Company registration number 00446626 (England and Wales)
F. PARKINSON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
F. PARKINSON LIMITED
COMPANY INFORMATION
Directors
Ray Eyre
Steven Williamson
Steve Jackson
Robert Wilson
Secretary
Robert Wilson
Company number
00446626
Registered office
50 Mowbray Drive
Blackpool
Lancs
FY3 7UN
Auditor
Sumer Auditco Limited
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
Business address
50 Mowbray Drive
Blackpool
Lancs
FY3 7UN
Bankers
Barclays Bank Plc
2-4 Birley Street
Blackpool
Lancashire
FY1 1DU
F. PARKINSON LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
F. PARKINSON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Financial review

The company is pleased to report a strong set of financial results for the year ending 30 September 2024. The company has increased its turnover by 39% to £31.5m which is mainly due to several larger contracts in the financial year. Gross profit has increased by 0.6% to 9.5% with net profits increasing to 2.1% up 0.6% resulting in a net profit before taxation of £652,365.

 

Our strategy on targeting partnered work and a collaborative approach has yet again delivered in terms of increased turnover, profit and quality of work. The company continues to be very selective in what competitively tendered opportunities it bids mitigating risks of unprofitable contracts.

 

Marketplace

The company has targeted and achieved several key framework and tender successes throughout 2024. Ones of note include Westmorland & Furness Council framework and Daresbury Laboratory framework.

 

These two new framework wins adds to an already impressive list of over 20 construction frameworks across multiple sectors and geographical areas.

 

Employees

Training and development of our employees continues to be at the core of the business. We continue to provide updated project management training across the business as well as continuing support to our site staff in their NVQ level 6 and 7construction qualifications. We believe passionately that employees are what makes our business what it is and that our clients will benefit from this investment in terms of the management, collaborative delivery, and quality of the construction projects.

 

We have also rolled out critical training to all employees on modern slavery, equality & diversity and mental health awareness.

 

Our commitment to training has seen us exceed the industry average of 4.9 training days per employee per year. For 2024, our average training days per employee is 8 days.

 

New mental health and wellbeing initiatives are continuously implemented and reviewed by a dedicated working group to ensure employees receive the support they need. The company has several internal mental health first aiders as well as external resources that employees can call upon as and when required.

 

Health & Safety

The health and safety of employees, supply chain and clients remain a high priority for the company with one of the main KPI targets being zero accidents on any of our construction sites or offices.

 

Throughout 2024 we have maintained our strong health & safety record by continually monitoring, reviewing and improving our management processes to focus on preventative measures and sound working practices. Specifically, continued health and safety training and development of employees and supply chain in using the latest technology to collect and analyse data trends, are key mitigating factors in reaching our target of zero accidents.

F. PARKINSON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key performance indicators

The company measures its operational performance using 9 KPI’s that are reviewed annually through external and internal feedback. The latest set of results shows 6 KPI’s increasing, 2 remaining at a high level and 1 slightly decreasing. The company aims to increase these indicators year on year through continuous improvement and lessons learnt contract reviews.

 

Social Value

Our vision is to be a leading regional contractor recognised for our outstanding achievements in social value, in line with our ability to deliver quality construction projects. Our strategy focuses on improving outcomes across four pillars of social impact which include, our people, our environment, our community and our marketplace.

 

We continue with many social value activities including, apprentice recruitment and training, volunteering, supply chain events, donations and work experience days.

 

Charity

In 2024 we continued to be a financial supporter of our chosen charity, The Lighthouse Club Construction Charity. The Lighthouse Club is the only charity that provides emotional, physical, and financial wellbeing support to construction workers and their families. They receive no public funding and rely on the generosity of those within the industry to help them continue their vital work.

 

Sustainability

Carbon reduction targets remain important to the company and reducing our impact on the environment. The company is aiming to achieve net zero emissions by 2030. Various initiatives have been developed to support the Government’s UK Climate Change Act 2008, and Construction 2025 Strategy. The company have implemented a range of initiatives over the past 12 months to reduce our carbon footprint.

 

In 2023, for the first time, we measured our carbon emissions figure which stood at 420.89 tCO2e for our 2022 baseline year. We are pleased to announce that our 2024 figures have shown a huge carbon reduction down to 287.88 tCO2e. This is a reduction of over 30% in one year. Therefore, noting that initial carbon reduction measures will have generated a large abnormal impact, it remains our intention to maintain or 5% annual carbon reduction, further reducing our emissions to 233.94 tCO2e by 2027, providing a reduction in emissions of 44%

Please see the table below detailing our carbon emission data for 2024 split down by the 3 main categories of measurement.

 

Reporting Year: 2024

EMISSIONS

TOTAL (tCO2e)

Scope 1

191.63

Scope 2

13.52

Scope 3

(Included Sources)

  1. Business travel

  2. Employee commuting

  3. Waste generated in operations

  4. Fuel and energy related activities (not included in scope 1 or 2)

  5. Downstream transportation and distribution (0) Total: 82.73

Total Emissions

287.88

 

 

F. PARKINSON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

Principle risks and uncertainties

Macro-economic factors including increased costs to business through increased Employers National Insurance contributions and forecast low economic growth are real and present risks to the business going forward.

 

However, public spending across all Government departments should increase over the next 4 years and as such Parkinsons is in a great position to win future work through our numerous construction frameworks. The company will need to adapt and remain agile to respond to challenges in the construction sector.

 

Future developments

The Board of Directors will continue to seek profitable work within the construction sector across all the three regions in the north of England. The company will look to target both local and national construction frameworks for clients such as Government Departments, Local Councils, the NHS and other public bodies. Partnering with our key clients and supply chain will be our preferred procurement method.

 

The company’s 2025 forecast shows a strong order book with secured work currently at a high level of £26m which amounts to around 20 secured construction contracts.

 

On behalf of the board

Ray Eyre
Director
27 February 2025
F. PARKINSON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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

Principal activities

The principal activity of the business continued to be that of principal building contractor delivering quality construction projects throughout the north of England.

 

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £456,877. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Ray Eyre
Steven Williamson
Steve Jackson
Robert Wilson
Auditor

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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:

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.

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.

F. PARKINSON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
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
Ray Eyre
Director
27 February 2025
F. PARKINSON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF F. PARKINSON LIMITED
- 6 -
Opinion

We have audited the financial statements of F. Parkinson Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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:

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

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.

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 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:

F. PARKINSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF F. PARKINSON LIMITED
- 7 -
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:

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.

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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

 

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws related to health and safety, employment laws, gender pay gap and consumer protection.

F. PARKINSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF F. PARKINSON LIMITED
- 8 -

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

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.

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.

Alex Hesketh
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
27 February 2025
Statutory Auditor
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
F. PARKINSON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
31,516,049
22,639,166
Cost of sales
(28,539,029)
(20,636,383)
Gross profit
2,977,020
2,002,783
Administrative expenses
(2,381,372)
(1,393,755)
Other operating income
30,000
29,000
Operating profit
4
625,648
638,028
Interest receivable and similar income
8
77,047
37,811
Interest payable and similar expenses
9
(50,330)
(55,631)
Amounts written off loans
10
-
(282,002)
Profit before taxation
652,365
338,206
Tax on profit
11
(171,029)
(97,961)
Profit for the financial year
481,336
240,245

The profit and loss account has been prepared on the basis that all operations are continuing operations.

F. PARKINSON LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,544,024
1,571,516
Current assets
Debtors
14
6,096,253
5,239,803
Cash at bank and in hand
4,104,832
3,628,492
10,201,085
8,868,295
Creditors: amounts falling due within one year
15
(10,640,037)
(9,020,569)
Net current liabilities
(438,952)
(152,274)
Total assets less current liabilities
1,105,072
1,419,242
Creditors: amounts falling due after more than one year
16
(209,988)
(538,997)
Provisions for liabilities
Deferred tax liability
19
235,784
245,404
(235,784)
(245,404)
Net assets
659,300
634,841
Capital and reserves
Called up share capital
21
100,000
100,000
Revaluation reserve
191,965
194,996
Profit and loss reserves
367,335
339,845
Total equity
659,300
634,841

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 27 February 2025 and are signed on its behalf by:
Ray Eyre
Director
Company registration number 00446626 (England and Wales)
F. PARKINSON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
100,000
194,996
330,385
625,381
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
240,245
240,245
Dividends
12
-
-
(230,785)
(230,785)
Balance at 30 September 2023
100,000
194,996
339,845
634,841
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
481,336
481,336
Dividends
12
-
-
(456,877)
(456,877)
Transfers
-
(3,031)
3,031
-
Balance at 30 September 2024
100,000
191,965
367,335
659,300
F. PARKINSON LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,453,638
2,344,514
Interest paid
(50,330)
(55,631)
Income taxes (paid)/refunded
(126,120)
74,001
Net cash inflow from operating activities
1,277,188
2,362,884
Investing activities
Purchase of tangible fixed assets
(288,819)
(200,230)
Proceeds from disposal of tangible fixed assets
25,179
19,613
Repayment of loans
-
0
(282,002)
Interest received
77,047
37,811
Net cash used in investing activities
(186,593)
(424,808)
Financing activities
Repayment of bank loans
(189,843)
(170,134)
Finance leases obligations
32,465
3,532
Dividends paid
(456,877)
(230,785)
Net cash used in financing activities
(614,255)
(397,387)
Net increase in cash and cash equivalents
476,340
1,540,689
Cash and cash equivalents at beginning of year
3,628,492
2,087,803
Cash and cash equivalents at end of year
4,104,832
3,628,492
F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
1
Accounting policies
Company information

F. Parkinson Limited is a private company limited by shares incorporated in England and Wales. The registered office is 50 Mowbray Drive, Blackpool, Lancs, FY3 7UN.

1.1
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. Freehold land and buildings are measured using the revaluation method at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Westcliffe Holdings Limited. These consolidated financial statements are available from its registered office, 50 Mowbray Drive, Blackpool, Lancs, FY3 7Un.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation 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.

1.3
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.4
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.

F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -

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:

Freehold property
2% straight line
Leasehold improvements
2% / 10% / 25% Straight line
Fixtures, fittings & equipment
10% Straight line
Computer equipment
25% reducing balance
Motor vehicles
25% / 33% Straight line

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.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

1.5
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.6
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.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.7
Cash and cash equivalents

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.

1.8
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.

F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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.

F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.11
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 is recognised in respect of all timing differences which have originated but not reversed at the balance sheet date. Timing differences are differences between taxable profits and the results as stated in the financial statements which arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

A net deferred tax asset is regarded as recoverable and therefore recognised only when it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences can be deducted.

Deferred tax is measured at the average tax rates which are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws which have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non - discounted basis.
1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.14
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
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.

 

The directors do not consider there to be any sources of estimation uncertainty which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Amounts due from contract customers

Revenue and costs are recognised by reference to the estimated stage of completion at the reporting end date. Losses will be recognised if it is estimated that it is probable that the total contract costs will exceed total contract turnover. Where there is objective evidence that the amounts due will not be collected, a provision for impairment will need to be estimated.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Contract income
31,516,049
22,639,166
F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 19 -
2024
2023
£
£
Other revenue
Interest income
77,047
37,811
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
24,905
18,451
Depreciation of owned tangible fixed assets
136,515
67,977
Depreciation of tangible fixed assets held under finance leases
166,570
151,755
Profit on disposal of tangible fixed assets
(11,953)
(19,613)
Operating lease charges
61,024
52,650
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,905
18,451
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production
50
50
Administration
20
19
Total
70
69

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,459,947
2,537,146
Social security costs
393,369
271,570
Pension costs
423,972
183,169
4,277,288
2,991,885
F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
437,881
173,993
Company pension contributions to defined contribution schemes
223,200
77,600
661,081
251,593

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
203,710
60,368
Company pension contributions to defined contribution schemes
57,200
23,200
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
77,047
37,811
9
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
50,330
55,631
10
Amounts written off loans
2024
2023
£
£
Amounts written back to/(written off) current loans
-
(282,002)
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
180,649
126,120
Adjustments in respect of prior periods
-
0
(29,920)
Total current tax
180,649
96,200
F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Taxation
2024
2023
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
(9,620)
1,761
Total tax charge
171,029
97,961

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
652,365
338,206
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
163,091
74,405
Tax effect of expenses that are not deductible in determining taxable profit
7,938
64,487
Tax effect of utilisation of tax losses not previously recognised
-
0
(9,634)
Permanent capital allowances in excess of depreciation
-
0
(1,377)
Research and development tax credit
-
0
(29,920)
Taxation charge for the year
171,029
97,961
12
Dividends
2024
2023
£
£
Interim paid
456,877
230,785
F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
13
Tangible fixed assets
Freehold property
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 October 2023
1,030,000
50,508
139,345
725,413
890,424
2,835,690
Additions
-
0
10,094
358
37,445
240,922
288,819
Disposals
-
0
-
0
-
0
-
0
(251,434)
(251,434)
At 30 September 2024
1,030,000
60,602
139,703
762,858
879,912
2,873,075
Depreciation and impairment
At 1 October 2023
12,360
12,192
89,958
638,794
510,870
1,264,174
Depreciation charged in the year
16,481
32,306
11,711
54,361
188,226
303,085
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(238,208)
(238,208)
At 30 September 2024
28,841
44,498
101,669
693,155
460,888
1,329,051
Carrying amount
At 30 September 2024
1,001,159
16,104
38,034
69,703
419,024
1,544,024
At 30 September 2023
1,017,640
38,316
49,387
86,619
379,554
1,571,516

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
£
£
Motor vehicles
418,948
367,941

Land and buildings with a carrying amount of £1,030,000 were revalued at June 2021 by Duxburys Commercial, 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.

 

The directors have used their knowledge of the market to begin depreciating the building at a rate of 2%.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £632,171 (2023: £645,621) being cost £672,522 and depreciation £40,351 (2023: £26,901).

F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,687,791
4,531,297
Gross amounts owed by contract customers
1,329,414
639,137
Prepayments and accrued income
79,048
69,369
6,096,253
5,239,803
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
224,532
144,824
Obligations under finance leases
18
186,703
94,780
Trade creditors
1,875,637
1,683,746
Corporation tax
180,649
126,120
Other taxation and social security
1,439,665
893,268
Accruals and deferred income
6,732,851
6,077,831
10,640,037
9,020,569

Bank loans of £224,532 are secured by a legal charge over freehold property.

16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
-
0
269,551
Obligations under finance leases
18
209,988
269,446
209,988
538,997
17
Loans and overdrafts
2024
2023
£
£
Bank loans
224,532
414,375
Payable within one year
224,532
144,824
Payable after one year
-
0
269,551
F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
186,703
94,780
In two to five years
209,988
269,446
396,691
364,226

Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

19
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:
£
£
ACAs
170,785
180,405
Revaluations
64,999
64,999
235,784
245,404
2024
Movements in the year:
£
Liability at 1 October 2023
245,404
Credit to profit or loss
(9,620)
Liability at 30 September 2024
235,784
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
423,972
183,169

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.

F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
144,865
86,444
Between two and five years
130,971
134,107
275,836
220,551

At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £72,632 (2023: £104,298).

23
Related party transactions

The company has taken advantage of the exemption available in accordance with FRS 102 1.12(e),not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

 

During the year, the company paid rent of £30,000 (2023: £30,000) into the directors' pension fund.

24
Ultimate controlling party

F Parkinson Limited is a wholly owned subsidiary of Mowbray Holdings Limited. The ultimate parent company, registered in England and Wales, is Westcliffe Holdings Limited.

F. PARKINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
25
Cash generated from operations
2024
2023
£
£
Profit after taxation
481,336
240,245
Adjustments for:
Taxation charged
171,029
97,961
Finance costs
50,330
55,631
Investment income
(77,047)
(37,811)
Gain on disposal of tangible fixed assets
(11,953)
(19,613)
Depreciation and impairment of tangible fixed assets
303,085
219,732
Other gains and losses
-
282,002
Movements in working capital:
(Increase)/decrease in debtors
(856,450)
56,154
Increase in creditors
1,393,308
1,450,213
Cash generated from operations
1,453,638
2,344,514
26
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
3,628,492
476,340
4,104,832
Borrowings excluding overdrafts
(414,375)
189,843
(224,532)
Obligations under finance leases
(364,226)
(32,465)
(396,691)
2,849,891
633,718
3,483,609
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