Company registration number 08802601 (England and Wales)
THE DE GROUP (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
THE DE GROUP (UK) LIMITED
COMPANY INFORMATION
Directors
P J Ford
A R Griffiths
M E Smith
E Ford
M J Griffiths
M Durie
R Kang
J Russell
R Pincham
G W Swain
Company number
08802601
Registered office
40-50 Tottenham Street
London
United Kingdom
W1T 4RN
Auditor
Goodman Jones LLP
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
United Kingdom
W1T 4RN
THE DE GROUP (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 7
Directors' report
8 - 10
Independent auditor's report
11 - 13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Notes to the financial statements
20 - 37
THE DE GROUP (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
Chairman's statement

Opening statement

Our year-end financials reflect a strong performance, showcasing significant growth and resilience across all key metrics. We’ve successfully navigated challenges, delivered solid returns, and positioned ourselves for continued success in the coming year. This performance highlights our team’s dedication, strategic vision, and commitment to driving sustainable growth as we continue to build long term relationships with our clients as well as our supply chain partners in delivering our projects.

With the recent easing of planning delays and guidance in relation to the Building Safety Act now becoming understood, we have seen a number of projects that were secured but on hold, now progressing, further enhancing our order book for 2025 and 2026.

Following on from our strong trading position in 2023/24, our year to date (2024/25) is very positive, with a number of new projects secured on terms reflecting the trends of the previous year. Looking further forward, we have already secured over 35% of turnover for the 2025/26 financial year.

Trading Update

With a focus on Central London we have successfully delivered the full De Group Service offering for a number of clients which include Financial Institutions, UK Government, Developers and Private Clients. Our projects often see Deconstruct delivering significant structural alterations, including temporary and permanent steelwork, piling and concrete frames followed by shell & core and fit-out delivered by De Group Contracting. This is demonstrably providing clients with a time and cost benefit, coupled with the reliability of our strong reputation for delivering projects to the highest of standards.

All tender opportunities are carefully appraised by the Board of Directors with those selected to tender being suited to our capability and not presenting an excessive level of risk to the business. Our growing reputation as a preferred delivery partner is presenting us with some excellent tender opportunities.

 

We succesfully completed our works at Giltspur Street, London, where we delivered a 30-week programme and 25% cost saving against the compliant method to deconstruct floor slabs by utilising jacking technology. Not only has this process delivered significant time and cost savings but also, significant carbon savings through the re-use of floor slabs and 800 tonnes of structural steel on the same post-code. A truly innovative solution that has seen us engaged on other schemes for early stage input, with a view to utilising the same method.

Deconstruct continue to work undertaking the maintenance and safety of Grenfell Tower, additionally supporting government on the future of the tower, having been responsible for its safety and stability from 72 hours after the tragedy occurred in 2017. Firstly, having enabled the safe access for emergency services, Deconstruct have been responsible for the design and installation of temporary works to ensure Grenfell Tower remains stable for our client, Ministry of Housing, Communities and Local Government (MHCLG) and the residents and stakeholders living in close proximity to the structure.

 

We continue to negotiate several substantial projects for a number of blue-chip clients, many on a repeat basis. This simply because they recognise exemplary service, support, sustainable solutions and a first-rate product. We truly believe this is the niche position we have strived to achieve since our inception and we will continue to build on this key driver. To be recognised as the industry’s best delivery partner, continues to be a core strategy for the Group.

During the 2023/2024 year Deconstruct achieved an average score of 43/45 on the Considerate Constructors Scheme (CCS) even achieving another perfect 45/45 on a number occasions, this resulting in two of our projects being considered for national awards. We continue to drive standards and quality beyond expectation in this regard with real focus on Community Engagement and Mental Health wellbeing support, central to delivering exemplar engineering projects.

 

THE DE GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

Staff

We continue to improve upon our strategy to attract, retain, develop and promote the top talent within our business and are proud of our low staff turnover. In addition to recruiting experienced industry professionals we invest significantly in Trainees and Undergraduates that we will develop through our apprenticeship programmes.

Employee engagement has enabled us to focus and develop the following during 2024.

Principal Activities

Deconstruct are recognised as a specialist contractor, primarily in the London and South East of England. With primary core services of;

 

Deconstruction

Demolition Structural alteration

Dangerous Structure Remediation

Structural

Concrete Frames

Subterranean space creation and expansion Temporary

Support and design

Structural Piling and Grouting

Structural Steelwork design, coordination, fabrication and installation

Concrete Structures

Groundworks

The business is predominantly engaged as a Principal Contractor by our clients, which range from private developers to blue-chip investors and alike, institutions and the UK Government. We also contract with Tier-One Main Contractors where the project, client or relationship ensures a seamless delivery.

The nature and size of our projects range in value and programme duration, from £500k to over £50 million and several weeks to over 5 years.

 

In-house specialist support services

Piling

Focusing on restricted access piling our teams provide invaluable domestic support to our projects ensuring that this critical path activity is firmly in our control. Suitable external opportunities are considered in a variety of areas of ground engineering.

Steelwork

Our steelwork offering provides an integral part to our scope of services and has contributed significantly across all schemes. In particular, utilising the expertise of this team on a structurally challenging project that was predominantly led by the structural steel nature saw us modify a structure and jack two structural steel floors, weighing 450 tonnes each, generating significant programme, cost and carbon savings.

Structural Engineering

DE Construction Solutions offers invaluable support to our contracting businesses ensuring the viability of temporary and permanent works. DE-CS also offer their services externally to a national client base.

 

THE DE GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

Safety, Health, Environment and Quality

Operating in what is widely recognised as a high-risk sector, the importance of exemplary corporate governance and occupational safety and health excellence is a cornerstone of our business.

Our full-time and in-house SHEQ and Sustainability team are dedicated to protecting people and helping everyone lead safer and healthier lives.

With a focus on our performance in our financial year 2023/24 we have seen over 827,000 hours worked on our sites with zero RIDDOR reportable accidents, this metric is just one of the measurement tools we use to benchmark our performance with our peers and others working in similarly high-risk sectors.

We continue to maintain and where possible enhance our management systems, with these systems independently audited and certificated by BSI to ISO 9001, ISO 14001, and ISO 45001, these further supported by holding several other industry recognised accreditations and memberships of trade bodies.

 

2023/24 Deconstruct received their 15th consecutive Gold Award from RoSPA for our demonstrable exemplar approach to Safety, Health, Environment and Quality.

We will continue to invest in our training, up-skilling, mentoring and employing best practices to ensure our industry leading standards of Health and Safety are maintained.

Notable statistics from 2023/24

Social Values, Community Engagement, Charity and the Wellbeing of all De Group staff

We remain strongly committed to supporting the communities in which we operate, we continue to support the development of career opportunities in deprived areas, targeting the long term unemployed and those Not in Education, Employment or Training (NEET). As part of this support, we provide a career advisor each month to job fairs hosted by the Department of Work & Pensions alongside providing assistance in writing and presenting CV’s.

In support of the communities that live around the Grenfell Tower site we provide a fully funded vehicle to support small local charities by distributing goods, donations and equipment, the support including encouraging all staff to utilise volunteer hours, other initiatives undertaken during this reporting period included.

 

THE DE GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

Of course, Social Value and Community Engagement is our outward commitment. This is underpinned by our support and appreciation of our employees. With active and targeted wellbeing programmes through Validium, occupational health screening, training, and mentoring at the heart of our commitment to staff, we have also trained several members of staff in mental health first aid.

 

We staunchly believe a better product is delivered by appreciated and committed staff and our willingness to support them is communicated constantly by myself and the entire leadership team. This is a core value of the De Group and key to our successes.

Sustainability

We continue our Roadmap to Net Carbon zero, with environmental sustainability embedded at corporate level, this ensures clear, robust and consistent monitoring, which in turn allows us to ‘forward-think’ our Net Zero strategy.

 

Deconstruct is an ISO 14001-certified organisation and as such we align with the United Nations Sustainable Development Goals (SDGs), to demonstrate this commitment and as part of our strategic goal of Net Carbon Zero by 2032 we are now implementing PAS 2060 to manage science-based targets.

 

Following the launch of our Roadmap 2023/24 year saw the following progression activities.

 

 

 

The re-use of materials and consumables has significantly increased over the last 12 months. We have developed and established a network of Circular Economy Partners to ensure that at every opportunity, surplus items are effectively reused, further building on the Groups Cradle to Cradle thesis.

Recognising that Sustainability includes what we leave behind for the next generation, we are committed to engaging with local communities and educational institutes offering practical and theoretical experiences, guidance, and general information to improve awareness wherever we can.

 

These steps will ensure that sustainability and environmental governance is a golden thread that ensures we will not only reduce our impact on the planet but also, enhance our client’s journey, assisting them in achieving environmental excellence at every opportunity.

 

THE DE GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -

Identified Principal Risks and Uncertainties

We recognise liquidity and credit strength as being risks and these remain a primary focus for our Board. We maintain a rolling cashflow forecast in addition to long term planning and have adequate facilities in place should they be required. Regular dialogue is maintained with clients regarding payment.

 

Inflation and Interest rate risk, whilst we have seen a reduction in the rate and the trend looks positive we endeavour to anticipate inflation when tendering our projects.

 

Surety and bonding remain a challenge for the market, with a reduction in traditional capacities available. However, we are seeing a combination of client appreciation and reduced requirements for bonds on projects, which are allowing pragmatic conversations on bonds where practically required.

 

The Board believes these risks are appropriately managed and mitigated by the Group’s strategies, processes and commercial arrangements and through regular monitoring.

 

Our Defined Core Values

  1. Integrity, honesty, and Trust - Doing the right thing at all times with consistent moral and ethical principles.

     

  2. Accountability and Ownership – Clear Roles and Responsibilities ensures all our staff are empowered to act with accountability and confidence.

     

  3. Customer Commitment – Consistent outstanding service, products and quality ensure our clients journey earns our trust and ultimately their loyalty.

     

  4. Leadership – Is for everyone to demonstrate. It starts with authenticity, approachability, respect and humility. A vital staff attribute.

     

  5. Our People – Whether employed by our Group in any capacity or reside or work within the Communities in which we operate, all people are our very first concern. No discrimination. Demonstrable support, encouragement, consideration, and care.

 

We remain committed to ensure Deconstruct lead our sector in quality, professionalism, and reliability. We must continue to attract the best people and indeed clients. Only through constantly challenging ourselves can we continue to improve, being more responsible for this generation and those that will inevitably follow.

P J Ford
De Group Chairman
20 March 2025
THE DE GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 6 -
Directors' strategic report

The directors present the strategic report for the year ended 31 October 2024.

Fair review of the business

The directors are pleased with the results for the year under review, in what was a difficult market.

 

The directors are excited about the groups prospects and look forward to the future with confidence.

Financial Instruments and risk

The group uses financial instruments compromising bank borrowings and various net working capital items such as trade debtors and trade creditors, to finance its operations not funded by way of equity. The main risks identified with using these financial instruments are the management of cash flow and exposure to interest rate fluctuations. The group mitigates this risk by managing cash flow and negotiating credit facilities to assist with liquidity as required.

 

The group meets its day to day working capital requirements through bank facilities which are renewed regularly. The group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the group will be able to operate within the level of its current facility. The directors are confident the facility will continue to be forthcoming on acceptable terms and, accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Going concern

In determining the appropriate basis of preparation of the Financial Statements, the directors are required to consider whether the group can continue in operational existence for the foreseeable future.

 

The Group’s forecast and projections, taking account of reasonable possible changes in trading performance, show that the Group will be able to operate within the level of its current facilities.

 

Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Key performance indicators

 

2024         2023

 

Turnover £62,654k £57,799k

Gross Profit £10,387k £2,932k

 

Gross Profit % 16.6% 5.1%

 

EBITDA £3,159k (£1,286k)

 

EBITDA % 5% (2.2%)

 

Profit/(Loss) before tax £2,869k (£1,416k)

 

Profit/(Loss) before tax % 4.6% (2.4%)

 

THE DE GROUP (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
Section 172(1) statement

The board considers that they have adhered to the requirements of section 172 of the Companies Act 2006 (the “Act”) and have, in good faith, acted in a way that they consider could be most likely to promote the success of the group for the benefit of its shareholders and, in doing so, have had regard to and recognised the importance of considering all stakeholders and other matters (as set out in s.172(1)(a-f) of the Act) in its decision making.

The board acknowledges that the business can only grow and prosper over the long-term if it understands and respects the views and needs of the group’s customers, employees, suppliers, lenders and other stakeholders to whom we are accountable, as well as the environment we operate within.

 

The directors ensure that the requirements or section 172 are always met and considered through a combination of the following:

 

Employees

 

The group has continued to maintain the commitment to employee involvement throughout the business. Employees are kept well informed of the performance and objectives of the group through personal briefings, regular meetings and e-mail.

 

Customers

 

The group’s customers are predominantly property and construction companies. The group has continued to work to ensure customers’ needs are met properly with robust continuity plans. This includes regular meetings with quantity surveyors and project managers to ensure issues are known. The impact of decisions made by the board on customers are considered to ensure continued good relationships.

 

Suppliers

 

The directors have increased their consideration of the financial health of suppliers to ensure business continuity and support the long-term success of the business. This includes more robust analysis of financial statements to ensure risks of failure are limited.

Principal decisions

 

For the year ending 31 October 2024, the board consider that the following examples of principal decisions that it made in the year.

 

The board has continued to maintain its social media and internet presence so it can communicate better with customers, suppliers and the wider community.

On behalf of the board

P J Ford
Director
20 March 2025
THE DE GROUP (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -

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

Principal activities

The principal activities of the group in the year were providing specialist services in the Demolition and Construction sectors.

Results and dividends

The results for the year are set out on page 14.

Dividends amounting to £1,400,000 (2023: £nil) were paid in the year.

Directors

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

P J Ford
A R Griffiths
M E Smith
E Ford
M J Griffiths
M Durie
R Kang
J Russell
R Pincham
G W Swain
Qualifying third party indemnity provisions

The group has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

The group is one of the industry leaders specialising in demolition and structural alteration techniques.  In certain projects, the Group carries out research and development activities to seek scientific and technological advancements to be able to complete complex solutions that were previously unattainable.

Auditor

In accordance with the company's articles, a resolution proposing that Goodman Jones LLP be reappointed as auditor of the group will be put at a General Meeting.

THE DE GROUP (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -

This report covers the consumption and emissions for The De Group (UK) Limited for the year ended 31 October 2024.

 

UK Energy Use and GHG Emissions

The tables below detail the energy used by The De Group (UK) Limited in its business activities involving the combustion of gas and fuels and the purchase of electricity in kWh, Litres and t CO₂e. They also detail the total energy and emissions by scope and as a total.

Type of Activity

Energy Usage

Measurement Unit

GHG Emissions

Measurement Unit

Grid Electricity

419,195.50

kWh

85.9

t CO₂e

Diesel

146,228.68

Litres

362.6

t CO₂e

Unleaded

737.14

Litres

1.5

t CO₂e

Gas Oil

0.00

Litres

00.00

t CO₂e

Total

566,161.32

 

450

t CO₂e

 

Scope

Energy Usage

Measurement Unit

GHG Emissions

Measurement Unit

Scope 1

146,965.82

Litres

364.1

t CO₂e

Scope 2

419,195.50

kWh

85.9

t CO₂e

Total

566,161.32

 

450

t CO₂e

 

Intensity Ratio

In this instance, the intensity ratio used for The De Group (UK) Limited is 0.97 based on total tC02e emissions over turnover in the financial year.

Principal Energy Efficiency Actions

The De Group (UK) Limited continues to monitor and strive to reduce energy and carbon emissions arising from its activities through a detailed review of ongoing procedures and processes currently in place and setting objectives and targets.

Methodology

The figures quoted have been supplied directly from The De Group (UK) Limited and include consumption data for Electricity, Gas Oil, Diesel, LPG and Petrol. The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol - Corporate Standard and have used the 2023 UK Government's Conversion Factors for Company Reporting to calculate emissions for both Scope 1 and 2.

Scope 1: Direct

Fuels Combustion

 

Owned Transport

 

Process Emissions

 

Fugitive Emissions

Scope 2: Energy Indirect

Consumption of purchased electricity, heat, steam and cooling

THE DE GROUP (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments and risk.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
R Kang
Director
20 March 2025
THE DE GROUP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE DE GROUP (UK) LIMITED
- 11 -
Opinion

We have audited the financial statements of The DE Group (UK) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and 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.

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:

THE DE GROUP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE DE GROUP (UK) LIMITED
- 12 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 group and parent 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 group or parent 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.

Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:

THE DE GROUP (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE DE GROUP (UK) LIMITED
- 13 -

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above. The further removed instances of non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities 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.

Matthew Cook (Senior Statutory Auditor)
For and on behalf of Goodman Jones LLP, Statutory Auditor
Chartered Accountants
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
United Kingdom
20 March 2025
THE DE GROUP (UK) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
Notes
£
£
Turnover
3
62,653,773
57,799,396
Cost of sales
(52,267,073)
(54,867,525)
Gross profit
10,386,700
2,931,871
Administrative expenses
(7,385,298)
(4,362,148)
Operating profit/(loss)
4
3,001,402
(1,430,277)
Interest receivable and similar income
8
-
0
16,220
Interest payable and similar expenses
9
(132,135)
(1,907)
Profit/(loss) before taxation
2,869,267
(1,415,964)
Tax on profit/(loss)
10
(422,630)
246,781
Profit/(loss) for the financial year
2,446,637
(1,169,183)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

THE DE GROUP (UK) LIMITED
GROUP BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,154,755
1,315,438
Current assets
Stocks
16
235,749
248,665
Debtors
17
21,258,918
23,662,771
Cash at bank and in hand
4,153,878
1,189,022
25,648,545
25,100,458
Creditors: amounts falling due within one year
18
(14,417,100)
(14,539,009)
Net current assets
11,231,445
10,561,449
Total assets less current liabilities
12,386,200
11,876,887
Creditors: amounts falling due after more than one year
19
(1,696,756)
(2,234,600)
Provisions for liabilities
Deferred tax liability
22
164,540
164,020
(164,540)
(164,020)
Net assets
10,524,904
9,478,267
Capital and reserves
Called up share capital
24
156,526
156,526
Share premium account
1,487,335
1,487,335
Capital redemption reserve
3,268
3,268
Profit and loss reserves
8,877,775
7,831,138
Total equity
10,524,904
9,478,267
The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
20 March 2025
P J Ford
A R Griffiths
Director
Director
Company registration number 08802601 (England and Wales)
THE DE GROUP (UK) LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 16 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,941
5,255
Investments
13
948,011
1,118,840
951,952
1,124,095
Current assets
Debtors
17
6,636,493
8,054,637
Cash at bank and in hand
1,524,761
1,001,694
8,161,254
9,056,331
Creditors: amounts falling due within one year
18
(7,399,011)
(8,529,682)
Net current assets
762,243
526,649
Total assets less current liabilities
1,714,195
1,650,744
Provisions for liabilities
Deferred tax liability
22
1,314
1,314
(1,314)
(1,314)
Net assets
1,712,881
1,649,430
Capital and reserves
Called up share capital
24
156,526
156,526
Share premium account
1,487,335
1,487,335
Capital redemption reserve
3,268
3,268
Profit and loss reserves
65,752
2,301
Total equity
1,712,881
1,649,430

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,463,451 (2023 - £64,876 loss).

The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
20 March 2025
P J Ford
A R Griffiths
Director
Director
Company registration number 08802601 (England and Wales)
THE DE GROUP (UK) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
156,526
1,487,335
3,268
9,000,321
10,647,450
Year ended 31 October 2023:
Loss and total comprehensive income
-
-
-
(1,169,183)
(1,169,183)
Balance at 31 October 2023
156,526
1,487,335
3,268
7,831,138
9,478,267
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
2,446,637
2,446,637
Dividends
11
-
-
-
(1,400,000)
(1,400,000)
Balance at 31 October 2024
156,526
1,487,335
3,268
8,877,775
10,524,904
THE DE GROUP (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
156,526
1,487,335
3,268
67,177
1,714,306
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
-
-
(64,876)
(64,876)
Balance at 31 October 2023
156,526
1,487,335
3,268
2,301
1,649,430
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
1,463,451
1,463,451
Dividends
11
-
-
-
(1,400,000)
(1,400,000)
Balance at 31 October 2024
156,526
1,487,335
3,268
65,752
1,712,881
THE DE GROUP (UK) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
3,701,588
(3,297,450)
Interest paid
(132,135)
(1,907)
Income taxes paid
-
0
(14,293)
Net cash inflow/(outflow) from operating activities
3,569,453
(3,313,650)
Investing activities
Purchase of tangible fixed assets
(28,884)
(55,701)
Interest received
-
0
16,220
Net cash used in investing activities
(28,884)
(39,481)
Financing activities
Proceeds from new bank loans
-
1,789,000
Repayment of bank loans
(571,857)
(675,957)
Payment of finance leases obligations
(3,856)
(14,073)
Net cash (used in)/generated from financing activities
(575,713)
1,098,970
Net increase/(decrease) in cash and cash equivalents
2,964,856
(2,254,161)
Cash and cash equivalents at beginning of year
1,189,022
3,443,183
Cash and cash equivalents at end of year
4,153,878
1,189,022
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
1
Accounting policies
Company information

The DE Group (UK) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 40-50 Tottenham Street, London, W1T 4RN.

 

The group consists of The DE Group (UK) Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 21 -

The consolidated group financial statements consist of the financial statements of the parent company The DE Group (UK) Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

In determining the appropriate basis of preparation of the Financial Statements, the directors are required to consider whether the group can continue in operational existence for the foreseeable future.

 

The Group’s forecast and projections, taking account of reasonable possible changes in trading performance, show that the Group will be able to operate within the level of its current facilities.

 

Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is derived entirely from contracts within the construction industry and is measured at the fair value of the consideration receivable for all works carried out under construction contracts, stated net of discounts, VAT and other sales related taxes.

 

Turnover from these contracts is recognised as a percentage of the anticipated total revenue over the period of the contract depending on stage of completion, which is certified by appropriate professionals experienced in the recognition and measurement of such works carried out.

 

Turnover is recognised when it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be reliably measured.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
2% on straight line.
Plant and machinery
10-25% per annum on straight line basis.
Fixtures, fittings & equipment
10-25% per annum on straight line basis.
Computer equipment
10-25% per annum on straight line basis.

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 recognised in the profit and loss account.

THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 22 -
1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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 group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.8
Stocks

Stock is valued at the lower of cost and net realisable value.

THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 23 -
1.9
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 reference to certified contract revenue at the reporting date as a percentage of the total anticipated revenue for each contract. Accordingly, cost of sales are adjusted through accruals and prepayments depending on their nature to align attributable profit for each contract with its percentage of completion.

 

Costs are based on agreed tender prices which are monitored and updated as the contract progresses. Provision is made on a contract by contract basis for additional costs or potential future losses as they arise.

1.10
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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 24 -
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 group 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 group 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.

 

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 or 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.

Derecognition of financial liabilities

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

THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 25 -
1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
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.

1.15
Retirement benefits

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

1.16
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.

THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 26 -

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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Amounts recoverable on long term contracts

 

The group applies its policy on contract accounting when recognising revenue and profit on partially completed contracts. The application of this policy requires judgements to be made in respect of the total expected costs to complete for each site. The group has in place established internal control processes to ensure that the evaluation of costs and revenues is based upon appropriate estimates. Amounts recoverable on long term contracts recognised at the year end total £3,510,677 (2023: £7,863,105).

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Demolition and construction services
61,110,408
54,928,780
Asbestos removal
1,255,453
2,663,506
Consultancy and surveying services
287,912
207,110
62,653,773
57,799,396
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
62,653,773
57,799,396
2024
2023
£
£
Other revenue
Interest income
-
16,220
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging:
Depreciation of owned tangible fixed assets
114,710
108,773
Depreciation of tangible fixed assets held under finance leases
42,947
35,293
Loss on disposal of tangible fixed assets
31,910
39,667
Cost of stocks recognised as an expense
9,905,101
13,148,390
Operating lease charges
347,345
341,311
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 group and company
5,775
5,500
Audit of the financial statements of the company's subsidiaries
49,350
47,000
55,125
52,500
For other services
Other taxation services
8,600
7,200
All other non-audit services
59,813
56,417
68,413
63,617
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
45
49
28
28
Other operations
159
134
-
-
Total
204
183
28
28
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
6
Employees
(Continued)
- 28 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
8,078,242
7,938,717
1,404,442
1,492,624
Social security costs
936,266
918,359
161,994
174,639
Pension costs
283,467
270,968
57,783
48,966
9,297,975
9,128,044
1,624,219
1,716,229
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
941,054
976,668

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 6).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
257,980
257,980
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
16,220
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
16,220
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
132,135
1,907
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 29 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
422,110
-
0
Adjustments in respect of prior periods
-
0
(235,496)
Total current tax
422,110
(235,496)
Deferred tax
Origination and reversal of timing differences
520
(11,285)
Total tax charge/(credit)
422,630
(246,781)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
2,869,267
(1,415,964)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
717,317
(269,033)
Tax effect of expenses that are not deductible in determining taxable profit
90,510
10,612
Unutilised tax losses carried forward
(375,265)
247,136
Adjustments in respect of prior years
-
0
(235,496)
Permanent capital allowances in excess of depreciation
(9,967)
-
0
Other non-reversing timing differences
520
-
0
Other permanent differences
(485)
-
0
Taxation charge/(credit)
422,630
(246,781)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
1,400,000
-
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
12
Tangible fixed assets
Group
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 November 2023
593,970
1,870,590
37,521
429,292
2,931,373
Additions
-
0
27,330
-
0
1,554
28,884
Disposals
-
0
(33,000)
-
0
-
0
(33,000)
At 31 October 2024
593,970
1,864,920
37,521
430,846
2,927,257
Depreciation and impairment
At 1 November 2023
-
0
1,196,240
32,893
386,802
1,615,935
Depreciation charged in the year
-
0
126,420
2,098
29,139
157,657
Eliminated in respect of disposals
-
0
(1,090)
-
0
-
0
(1,090)
At 31 October 2024
-
0
1,321,570
34,991
415,941
1,772,502
Carrying amount
At 31 October 2024
593,970
543,350
2,530
14,905
1,154,755
At 31 October 2023
593,970
674,350
4,628
42,490
1,315,438
Company
Computer equipment
£
Cost
At 1 November 2023 and 31 October 2024
52,500
Depreciation and impairment
At 1 November 2023
47,245
Depreciation charged in the year
1,314
At 31 October 2024
48,559
Carrying amount
At 31 October 2024
3,941
At 31 October 2023
5,255

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
321,629
325,297
-
0
-
0
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
-
0
-
0
948,011
1,118,840
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 1 November 2023 and 31 October 2024
1,118,840
Impairment
At 1 November 2023
-
Impairment losses
170,829
At 31 October 2024
170,829
Carrying amount
At 31 October 2024
948,011
At 31 October 2023
1,118,840

After the balance sheet date, the group disposed of its shareholding in Decontaminate (UK) Limited and the company ceased being part of the group from the date of sale .

14
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered
Class of
% Held
office
shares held
Direct
Deconstruct (UK) Limited
England & Wales
Ordinary
100
Decontaminate (UK) Ltd
England & Wales
Ordinary
100
De Construction Solutions Limited
England & Wales
Ordinary
100
All subsidiaries are held directly by the company.
The principal activity of these undertakings for the last relevant financial year was as follows:
Nature of business
Deconstruct (UK) Limited
Specialist demolition and structural alteration while carrying out incorporated and individual specialist subterranean and structural concrete contracts.
Decontaminate (UK) Ltd
Licensed asbestos removal and abatement, and aligned services.
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
14
Subsidiaries
(Continued)
- 32 -
De Construction Solutions Limited
Specialist building, consulting and engineering services.

The registered office of the above named subsidiaries apart from Decontaminate (UK) Limited is 40-50 Tottenham Street, London, W1T 4RN

 

The registered office of Decontaminate (UK) Limited is Suite 2, Epic House Unit 5, Olympic Business Centre, Paycocke Road, Basildon, Essex, SS14 3EX

 

 

15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
17,580,843
14,984,372
6,556,493
8,054,637
Equity instruments measured at cost less impairment
-
-
948,011
1,118,840
Carrying amount of financial liabilities
Measured at amortised cost
13,834,357
15,924,023
6,997,489
8,403,179
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
235,749
248,665
-
-
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 33 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,902,197
6,385,361
-
0
-
0
Amounts recoverable on long term contracts
3,510,677
7,863,105
-
0
-
0
Amount due from parent undertaking
5,812,584
8,176,482
5,812,584
8,046,798
Directors current accounts
-
7,839
-
-
Other debtors
6,231,508
287,293
743,909
7,839
Prepayments and accrued income
174,732
809,916
80,000
-
0
20,631,698
23,529,996
6,636,493
8,054,637
Amounts falling due after more than one year:
Trade debtors
627,220
132,775
-
0
-
0
Total debtors
21,258,918
23,662,771
6,636,493
8,054,637

 

18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
530,190
571,857
-
0
-
0
Obligations under finance leases
21
19,048
15,250
-
0
-
0
Trade creditors
3,129,081
7,679,427
69,866
5,458
Amounts due to group undertakings
-
0
-
0
6,790,957
6,953,541
Corporation tax payable
422,110
-
0
18,977
-
0
Other taxation and social security
1,857,389
849,586
382,545
126,503
Other creditors
2,447,798
1,848,555
13,293
1,444,180
Accruals and deferred income
6,011,484
3,574,334
123,373
-
0
14,417,100
14,539,009
7,399,011
8,529,682

 

THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 34 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
1,658,404
2,188,594
-
0
-
0
Obligations under finance leases
21
38,352
46,006
-
0
-
0
1,696,756
2,234,600
-
-
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,188,594
2,760,451
-
0
-
0
Payable within one year
530,190
571,857
-
0
-
0
Payable after one year
1,658,404
2,188,594
-
0
-
0

Bank loans drawn in prior years are secured over freehold property and an unlimited guarantee from DEG II (Holding) Limited and its subsidiaries, Derisk (UK) Holdings Limited and its subsidiaries and De Group Contracting (Holdings) Limited and its subsidiaries. Additionally, there are personal guarantees from some of the directors limited to £75,000 each. The loan bears interest at 4.95% above the Bank of England base rate and is repayable by September 2025.

 

Included within bank loans are two bank facilities. One of which is secured against an asset held by one of the directors and another which is secured against an asset held by the group. The loans bears interest at 11% and 8% respectively and are repayable by October 2025 and July 2028.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
19,048
15,250
-
0
-
0
In two to five years
19,048
15,250
-
0
-
0
In over five years
25,612
35,996
-
0
-
0
63,708
66,496
-
-
Less: future finance charges
(6,308)
(5,240)
-
0
-
0
57,400
61,256
-
0
-
0
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 35 -
22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or 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
Group
£
£
Accelerated capital allowances
164,540
164,020
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
1,314
1,314
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
164,020
1,314
Charge to profit or loss
520
-
Liability at 31 October 2024
164,540
1,314

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
283,467
270,968

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
156,526
156,526
156,526
156,526
THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 36 -
25
Contingent liability

The company is part of a group cross guarantee arrangement in relation to parent company loan note debt of £13,165,302 (2023: £11,645,953 ) as at the reporting date.

26
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
30,792
189,627
-
-
Between two and five years
-
30,792
-
-
30,792
220,419
-
-
27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Companies controlled by common directors and shareholders
9,090,960
3,603,864
3,804,520
2,686,771
Companies controlled by a director of the company
-
-
5,439,769
2,159,713

The following amounts were included within other creditors outstanding at the reporting end date:

Amounts due from/(to) related parties
2024
2023
£
£
Group
Companies controlled by common directors and shareholders
3,533,976
(1,426,281)
Companies controlled by a director of the company
(2,286,981)
(342,308)

The total remuneration for key management personnel for the year totalled £1,151,050 (2023: £1,181,664).

THE DE GROUP (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 37 -
28
Controlling party

The ultimate holding company is DEG III (Holding) Ltd, a company registered in England and Wales. DEG III (Holding) Ltd has no ultimate controlling party.

 

As DEG III (Holding) Limited was newly incorporated in the period and is not required to prepare financial statements for the reporting period, it's subsidiary; DEG II (Holding) Ltd prepares group financial statements and copies can be obtained from the Registrar of Companies, Crown Way, Cardiff.

 

29
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit/(loss) after taxation
2,446,637
(1,169,183)
Adjustments for:
Taxation charged/(credited)
422,630
(246,781)
Finance costs
132,135
1,907
Investment income
-
0
(16,220)
Loss on disposal of tangible fixed assets
31,910
39,667
Depreciation and impairment of tangible fixed assets
157,657
144,066
Movements in working capital:
Decrease in stocks
12,916
214,783
Decrease in debtors
1,003,853
1,889,618
Decrease in creditors
(506,150)
(4,155,307)
Cash generated from/(absorbed by) operations
3,701,588
(3,297,450)
30
Analysis of changes in net funds/(debt) - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
1,189,022
2,964,856
4,153,878
Borrowings excluding overdrafts
(2,760,451)
571,857
(2,188,594)
Obligations under finance leases
(61,256)
3,856
(57,400)
(1,632,685)
3,540,569
1,907,884
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