Registration number:
Roe Developments Holdings Limited
for the Year Ended 30 June 2024
Roe Developments Holdings Limited
Contents
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Roe Developments Holdings Limited
Strategic Report for the Year Ended 30 June 2024
The directors present their strategic report for the year ended 30 June 2024.
Principal activity
The principal activity of the company is that of a holding company.
The principal activity of the group is the provision of construction services and property development.
Fair review of the business
The results for the year and financial position are as shown in the financial statements.
The group delivered a good performance in the year, achieving operating margins within expectations despite inflationary pressure and supply chain issues which were experienced throughout the year. Turnover decreased by almost 10%, which is due to the disposal in May 2024 of half of the shares in Roe Developments (UK) Limited. The margin on this work was returned to levels seen in earlier years with the gross profit margin increasing from 9% to 21%. The group performed well and reported an operating profit of in excess of £5M. The group remains in a strong financial position with net assets at the year end in excess of £7M.
The Group operated through its two principal subsidiaries, Roe Developments (UK) Limited and Coney Green Developments (Clay Cross) Limited. In May 2024, the group disposed of half of the shares in Roe Developments (UK) Limited.
Roe Developments (UK) Limited provides construction services to customers who require a variety of work ranging from residential, to offices, commercial and industrial developments.
Coney Green Developments (Clay Cross) Limited develop their own properties either for resale or retain as part of their investment portfolio. This requires more working capital but also provides a greater return.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£'000 |
28,341 |
31,417 |
Gross profit |
£'000 |
5,944 |
2,917 |
Gross profit margin |
% |
21 |
9 |
Roe Developments Holdings Limited
Strategic Report for the Year Ended 30 June 2024
Principal risks and uncertainties
As with any business, the Group faces risks and uncertainties in the course of its day to day operations. The successful management of risk is essential to enable the Group to deliver its strategic objectives. Noted below is a summary of the Group’s principal risks and uncertainties. Control of each of these is critical to the ongoing success of the business. As such, their management is primarily the responsibility of the directors who are supported by the decision-making personnel.
Financial risk:
The Group’s operations expose it to a variety of financial risks, principally credit risk and liquidity risk. The effects of credit risks are controlled by the adoption of policies that require appropriate credit checking and monitoring of new customers and also for supplier and subcontractors, particularly when placing large orders.
Liquidity risk is managed by monitoring the cash flow position to ensure that sufficient funds are available to meet amounts due for current and future operations. The group remains in a strong cash position but management are aware how suddenly this can fluctuate in the construction sector.
Market risk:
In order to minimise exposure to market risk, contracts are undertaken with a variety of clients. The risk of not focusing on completing the contractual obligations is recognised and therefore the group strives to fulfil these to a good quality, within time scale and budget. The success in this area generates repeat custom and protects the Group position in the market place.
Workforce and materials risk:
If the availability of skilled workers, subcontractors or materials is insufficient to meet demand, this could lead to longer build times and increased costs, thereby reducing profitability and return on capital employed. Regular contact with suppliers is maintained, negotiating contract volumes, pricing and duration. High level and site-specific programme information is provided to the subcontractor base to aid with demand planning. When selecting subcontractors, competencies are considered particularly in relation to health and safety, quality, previous performance and financial stability. The management have built good relationships with subcontractors as management believes that loyalty is gained by treating subcontractors fairly and expecting the same in return. Investment is made in the training and development of the Group's own workforce.
Health and safety risk:
The Group has detailed procedures and policies in place to minimise health and safety risks which are inherent due to the nature of the business. The directors take this responsibility seriously and in order to manage this risk procedures and policies are constantly being reviewed.
Approved and authorised by the
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Roe Developments Holdings Limited
Directors' Report for the Year Ended 30 June 2024
The directors present their report and the for the year ended 30 June 2024.
Directors of the group
The directors who held office during the year were as follows:
Objectives and policies
The Group is exposed to financial risks that includes rapid changes in material costs and credit risks. The Group has in place a risk management monitoring process that seeks to limit the adverse effects on the financial performance of the Group by implementing appropriate credit policies to manage credit risks. Further details on the Group's financial risk management policies are included in the Strategic report.
Price risk, credit risk, liquidity risk and cash flow risk
The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, liquidity risk is managed by monitoring the cash flow position to ensure that sufficient funds are available to meet amounts due for current and future operations. The company remains in a strong cash position but management are aware how suddenly this can fluctuate in the construction sector.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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Roe Developments Holdings Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Roe Developments Holdings Limited
Independent Auditor's Report to the Members of Roe Developments Holdings Limited
Opinion
We have audited the financial statements of Roe Developments Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
Roe Developments Holdings Limited
Independent Auditor's Report to the Members of Roe Developments Holdings Limited
We have nothing to report in this regard.
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 Statement of Directors' Responsibilities [set out on page 4], 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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
Roe Developments Holdings Limited
Independent Auditor's Report to the Members of Roe Developments Holdings Limited
• |
the nature of the industry and sector, control environment and business performance; |
• |
the group’s own assessment of the risks that irregularities may occur either as a result of fraud or error; |
• |
results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
• |
the key laws and regulations under which the business operates and whether management were aware of any instances of non-compliance; |
• |
whether the management have knowledge of any actual, suspected or alleged fraud; |
• |
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and |
• |
the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
In addition to the above, our procedures to respond to risks identified included the following: |
|
• |
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having a direct effect on the financial statements; |
• |
enquiring of management, concerning any actual and potential litigation and claims; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
• |
in addressing the risk of fraud in revenue recognition, we have tested the calculation of contract revenue recognised based on the proportion of contract costs in incurred for the work performed to the balance sheet date relative to the estimates total forecast costs of the contract at completion, traced contract costs to the supporting invoices to ensure they are correctly recognised, performed
|
• |
in addressing the risk of fraud through the work in progress (WIP) costing, we have tested WIP additions to the stock balance to determine whether the costs have appropriately capitalised, by tracing these through to supporting invoices; |
• |
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and |
• |
we also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Roe Developments Holdings Limited
Independent Auditor's Report to the Members of Roe Developments Holdings Limited
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.
For and on behalf of
50-54 Oswald Road
North Lincolnshire
DN15 7PQ
Roe Developments Holdings Limited
Consolidated Profit and Loss Account for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Loss on disposal of subsidiary |
( |
- |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
Share of profit of equity accounted investees |
|
- |
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The above results were derived from continuing operations.
The group has no recognised gains or losses for the year other than the results above.
Roe Developments Holdings Limited
Consolidated Statement of Comprehensive Income for the Year Ended 30 June 2024
2024 |
2023 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Roe Developments Holdings Limited
(Registration number: 12511151)
Consolidated Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
- |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Retained earnings |
|
|
|
Equity attributable to owners of the company |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
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Roe Developments Holdings Limited
(Registration number: 12511151)
Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Retained earnings |
|
|
|
Shareholders' funds |
|
|
The company made a profit after tax for the financial year of £579,976 (2023 - profit of £2,029,830).
Approved and authorised by the
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Roe Developments Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 June 2024
Equity attributable to the parent company
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
Total equity |
|
At 1 July 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
( |
At 30 June 2024 |
|
|
|
|
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
Total equity |
|
At 1 July 2022 |
|
- |
|
|
|
Profit for the year |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
( |
Purchase of own share capital |
(150) |
- |
(790,000) |
(790,150) |
(790,150) |
Other capital redemption reserve movements |
- |
150 |
- |
150 |
150 |
At 30 June 2023 |
|
|
|
|
|
Roe Developments Holdings Limited
Statement of Changes in Equity for the Year Ended 30 June 2024
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 July 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 30 June 2024 |
|
|
|
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 July 2022 |
|
- |
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Purchase of own share capital |
(150) |
- |
(790,000) |
(790,150) |
Other capital redemption reserve movements |
- |
150 |
- |
150 |
At 30 June 2023 |
150 |
150 |
7,055,637 |
7,055,937 |
Roe Developments Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
- |
( |
|
Loss from disposals of investments |
|
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Share of profit/loss of equity accounted investees |
( |
- |
|
Tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Decrease in deferred income, including government grants |
- |
( |
|
Cash generated from operations |
( |
( |
|
Taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
- |
|
|
Advances of loans, classified as investing activities |
|
- |
|
Proceeds from disposal of subsidiary |
|
- |
|
Cash of subsidiary at disposal |
(535,292) |
- |
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments for purchase of own shares |
- |
( |
|
Repayment of other borrowing |
|
|
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 July |
|
|
Roe Developments Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Cash and cash equivalents at 30 June |
4,987,928 |
5,010,502 |
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
Registered number: 12511151
The principal place of business is:
Unit 6a
Church View
Coney Green Road
Chesterfield
Derbyshire
S45 9HA
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The Company and Group's functional and presentational currency is GBP.
The Company has taken advantage of the exception allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2024.
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The consolidated profit and loss account includes the results of Roe Developments (UK) Limited and Coney Green Developments (Clay Cross) Limited. 50% of the shares in Roe Developments (UK) were sold in May 2024. The consolidated accounts includes the figures for Roe Developments (UK) Limited up to the point of sale. Since the sale, the group's share of the profits have been included within the financial statements. As such, the comparative figures are not entirely comparable.
Coney Green Developments (Clay Cross) Limited is 100% owned and all subsidiaries are incorporated in England and Wales.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Key sources of estimation uncertainty
The estimates and assumptions that have the most significant impact on the carrying value of assets and liabilities of the Group within the next financial year are detailed as follows:
Contract judgements - Management's best estimate of the likely outcome of disputed amounts, legal cases and claims has been reflected in the recognition of revenues and costs of contract but the actual future outcome may be different.
Turnover and margin recognition - The Group's turnover recognition and margin recognition policies are central to how the group values the revenue and costs in each financial year. These policies require forecasts to be made of the outcomes of long-term contracts, which require assessments and judgements to be made on the costs to complete the project. Changes in the forecast as a result of changes in work scope, contract programmers, defects and maintenance liabilities impact the margin to be recognised.
Taxation - The Group is subject to tax and an estimate is required in determining the provision for taxes including the recognition of deferred tax assets. The Group provides for futures liabilities in respect of uncertain tax positions where additional tax may become payable in future periods and such provisions are based upon management's assessment of exposures. Assets are only recognised where it is reasonably certain additional tax will become payable in future periods and when the asset can be utilised.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the group's activities.
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Contract revenue recognition
Turnover is only recognised on a construction contract where the outcome can be estimated reliably. Turnover and costs are recognised by reference to the stage of completion of contract activity at the year end date. This is normally measured by surveys of work performed to date. Contracts are only treated as construction contracts when they have been specifically negotiated for the construction of a development or property.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.
Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probably that they will be recovered against the reversal of tax liabilities or other future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
2% and 10% per annum on cost |
Furniture, fittings and equipment |
25% per annum on reducing balance |
Motor vehicles |
25% per annum on reducing balance |
Investment property
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Long-term contracts
Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of work done after specific provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Turnover and related costs are recorded as contract activity progresses. Excess progress payments are included in creditors as payments received on account. An appropriate proportion of the anticipated contract profit is recognised reflecting the work carried out to the balance sheet date and when the final outcome is reasonably certain.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Provision of construction services |
|
|
Transfer from stock to investment property |
|
- |
Rental income from investment property |
|
|
Other revenue |
|
|
|
|
The amount of contract revenue recognised as turnover in the year was £
Operating profit |
Arrived at after charging
2024 |
2023 |
|
Depreciation expense |
|
|
Profit on disposal of property, plant and equipment |
- |
( |
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
- |
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
|
|
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Contributions paid to money purchase schemes |
|
- |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
- |
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
4,050 |
3,860 |
Audit of the financial statements of subsidiaries |
8,210 |
14,960 |
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
- |
1,201,478 |
424,929 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase in UK tax from adjustment for prior periods |
|
- |
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax increase from other short-term timing differences |
- |
|
Effect of expense not deductible in determining taxable profit |
|
|
Effect of tax losses |
- |
( |
Deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
Tax decrease from changes in tax provisions due to legislation |
- |
( |
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Liability |
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 July 2023 |
|
|
|
|
Additions |
- |
|
- |
|
Disposals |
( |
( |
( |
( |
At 30 June 2024 |
|
- |
- |
|
Depreciation |
||||
At 1 July 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
At 30 June 2024 |
|
- |
- |
|
Carrying amount |
||||
At 30 June 2024 |
|
- |
- |
|
At 30 June 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £69,120 (2023 - £99,780) in respect of freehold land and buildings.
Investment properties |
Group
2024 |
|
At 1 July |
|
Transferred from stock |
|
At 30 June |
|
Investment properties were constructed by one of the group companies and transferred to fixed assets at an open market value at that time. A valuation was carried out by FHP Property Consultants for the property transferred from stock in the current year and at the date of transfer from those in prior years. The directors do not believe there has been a change in the property values since the date of the relevant professional valuations.
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Unit 6a Church View,
|
|
|
|
|
Unit 6a Church View,
|
|
|
|
|
Unit 6a Church View,
|
|
|
|
|
Unit 6a Church View,
|
|
|
|
|
Unit 6a Church View,
|
|
|
|
Joint ventures |
||||
|
Unit 6a
|
Ordinary |
|
|
* indicates direct investment of the company
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Subsidiary undertakings
The principal activity of Roe Developments (UK) Limited |
The principal activity of Coney Green Developments (Clay Cross) Limited |
The principal activity of Roe Design and Build Limited |
The principal activity of Roe Developments Limited |
The principal activity of Roe Development Consultants Limited |
Joint venture undertakings
Roe Developments (UK) Limited
The principal activity of the company is the provision of construction services.
Aggregate financial information of joint ventures
2024 |
2023 |
|
Group's share of profit or loss in joint ventures |
|
- |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 July 2023 |
|
Disposals |
( |
At 30 June 2024 |
|
Carrying amount |
|
At 30 June 2024 |
|
At 30 June 2023 |
|
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Work in progress |
|
|
- |
- |
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Debtors |
Group |
Company |
|||
Current |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
- |
- |
Amounts owed by related parties |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
- |
- |
Accrued income |
- |
|
- |
|
Gross amount due from customers for contract work |
|
|
- |
- |
Corporation tax debtor |
- |
|
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
- |
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
Creditors |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
||||
Trade creditors |
|
|
- |
- |
Amounts due to related parties |
|
|
|
|
Social security and other taxes |
- |
|
- |
- |
Accruals |
|
|
|
|
Corporation tax liability |
363,474 |
318,964 |
26,675 |
- |
Deferred income |
|
|
- |
- |
|
|
|
|
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 July 2023 |
|
|
Decrease through disposals |
( |
( |
At 30 June 2024 |
- |
- |
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
At the end of both June 2023 and June 2024, all pension contributions had been paid over and there were no amounts outstanding and included in creditors.
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
150 |
|
150 |
Rights, preferences and restrictions
The ordinary shares have full rights in the company regarding voting, dividends and capital distribution. |
Dividends |
Final dividends paid
2024 |
2023 |
|||
Final dividend of £ |
|
|
||
Roe Developments Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Related party transactions |
Group
Transactions with a director
In 2023 Mr D R Roe made payments to the company of £912,536 to repay the balance on his director's loan account. At the 2023 and 2024 year ends, no monies were owed to the company. Interest was charged on the outstanding loan in 2023 at HMRC's prescribed rate.
Summary of transactions with all entities with joint control or significant interest
Roe Developments (UK) Limited
Since Roe Developments Holdings disposed of half of the shares in Roe Developments (UK) Limited, Coney Green Developments (Clay Cross) Limited, purchased goods and services to the value of £784,287 from Roe Developments (UK) Limited. At the balance sheet date, the group owed £4,594,102 to Roe Developments (UK) Limited. This is repayable on demand and is included within creditors in the financial statements.