Company Registration No. 02266573 (England and Wales)
PBS CONSTRUCTION (NORTH EAST) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PBS CONSTRUCTION (NORTH EAST) LIMITED
COMPANY INFORMATION
Directors
G. Smurthwaite
P. B. Smurthwaite
M. D. L. Brooks
Company number
02266573
Registered office
1 Trinity Street
Hull
East Yorkshire
HU3 1JR
Auditor
Dutton Moore
Aldgate House
1-4 Market Place
Hull
HU1 1RS
PBS CONSTRUCTION (NORTH EAST) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
PBS CONSTRUCTION (NORTH EAST) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of civil engineers and building contractors.

Business review

The company has had a profitable year reporting a profit before tax of £898,124 (2023: £526,973). The directors are pleased to report the strategic changes made within the business have provided the expected growth in turnover and gross profit. Gross margin has increased from 10.5% in the previous year to 12.2%.

 

Overall, the company is very proactive in identifying problems in difficult market conditions and identifying ways in which it can remain competitive. Costs are also closely monitored and any areas which are affecting profitability are dealt with without affecting quality and service. Sufficient working capital is in place to support the company’s activities.

 

The directors are confident that the strategic business model in place will continue to provide consistent growth and profitability over the coming years.

Results

The results for the year are set out on page 7.

Key performance indicators

2024 2023     

     £ £     

Turnover             17,600,106 16,116,743

Change in turnover %             9.2%          7.4%

Gross profit 2,143,893 1,698,375     

Gross profit %              12.2% 10.5%

Profit after tax 749,681 427,075

Shareholders' funds      2,702,357 2,402,676

Principal risks and uncertainties

The company operates in an industry where reputation is vitally important. The company has a longstanding client base and strives to ensure that it provides a first-class service to its customers. This reputation risk is faced by all companies operating in this sector.

 

The management of the business and the execution of the company's strategy are subject to some risks and uncertainties. The global inflationary environment continues to affect input costs, however the company is active in mitigating the effects of these as far as practicable.

PBS CONSTRUCTION (NORTH EAST) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

Financial instruments

The company's principal financial instruments comprise bank balances, bank loans, trade creditors, trade debtors and asset finance agreements. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's working capital.

 

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

 

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.

 

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of money market facilities were funds are available.

 

In respect of loans these comprise loans from financial institutions. The interest rate on the loans is variable but the monthly repayments are fixed. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

 

In respect of asset finance agreements the monthly repayments are fixed. The company manages the liquidity risk by ensuring there are sufficient funds and cash flow to meet the payments.

 

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

 

Future outlook

The company continues to monitor, assess and address the potential risks and uncertainties that could affect the business.

 

The board believes that the company’s strategy together with its experienced management will be a solid foundation for future successful business performance.

On behalf of the board

P. B. Smurthwaite
Director
28 March 2025
PBS CONSTRUCTION (NORTH EAST) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Results and dividends

The results for the year are set out on page 7. The directors have paid an interim dividend of £450,000 (2023: £220,000) and they do not recommend the payment of a final dividend (2023: nil).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G. Smurthwaite
P. B. Smurthwaite
M. D. L. Brooks
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
P. B. Smurthwaite
Director
28 March 2025
PBS CONSTRUCTION (NORTH EAST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PBS CONSTRUCTION (NORTH EAST) LIMITED
- 4 -
Opinion

We have audited the financial statements of PBS Construction (North East) Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

PBS CONSTRUCTION (NORTH EAST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PBS CONSTRUCTION (NORTH EAST) LIMITED
- 5 -
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:

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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

 

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:

 

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit has been properly planned and performed in accordance with auditing standards (ISAs (UK)).

PBS CONSTRUCTION (NORTH EAST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PBS CONSTRUCTION (NORTH EAST) LIMITED
- 6 -

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.

Douglas Baker FCCA (Senior Statutory Auditor)
For and on behalf of Dutton Moore
28 March 2025
Chartered Accountants
Statutory Auditor
Aldgate House
1-4 Market Place
Hull
HU1 1RS
PBS CONSTRUCTION (NORTH EAST) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
£
£
Turnover
3
17,600,106
16,116,743
Cost of sales
(15,456,213)
(14,418,368)
Gross profit
2,143,893
1,698,375
Administrative expenses
(1,251,194)
(1,186,747)
Other operating income
43,600
56,227
Operating profit
4
936,299
567,855
Interest receivable and similar income
7
-
0
993
Interest payable and similar expenses
8
(38,175)
(41,875)
Profit before taxation
898,124
526,973
Tax on profit
9
(148,443)
(99,898)
Profit for the financial year
749,681
427,075
Other comprehensive income
-
-
Total comprehensive income for the year
749,681
427,075

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PBS CONSTRUCTION (NORTH EAST) LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,048,578
1,194,940
Investment properties
12
354,097
354,097
1,402,675
1,549,037
Current assets
Debtors
13
3,385,865
3,096,811
Cash at bank and in hand
1,508,223
1,404,361
4,894,088
4,501,172
Creditors: amounts falling due within one year
14
(3,400,886)
(3,036,527)
Net current assets
1,493,202
1,464,645
Total assets less current liabilities
2,895,877
3,013,682
Creditors: amounts falling due after more than one year
15
(41,661)
(425,527)
Provisions for liabilities
Deferred tax liability
18
151,859
185,479
(151,859)
(185,479)
Net assets
2,702,357
2,402,676
Capital and reserves
Called up share capital
19
10,000
10,000
Revaluation reserve
20
118,417
131,196
Capital redemption reserve
20
2,500
2,500
Profit and loss reserves
20
2,571,440
2,258,980
Total equity
2,702,357
2,402,676
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
P. B. Smurthwaite
Director
Company Registration No. 02266573
PBS CONSTRUCTION (NORTH EAST) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
10,000
143,975
2,500
2,039,126
2,195,601
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
-
427,075
427,075
Dividends
10
-
-
-
(220,000)
(220,000)
Transfers
-
(12,779)
-
12,779
-
Balance at 30 June 2023
10,000
131,196
2,500
2,258,980
2,402,676
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
749,681
749,681
Dividends
10
-
-
-
(450,000)
(450,000)
Transfers
-
(12,779)
-
12,779
-
Balance at 30 June 2024
10,000
118,417
2,500
2,571,440
2,702,357
PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
1
Accounting policies
Company information

PBS Construction (North East) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Trinity Street, Hull, East Yorkshire, HU3 1JR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.

 

The directors have taken advantage of the exemption afforded subsidiary companies by FRS 102 section 1.12(b) from the requirement to produce a cashflow statement.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors consider that the going concern basis of accounting should be used in preparing the financial statements.true

1.3
Turnover

Turnover represents the value, excluding value added tax, of work performed during the period.

 

The amount of profit attainable to the stage of completion of a contract is recognised on a prudent basis when the outcome can be foreseen with reasonable certainty. Provision is made for losses as soon as they are foreseen.

 

The turnover for contracts reflects the value of work done, less any amounts recognised in previous years. Contract work in progress is stated at costs incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.

 

Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments on account.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% on cost/valuation per annum
Leasehold improvements
10% on cost
Plant and machinery
15% on written down value per annum
Fixtures and fittings
20% on written down value per annum
Motor vehicles
20% on written down value per annum
PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost and subsequently measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Recoverable amount is the higher of fair value less costs to sell and value in use.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

Financial assets and liabilities are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets

Financial assets are classified according to the substance of the financial instrument's contractual obligations, rather than its legal form.

 

Basic financial assets are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through the profit and loss account, are assessed for indicators of impairment at each reporting end date. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.

Financial liabilities and equity

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -

Basic financial liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Financial liabilities that are not classified as financial instruments are recorded at transaction cost. All changes to transaction cost are recognised in the profit and loss account.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged to the profit and loss in the period to which they relate.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14

Related party transactions

Advantage has been taken under FRS 102 section 33.1A of the exemption available to groups of companies not to disclose transactions and balances involving group entities.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Services rendered
17,600,106
16,116,743
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
17,600,106
16,116,743
2024
2023
£
£
Other significant revenue
Interest income
-
993
Rental income
43,600
50,300
Sundry income
-
5,927
PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,750
10,000
Depreciation of owned tangible fixed assets
140,372
100,465
Depreciation of tangible fixed assets held under finance leases
60,565
149,156
(Profit)/loss on disposal of tangible fixed assets
(10,575)
2,843
Operating lease charges
33,658
21,355
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Site
57
56
Management and administration
16
16
Total
73
72

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,689,814
2,533,343
Social security costs
278,438
261,406
Pension costs
83,333
77,911
3,051,585
2,872,660
6
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
83,333
77,911

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

7
Interest receivable and similar income
2024
2023
£
£
Other interest income
-
0
993
PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
8
Interest payable and similar expenses
2024
2023
£
£
Bank loan interest
23,105
19,360
Other interest
7,630
7,530
Hire purchase interest
7,440
14,985
38,175
41,875
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
274,049
159,998
Adjustments in respect of prior periods
(91,986)
-
0
Total current tax
182,063
159,998
Deferred tax
Origination and reversal of timing differences
(33,620)
(60,100)
Total tax charge
148,443
99,898

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
898,124
526,973
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
224,531
108,029
Tax effect of expenses that are not deductible in determining taxable profit
13,648
868
Adjustments in respect of prior year research and development
(91,986)
-
0
Permanent depreciation in excess of capital allowances
35,870
51,101
Deferred tax adjustments in respect of prior years
(33,620)
(60,100)
Taxation charge for the year
148,443
99,898
10
Dividends
2024
2023
£
£
Interim paid
450,000
220,000
PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 July 2023
450,000
5,885
525,382
83,417
1,232,027
2,296,711
Additions
-
0
-
0
19,638
10,995
39,995
70,628
Disposals
-
0
-
0
-
0
-
0
(111,950)
(111,950)
At 30 June 2024
450,000
5,885
545,020
94,412
1,160,072
2,255,389
Depreciation and impairment
At 1 July 2023
45,000
1,562
297,796
32,199
725,214
1,101,771
Depreciation charged in the year
9,000
589
46,427
10,693
134,228
200,937
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(95,897)
(95,897)
At 30 June 2024
54,000
2,151
344,223
42,892
763,545
1,206,811
Carrying amount
At 30 June 2024
396,000
3,734
200,797
51,520
396,527
1,048,578
At 30 June 2023
405,000
4,323
227,586
51,218
506,813
1,194,940

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance lease contracts.

2024
2023
£
£
Plant and machinery
-
0
90,234
Motor vehicles
118,082
172,191
118,082
262,425
Depreciation charge for the year in respect of leased assets
60,565
149,156

The freehold building was valued on an open market basis in December 2018 by Lawrence Hannah Limited RICS Registered Valuer.

 

In the opinion of the directors, the valuation in 2018 is not materially different from the value at the balance sheet date, and therefore represents a true and fair value of properties.

PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Tangible fixed assets
(Continued)
- 17 -

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2024
2023
£
£
Cost
638,916
638,916
Accumulated depreciation
(204,455)
(191,676)
Carrying value
434,461
447,240
12
Investment property
2024
£
Fair value
At 1 July 2023 and 30 June 2024
354,097

The fair value of the investment properties has been arrived at by the directors using a combination of a revaluation in December 2018 by Sanderson Weatherall LLP Chartered Surveyors and a revaluation in 2016.

 

In the opinion of the directors, the valuations are not materially different from the balance sheet date, and therefore represents a true and fair value of the properties.

 

13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
31,637
221,814
Amounts recoverable on contract
2,678,871
2,278,230
Amounts owed by group undertakings
580,214
478,927
Prepayments and accrued income
95,143
117,840
3,385,865
3,096,811
PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loan
16
241,990
27,298
Obligations under finance leases
17
61,114
61,849
Trade creditors
2,296,367
2,097,643
Corporation tax
274,049
159,994
Other taxation and social security
416,649
550,659
Accruals and deferred income
110,717
139,084
3,400,886
3,036,527

Included in creditors: amounts falling due within one year are secured creditors of £303,104 (2023: £89,147). Finance lease obligations are secured on the assets to which they relate.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loan
16
-
0
322,752
Obligations under finance leases
17
41,661
102,775
41,661
425,527

Included in creditors: amounts falling due after more than one year are secured creditors of £41,661 (2023: £425,527). Finance lease obligations are secured on the assets to which they relate.

 

Amounts included above which fall due after five years are as follows:
Payable by instalments
-
183,626
16
Loans
2024
2023
£
£
Bank loan
241,990
350,050
Payable within one year
241,990
27,298
Payable after one year
-
0
322,752

The bank loan was repaid after the year end.

PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
65,480
100,759
In two to five years
43,903
77,857
109,383
178,616
Less: future finance charges
(6,608)
(13,992)
102,775
164,624
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
£
£
Accelerated capital allowances
151,859
185,479
2024
Movements in the year:
£
Liability at 1 July 2023
185,479
Credit to profit or loss
(33,620)
Liability at 30 June 2024
151,859
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
20
Reserves

Revaluation reserve

This reserve represents the cumulative revaluation gains and losses on revaluation of land and buildings held as tangible assets.

 

Capital redemption reserve

This reserve represents the cumulative amounts following the company purchasing its own shares.

 

Profit and loss reserves

This reserve represents cumulative retained profits and losses.

PBS CONSTRUCTION (NORTH EAST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
25,997
18,231
Between two and five years
22,516
34,037
48,513
52,268
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
39,562
33,000
Between two and five years
43,319
59,447
82,881
92,447
22
Related party transactions

During the year the company undertook the following transactions with a related company controlled by a director: services received £81,333 (2023: £7,367); and at 30 June 2024 the company was owed nil (2023: £38,196) by the related company.

23
Ultimate controlling party

The company is a wholly owned subsidiary of PBS Construction Group Ltd, a company incorporated in England and Wales whose registered address is 1 Trinity Street, Hull, East Yorkshire, HU3 1JR. The company is controlled by P. B. Smurthwaite via his shareholding in the company's parent undertaking. PBS Construction Group Ltd is the parent undertaking of the smallest and largest group which consolidates the financial information of the company.

 

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