)
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
5,500
Depreciation of owned tangible fixed assets
82,342
69,742
Depreciation of tangible fixed assets held under finance leases
207,686
175,975
Loss/(profit) on disposal of tangible fixed assets
5,855
(1,621)
Operating lease charges
4,750
-
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
3
3
Managers
4
5
Site Managers
5
7
Office and support staff
11
8
Site
45
45
Total
68
68
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,573,058
2,385,518
Social security costs
260,994
238,154
Pension costs
90,806
316,248
2,924,858
2,939,920
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
- 19 -
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
89,943
85,366
Company pension contributions to defined contribution schemes
40,459
272,353
130,402
357,719
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Monetary value of benefits in kind paid to directors are £12,358 (2023: £9,251)
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
52,844
Other interest income
1,626
242
Total income
54,470
242
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
52,844
10
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
51,317
42,089
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
462,303
271,162
Adjustments in respect of prior periods
1,191
Total current tax
462,303
272,353
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
11
Taxation
2024
2023
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
40,381
(104,388)
Total tax charge
502,684
167,965
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,009,660
1,295,181
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
502,415
323,795
Tax effect of expenses that are not deductible in determining taxable profit
46
49
Tax effect of income not taxable in determining taxable profit
(563)
(967)
Adjustments in respect of prior years
1,191
Effect of change in corporation tax rate
(67,744)
Permanent capital allowances in excess of depreciation
(39,595)
16,029
Deferred tax
40,381
(104,388)
Taxation charge for the year
502,684
167,965
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
150,329
-
12
Dividends
2024
2023
£
£
Final paid
139,200
Interim paid
155,000
139,200
155,000
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
- 21 -
13
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 June 2023
908,804
1,820,565
392,229
3,121,598
Additions
44,481
303,147
168,508
516,136
Disposals
(68,000)
(50,334)
(118,334)
At 31 May 2024
953,285
2,055,712
510,403
3,519,400
Depreciation and impairment
At 1 June 2023
763,410
216,321
979,731
Depreciation charged in the year
205,379
84,649
290,028
Eliminated in respect of disposals
(38,676)
(44,512)
(83,188)
At 31 May 2024
930,113
256,458
1,186,571
Carrying amount
At 31 May 2024
953,285
1,125,599
253,945
2,332,829
At 31 May 2023
908,804
1,057,155
175,908
2,141,867
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery
832,204
747,102
Motor vehicles
162,246
131,819
994,450
878,921
Land and buildings with a carrying amount of £883,347 were revalued at 17th February 2022 by Sanderson Weatherall LLP Chartered Surveyors, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been £282,028 (2023: £282,028) being cost £282,028 (2023: £282,028) and depreciation £Nil (2023: £Nil)
14
Fixed asset investments
2024
2023
£
£
Unlisted investments
10,000
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
14
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 June 2023
-
Additions
10,000
At 31 May 2024
10,000
Carrying amount
At 31 May 2024
10,000
At 31 May 2023
-
15
Stocks
2024
2023
£
£
Work in progress
1,310,729
1,041,250
Finished goods and goods for resale
352,310
324,439
1,663,039
1,365,689
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,308,001
1,543,296
Inter company loans
73,947
389,415
Other debtors
855,037
599,156
Prepayments and accrued income
102,252
335,180
2,339,237
2,867,047
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
- 23 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
61,256
61,256
Obligations under finance leases
20
248,281
248,744
Other borrowings
19
2,205
Trade creditors
2,433,914
2,276,538
Corporation tax
462,303
271,162
Other taxation and social security
113,717
98,887
Deferred income
23
1,062,175
1,513,211
Other creditors
357,732
197,862
4,739,378
4,669,865
18
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
19
140,668
193,719
Obligations under finance leases
20
435,425
399,688
Deferred income
23
273,334
947,645
849,427
1,541,052
Amounts included above which fall due after five years are as follows:
Payable by instalments
46,747
66,032
19
Loans and overdrafts
2024
2023
£
£
Bank loans
201,924
254,975
Other loans
2,205
201,924
257,180
Payable within one year
61,256
63,461
Payable after one year
140,668
193,719
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
- 24 -
20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
283,004
275,457
In two to five years
499,240
430,651
In over five years
7,897
21,434
790,141
727,542
Less: future finance charges
(106,435)
(79,110)
683,706
648,432
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Secured Debts
The following secured debts are included within creditors:
Bank facilities are secured by a fixed charge over the property and a floating charge over all other assets of the company.
Hire purchase liabilities are secured against the asset to which they relate.
22
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
345,789
305,408
Revaluations
150,329
-
496,118
305,408
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
22
Deferred taxation
(Continued)
- 25 -
2024
Movements in the year:
£
Liability at 1 June 2023
305,408
Charge to profit or loss
40,381
Charge to equity
150,329
Liability at 31 May 2024
496,118
23
Deferred income
2024
2023
£
£
Capital grants
3,229
5,479
Retentions
924,222
1,089,162
Projects
482,631
1,366,215
1,335,509
2,460,856
Deferred income is included in the financial statements as follows:
Current liabilities
1,062,175
1,513,211
Non-current liabilities
273,334
947,645
1,335,509
2,460,856
Capital grants are in respect of grants received for the purchase of fixed assets and are released to the profit and loss over the useful life of the asset.
Retentions are in respect of amounts withheld by customers at the end of the contract for any remedial works required, these are released to the profit and loss when remedial costs are incurred or at the end of the retention period.
Deferred project income is in respect of contract values that have been claimed on projects for which associated costs have not yet been incurred, these will be released to the profit and loss as and when those costs arise.
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
90,806
316,248
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
- 26 -
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
120
120
120
120
26
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2024
2023
£
£
Other related parties
7,243
1,677
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
19,965
1,633
The amounts due to related parties includes:
£18,331 (2023: £250,769 due from related party) - Williams Trading (Bala) Limited, a company whose share capital is owned 100% by the directors of the company.
£1,634 (2023: £1,633) - Williams Homes Developments (Bala) Limited, a company whose share capital is owned 40% by the directors of the company
There is no interest due on the amounts due to or from related parties, and the balances are repayable on demand.
Williams Homes (Bala) Limited have provided an Omnibus Guarantee to cover the bank borrowings of Williams Trading (Bala) Limited.
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
73,947
389,415
WILLIAMS HOMES (BALA) LIMITED
Notes to the financial statements (continued)
For the year ended 31 May 2024
26
Related party transactions
(Continued)
- 27 -
The amounts due from related parties includes:
£73,947 (2023: £138,646) - Y Baddel Aur, a partnership operated by members of the directors family
There is no interest due on the amounts due to or from related parties, and the balances are repayable on demand.
27
Directors' transactions
Dividends totalling £139,000 (2023 - £155,000) were paid in the year in respect of shares held by the company's directors.
The following loans with directors are included within the financial statements:
Amounts owed by the directors to the company - £152,046 (2023: £Nil)
Amounts owed by the company to directors - £Nil (2023: £2,205)
Interest is charged in accordance with HMRC's official rates.
28
Ultimate controlling party
There is no ultimate controlling party.
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