Company Registration No. 05265959 (England and Wales)
GIPPING CONSTRUCTION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
GIPPING CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
P Orriss
A Laflin
Secretary
P Orriss
Company number
05265959
Registered office
Lower Street
Baylham
Ipswich
Suffolk
IP6 8JP
Auditor
Sumer Auditco Limited
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG
GIPPING CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
The following pages do not form part of the statutory financial statements
Company detailed profit and loss account
22 - 24
GIPPING CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 November 2024.
The company's principal activity during the year was that of building contractors. There have not been any significant changes in the company’s principal activities in the year under review. The directors are not aware, at the date of the report, of any likely changes in the company’s activities in the forthcoming year.
Business Review
The results for the year are set out on page 8 and show a profit on ordinary activities before taxation of £1,649,002 (2023: profit £1,135,769). Revenue for the year increased to £26,842,926 (2023: £20,465,518). The shareholders funds total £1,878,216 (2023: £1,191,579).
The results reflect a successful year where the Company continued to establish itself within its marketplace, making the most of opportunities as they arose and despite facing strong competition.
The core business of the Company has remained unchanged however it has continued to invest in technology and processes to improve its product. During the year the Company achieved ISO 45001, to add to the already held accreditations of ISO 9001 and ISO 14001. Staff retention remains high since the company became part of an Employee Ownership Trust and continues to invest in its staff as reflected by its Investors in People Gold award.
The directors are pleased with the overall results, which could not have been achieved without a strong and flexible management team, especially when considering the continually challenging market.
The Company is in a strong financial position to continue trading for the foreseeable future, including cash at bank of £2,365,569 (2023: £1,685,511).
Principal risks and uncertainties
The company is required to manage its financial risks as well as its other business risks within parameters agreed and approved by the Company’s directors. The Company maintains sufficient assets to enable it to capitalize on opportunities as they may arise but also protect itself from threats posed by changes in the marketplace.
Credit risk is significant in the building sector, with large amounts owed to the company at any one time. Debtors are carefully monitored with credit checks taken before contracts are entered into and appropriate action taken if necessary. The company manages its cash to maximise its interest income whilst ensuring it has the necessary liquidity to meet its business objectives.
The construction industry exposes the company to a variety of contractual risks, depending on the type of contract undertaken. These can include inflation, customer expectations, adverse weather and legislation. These risks are discussed and managed day to day and at regular contract reviews by the management team.
Future developments and subsequent events
The directors anticipate a continuing challenging market in 2024/25 and plan to maintain their market share with organic growth as opportunities present themselves, whilst also continuing to enhance its already strong reputation by continuous delivery of a product that exceeds expectations.
There have been no significant actual developments since the year end.
Key performance indicators
The directors consider turnover, gross margin, overheads, net profit, net current assets and shareholder funds to be the key performance indicators of the business and these are monitored on a regular basis. Key results for the year have been included in the business review.
GIPPING CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
P Orriss
Secretary
19 March 2025
GIPPING CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Principal activities
The principal activity of the company continued to be that of construction.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid in the year amounting to £550,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P Orriss
A Laflin
Post reporting date events
There is nothing to report in regards to post balance sheet events.
Auditor
Sumer Auditco Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
GIPPING CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 4 -
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.
By order of the board
P Orriss
Secretary
19 March 2025
GIPPING CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GIPPING CONSTRUCTION LIMITED
- 5 -
Opinion
We have audited the financial statements of Gipping Construction Limited (the 'company') for the year ended 30 November 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 November 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Other matters - prior year financial statements unaudited
The company was not required to have a statutory audit for the year ended 30 November 2023 as it was entitled to exemption by the provision of the Companies Act 2006 relating to the audit of the financial statements by virtue of Section 477 and no member or members requested an audit pursuant to Section 476 of the Act. Accordingly, the corresponding figures for the year ended 30 November 2023 are unaudited.
GIPPING CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GIPPING CONSTRUCTION LIMITED (CONTINUED)
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. .
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 experience and through discussions and enquiries of Directors and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the company.
The following laws and regulations were identified as being of significance to the Company.
- Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, UK Company Law and compliance with UK Corporation tax regulations; and
- Those laws and regulations considered to have an indirect effect on the financial statements including the Health and Safety Act 1974, Construction (Design and Management) Regulations 2015, Control of Substances Hazardous to Health Regulations (COSHH) 2002, Lifting Operations and Lifting Equipment Regulations (LOLER) 1998, Management of Health and Safety at Work Regulations 1999, Provision and Use of Work Equipment Regulations (PUWER) 1998, Work at Height Regulations 2005 and Building Safety Act 2022.
GIPPING CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GIPPING CONSTRUCTION LIMITED (CONTINUED)
- 7 -
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of; enquiries with management and those charged with governance as to whether the company complies with such regulations; enquires with management and those charged with governance concerning any actual of potential litigation or claims, inspection of relevant legal documentation, review of board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
Irregularities that result from fraud might be inherently more difficult to detect then irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
John Perry (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
20 March 2025
Statutory Auditor
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG
GIPPING CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
26,842,926
20,465,518
Cost of sales
(23,486,259)
(17,862,884)
Gross profit
3,356,667
2,602,634
Administrative expenses
(1,768,663)
(1,477,034)
Other operating income
2,021
503
Operating profit
4
1,590,025
1,126,103
Interest receivable and similar income
7
58,977
9,666
Profit before taxation
1,649,002
1,135,769
Tax on profit
8
(412,365)
(261,422)
Profit for the financial year
1,236,637
874,347
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 11 to 21 form part of these financial statements.
GIPPING CONSTRUCTION LIMITED
Company Registration No. 05285959
BALANCE SHEET
FOR THE YEAR ENDED
30 NOVEMBER 2024
30 November 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
10
5,894
3,125
Current assets
Stocks
11
45,990
47,677
Debtors falling due after more than one year
12
637,284
291,528
Debtors falling due within one year
12
5,088,608
3,799,169
Cash at bank and in hand
2,365,569
1,685,511
8,137,451
5,823,885
Creditors: amounts falling due within one year
14
(5,951,481)
(4,512,447)
Net current assets
2,185,970
1,311,438
Total assets less current liabilities
2,191,864
1,314,563
Creditors: amounts falling due after more than one year
15
(312,321)
(122,255)
Provisions for liabilities
(1,327)
(729)
Net assets
1,878,216
1,191,579
Capital and reserves
Called up share capital
19
110,620
110,620
Profit and loss reserves
1,767,596
1,080,959
Total equity
1,878,216
1,191,579
The financial statements were approved by the board of directors and authorised for issue on 19 March 2025 and are signed on its behalf by:
P Orriss
A Laflin
Director
Director
The notes on pages 11 to 21 form part of these financial statements.
GIPPING CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2022
110,620
1,306,612
1,417,232
Year ended 30 November 2023:
Profit and total comprehensive income
-
874,347
874,347
Dividends paid
9
-
(1,100,000)
(1,100,000)
Balance at 30 November 2023
110,620
1,080,959
1,191,579
Year ended 30 November 2024:
Profit and total comprehensive income
-
1,236,637
1,236,637
Dividends paid
9
-
(550,000)
(550,000)
Balance at 30 November 2024
110,620
1,767,596
1,878,216
The notes on pages 11 to 21 form part of these financial statements.
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 11 -
1
Accounting policies
Company information
Gipping Construction Limited is a private company limited by shares and incorporated in England and Wales. The registered office is Lower Street, Baylham, Ipswich, Suffolk, IP6 8JP.
1.1
Basis of preparation of financial statements
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 £1.
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.
Certain comparatives have been restated to make their treatment consistent consistent with those adopted in the current year.
Financial reporting standard 102 – reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland:
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
• the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11,48(a)(iv), 11.48(b) and 11.48(c);
• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Gipping Projects Limited as at 30 November 2024 and these financial statements may be obtained from Companies House.
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 (taken to mean a minimum of 12 months following the approval of these financial statements). 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.
Revenue from contracts for the provision of construction and related services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Interest income
Interest income is recognised in profit or loss using the accruals basis.
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:
Fixtures and fittings
Straight line over 5 years
Computers
Straight line over 3 years
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.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
1.7
Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
1.8
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
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.
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.9
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.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
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.
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
1.14
Leases
Rentals paid under operating leases are charged to the Profit and Loss Account on a straight line basis over the lease term.
1.15
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
2
Judgements and key sources of estimation uncertainty
The key judgements made in applying accounting policies are in respect of the valuation of contracts in progress at the year end.
In making this judgement the company prepares contract valuations in order to determine the level of revenue and costs to be recognised on individual contracts based on the stage of completion of the contract. These assessments are performed by qualified surveyors within the company. Management recognised profit on contracts when this profit can be measured reliably and it is probable that the company will receive the consideration due under the contract. Where losses are expected on contracts these are recognised in full immediately. These assessments include a degree of inherent uncertainty, and management seeks to apply prudence in its determination of likely outcomes.
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 15 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Construction Services
26,842,926
20,465,518
2024
2023
£
£
Turnover analysed by geographical market
UK
26,842,926
20,465,518
2024
2023
£
£
Other revenue
Interest income
58,977
9,666
The whole of turnover is attributable to construction services.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
771
611
(Profit)/loss on disposal of tangible fixed assets
-
2
Operating lease charges
47,310
43,884
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
15,052
The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the ultimate parent undertaking, Gipping Projects Limited.
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Office
13
13
Site
24
26
Total
37
39
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,138,132
2,103,210
Social security costs
79,569
79,843
Pension costs
134,625
77,800
2,352,326
2,260,853
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
58,977
9,666
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
411,767
260,701
Deferred tax
Origination and reversal of timing differences
598
664
Effect of changes in tax rates
57
Total deferred tax
598
721
Total tax charge
412,365
261,422
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
8
Taxation
(Continued)
- 17 -
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
1,649,002
1,135,769
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
412,251
261,351
Tax effect of expenses that are not deductible in determining taxable profit
113
95
Tax effect of income not taxable in determining taxable profit
(80)
Tax rate changes
1
57
Rounding
(1)
Taxation charge for the year
412,365
261,422
9
Dividends
2024
2023
£
£
Interim paid
550,000
1,100,000
10
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 December 2023
8,397
15,286
23,683
Additions
3,540
3,540
At 30 November 2024
11,937
15,286
27,223
Depreciation and impairment
At 1 December 2023
5,278
15,280
20,558
Depreciation charged in the year
771
771
At 30 November 2024
6,049
15,280
21,329
Carrying amount
At 30 November 2024
5,888
6
5,894
At 30 November 2023
3,119
6
3,125
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 18 -
11
Stocks
2024
2023
£
£
Raw materials and consumables
45,990
47,677
12
Debtors
2024
2023
Restated
Amounts falling due within one year:
£
£
Trade debtors
2,601,681
1,772,816
Gross amounts owed by contract customers
904,509
1,183,048
Amounts owed by group undertakings
1,341,521
496,809
Other debtors
118,851
307,909
Prepayments and accrued income
122,046
38,587
5,088,608
3,799,169
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
637,284
291,528
Total debtors
5,725,892
4,090,697
Intercompany balances are interest free and repayable on demand.
13
Cash and cash equivalents
Cash and cash equivalents at the year end comprise cash at bank and in hand of £2,365,569 (2023: £1,685,511).
14
Creditors: amounts falling due within one year
2024
2023
Restated
Notes
£
£
Trade creditors
3,390,623
3,699,547
Corporation tax
231,767
260,700
Other taxation and social security
174,859
286,878
Deferred income
2,023,311
155,045
Other creditors
9,917
9,239
Accruals
121,004
101,038
5,951,481
4,512,447
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 19 -
15
Creditors: amounts falling due after more than one year
2024
2023
£
£
Trade creditors
312,321
122,255
16
Profit and loss account
Profit and loss represents cumulative profits or losses, less dividends paid.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,474
781
Other short term timing differences
(147)
(52)
1,327
729
2024
2023
Movements in the year:
£
£
Provision at start of period
729
7
Deferred tax charge to income statement for the period
598
722
Liability at 30 November 2024
1,327
729
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
134,625
77,800
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.
At the year end there were pension contributions outstanding of £1,400 (2023: £560).
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 20p each
553,100
553,100
110,620
110,620
The Ordinary shares rank pari passu with each other in all respects.
20
Financial commitments, guarantees and contingent liabilities
The company has provided guarantees in connection with performance bonds on contracts amounting to £550,000 (2023: £550,000) at the Balance Sheet date.
There are no contingent liabilities for the financial year.
21
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
39,336
10,750
Between two and five years
123,612
162,948
10,750
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
2,588
3,046
Please note that the above only relates to Directors.
Transactions with related parties
In the ordinary course of business the company has traded with its parent company. The group are exempt from discolsing details of these transactions as they are eliminated on consolidation.
Other information
The group has taken advantage of the exemption of disclosing transactions with wholly owned group members.
Balances with group undertakings are disclosed in notes 12 and 13 .
GIPPING CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
23
Ultimate controlling party
The immediate parent company is Gipping Projects Limited by virtue of thier sole shareholding. The ultimate controlling party of this goup is owned by an employee ownership trust. Copies of the consolidated accounts are available from Companies House.
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