DIRECTORS' REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MAY 2024 |
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
The principal activity of the Group was that of a civil engineering contractor.
The core business is back filling and reinstatement, gas mains installation, specialist drilling repair, maintenance and replacement. The Group is the leading independent utility solutions group which serves the gas, water, energy and local authority sectors within the Midlands, London and South East.
In a competitive market the Group has performed well, achieving turnover of £110.9 million compared to £81.0 million in the previous year, an increase principally driven by growth in the telecoms and gas workstreams. Gross profit margin remains strong at 14.8% but is under pressure due to limited ability to fully recover inflation in its fixed price contracts.
Profit before tax (PBT) of £4.2 million was in line with expectations. Net assets increased 16% from £17.4 million in 2023 to £20.1 million in 2024. The current ratio remained at 1.3. The Group is in a good position to maintain and develop its position within the industry.
Financial Risks
The Group has robust accounting procedures, good internal controls and efficient IT systems which aims to manage any risks and uncertainties. Energy inflation affecting raw material prices remains a concern and risk although we aim to minimize this risk through long term partnerships with our key suppliers. The Group maintains strong commercial relationships with customers and provides a high quality, one stop solution, which minimizes the risk of losing customers. The Group maintains secure medium to long term contracts and is confident of further controlled growth in the future. Credit risk The Group works mainly with major blue-chip companies, and whilst there is always some credit risk the Director believe this risk to be minimal. Other clients are monitored closely against agreed credit terms to ensure that credit risk is kept as low as possible. Liquidity risk The Group monitors cashflow closely and produces weekly cashflow forecasts. Debtors are monitored to ensure that payments are made within agreed terms. Creditors are paid primarily within agreed mutual terms and the Group maintains very close relationships with its key suppliers.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
Currency risk
The Group does not pay suppliers or receive any customer receipts in foreign currency. Therefore, there is no foreign currency risk. Competitive and market risk The Group operates in a highly competitive industry, which can impact on its ability to win new work and dilute its margins. The Group mitigates these risks by effective cost management thereby allowing it to remain competitive and deliver required results. Health and Safety The Group prioritises its legal responsibilities under the Health and Safety at Work Act, etc.1984 and associated legislation and codes of practice. The Group gives its full commitment to doing everything reasonably practicable to protect the safety, health and welfare of all its employees and any other persons who health and safety may be affected by the Groups business. The promotion of health and safety measures is a mutual objective for the Group and for all its employees. Economic Uncertainties We live in times of high economic uncertainty. Russia’s invasion of Ukraine and the Israeli – Gaza crisis continue to send geopolitical shockwaves around the globe and exacerbate the economic damage caused by the Covid 19 pandemic and the departure of the UK from the European Union. Whilst inflation seems to be back under control, economic growth overall remains negligible and current high interest rates remain a burden to businesses and individuals alike. Recently announced national insurance rises likewise represent an increasing burden on business. Whilst it is difficult to rule out significant impacts on the international and UK economy that could have an adverse impact on the results of 2025 and beyond, given that the Group focuses on providing support to critical infrastructure in the Utilities Sector, the management assess these macro economic uncertainties pose limited risk to the Group at present, moreover, regulatory pressures in certain sectors presently are not assessed as a risk to the business. Environmental The Group operates its business in a manner that reflects good environmental management. The Group is aware of the environmental impacts of its operations and balances its business aims with the need to protect the local and global environment. The Group is committed to identifying all activities that have a potential to cause an environmental impact, as well as providing adequate resources to help minimise or prevent negative impact.
The Group has a number of performance indicators which are used to measure and monitor the performance of the group, including Health and Safety and Environmental, training and development as well as financial. These are reviewed and reported to management, staff and the board on a frequent and regular basis.
The key financial performance indicators are: 2024 2023 Turnover £110.9 million £81.0 million Gross profit margin 14.8% 14.2% Operating profit/(loss) margin 4.3% 3.9%
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
The Directors and Managers of the Group closely monitor performance through regular board and operational meetings. Weekly and monthly performance figures are produced and discussed to ensure that the business is running at an optimal level.
The directors do not consider there to be any other key performance indicators.
Corporate and Social Responsibility The Group has a separate Environmental Policy Statement clarifying its commitment to negating its impact on the environment. The Group carries out regular risk assessments to guarantee the well-being of staff and visitors, in accordance with Health and Safety legislation. The Group commits to having a fully trained workforce and has its own in house training centre which ensures that all employees are fully trained to the Group standards and are also competent to carry out their duties safely. The Group actively manages its reputation, and drives best practice, through the application of Ethical Sales and Purchasing. Due to the nature of our business having to use fossil fuels and oil based materials the Group actively promotes, maximizes and measures the reuse of excavated recycled backfill in all their operations. The Group is an Equal Opportunities Employer which promotes diversity and does not differentiate on grounds of gender, ethnicity, religion, sexual orientation or physical ability. The Group commits to being open and transparent in the interests of promoting best practice. The Group is proud to have been awarded Gold for Considerate Contractor from the City of London, in relation to the subsidiary Ferns Surfacing Limited. The Group operate a modern fleet of vehicles, and has installed the most advanced driving management systems to allow the monitoring and improvement of driving behaviours and ensure vehicles are being operated safely and legally. This system also allows the minimisation of vehicle movements thereby reducing fuel consumption. In doing this the Group can be confident that its drivers are not endangering themselves or the community in which they operate. As the Group has expanded geographically it has invested in video conferencing facilities to reduce the need for vehicle movements and carbon emissions. The Group tries to establish a depot network which closely matches the geographical footprint of its work to minimise unnecessary mileage.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
The directors, in line with their duties under Section 172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the Group and Parent Company for the benefit of its members as a whole, and in doing so have regard to the stakeholders and amongst other matters, the:
∙likely consequences of any decisions in the long-term;
∙interests of the Group's employees;
∙need to foster the Group's business relationships with suppliers, customers and others;
∙impact of the Group's operations on the community and environment;
∙desirability of the Group maintaining a reputation for high standards of business conduct; and
∙need to act fairly as between members of the Group.
The Group's business strategy is focused on achieving success for the Group in the long term. This strategy takes into account the impact of relevant factors and stakeholder interests. The directors promote a culture of upholding the highest standards of conduct and ensures its core values are communicated to its employees and are embedded in the Group's policies and procedures. The director recognises that building strong long-term relationships with its stakeholders will help deliver its strategy. The directors consider the core stakeholders to be its employees, customers, suppliers and the local communities in which it operates. Protecting the health, safety and wellbeing of its employees and everyone who comes into contact with the business is the main priority. Furthermore, the directors are committed to a diverse and inclusive working environment and ensuring all employees have the necessary skills and training required to carry out their roles and to develop. The Group aims to develop long term mutually beneficial relationships with its customers. The Group engages with its customers on a continuous basis which allows it to better understand their needs thus ensuring the long-term success of the Group. The suppliers and subcontractors are integral to its operations and the Group aims to be fair in their dealing with them and to make payment within agreed terms. As the nature of the Group's business means that it continually comes into contact with members of the local community the safety of the public is paramount in how the Group operates. This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
The directors present their report and the financial statements for the year ended 31 May 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £2,806,462 (2023 - £2,982,897).
Dividends declared in the year totalled £98,593 (2023 - £Nil).
The directors who served during the year were:
The directors believes that the Group is well positioned in the market with strong customer links and ongoing contracts to deliver profitable results in the coming year.
Engagement with employees The Group recognises that its employees are key to the long-term success of the business. It has various ways in which it communicates with the employees due to the numbers employed and the fact they are spread over numerous locations. New employees attend a formal induction at which they are made aware of the Group’s values, health and safety and other relevant policies and procedures.
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FERNS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
The Group also runs various workshops, Business development, personal development, customer care and customer management programmes where deemed appropriate. All employees receive necessary training to ensure the have the relevant qualifications and certifications to carry out their roles.
There have been no significant events affecting the Group since the year end.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FERNS GROUP LIMITED
We have audited the financial statements of Ferns Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 Group's or the parent 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.
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FERNS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FERNS GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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FERNS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FERNS GROUP LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained a general understanding of the Group and Parent Company's legal and regulatory framework through enquiry ofmanagement concerning their understanding of relevant laws and regulations, the entity’s policies andprocedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the Group and Parent Company's industry and regulation.
We understand that the Group and Parent Company complies with the framework through:
∙Obtaining external Health and Safety monitoring audits from independent consultants, updating procedures, manuals and internal controls as legal and regulatory requirements change.
∙Subscribing to relevant updates from external experts, and making changes to internal procedures and controls as necessary.
∙Outsourcing tax compliance to external experts.
In the context of the audit, we considered those laws and regulations which determine the form and content ofthe financial statements, which are central to the Group and Parent Company's ability to conduct its business, and/or where thereis a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the Company:
∙The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements.
∙Health and Safety at Work, etc Act 1974 in respect of the day-to-day activity carried out by the Group and Parent Company.
∙Management of Health and Safety at Work Regulations 1999.
We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above:
∙We reviewed the policies in place at the Group and Parent Company and reviewed for instances of non-compliance with these regulations.
∙We obtained copies of certificates held by the Group and Parent Company and results of inspections which took place during the period.
The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the Group and Parent Company’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:
∙Recognition of accrued income, as there are elements of management estimation in arriving at these calculations.
∙With bonuses and share incentives linked to the performance of the business, there is an incentive to report the most favourable financial position and performance.
∙Trade debtors, related party and group balances included not being recoverable.
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FERNS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FERNS GROUP LIMITED (CONTINUED)
These areas were communicated to the other members of the engagement team not present at the discussion. The procedures we carried out to gain evidence in the above areas included:
∙Challenging management calculation of these estimates, and vouching to post year end information where appropriate.
∙Occurrence testing on revenue to verify that sales were valid; completeness testing on creditors to ensure that all purchases in the year were correctly recorded; and testing journal entries, particularly those which were posted outside of normal times or to unexpected accounts.
∙Vouching to post year end receipt and the bad debt provision included, and assessing the recoverability of those which have not been recovered at the date of our testing.
Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
77 Mount Ephraim
Kent
TN4 8BS
Date:
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
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CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2024
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CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 40 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 MAY 2024
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent company for the year was £1,379,370 (2023 - £nil).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 40 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Ferns Group Limited ("the Company") is a private company limited by shares and incorporated and domiciled in England and Wales. The Company's registered office and principal place of business is Tutsham Farm, West Farleigh, Maidstone, Kent, ME15 0NE.
The Company's principal activity is that of a holding company and the principal activities of its subsidiaries are back filling and reinstatement, gas mains installation, specialist drilling repair, maintenance and replacement.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
Monetary amounts in these financial statements are stated in pounds Sterling and are rounded to the nearest whole £1, except where otherwise stated.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. As explained in note 14, a company has been included in the consolidated accounts by virtue of control.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
The Group reported a profit before tax of £4.2m for the year and held net assets of £20.1m at 31 May 2024. Cash held at the balance sheet was £2.9m (2023: £0.2m). The Group continues to focus on capital investment to support growth and the directors regularly monitor cash and cash flow forecasts.
The directors have made their assessment of whether the Group is a going concern using all available information including management accounts and cash flow forecasts which covered a period of more than 12 months from the date of approval of these financial statements. Revenue from the rendering of services and long term contracts is recognised by reference to the stage of completion at the end of the reporting period. This is measured by the proportion of the costs incurred for work performed to date compared to the estimated total costs of the contract. Where a counterparty agrees to be invoiced on a cost plus basis, revenue is calculated by applying an agreed margin to the allowable costs incurred on that particular contract. Revenue is recognised in line with the contract criteria above.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
Plant, machinery & commercial vehicles includes a helicopter which is depreciated straight line over 10 years after including a residual value.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Other investments held as fixed assets are shown at cost less provision for impairment.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Page 25
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Accrued income In relation to the measurement and recognition of accrued income, the Group has control and review procedures in place to monitor and evaluate the estimates being made to ensure they are consistent and appropriate. This includes reviewing costs applied to work completed before the year-end for services which are not invoiced until after the year-end. The Group also estimates stage of completion on long term contracts by reference to the costs incurred to the year-end as a proportion of the total costs expected to be incurred. The Company has control and review procedures in place to monitor and evaluate the estimates being made to ensure that they are consistent and appropriate. The carrying value of the accrued income at the year end is £6,763,274 (2023: £3,940,031). Provisions In assessing the provision to be made for potential costs against future s74 penalties, management will consider the likelihood of fines occurring in the future in relation to past work. These penalities arise from the late re-opening of roads and pathways where work has been carried out by the Group. The provision is calculated on a risk basis, taking into account historic s74 penalties incurred and knowledge of the contractor. The carrying value of the provision is £137,520 (2023: £342,308). Investment property valuation Investment properties are stated at fair value. The fair value of investment properties is estimated based on the price that would be received when selling an asset in an orderly transaction between marketplace participants at the measurement date. Multiple valuation techniques may be considered when measuring the fair value of the investment property. The carrying value of investment property is £1,533,500 (2023: £1,533,500). Retention debtors Included within trade debtors are retention balances where delayed payment terms have been agreed with customers for a proportion of completed projects. The value of retentions at 31 May 2024 totalled £1,642,020 (2023: £1,579,691), with £1,349,144 (2023: £830,108) being shown as due within one year and £292,876 (2023: £749,583) being shown as due after more than one year. The directors have assessed the outstanding amounts at the year-end and consider the balances fully recoverable. Bad debt provision Management consider the potentially bad debts and provide for the amounts which are not expected to be received, based on their knowledge and communication with the customer. The amount provided for bad debts totals £1,720,907 (2023: £1,734,819).
The whole of the turnover is attributable to the Group's principal activities, being road surfacing and repair or gas main installation and associated services.
Page 26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Page 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Page 29
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
11.Taxation (continued)
The Group has trading losses of £9,406,146 (2023: £9,025,152) available to offset against future trading profits of the subsidiary companies Forefront Utilities Limited and Ferns Surfacing Limited. A deferred tax asset has been recognised for these tax losses, as detailed in note 23.
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
13.Tangible fixed assets (continued)
Page 31
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Page 32
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The 2024 valuations were made by the directors, supported by an independent valuation in October 2024, on an open market value for existing use basis.
Page 33
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Page 34
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The hire purchase and finance leases are secured by way of a charge over the asset to which the lease relates, being items of plant, machinery and commercial vehicles.
The bank loans are secured over the freehold property of the Group and there is also a personal guarantee given to Handelsbanken by a director, for a limited liability of £500,000.
Page 35
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Page 36
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Page 37
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
On 19 June 2023, 800,000 Ordinary B shares of a nominal value of £0.01 were issued.
On 19 June 2023, 489,900 Ordinary A shares of a nominal value of £0.01 were issued. On 4 August 2023, 25,101 Ordinary shares of a nominal value of £1 were redenominated as 2,510,100 Ordinary A shares of a nominal value of £0.01. On 3 January 2024, 150,000 Ordinary A shares of a nominal value of £0.01 were redesignated as 150,000 Ordinary C shares of a nominal value of £0.01.
Share premium account
Fair value reserve
Profit and loss account
Page 38
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
During the year ended 31 May 2024, the Group undertook a restructure, involving the changing of ownership of several subsidiaries within the Group, so as to bring all subsidiaries within the Group under the ownership of Ferns Group Limited. There were no new entities brought into the Group through this restructure, nor entities exiting the Group.
Page 39
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The ultimate controlling party is I. D. Fern by virtue of his shareholding.
Page 40
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