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Company registration number: 1700765
BECT Building Contractors Limited
Financial statements
30 June 2024
BECT Building Contractors Limited
Contents
Strategic report
Directors report
Independent auditor's report to the members
Profit and loss
Balance sheet
Statement of changes in equity
Statement of cashflow
Notes to the financial statements
BECT Building Contractors Limited
Strategic report
Year ended 30 June 2024
Business Strategy and Objectives
The financial year ended June 2024 marked further consolidation of our position as a reputable regional contractor in South Wales and the South West. Our commitment to delivering high-quality service remained central to our operations, with a key focus on fostering long-term client relationships and securing repeat business.
To support this objective, we implemented a range of operational and commercial improvements, enhancing efficiency through the adoption of advanced IT applications and streamlined business processes. We believe that these enhancements, combined with continued investment in technology and workforce development, will enable us to achieve our short to medium-term objectives while positioning the business to capitalise on future opportunities.
Review of Business
Despite the ongoing challenges within the UK construction industry, we delivered another year of profitable performance, aligned with our strategic objectives. Revenue for the year decreased to £46m from £62m (2023), primarily due to delays in the commencement of several projects under Pre-Construction Services Agreements. As a result, gross profit margin declined from 6.71% to 6.08%, while profit before taxation fell from 4.44% to 2.84%.
Operationally, site-level performance remained strong, with steady progress achieved across all projects. During the year, we successfully completed Practical Completion at Landore Court, Cardiff, and commenced work on Phase 2 of Weldale Street, Reading, as well as Llanarth Court, Usk.
Looking ahead, we have secured a strong pipeline of work, with contracted projects expected to drive revenue to over £60m in the 2024-25 financial year. Additionally, with several large schemes in development, we remain well positioned to achieve our medium-term business objectives.
Environmental matters
The company recognises the importance of its environmental responsibilities and accepts that concern for the environment and all employees is an integral and fundamental part of its corporate business strategy. The company monitors its impact on the environment and endeavours to design and implement policies and processes to reduce any damage that might be caused by the company's activities. Initiatives include the safe disposal of commercial waste, the minimisation of waste going to landfill, reducing energy consumption and the use of renewables where possible.
Principal Risks and Uncertainties
As a business we continue to work with a range of clients within a variety of sectors and remain successful in securing significant volumes of workload through repeat business relationships. Our order book remains very strong with over £100m+ of work currently under contract. Despite the relative strength of this position, we remain focused on a sustainable business strategy that reduces risk, eliminates uncertainty and is built on robust business processes, reliable income streams and strong long-term relationships.
The following sets out the main financial risks faced by the company and how those risks are mitigated:
Contract delivery risk
The group has several construction contracts in progress at any point in time and there is a risk that ineffective contract management could result in delay or failure to deliver on contracts. Contracts in progress are closely controlled by management with monthly reviews comparing performance to budget and timescales. This enables any issues to be identified early and corrective measures to be implemented.
Financial risk management
Exposure to liquidity and credit risks arise in the normal course of the group's business. Credit risk is attributable to trade debtors, amounts included on the balance sheet are net of any allowances for doubtful debts. Credit risk is reduced by working with a number of blue-chip clients and operating under collaborative forms of contract on most projects.
Safety Risk
The group's activities are complex and require continuous monitoring of health, safety and environmental risk. Failure to manage these risks could result in injury to employees, sub-contractors, the general public and the environment. This could result in reputational damage and significant liabilities. Detailed policies and procedures are in place to mitigate such risks and compliance is monitored through regular inspections.
Key performance indicators
The success of the business is measured in both financial and non-financial reporting including measurement against a number of key performance indicators.
Financial indicators are reviewed through the preparation of half yearly management accounts that bring together analysis of cost value reconciliation reports on a project by project basis. Reviews take into consideration debtors, creditors, retention, accrual, cash at bank, staffing levels and overhead costs. In addition we review tender schedules, tender/contract awards and pipeline of forthcoming opportunities.
Non-financial reporting includes Corporate Social Responsibility activities, staff retention and health, safety and environmental indicators.
This report was approved by the board of directors on 27 March 2025 and signed on behalf of the board by:
J T Coombs
Director
BECT Building Contractors Limited
Directors report
Year ended 30 June 2024
The directors present their report and the financial statements of the company for the year ended 30 June 2024.
Directors
The directors who served the company during the year were as follows:
J T Coombs
N A Holmes
UTC Holdings Limited
Dividends
Dividends in the year are as note 13 in the financial statements.
Future developments
We continue to work closely with our current client base on our long-term business strategy. This coupled with the strategic selection of new clients that share our company values will enable us to maintain, and build on, our recent financial performance levels. This view and approach are borne out by a strong order book for the coming trading periods.
Financial instruments
The directors are of the opinion that there is no material risk concerning the assessment of the assets, liabilities, financial position and profit and loss of the company.
Disclosure of information in the strategic report.
The company has included a stategic report in the financial statements as required by Schedule 7 of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors 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 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 judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 27 March 2025 and signed on behalf of the board by:
J T Coombs
Director
BECT Building Contractors Limited
Independent auditor's report to the members of
BECT Building Contractors Limited
Year ended 30 June 2024
Opinion
We have audited the financial statements of BECT Building Contractors Limited (the 'company') for the year ended 30 June 2024 which comprise the Profit and loss, Balance sheet, Statement of changes in equity, Statement of cashflow 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 June 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.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the 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 has 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 where 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 the returns; or - certain disclosures of directors' 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: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as the Health and Safety at Work Act and other areas regulated by the Health and Safety Executive such as the Construction Design and Management Regulations and the Site Waste Management Regulations 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 financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and misappropriation of assets. Audit procedures performed included:* Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;* Reviewing the company's accident book and key correspondence arising from it;* Reviewing key correspondence with the Health and Safety Executive in relation to compliance with laws and regulations;* Reviewing relevant minutes of management meetings;* Identifying and reviewing relevant journal entries to ensure that we understood the reasoning behind them and agreed that they were appropriate;* Selecting a sample of transactions and tracing to documentation to establish that they are bona fide business transactions; and* Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. A further description of our responsibilities for the audit of the financial statements is located in the FRC's website at www.frc.org.uk/auditorsresponsibilities and this description forms part of our auditor's report. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Timothy Robinson BSc FCA (Senior Statutory Auditor)
For and on behalf of
CHP Accountants Limited
Chartered Accountants and Statutory Auditors
Clifton House
Four Elms Road
Cardiff
CF24 1LE
27 March 2025
BECT Building Contractors Limited
Profit and loss
Year ended 30 June 2024
2024 2023
Note £ £
Turnover 4 45,786,600 61,693,666
Cost of sales ( 43,000,756) ( 57,554,089)
_________ _________
Gross profit 2,785,844 4,139,577
Distribution costs ( 93,547) ( 69,609)
Administrative expenses ( 1,529,003) ( 1,365,293)
Other operating income 5 13,201 -
_________ _________
Operating profit 6 1,176,495 2,704,675
Gain on financial assets at fair value through profit or loss 93,711 24,452
Other interest receivable and similar income 10 51,104 11,028
Interest payable and similar expenses 11 ( 22,499) -
_________ _________
Profit before taxation 1,298,811 2,740,155
Tax on profit 12 ( 367,613) ( 604,171)
_________ _________
Profit for the financial year and total comprehensive income 931,198 2,135,984
_________ _________
BECT Building Contractors Limited
Balance sheet
30 June 2024
2024 2023
Note £ £ £ £
Fixed assets
Tangible assets 14 105,347 121,588
_________ _________
105,347 121,588
Current assets
Debtors 15 13,014,934 13,479,491
Investments 16 1,348 842,762
Cash at bank and in hand 6,655,110 2,237,308
_________ _________
19,671,392 16,559,561
Creditors: amounts falling due
within one year 17 ( 13,179,514) ( 9,916,042)
_________ _________
Net current assets 6,491,878 6,643,519
_________ _________
Total assets less current liabilities 6,597,225 6,765,107
Provisions for liabilities 18 ( 26,337) ( 30,432)
_________ _________
Net assets 6,570,888 6,734,675
_________ _________
Capital and reserves
Called up share capital 22 48 48
Capital redemption reserve 12 12
Profit and loss account 6,570,828 6,734,615
_________ _________
Shareholders funds 6,570,888 6,734,675
_________ _________
These financial statements were approved by the board of directors and authorised for issue on 27 March 2025 , and are signed on behalf of the board by:
J T Coombs N A Holmes
Director Director
Company registration number: 1700765
BECT Building Contractors Limited
Statement of changes in equity
Year ended 30 June 2024
Called up share capital Capital redemption reserve Profit and loss account Total
£ £ £ £
At 1 July 2022 48 12 5,900,987 5,901,047
Profit for the year 2,135,984 2,135,984
_________ _________ _________ _________
Total comprehensive income for the year - - 2,135,984 2,135,984
Dividends paid and payable ( 1,302,356) ( 1,302,356)
_________ _________ _________ _________
Total investments by and distributions to owners - - ( 1,302,356) ( 1,302,356)
_________ _________ _________ _________
At 30 June 2023 and 1 July 2023 48 12 6,734,615 6,734,675
Profit for the year 931,198 931,198
_________ _________ _________ _________
Total comprehensive income for the year - - 931,198 931,198
Dividends paid and payable ( 1,094,985) ( 1,094,985)
_________ _________ _________ _________
Total investments by and distributions to owners - - ( 1,094,985) ( 1,094,985)
_________ _________ _________ _________
At 30 June 2024 48 12 6,570,828 6,570,888
_________ _________ _________ _________
BECT Building Contractors Limited
Statement of cashflow
Year ended 30 June 2024
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 931,198 2,135,984
Adjustments for:
Depreciation of tangible assets 23,274 26,377
Other interest receivable and similar income ( 51,104) ( 11,028)
Interest payable and similar expenses 22,499 -
Gain/(loss) on disposal of tangible assets ( 3,289) -
Tax on profit 367,613 604,171
Accrued expenses/(income) 308,939 67,232
Fair value adjusment on investments (96,266) (25,161)
Changes in:
Trade and other debtors 464,557 ( 2,320,350)
Trade and other creditors 3,212,111 822,695
_________ _________
Cash generated from operations 5,179,532 1,299,920
Interest paid ( 22,499) -
Interest received 51,104 11,028
Tax paid ( 629,286) ( 375,198)
_________ _________
Net cash from operating activities 4,578,851 935,750
_________ _________
Cash flows from investing activities
Purchase of tangible assets ( 10,244) ( 18,994)
Proceeds from sale of tangible assets 6,500 -
Payments into investment account ( 220,000) ( 250,000)
Receipts from investment account 1,157,680 -
_________ _________
Net cash from/(used in) investing activities 933,936 ( 268,994)
_________ _________
Cash flows from financing activities
Equity dividends paid ( 1,094,985) ( 1,302,356)
_________ _________
Net cash used in financing activities ( 1,094,985) ( 1,302,356)
_________ _________
Net increase/(decrease) in cash and cash equivalents 4,417,802 ( 635,600)
Cash and cash equivalents at beginning of year 2,237,308 2,872,908
_________ _________
Cash and cash equivalents at end of year 6,655,110 2,237,308
_________ _________
BECT Building Contractors Limited
Notes to the financial statements
Year ended 30 June 2024
1. General information
The company is a private company limited by shares, registered in United Kingdom. The address of the registered office is Unit 22 Waterside Business Park, Lamb Way, Rumania, Cardiff, CF3 2ET.
The principal activity of the company continues to be building contractors.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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, is in the period of the revision and future periods where the revision affects both current and future periods.
Retentions
In the construction industry it is a common feature of construction contracts for the customer to retain part of the contract fee over a maintenance period pending the satisfactory completion of any remedial work required by the contractor. Retentions are included within debtors and turnover. Provisions for remedial work is included in accruals.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end.
If the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred where it is probable these will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred.
The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 15 % reducing balance
Fittings fixtures and equipment - 15 % reducing balance
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024 2023
£ £
Construction contracts 45,786,600 61,693,666
_________ _________
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024 2023
£ £
Insurance claims receivable 13,201 -
_________ _________
6. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 23,274 26,377
(Gain)/loss on disposal of tangible assets ( 3,289) -
Hire of plant and machinery 1,076,859 1,368,899
Hire of office equipment 11,132 6,588
_________ _________
7. Auditors remuneration
2024 2023
£ £
Fees payable to CHP Accountants Limited
Fees payable for the audit of the financial statements 23,000 22,500
_________ _________
Fees payable to the company's auditor and its associates for other services:
Other non-audit services 3,480 3,606
_________ _________
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Construction staff 54 55
Management and administrative staff 16 15
_________ _________
70 70
_________ _________
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 3,002,658 2,880,818
Social security costs 308,654 310,070
Other pension costs 582,324 489,234
_________ _________
3,893,636 3,680,122
_________ _________
9. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 25,140 25,140
Company contributions to pension schemes in respect of qualifying services 120,000 120,000
_________ _________
145,140 145,140
_________ _________
The number of directors who accrued benefits under company pension plans was as follows:
2024 2023
Number Number
Defined contribution plans 2 2
_________ _________
10. Other interest receivable and similar income
2024 2023
£ £
Bank deposits 36,938 10,318
Other interest receivable and similar income 14,166 710
_________ _________
51,104 11,028
_________ _________
11. Interest payable and similar expenses
2024 2023
£ £
Other interest payable and similar expenses 22,499 -
_________ _________
12. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 371,708 598,244
Deferred tax:
Origination and reversal of timing differences ( 4,095) 5,927
_________ _________
Tax on profit 367,613 604,171
_________ _________
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25.00 % (2023: 20.50%).
2024 2023
£ £
Profit before taxation 1,298,811 2,740,155
_________ _________
Profit multiplied by rate of tax 324,703 561,732
Effect of expenses not deductible for tax purposes 42,910 35,144
Effect of change in deferred tax rate - 7,295
_________ _________
Tax on profit 367,613 604,171
_________ _________
13. Dividends
Equity dividends
2024 2023
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 1,094,985 1,302,356
_________ _________
14. Tangible assets
Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £
Cost
At 1 July 2023 10,916 155,819 182,890 349,625
Additions - 10,244 - 10,244
Disposals - - ( 33,949) ( 33,949)
_________ _________ _________ _________
At 30 June 2024 10,916 166,063 148,941 325,920
_________ _________ _________ _________
Depreciation
At 1 July 2023 10,916 82,766 134,355 228,037
Charge for the year - 11,943 11,331 23,274
Disposals - - ( 30,738) ( 30,738)
_________ _________ _________ _________
At 30 June 2024 10,916 94,709 114,948 220,573
_________ _________ _________ _________
Carrying amount
At 30 June 2024 - 71,354 33,993 105,347
_________ _________ _________ _________
At 30 June 2023 - 73,053 48,535 121,588
_________ _________ _________ _________
15. Debtors
2024 2023
£ £
Trade debtors 7,126,109 8,340,507
Amounts owed by group undertakings 4,464,156 4,463,356
Construction contract debit balances 1,209,284 459,487
Prepayments and accrued income 22,884 21,141
Other debtors 192,501 195,000
_________ _________
13,014,934 13,479,491
_________ _________
16. Investments
2024 2023
£ £
Listed investments 1,348 842,762
_________ _________
17. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 8,276,465 5,392,838
Accruals and deferred income 964,701 655,762
Social security and other taxes 1,332,148 1,271,046
Construction contract credit balances 2,606,200 2,592,920
Other creditors - 3,476
_________ _________
13,179,514 9,916,042
_________ _________
The following charges are registered with Barclays Bank PLC (a) Debenture dated 26 September 1989 over all the company's assets ( b) Debenture and cross guarantee dated 25 June 2019 between BECT Building Contractors Limited and UTC Holdings Limited . (c) Fixed and floating charge over all the property and undertaking dated 25 June 2019. (d) Fixed and floating charge over credit balances dated 3 July 2020.
18. Provisions
Deferred tax (note 19) Total
£ £
At 1 July 2023 30,432 30,432
Charges against provisions ( 4,095) ( 4,095)
_________ _________
At 30 June 2024 26,337 26,337
_________ _________
19. Deferred tax
The deferred tax included in the Balance sheet is as follows:
2024 2023
£ £
Included in provisions (note 18) 26,337 30,432
_________ _________
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Accelerated capital allowances 26,337 30,432
_________ _________
20. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £582,324 ( 2023 : £489,234).
21. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2024 2023
£ £
Financial assets measured at fair value through profit or loss
Listed investments 1,348 842,762
_________ _________
Financial assets that are debt instruments measured at amortised cost
Trade debtors 7,126,109 8,340,507
Other debtors 5,888,825 5,138,984
Cash at bank and in hand 6,665,110 2,237,308
_________ _________
19,680,044 15,716,799
_________ _________
Financial liabilities measured at amortised cost
Trade creditors 8,276,465 5,392,838
Other creditors 4,903,049 4,523,204
_________ _________
13,179,514 9,916,042
_________ _________
22. Called up share capital
Issued, called up and fully paid
2024 2023
No £ No £
Ordinary shares of £ 1.00 each 48 48 48 48
_________ _________ _________ _________
Each share has full participation and voting rights.
23. Analysis of changes in net debt
At 1 July 2023 Cash flows At 30 June 2024
£ £ £
Cash and cash equivalents 2,237,308 4,417,802 6,655,110
Current asset investments 842,762 (841,414) 1,348
_________ _________ _________
3,080,070 3,576,388 6,656,458
_________ _________ _________
24. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 52,814 34,446
Later than 1 year and not later than 5 years 166,864 132,000
Later than 5 years 52,250 85,250
_________ _________
271,928 251,696
_________ _________
25. Controlling party
During the reporting period the company was controlled by UTC Holdings Limited , a company situated in the United Kingdom who owns all the issued share capital of BECT Building Contractors Limited . The directors regards UTC Group Limited, a company registered in the United Kingdom as the group's ultimate parent. The address of the registered office is Unit 22 Waterside Business Park, Lamby Way, Cardiff CF3 2ET. The ultimate controlling parties are J T & S Coombs, N A & Z Holmes, J D & R Pugh. On 18 November 2024 UTC Investments Limited acquired the entire share capital of UTC Group Limited. The address of the registered office is Unit 22 Waterside Business Park, Lamby Way, Cardiff CF3 2ET. The ultimate controlling parties continue to be J T & S Coombs, N A & Z Holmes, J D & R Pugh.
26. Related Parties
Included in other debtors is a loan of £190,000 advanced to Propco Developments Limited which is controlled by the spouse of J T Coombs , director of this entity who is also a director of Propco Developments Limited. Interest of 0.0001% has been charged on this loan.