Company registration number 02775128 (England and Wales)
GEORGE COX & SONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GEORGE COX & SONS LIMITED
COMPANY INFORMATION
Directors
Mr C F Cox
Mr J P Walsh
Mr M J Holroyd
Mr M A Edwards
Company number
02775128
Registered office
Hall Lane Works
Farnworth
Bolton
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
Svenska Handelsbanken AB
6 The Courtyard
Calvin Street
Bolton
GEORGE COX & SONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
GEORGE COX & SONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
The key performance indicators for the company are as follows:
2024
2023
£
£
Turnover
25,598,686
17,500,938
Gross profit
3,657,768
3,364,954
Gross profit margin
14.29%
19.23%
2024 saw yet another significant rise in turnover with an increase of 46.3% on the previous year. This means over the past two years the company has seen an overall increase of 131%. The long-term strategic plan of broadening its client base and undertaking larger projects continues to be successful. Gross Profit has increased to £3.7m (2023: £3.4m), though there was a fall in the gross profit margin percentage, due to the nature of works being undertaken, but it remains well above industry averages. Net Profits remain strong at £1.3m (2023: £1.4m). The company saw an increase in indirect costs to £2.4m from £2.0m split between one-off development costs and an increase in staffing numbers.
The company’s growth has been underpinned by long -term framework contracts with Local Authorities, which have provided surety of work streams for forthcoming years. This has provided the Directors with the confidence to invest heavily in the future growth of the company, including the purchase and development of a new ERP system and the expansion/refurbishment of its offices.
Cash balances remained strong throughout the year, with yet further improvements on prior historic highs. More effective cash collection has resulted in an 11% reduction of debtor days.
The company secured long-term direct award contracts with both Local Authority and Utility Providers as well as successfully negotiating extensions to a number of its existing direct-award frameworks. It has a historically high forward order book with works well into 2026.
The company continues to develop its training and apprentice programme which it has expanded to include professional and management positions. 12% of the workforce are apprentices or on a recognised training/development programme.
The company continues to meet (or in most cases exceed) agreed Social Value targets, undertaking a wide range of community and educational projects.
Principal risks and uncertainties
The company has a strong forward order book covering forthcoming years. It regularly reviews and updates its working practices in consultation with its workforce, its professional advisors, industry bodies and its supply chain.
Our client’s future budget spending looks to increase from current levels, which is an indication of the strength within our market. All long-term contracts have an inflationary mechanism which provides protection from any significant fluctuation in costs.
Mr C F Cox
Director
27 March 2025
GEORGE COX & SONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The directors present their report for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of highway contractors.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £977,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C F Cox
Mr J P Walsh
Mr M J Holroyd
Mr M A Edwards
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
The company has successfully expanded the number of framework contracts it now undertakes with local authority councils. These clients have secured funding for a number of large long-term schemes for which we have been appointed preferred Contractor status and in doing so this provides security of work flows for the next three to five years maintaining the recent growth we have enjoyed.
In addition to our local authority clients, we have expanded our number of blue chip, private sector clients.
Auditor
The auditors, Barlow Andrews LLP, are deemed to be reappointed under section 487 (2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
GEORGE COX & SONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
On behalf of the board
Mr C F Cox
Director
27 March 2025
GEORGE COX & SONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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; and
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.
GEORGE COX & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GEORGE COX & SONS LIMITED
- 5 -
Opinion
We have audited the financial statements of George Cox & Sons Limited (the 'company') for the year ended 30 September 2024 which comprise the Profit And Loss Account, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, 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 FRS 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 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GEORGE COX & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GEORGE COX & SONS LIMITED (CONTINUED)
- 6 -
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
GEORGE COX & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GEORGE COX & SONS LIMITED (CONTINUED)
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
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.
Alison Cornes (Senior Statutory Auditor)
For and on behalf of Barlow Andrews LLP, Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
27 March 2025
GEORGE COX & SONS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
25,598,686
17,500,938
Cost of sales
(21,940,918)
(14,135,984)
Gross profit
3,657,768
3,364,954
Administrative expenses
(2,386,755)
(1,967,114)
Other operating income
35,645
24,185
Operating profit
4
1,306,658
1,422,025
Interest receivable and similar income
8
13,382
Interest payable and similar expenses
9
15,583
(21,496)
Profit before taxation
1,335,623
1,400,529
Tax on profit
10
(274,573)
(312,193)
Profit for the financial year
1,061,050
1,088,336
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There is no other comprehensive income for the year. The total comprehensive income is the profit for the financial year shown above.
GEORGE COX & SONS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Current assets
Stocks
12
181,700
372,476
Debtors
13
5,846,317
6,220,895
Cash at bank and in hand
2,426,148
1,299,877
8,454,165
7,893,248
Creditors: amounts falling due within one year
14
(6,819,248)
(6,341,934)
Net current assets
1,634,917
1,551,314
Provisions for liabilities
Provisions
15
(35,025)
(35,472)
(35,025)
(35,472)
Net assets
1,599,892
1,515,842
Capital and reserves
Called up share capital
17
72,851
72,851
Share premium account
18
115,165
115,165
Profit and loss reserves
1,411,876
1,327,826
Total equity
1,599,892
1,515,842
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
Mr C F Cox
Director
Company registration number 02775128 (England and Wales)
GEORGE COX & SONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
72,851
115,165
639,490
827,506
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
1,088,336
1,088,336
Dividends
11
-
-
(400,000)
(400,000)
Balance at 30 September 2023
72,851
115,165
1,327,826
1,515,842
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,061,050
1,061,050
Dividends
11
-
-
(977,000)
(977,000)
Balance at 30 September 2024
72,851
115,165
1,411,876
1,599,892
GEORGE COX & SONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,461,355
1,080,600
Interest paid
15,583
(21,496)
Income taxes paid
(387,049)
(66,273)
Net cash inflow from operating activities
2,089,889
992,831
Investing activities
Interest received
13,382
Net cash generated from investing activities
13,382
-
Financing activities
Repayment of borrowings
(115,667)
Dividends paid
(977,000)
(400,000)
Net cash used in financing activities
(977,000)
(515,667)
Net increase in cash and cash equivalents
1,126,271
477,164
Cash and cash equivalents at beginning of year
1,299,877
822,713
Cash and cash equivalents at end of year
2,426,148
1,299,877
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
George Cox & Sons Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hall Lane Works, Farnworth, Bolton.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Profit is recognised on long term contracts if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as the proportion of the contract value which is estimated to have been completed.
1.4
Stocks
Stocks are stated at the lower of cost and net realisable value and are recognised on a FIFO basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.5
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 and claims 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.
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, loans due from group and connected companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
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.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
When the company receives claims from third parties or employees, it makes a provision for the estimated uninsured element of each claim.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.13
Leases
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 company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The key source of estimation and uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Amounts receivable on long term contracts
Profit on long term contracts is recognised in the profit or loss account based on the amount of chargeable work carried out by the end of the financial period less amounts already invoiced to the customer. A level of judgement is applied in assessing the likely overall outcome of the project.
3
Turnover and other revenue
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom. An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Highway contractor
25,598,686
17,500,938
2024
2023
£
£
Other revenue
Interest income
13,382
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Operating lease charges
122,482
114,242
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
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
15,600
13,200
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
24
18
Administration
16
12
Site operatives
60
45
Total
100
75
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,807,256
2,590,769
Social security costs
365,982
259,924
Pension costs
84,652
65,754
4,257,890
2,916,447
7
Directors' remuneration
During the year, no remuneration was paid to the directors (2023: None). There were no retirement benefits accruing under defined contribution schemes (2023: None).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
13,382
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
13,382
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest and other charges on financial liabilities measured at amortised cost:
Interest and charges on loans and other similar items
(15,583)
21,496
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
274,573
312,193
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
1,335,623
1,400,529
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
333,906
308,231
Tax effect of expenses that are not deductible in determining taxable profit
10,693
3,962
Group relief
(70,026)
Taxation charge for the year
274,573
312,193
The tax rate used is the average rate used for the year.
11
Dividends
2024
2023
£
£
Interim paid
977,000
400,000
12
Stocks
2024
2023
£
£
Raw materials and consumables
181,700
372,476
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,292,472
2,559,137
Gross amounts owed by contract customers
1,548,438
2,615,544
Amounts owed by group undertakings
227,097
217,901
Other debtors
678,362
679,826
Prepayments and accrued income
99,948
148,487
5,846,317
6,220,895
14
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
398,514
52,324
Trade creditors
4,202,253
4,505,099
Corporation tax
199,717
312,193
Other taxation and social security
1,014,870
572,153
Other creditors
25,405
17,739
Accruals and deferred income
978,489
882,426
6,819,248
6,341,934
15
Provisions for liabilities
2024
2023
£
£
Personal injury and damage claims
35,025
35,472
Movements on provisions:
Personal injury and damage claims
£
At 1 October 2023
35,472
Additional provisions in the year
24,525
Reversal of provision
(22,600)
Utilisation of provision
(2,372)
At 30 September 2024
35,025
When the company receives claims from third parties or employees it makes a provision for the estimated uninsured element of each claim.
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
84,652
65,754
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.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
72,851
72,851
72,851
72,851
The holders of ordinary shares are entitled to receive dividends and are entitled to one vote per share at the meetings of the Company. All shares rank equally with regard to the Company's residual assets.
18
Share premium account
The share premium account includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium.
19
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
98,300
98,470
Between two and five years
170,425
268,738
268,725
367,208
20
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows:
2024
2023
£
£
Aggregate compensation
364,302
291,325
GEORGE COX & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
20
Related party transactions
(Continued)
- 20 -
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Companies associated via the directors
During the year, George Cox & Sons Limited incurred expenses of £712,446 (2023: £719,946) and made sales of £32,968 (2023: £57,703) to companies associated through common directorship. At the year end £13,772 (2023: £98,464) was due from these connected companies. An additional £192,546 was also included in accruals in respect of management charges (2023: £154,360).
Transactions with the directors
During the year, the company did not enter into any transactions with the directors (2023: None).
21
Ultimate controlling party
The ultimate parent company is George Cox Limited, a company registered in England and Wales. The registered office is Hall Lane Works, Hall Lane, Farnworth, Bolton.
The company is included in the consolidated financial statements of George Cox Limited. These consolidated financial statements are available from its registered office, as detailed above.
22
Cash generated from operations
2024
2023
£
£
Profit after taxation
1,061,050
1,088,336
Adjustments for:
Taxation charged
274,573
312,193
Finance costs
(15,583)
21,496
Investment income
(13,382)
(Decrease)/increase in provisions
(447)
3,022
Movements in working capital:
Decrease/(increase) in stocks
190,776
(152,490)
Decrease/(increase) in debtors
374,578
(3,149,346)
Increase in creditors
589,790
2,957,389
Cash generated from operations
2,461,355
1,080,600
23
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,299,877
1,126,271
2,426,148
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