Year Ended
Registration number:
Techumbre Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Statement of Income and Retained Earnings |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Techumbre Limited
Company Information
Directors |
L A Hardware A K Smith N J Stephens C J Philips J O Rayner |
Auditors |
|
Registered office |
|
Solicitors |
|
Bankers |
|
Techumbre Limited
Strategic Report
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 group is that of a holding company. The principal activity of the group is that of roofing and cladding services.
Fair review of the business
The directors are very pleased with the group's performance in the year in light of the general economic circumstances. Turnover increased by 13.5% to £19,247,236 (2023 - £16,960,656), gross profit increased to £5,121,481 (2023 - £3,956,000), a gross margin of 26.61% (2023 - 23.32%). The net current assets of the group are £1,729,700 (2023 - £2,118,158) and cash balances remain healthy at £2,374,388 (2023 - £1,885,513).
At the year end the group had substantial secured orders and work in progress to complete with further significant opportunities for contracts in negotiations to commence in early 2025.
Principal risks and uncertainties
The impacts of the uncertain economic future are the biggest risk to our business including potential depressed economic climate, inflationary pressures, material supply shortages and general competition. The group addresses these risks by building on its reputation for delivering first rate service to meet the demands of the industry, whilst using exceptional supply chain relationships, built up over the past 30 years with leading market suppliers.
In response to the industry labour shortage, the group has developed its very own apprenticeship scheme in Roofing & Cladding – the first of its kind in the area. The group works alongside a local training centre to deliver a level 2 apprenticeship with 18 students currently undertaking the course. The scheme is designed to train and develop candidates into qualified Roofing & Cladding operatives, to ensure there is future labour resource for the years ahead.
In response to the economic uncertainty, the Directors have taken steps to reduce costs. The group has sufficient liquidity, with a strong order book, that allows the Directors to have a reasonable expectation that the group has the resources to continue for the foreseeable future.
The Directors have reviewed the risks and uncertainties and conclude that there are no material uncertainties and therefore the going concern basis of preparation is appropriate.
Approved by the
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Techumbre Limited
Directors' Report
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:
Financial instruments
Objectives and policies
The group's activities expose it to a number of financial risks including price risk, material supply risk, credit risk, cash flow risk and liquidity risk. The group's approach to these risks is shown below.
The group's principal financial instruments comprise trade debtors, bank balances, a CBILS loan, loan notes and trade creditors.
Techumbre Limited
Directors' Report
Year Ended 30 June 2024
Price risk, material supply risk, credit risk, liquidity risk and cash flow risk
Price risk
The group is exposed to sub contractor and supplier price risk. The group manages its exposure to these risks well by engaging in ongoing negotiations with sub contactors and suppliers over prices, including agreeing rebate schemes, payment discounts and set price agreements. The group looks to fix prices where possible to reduce exposure to price fluctuations on contracts.
Material supply risk
The group is exposed to material supply risk, with a worldwide shortage of raw materials. The group manages its exposure to this risk well by encouraging main contractors to place orders earlier and utilising the group’s ability to place reservation bulk orders with key suppliers, ensuring the raw material is then secured at a fixed price. The group has developed long standing relationships with its key suppliers, and would be confident in agreeing delayed payments or payment plans should there come a time that this be necessary.
Credit risk
The group's principal financial assets are bank balances and cash, trade debtors and other receivables. The group's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful receivables. In addition the group has a credit risk insurance policy which provides extensive cover in the event of customer insolvency.
Liquidity risk
The group's approach to managing liquidity in respect of bank balances is by successfully maintaining a balance between the continuity of funding and flexibility through the use of built up cash reserves
Cash flow risk
The group's activities expose it primarily to the financial risk of recovering amounts due on contracts. The group manages this risk well by reviewing contract progress monthly and agreeing with customers the stage of completion and 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 by the
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Techumbre 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.
Techumbre Limited
Independent Auditor's Report to the Members of Techumbre Limited
Opinion
We have audited the financial statements of Techumbre Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024, which comprise the Consolidated Statement of Income and Retained Earnings, 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’s 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 company'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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
Techumbre Limited
Independent Auditor's Report to the Members of Techumbre Limited
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 5, 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 group’s and the parent 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 group or the parent 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:
Techumbre Limited
Independent Auditor's Report to the Members of Techumbre Limited
Based on our understanding of the company and industry, we identified that the principal risks of
non-compliance with laws and regulations as relating to breaches around health and safety
regulations and breaches of The General Data Protection Regulation (“GDPR”). We also considered
those laws and regulations that have a direct impact on the preparation of the financial statements
such as The Companies Act 2006, and relevant tax legislation. We considered the extent to which
non-compliance with these laws and regulations may have a material effect on the financial
statements.
We also evaluated management’s incentives and opportunities for fraudulent manipulation of the
financial statements and determined that the principal risks were related to the overstatement of profit,
either through overstating revenue, understating expenditure or management bias in accounting
estimates.
Based on this understanding we designed our audit procedures to identify irregularities. Our
procedures involved the following:
• Enquiries to members of Senior Management, regarding their knowledge of any non-compliance or
potential non-compliance with laws and regulations that could affect the financial statements;
• Review of any health and safety incidents which have been reported under The Reporting of
Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”) during the period;
• Review of the company and group’s controls in relation to GDPR and enquiries to Senior Management as to the occurrence and outcome of any reportable breaches;
• Challenging assumptions and judgements made by management in its significant accounting
estimates including the recognition of revenue and costs, in particular around the year end date;
• Auditing the risk of management override of controls, including through testing journal entries and
other adjustments for appropriateness, and evaluating the business rationale of significant
transactions outside the normal course of business; and
• Reviewing financial statement disclosures and testing to supporting documentation to assess
compliance with applicable laws and regulations.
Because of 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. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Techumbre Limited
Independent Auditor's Report to the Members of Techumbre 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.
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Centenary House
Peninsula Park
Rydon Lane
EX2 7XE
Techumbre Limited
Consolidated Statement of Income and Retained Earnings for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Retained earnings brought forward |
2,343,115 |
2,020,683 |
|
Dividends paid |
( |
( |
|
Retained earnings carried forward |
1,837,136 |
2,343,115 |
Techumbre Limited
Consolidated Balance Sheet
30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Investments |
|
- |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
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Company Registration Number: 09635862
Techumbre Limited
Balance Sheet
30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
- |
|
|
Investments |
|
- |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Shareholders' funds |
|
|
The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £531,017 (2023 - profit of £611,019).
Approved and authorised by the
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Company Registration Number: 09635862
Techumbre Limited
Consolidated Statement of Changes in Equity
Year Ended 30 June 2024
Share capital |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2023 |
300 |
2,343,115 |
2,343,415 |
Techumbre Limited
Statement of Changes in Equity
Year Ended 30 June 2024
Share capital |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2023 |
300 |
3,136,558 |
3,136,858 |
Techumbre Limited
Consolidated Statement of Cash Flows
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 |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income 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 |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Repayment of other borrowing |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 July |
|
|
|
Cash and cash equivalents at 30 June |
2,374,388 |
1,885,513 |
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office and principal place of business is:
These financial statements were authorised for issue by the
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.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and the Companies Act 2006. There are no material departures from FRS102.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The functional currency of Techumbre Limited is considered to be pounds sterling because this is the currency of the primary economic environment in which the group operates.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2022.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006. Its individual profit for the financial year can be found in the company Statement of Changes in Equity.
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Going concern
The directors have considered the impact of the uncertain potential economic climate on the business. This impact includes delays to ongoing projects and commencement of future projects. The group remains profitable since the year end, has a strong cash position and a pipeline of opportunities. The directors have considered expected future cash flows and determined that the group can trade within available resources. Taking all available information into account the board of directors have assessed the ability of the group to continue as a going concern and conclude there are no material uncertainties with regard to the going concern status of the group. The directors therefore consider the going concern assumption is appropriate in preparing the financial statements.
Key sources of estimation uncertainty
Recognition of profit on long term contracts
Profit on long term contracts is taken as work is carried out if the final outcome can be assessed with reasonable certainty. This requires an accurate assessment of the stage of completion of each contract, as well as the estimated costs to complete each contract. The carrying amount is £1,521,532 (2023 - £2,889,763).
Remedial provisions
Estimated additional costs on each long term contract are provided for where it is known that remedial work is required. The carrying amount is £276,646 (2023 - £276,646).
Revenue recognition
Turnover represents applications made during the course of contracts and amounts invoiced on completion of a contract, net of value added tax. In addition, an estimate is made of the profit earned under contract but not billed or applied for at the year end, and this is included in turnover. Where applications have manifestly been made in excess of profits earned, given the level of completion of a contract, an adjustment is made to turnover.
Government grants
Government grants in respect of the Coronavirus Job Retention Scheme are recognised in the month to which the associated expense relates.
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 corporation 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 recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
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, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
15% straight line |
Motor vehicles |
25% straight line |
Computer equipment |
20% straight line |
Goodwill
Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Computer software intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
over 10 years |
Computer software |
20% straight line |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Provisions
As part of the group's contractual obligations it is required to carry out necessary remedial work on completed projects at the group's own cost. A provision is made for the costs that will be incurred on remedial work and this provision is based on the group's historic trends in carrying out such work. Details in the movement in this provision are shown in Note 21 of these financial statements.
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Leases
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the profit and loss account over the period of the lease. Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorted of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract.
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.
Financial instruments
The group holds the following financial instruments:
• Cash held on long term deposits;
• Bank loans;
• Short term trade and other debtors and creditors;
• Short term intra group debtors and creditors; and
• Loan notes.
Except for bank loans and loan notes, such financial instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently measured at amortised cost using the effective interest method.
Non-interest bearing loan notes are initially measured at transaction price and discounted over the repayment period using a suitable discount rate.
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Revenue |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Income from contracts |
|
|
Other revenue |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Grants and subsidies receivable |
76,821 |
9,849 |
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Research and development cost |
- |
|
Profit on disposal of property, plant and equipment |
( |
( |
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
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 |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Directors |
|
|
Administrative |
|
|
Site managers |
|
|
Site labour |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
1,379,761 |
490,392 |
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 |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
- |
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Auditor's remuneration |
2024 |
2023 |
|
Audit of these financial statements |
4,750 |
4,750 |
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
21,900 |
22,800 |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on obligations under hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
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 |
( |
( |
241,073 |
80,073 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower 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 |
|
|
Decrease in current 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 |
|
|
Deferred tax credit relating to changes in tax rates or laws |
- |
( |
Total tax charge |
|
|
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Accelerated capital allowances |
|
- |
|
- |
2023 |
Asset |
Liability |
Accelerated capital allowances |
|
- |
|
- |
Intangible assets |
Group
Goodwill |
Computer software |
Total |
|
Cost or valuation |
|||
At 1 July 2023 |
|
|
|
Additions |
- |
|
|
At 30 June 2024 |
|
|
|
Amortisation |
|||
At 1 July 2023 |
|
|
|
Amortisation charge |
|
|
|
At 30 June 2024 |
|
|
|
Carrying amount |
|||
At 30 June 2024 |
|
|
|
At 30 June 2023 |
|
|
|
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Tangible assets |
Group
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 |
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2024 |
2023 |
|
Motor vehicles |
224,165 |
368,936 |
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Investments |
Company
Investment in subsidiary |
|
Cost |
|
At 1 July 2023 |
|
At 30 June 2024 |
|
Carrying amount |
|
At 30 June 2024 |
|
At 30 June 2023 |
|
Details of undertakings
Details of the investments in which the company 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 7 Cranmere Court
|
Ordinary |
|
|
Subsidiary undertakings |
Progressive Systems Limited The principal activity of Progressive Systems Limited is |
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Stocks |
|
|
- |
- |
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Debtors |
Group |
Company |
||||
Current |
Note |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
- |
- |
|
Amounts recoverable on contracts |
|
|
- |
- |
|
Other debtors |
|
|
- |
|
|
Prepayments |
|
|
- |
- |
|
Deferred tax assets |
|
|
- |
- |
|
|
|
- |
|
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Details of non-current trade and other debtors
Group
£294,709 (2023 - £391,007) of trade debtors is classified as non current. £198,192 (2023 - £nil) of other debtors relate to Director loans which is classified as non current.
Current asset investments |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash held on long term deposit |
|
- |
|
- |
Analysis of changes in net debt |
Group
At 1 July 2023 |
Financing cash flows |
New finance leases |
At 30 June 2024 |
|
Cash and cash equivalents |
||||
Cash |
1,885,513 |
(151,452) |
- |
1,734,061 |
Cash held on long term deposit |
- |
640,327 |
- |
640,327 |
1,885,513 |
488,875 |
- |
2,374,388 |
|
Borrowings |
||||
Long term borrowings |
(450,000) |
120,000 |
- |
(330,000) |
Lease liabilities |
(280,658) |
143,140 |
(35,235) |
(172,753) |
Other borrowings |
(107,487) |
107,487 |
- |
- |
(838,145) |
370,627 |
(35,235) |
(502,753) |
|
|
||||
|
|
( |
|
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
|
|
Payments on account |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts due to group undertakings |
- |
- |
|
|
|
Corporation tax |
146,289 |
80,944 |
- |
- |
|
Social security and other taxes |
|
|
- |
- |
|
Other creditors |
|
|
- |
- |
|
Accrued expenses |
|
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Hire purchase contracts are secured against the assets to which they relate.
The group's bankers hold an unscheduled mortgage debenture dated 3 February 1999 incorporating a fixed and floating charge over all of the current and future assets of the group and includes a right of set-off.
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
|
|
- |
- |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
Other borrowings |
- |
|
- |
|
|
|
- |
|
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Obligations under leases and hire purchase contracts |
Group
Hire purchase contracts
The total of future minimum payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Provisions |
Group
Dilapidation provisions |
Remedial work provisions |
Total |
|
At 1 July 2023 |
|
|
|
At 30 June 2024 |
|
|
|
|
Techumbre Limited
Notes to the Financial Statements
Year Ended 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 £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
200 |
|
200 |
|
|
100 |
|
100 |
|
|
|
|
Rights, preferences and restrictions
The Ordinary A shares have full voting rights. The Ordinary B shares have no voting rights. The two share classes rank pari passu in respect of dividends and distributions.
Financial guarantee contracts |
Company
The company has guaranteed the CBILS loan of its subsidiary, Progressive Systems Limited
The amount of the financial guarantee contract is £
Non adjusting events after the financial period |
|
Techumbre Limited
Notes to the Financial Statements
Year Ended 30 June 2024
Related party transactions |
Group
Income and receivables from related parties
2024 |
Entities under common control |
Receipt of services |
|
Amounts receivable from related parties |
|
|
2023 |
Entities under common control |
Receipt of services |
|
Amounts receivable from related parties |
|
|
Expenditure with and payables to related parties
2024 |
Entities under common control |
Purchase of goods |
|
|
2023 |
Entities under common control |
Purchase of goods |
|
|