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COMPANY REGISTRATION NUMBER: 01919669
Ovenden Earthmoving Co Ltd
Financial Statements
7 July 2024
Ovenden Earthmoving Co Ltd
Financial Statements
Period from 1 June 2023 to 7 July 2024
Contents
Page
Strategic report
1
Directors' report
4
Independent auditor's report to the members
6
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15
Ovenden Earthmoving Co Ltd
Strategic Report
Period from 1 June 2023 to 7 July 2024
The directors present their strategic report for the period ended 7th July 2024. The directors are pleased to announce the overall profit before tax for the period of £3,445,770 (31 May 2023: £2,654,908). The financial key performance indicators for the period are as follows:
2024 2023
£ £
Turnover 27,202,233 18,093,848
Gross profit 5,201,627 3,778,001
Gross profit margin % 19 21
Net profit margin (before tax) % 13 15
Turnover has risen in the period and the company has seen an increased level of profitability. The company also remains in a strong financial position at the balance sheet date, with net assets of £8.20m (31 May 2023: £8.19m). Principal risks and uncertainties The principal activity for the company is the provision of specialist earthmoving, crushing, recycling and sea defence contract services. The business is subject to a number of risks which are monitored by the Board. The principal risk facing the company remains the availability of future contracts. There is also a liquidity risk which could be adversely affected by the late payment of trade debts. To mitigate the risks the Board regularly monitors the cash position and production requirements. The company's finances are supervised at Board level. Its financial instruments other than derivatives comprise cash, trade debtors, trade creditors, hire purchase and finance leases which arise from it's trade. The company depends on key personnel and staff and, to mitigate the risks of retention issues, the company provides training and reward schemes. The company operates in a competitive market and the Board actively seeks new business, maintains good customer relations and continues to ensure high standards of work for customers to enable the company to succeed within the sector. It is the policy of the Board to settle trade and other debts within the terms agreed. Mr C P Barwick , the Managing Director and ultimate controlling party, sadly passed away on 1 June 2023. The remaining directors and shareholders continue to drive the company forward. The company's performance in the current financial year remains strong and ahead of past results. Future developments The directors have considered the impact of the events in Ukraine with particular reference to how this may disrupt their business model, strategy and operations. It is noted that the company has no dealings with either Ukraine or any nation or individual currently experiencing sanctions as a result of the events in Ukraine. The directors have liaised with suppliers and customers and similarly they have no dealings that will impact the company's supply chain, recoverability of debt and credit. It is is clear that there is a worldwide impact on the cost of particular goods, to include fuel, which in turn has increased the base costs of consumables in the business. The directors have calculated the effect and believe that his will not significantly impact the ability to trade or going concern. Taking into account the above risks collectively and the options available to mitigate them, the Directors are satisfied that there are no material foreseeable risks to the business that haven't been assessed or disclosed. The Directors continue to take action to mitigate the impact of the disruption. Principal risks and uncertainties The principal activity for the company is the provision of specialist earthmoving, crushing, recycling and sea defence contract services. The business is subject to a number of risks which are monitored by the Board. The principal risk facing the company remains the availability of future contracts. There is also a liquidity risk which could be adversely affected by the late payment of trade debts. To mitigate the risks the Board regularly monitors the cash position and production requirements. The company's finances are supervised at Board level. Its financial instruments other than derivatives comprise cash, trade debtors, trade creditors, hire purchase and finance leases which arise from it's trade. The company depends on key personnel and staff and, to mitigate the risks of retention issues, the company provides training and reward schemes. The company operates in a competitive market and the Board actively seeks new business, maintains good customer relations and continues to ensure high standards of work for customers to enable the company to succeed within the sector. It is the policy of the Board to settle trade and other debts within the terms agreed. Mr C P Barwick , the Managing Director and ultimate controlling party, sadly passed away on 1 June 2023. The remaining directors and shareholders continue to drive the company forward. The company's performance in the current financial year remains strong and ahead of past results. Future developments The directors have considered the impact of the events in Ukraine with particular reference to how this may disrupt their business model, strategy and operations. It is noted that the company has no dealings with either Ukraine or any nation or individual currently experiencing sanctions as a result of the events in Ukraine. The directors have liaised with suppliers and customers and similarly they have no dealings that will impact the company's supply chain, recoverability of debt and credit. It is is clear that there is a worldwide impact on the cost of particular goods, to include fuel, which in turn has increased the base costs of consumables in the business. The directors have calculated the effect and believe that his will not significantly impact the ability to trade or going concern. Taking into account the above risks collectively and the options available to mitigate them, the Directors are satisfied that there are no material foreseeable risks to the business that haven't been assessed or disclosed. The Directors continue to take action to mitigate the impact of the disruption.
This report was approved by the board of directors on 26 March 2025 and signed on behalf of the board by:
J C J Barwick
E Dolman
Director
Director
S C Briggs
Director
Registered office:
Wellhead Farm
Wingham Well
Canterbury
Kent
CT3 1NS
Ovenden Earthmoving Co Ltd
Directors' Report
Period from 1 June 2023 to 7 July 2024
The directors present their report and the financial statements of the company for the period ended 7 July 2024 .
Directors
The directors who served the company during the period were as follows:
J C J Barwick
E Dolman
S C Briggs
C P Barwick
(Resigned 1 June 2023)
Dividends
No final dividend has been proposed for the year.
Disclosure of information in the strategic report
The directors have prepared a Strategic Report in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, which includes their review of the business, risks and uncertainties and management thereof.
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 period. 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; - 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.
This report was approved by the board of directors on 26 March 2025 and signed on behalf of the board by:
J C J Barwick
E Dolman
Director
Director
S C Briggs
Director
Registered office:
Wellhead Farm
Wingham Well
Canterbury
Kent
CT3 1NS
Ovenden Earthmoving Co Ltd
Independent Auditor's Report to the Members of Ovenden Earthmoving Co Ltd
Period from 1 June 2023 to 7 July 2024
Opinion
We have audited the financial statements of Ovenden Earthmoving Co Ltd (the 'company') for the period ended 7 July 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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 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 7 July 2024 and of its profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 period 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 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: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered; the nature of the industry, control environment and business performance. We also consider the results of our enquiries of management and the finance team, relating to their own identification and assessment of the risks of irregularities and possible related fraud. This includes asking questions and reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness. Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end and posting of unusual journals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit. Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. 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. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Alexander Baker ACA
(Senior Statutory Auditor)
For and on behalf of
Burgess Hodgson LLP
Chartered accountants & statutory auditor
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
26 March 2025
Ovenden Earthmoving Co Ltd
Statement of Comprehensive Income
Period from 1 June 2023 to 7 July 2024
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
Note
£
£
Turnover
4
27,202,233
18,093,848
Cost of sales
22,000,606
14,315,847
-------------
-------------
Gross profit
5,201,627
3,778,001
Administrative expenses
1,676,590
1,074,939
Other operating income
5
123,000
------------
------------
Operating profit
6
3,648,037
2,703,062
Other interest receivable and similar income
10
38,279
53,588
Interest payable and similar expenses
11
240,546
101,742
------------
------------
Profit before taxation
3,445,770
2,654,908
Tax on profit
12
935,153
505,317
------------
------------
Profit for the financial period and total comprehensive income
2,510,617
2,149,591
------------
------------
All the activities of the company are from continuing operations.
Ovenden Earthmoving Co Ltd
Statement of Financial Position
7 July 2024
7 Jul 24
31 May 23
Note
£
£
£
Fixed assets
Tangible assets
14
11,296,848
11,588,876
Current assets
Stocks
15
55,000
30,000
Debtors
16
5,892,927
5,532,956
Cash at bank and in hand
2,886,162
1,479,895
------------
------------
8,834,089
7,042,851
Creditors: amounts falling due within one year
17
6,829,120
6,066,836
------------
------------
Net current assets
2,004,969
976,015
-------------
-------------
Total assets less current liabilities
13,301,817
12,564,891
Creditors: amounts falling due after more than one year
18
2,453,805
2,554,870
Provisions
Taxation including deferred tax
20
2,630,769
1,822,114
Other provisions
20
18,719
------------
------------
2,649,488
1,822,114
-------------
-------------
Net assets
8,198,524
8,187,907
-------------
-------------
Capital and reserves
Called up share capital
23
510
510
Profit and loss account
24
8,198,014
8,187,397
------------
------------
Shareholders funds
8,198,524
8,187,907
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
Ovenden Earthmoving Co Ltd
Statement of Financial Position (continued)
7 July 2024
These financial statements were approved by the board of directors and authorised for issue on 26 March 2025 , and are signed on behalf of the board by:
J C J Barwick
E Dolman
Director
Director
S C Briggs
Director
Company registration number: 01919669
Ovenden Earthmoving Co Ltd
Statement of Changes in Equity
Period from 1 June 2023 to 7 July 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 July 2022
510
7,570,045
7,570,555
Profit for the period
2,149,591
2,149,591
----
------------
------------
Total comprehensive income for the period
2,149,591
2,149,591
Dividends paid and payable
13
( 1,532,239)
( 1,532,239)
----
------------
------------
Total investments by and distributions to owners
( 1,532,239)
( 1,532,239)
At 31 May 2023
510
8,187,397
8,187,907
Profit for the period
2,510,617
2,510,617
----
------------
------------
Total comprehensive income for the period
2,510,617
2,510,617
Dividends paid and payable
13
( 2,500,000)
( 2,500,000)
----
------------
------------
Total investments by and distributions to owners
( 2,500,000)
( 2,500,000)
----
------------
------------
At 7 July 2024
510
8,198,014
8,198,524
----
------------
------------
Ovenden Earthmoving Co Ltd
Statement of Cash Flows
Period from 1 June 2023 to 7 July 2024
7 Jul 24
31 May 23
£
£
Cash flows from operating activities
Profit for the financial period
2,510,617
2,149,591
Adjustments for:
Depreciation of tangible assets
2,211,976
1,791,074
Other interest receivable and similar income
( 38,279)
( 53,588)
Interest payable and similar expenses
240,546
101,742
Gains on disposal of tangible assets
( 84,161)
( 179,407)
Tax on profit
935,153
505,317
Accrued expenses/(income)
266,689
( 107,395)
Changes in:
Stocks
( 25,000)
Trade and other debtors
( 359,971)
1,382,119
Trade and other creditors
2,478,974
( 398,446)
Provisions and employee benefits
18,719
------------
------------
Cash generated from operations
8,155,263
5,191,007
Interest paid
( 240,546)
( 101,742)
Interest received
38,279
53,588
------------
------------
Net cash from operating activities
7,952,996
5,142,853
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 2,864,678)
( 4,091,544)
Proceeds from sale of tangible assets
1,028,891
941,420
------------
------------
Net cash used in investing activities
( 1,835,787)
( 3,150,124)
------------
------------
Cash flows from financing activities
Proceeds from/(repayment of) borrowings
( 620,739)
551,927
Proceeds from/(repayment of) loans from group undertakings
( 1,535,057)
( 147,943)
Proceeds from/(repayment of) finance leases
( 55,146)
400,307
Dividends paid
( 2,500,000)
( 1,532,239)
------------
------------
Net cash used in financing activities
( 4,710,942)
( 727,948)
------------
------------
Net increase in cash and cash equivalents
1,406,267
1,264,781
Cash and cash equivalents at beginning of period
1,479,895
215,114
------------
------------
Cash and cash equivalents at end of period
2,886,162
1,479,895
------------
------------
Ovenden Earthmoving Co Ltd
Notes to the Financial Statements
Period from 1 June 2023 to 7 July 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Wellhead Farm, Wingham Well, Canterbury, CT3 1NS.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the 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.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of OEC Management Ltd. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) Disclosures in respect of share-based payments have not been presented. These exemptions have been applied on the basis that OEC Management Ltd includes eqivalent disclosures for the entity in its consolidated financial statements prepared in accordance with UK GAAP.
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. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: i. Amounts recoverable on long term contracts A significant portion of the company's revenue is generated through long term contracts obtained. These can be carried out and completed in over one year. Revenue is recognised based on the stage of completion using the cost basis, and provisions for any loss making jobs are made in full where a loss is expected. ii. Useful economic life of tangible assets The annual depreciation charge depends on the estimated useful economic lives of the assets in question. These are re-assessed annually and amended where necessary to reflect current best estimates. iii. Provision for doubtful debts Where the recoverability of trade and other debtors is in doubt, a provision has been made against that debt. Management has considered factors including the credit rating of the debtor, the age of the debt and past experience. iv. Deferred tax Deferred tax assets and liabilities are recognised in full when they arise. As the book value of tangible fixed assets is higher than the tax written down value, the majority of the deferred tax balance is generated through the liability recognised on these timing differences.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of 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. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised. Where the collectability of an amount already recognised as contract revenue is no longer probable, the uncollectible amount is expensed rather than recognised as an adjustment to the amount of contract revenue. 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 the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, 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.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
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
-
20% reducing balance
Fixtures and fittings
-
20% straight line
Motor vehicles
-
20% reducing balance
Impairment of fixed assets
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. For the purposes of impairment testing, 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 largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
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 statement of financial position 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 as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
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.
4. Turnover
Turnover arises from:
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Rendering of services
27,202,233
18,093,848
-------------
-------------
Turnover represents the amounts invoiced and accrued from contracts, stated after trade discounts and exclusive of VAT. Turnover is derived from the following geographical areas:
2024
2023
£
£
United Kingdom
27,202,233
18,093,848
5. Other operating income
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Other operating income
123,000
---------
----
The other operating income relates to insurance claims.
6. Operating profit
Operating profit or loss is stated after charging/crediting:
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Depreciation of tangible assets
2,211,976
1,791,074
Gains on disposal of tangible assets
( 84,161)
( 179,407)
Impairment of trade debtors
100,955
------------
------------
7. Auditor's remuneration
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Fees payable for the audit of the financial statements
13,750
13,125
--------
--------
8. Staff costs
The average number of persons employed by the company during the period, including the directors, amounted to:
7 Jul 24
31 May 23
No.
No.
Administrative staff
3
3
Management staff
6
6
Number of other staff
29
30
----
----
38
39
----
----
The aggregate payroll costs incurred during the period, relating to the above, were:
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Wages and salaries
2,532,125
1,921,097
Social security costs
377,471
233,272
Other pension costs
45,936
90,643
------------
------------
2,955,532
2,245,012
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Remuneration
465,710
227,644
Company contributions to defined contribution pension plans
13,479
63,302
---------
---------
479,189
290,946
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
7 Jul 24
31 May 23
No.
No.
Defined contribution plans
2
3
----
----
Remuneration of the highest paid director in respect of qualifying services:
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Aggregate remuneration
218,057
94,526
---------
--------
10. Other interest receivable and similar income
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Interest on loans and receivables
38,255
53,588
Interest on cash and cash equivalents
24
--------
--------
38,279
53,588
--------
--------
11. Interest payable and similar expenses
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Interest on banks loans and overdrafts
10
Interest on obligations under finance leases and hire purchase contracts
240,546
101,732
---------
---------
240,546
101,742
---------
---------
12. Tax on profit
Major components of tax expense
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Current tax:
UK current tax expense
126,498
Deferred tax:
Origination and reversal of timing differences
808,655
505,317
---------
---------
Tax on profit
935,153
505,317
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the period is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 20 %).
Period from
Period from
1 Jun 23 to
1 Jul 22 to
7 Jul 24
31 May 23
£
£
Profit on ordinary activities before taxation
3,445,770
2,654,908
------------
------------
Profit on ordinary activities by rate of tax
861,443
530,982
Effect of expenses not deductible for tax purposes
14,923
17,272
Effect of capital allowances and depreciation
( 145,740)
( 638,790)
Utilisation of tax losses
( 604,128)
90,536
Deferred tax adjustment
808,655
505,317
------------
------------
Tax on profit
935,153
505,317
------------
------------
13. Dividends
Dividends paid during the period (excluding those for which a liability existed at the end of the prior period):
7 Jul 24
31 May 23
£
£
Dividends on equity shares
2,500,000
1,532,239
------------
------------
14. Tangible assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2023
20,305,776
276,112
1,087,265
21,669,153
Additions
2,603,630
30,573
230,475
2,864,678
Disposals
( 1,600,676)
( 800)
( 246,538)
( 1,848,014)
-------------
---------
------------
-------------
At 7 July 2024
21,308,730
305,885
1,071,202
22,685,817
-------------
---------
------------
-------------
Depreciation
At 1 June 2023
9,359,035
246,877
474,365
10,080,277
Charge for the period
2,051,204
11,380
149,392
2,211,976
Disposals
( 760,665)
( 800)
( 141,819)
( 903,284)
-------------
---------
------------
-------------
At 7 July 2024
10,649,574
257,457
481,938
11,388,969
-------------
---------
------------
-------------
Carrying amount
At 7 July 2024
10,659,156
48,428
589,264
11,296,848
-------------
---------
------------
-------------
At 31 May 2023
10,946,741
29,235
612,900
11,588,876
-------------
---------
------------
-------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 7 July 2024
6,161,074
332,790
6,493,864
------------
---------
------------
At 31 May 2023
7,794,780
233,809
8,028,589
------------
---------
------------
Capital commitments
7 Jul 24
31 May 23
£
£
Contracted for but not provided for in the financial statements
1,182,711
1,013,666
------------
------------
15. Stocks
7 Jul 24
31 May 23
£
£
Raw materials and consumables
55,000
30,000
--------
--------
16. Debtors
7 Jul 24
31 May 23
£
£
Trade debtors
1,719,608
2,233,644
Amounts owed by group undertakings
1,875,195
Prepayments and accrued income
118,501
115,824
Amounts recoverable on long term contracts
1,558,354
852,170
Other debtors
621,269
2,331,318
------------
------------
5,892,927
5,532,956
------------
------------
17. Creditors: amounts falling due within one year
7 Jul 24
31 May 23
£
£
Trade creditors
2,914,443
1,495,219
Amounts owed to group undertakings
1,535,057
Accruals and deferred income
764,628
137,771
Corporation tax
126,498
Social security and other taxes
200,586
82,964
Obligations under finance leases and hire purchase contracts
2,107,893
2,061,974
Director loan accounts
620,739
Other creditors
715,072
133,112
------------
------------
6,829,120
6,066,836
------------
------------
The company's hire purchase and finance leases are secured on the assets to which they relate. The bank overdraft is also secured by a fixed and floating debenture over the current and future assets of the company.
18. Creditors: amounts falling due after more than one year
7 Jul 24
31 May 23
£
£
Obligations under finance leases and hire purchase contracts
2,453,805
2,554,870
------------
------------
Included in creditors falling due in more than one year are hire purchase and finance lease obligations, which are secured on the assets to which they relate.
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
7 Jul 24
31 May 23
£
£
Not later than 1 year
2,107,893
2,061,974
Later than 1 year and not later than 5 years
2,453,805
2,554,870
------------
------------
4,561,698
4,616,844
------------
------------
20. Provisions
Onerous contracts
Deferred tax (note 21)
Total
£
£
£
At 1 June 2023
1,822,114
1,822,114
Additions
18,719
808,655
827,374
--------
------------
------------
At 7 July 2024
18,719
2,630,769
2,649,488
--------
------------
------------
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
7 Jul 24
31 May 23
£
£
Included in provisions (note 20)
2,630,769
1,822,114
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
7 Jul 24
31 May 23
£
£
Accelerated capital allowances
2,630,769
2,410,758
Unused tax losses
( 588,644)
------------
------------
2,630,769
1,822,114
------------
------------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 45,936 (2023: £ 90,643 ).
23. Called up share capital
Issued, called up and fully paid
7 Jul 24
31 May 23
No.
£
No.
£
'A' Ordinary shares of £ 0.01 each
44,920
449
44,920
449
'B' Ordinary shares of £ 0.01 each
2,000
20
2,000
20
'C' Ordinary shares of £ 0.01 each
4,080
41
4,080
41
--------
----
--------
----
51,000
510
51,000
510
--------
----
--------
----
24. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
25. Analysis of changes in net debt
At 1 Jun 2023
Cash flows
At 7 Jul 2024
£
£
£
Cash at bank and in hand
1,479,895
1,406,267
2,886,162
Debt due within one year
(4,217,770)
2,109,877
(2,107,893)
Debt due after one year
(2,554,870)
101,065
(2,453,805)
------------
------------
------------
( 5,292,745)
3,617,209
( 1,675,536)
------------
------------
------------
26. Related party transactions
During the period, the following transactions with related parties took place:-
2024 2023
£ £
Loans due to related parties 569,245 1,535,054
Loans due from related companies 1,875,195 2,028,766
Amounts due to directors 620,740
Ovenden Earthmoving Co Ltd
Notes to the Financial Statements (continued)
Period from 1 June 2023 to 7 July 2024
26. Related party transactions (continued)
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £ 479,189 (2023: £ 290,946 ).
27. Controlling party
OEC Management 6 Ltd is the controlling party of Ovenden Earthmoving Co Ltd . The address of OEC Management 6 Ltd is Wellhead Farm, Wingham Well, Canterbury, United Kingdom, CT3 1NS . There is no single controlling party of OEC Management 6 Ltd.