REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
FOR |
C3 CONSTRUCTION LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
FOR |
C3 CONSTRUCTION LIMITED |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
C3 CONSTRUCTION LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
1 Merus Court |
Meridian Business Park |
Leicester |
LE19 1RJ |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
The directors present their strategic report for the year ended 30 September 2024. |
The principal activity of the Company during the year was that of groundwork, general building and site engineering. |
Review of business |
Over the last 12 months the business has continued to expand despite a more challenging housing market, and is active on over 60 sites across the Midlands. This has been achieved by working for a growing number of housebuilders and establishing a reputation for quality and reliability. As the business is focused on site infrastructure work as well as groundworks, this provides a balance to housing which can slow down if market conditions dictate. |
The directors remain focused on cost control and growing market share. There has been considerable investment in plant and machinery to ensure the company is using the best equipment and technology available. The company continues to develop and invest in its people and their training. |
Whilst the outlook for 2025 still has a number of macroeconomic challenges, the directors are confident in C3's position as a leading groundworker and that the company's reputation will lead to a strong pipeline of opportunities in a market which still suffers from a lack of sufficient housing. |
Principal risks and uncertainties |
The management of the business and the execution of the Company's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes are put in place to monitor and mitigate them. |
Credit risk |
New credit customers undergo credit checks and are only accepted once approved by the credit controller. The Company undertakes perpetual review processes to ensure debts are collected in a timely manner and to minimise the risk that debts become irrecoverable. |
Liquidity risk |
The Company is financed by appropriate long and short term finance to match the needs of the business. |
Financial key performance indicators |
The key performance indicators of the Company are turnover, gross profit margin and net profit margin. |
During the year turnover has decreased by £15,634,740 (11%) to £122,235,719 compared to £137,870,459 in 2023. |
During the year gross profit margin has decreased by £2,090,714 (9.5%) to £19,908,294 compared to £21,999,008 in 2023. |
During the year profit before tax has decreased by £2,885,610 (43.55%) to £3,739,834 compared to £6,625,444 in 2023. |
Other key performance indicators |
The non-financial key performance indicator of the Company is compliance with UK health and safety regulations including UK building regulations. The Company had no instances of non compliance during the period. |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
Directors' statement of compliance with duty to promote the success of company |
S172 (1) Statement |
During the year, the directors have had regard to the matters set out in S172 (1) (a) to (f) of the Companies Act 2006 whilst performing their duties. Decisions have been made in good faith to benefit the members as a whole and to promote the success of the Company. |
Specifically, the directors have considered the following: |
S172 (1) (a) The likely consequences of any decision in the long term |
The directors understand the business and the environment in which it operates and the consequences of any long term decisions. There is a clear plan for growth which ensures they deliver a reputable service whilst satisfying both customer and shareholder needs. Improving environmental performance and operating processes are a fundamental part of the business strategy. This is key to ensuring that the Company delivers a duty of care for the benefit of future generations. |
S172 (1) (b) The interests of the Company's employees |
The directors regularly engage with employees through internal communications when making decisions to ensure that the best course of action is delivered in the long term and that the Company's strategy takes into consideration all stakeholders of the Company, including the employees. Employee welfare and wellbeing is of utmost importance. Within the industry that the Company operates, ensuring that all employees work in a safe and healthy environment is paramount. This is ensured through regular external health and safety compliance checks. |
S172 (1) (c) The need to foster the Company's business relationships with suppliers, customers and others |
Building relationships with customers and suppliers is critical to the success of the business. Building relationships with key suppliers enables the success of the Company by delivering a quality service whilst ensuring minimal impact to the environment. |
S172 (1) (d) The impact of the Company's operations on the community and the environment |
The Company recognises the importance of minimising the impact of operations on the community and the environment and takes into consideration the views of all stakeholders. |
S172 (1) (e) The desirability of the Company maintaining a reputation for high standards of business conduct |
The Company acknowledges that sustainable growth is only achievable by maintaining a reputation quality and adhering to the codes of good business practice. |
S172 (1) (f) The need to act fairly between members of the Group |
When making decisions, the directors consider which course of action best delivers the Group strategy in the long term, taking into consideration all stakeholders of the Group. |
On behalf of the board: |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
The directors present their report with the financial statements of the Company for the year ended 30 September 2024. |
Dividends |
The profit for the year, after taxation, amounted to £2,775,356 (2023 - £5,154,917). |
During the year a dividend of £1,003,622 (2023 - £1,911,538) was recommended by the directors. |
Directors |
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
Environmental matters |
The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations. |
The Companies Act 2006 (Directors' Report) Regulation 2018 requires C3 Construction Limited to disclose annual UK energy consumption, emissions, intensity metrics and all energy efficiency improvements implemented for the financial period. The following disclosures achieve 100% verifiable data coverage with no estimation. Energy and Greenhouse Gas emissions have been independently calculated by Net Zero Compliance (a division of Inspired Energy PLC). |
This report (including the Scope 1, 2 and 3 consumption and C02e emissions data) has been developed and calculated using the GHG Protocol - A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development, 2004); Greenhouse Gas Protocol - Scope 2 Guidance (World Resources Institute, 2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO, 2019); Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019). |
Government Emissions Factor Database 2024 version 1.1 has been used, utilising the published kWh gross calorific value (CV) and kgC02e emissions factors relevant for the reporting period 01/10/2023 - 30/09/2024. |
Estimations were undertaken to cover missing billing periods for properties directly invoiced to C3 Construction Limited. These were calculated on a kWh/day pro-rata basis at the meter level. |
100% verifiable data coverage was achieved, with no estimations required. This has decreased from the FY2023 estimation level of 8.15%. Market-based emissions were calculated using a supplier-specific emissions factor based on the electricity that C3 Construction Limited procure. |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
Consumption (kwh) and greenhouse gas emissions (tc02e) totals |
The following figures show the consumption and associated emissions for this reporting year for our operations, with figures from the previous reporting period included for comparison. |
Scope 1 consumption and emissions relate to direct combustion of natural gas, and fuels utilised for transportation operations, such as company vehicle fleets. |
Scope 2 consumption and emissions relate to indirect emissions relating to the consumption of purchased electricity in day-to-day business operations. |
Scope 3 consumption and emissions relate to emissions resulting from sources not directly owned by us. This relates to grey fleet (business travel undertaken in employee-owned vehicles) only. |
Totals |
The total consumption (kWh) figures for energy supplies reportable by C3 Construction Limited are as follows: |
Grid supplied Electricity (scope 2) - 118,024 kWh (2023 - 108,100 kWh) |
Gaseous and other fuels (scope 1) - 34,170,285 kWh (2023 - 48,597,592 kWh) |
Transportation (scope 1) - 9,445,314 kWh (2023 - 9,692,757 kWh) |
Transportation (scope 3) - 116,939 kWh (2023 - 102,805 kWh) |
Total - 43,850,562 kWh (2023 - 58,501,254 kWh) |
The total emission (tC02e) figures for energy supplies reportable by C3 Construction Limited are as follows: |
Grid-supplied Electricity (Scope 2) - 24.44 tC02e (2023 - 22.38 tC02e) |
Gaseous and other fuels (Scope 1) - 8,764.34 tC02e (2023 - 12,465.07 tC02e) |
Transportation (Scope 1) - 2,230.91 tC02e (2023 - 2,291.16 tC02e) |
Transportation (Scope 3) - 26.06 tC02e (2023 - 23.12 tC02e) |
Total - 11,045.75 tC02e (2023 - 14,801.74 tC02e) |
Intensity metric |
An intensity metric of tC02e per £m revenue has been applied for our annual total emissions and are as follows: |
tC02e / £m revenue - 90.36 (2023 - 107.36) |
Energy efficiency improvements |
C3 Construction Limited is committed to year-on-year improvements in its operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years. |
Measures ongoing and undertaken through FY2023/24: |
Fleet Efficiency Upgrades |
Efforts are being taken to upgrade and replace fleet vehicles and site vehicles to the most fuel efficient alternatives available when possible. Due to the operational constraints of the business, full electrification is not possible, so these efforts aim to maximise efficiency of fuel used in necessary business operations. |
Document Digitisation |
This year has seen the implementation of a new system that has kept documents digitised and eliminated the need to print purchase orders, invoices, and supporting documents. This has eliminated the printing of around 7,500 documents per month, reducing energy usage as well as waste. |
Measures to be addressed In FY2025: |
Continued Fleet Efficiency Upgrades |
There will be continued efforts to upgrade fleet vehicles and site vehicles to the most fuel efficient alternatives available when possible, in order to maximise energy efficiency while balancing the needs of the business. |
Reporting Methodology |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
Scope 1, 2 and 3 consumption and C02e emissions data has been calculated in line with the 2019 UK Government environmental reporting guidance. Emissions Factor Database 2024 version 1 has been used, utilising the published kWh gross calorific value (CV) and kgC02e emissions factors relevant for reporting period 01/10/2023 - 30/09/2024. |
Future developments |
Going forward the directors are aiming to grow the Company further whilst keeping tight control over the cost base. |
Disclosure of information to auditors |
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: |
- so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware; and |
- the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
Post balance sheet events |
There have been no significant events affecting the Company since the year end. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
Auditors |
The auditors, Haines Watts Audit EM Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
C3 CONSTRUCTION LIMITED |
Opinion |
We have audited the financial statements of C3 Construction Limited (the 'Company') for the year ended 30 September 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, 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 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 Company's affairs as at 30 September 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
C3 CONSTRUCTION LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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. |
Auditors' 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 a Report of the Auditors 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: |
- | Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud. |
- | Enquiry of entity staff in tax and compliance functions and external advisors to identify any instances of non-compliance with laws and regulations. |
- | Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
- | Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- | Discussions with the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud. |
- | Reviewing any minutes for meetings during the year. |
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 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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 |
1 Merus Court |
Meridian Business Park |
Leicester |
LE19 1RJ |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales |
Gross profit |
Administrative expenses |
4,373,627 | 7,304,133 |
Other operating income | 4 |
Operating profit | 7 |
Interest payable and similar expenses | 9 |
Profit before taxation |
Tax on profit | 10 |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
BALANCE SHEET |
30 SEPTEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
Fixed assets |
Tangible assets | 12 |
Current assets |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
Creditors |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
Provisions for liabilities | 19 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 20 |
Share premium |
Capital redemption reserve |
Retained earnings |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 October 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 September 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 September 2024 |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
1. | STATUTORY INFORMATION |
C3 Construction Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
After reviewing the Company's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial information. The directors therefore believe the Company has the ability to continue as a going concern for the next 12 months. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
This information is included in the consolidated financial statements of C3 Construction Group Limited as at 30 September 2024 and these financial statements may be obtained from the registered office of the parent company at 1 Merus Court, Meridian Business Park, Leicester, LE19 1RJ. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(i) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
(ii) Stock and work in progress provisioning |
The Company continues to provide groundworking, general building and site engineering services and is exposed to changes in the market prices of raw materials it uses. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the stocks provision, management considers the nature and condition of the stocks, as well as applying assumptions around anticipated sales and future usage of raw materials. With regards to work in progress valuations, management will consider materials usage and labour costs incurred on projects currently in progress. |
(iii) Impairment of debtors |
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor , the ageing profile of debtors and historical experience. |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the contract; |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- | the costs incurred and the costs to complete the contract can be measured reliably. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in Statement of Comprehensive Income. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in Statement of Comprehensive Income. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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 measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Operating leases: the company as lessor |
Rental income from operating leases is credited to Statement of Comprehensive Income on a straight-line basis over the lease term. |
Operating leases: the company as lessee |
Rentals paid under operating leases are charged to Statement of Comprehensive Income on a straight-line basis over the lease term. |
Leased assets: the Company as lessee |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
Finance costs |
Finance costs are charged to Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Borrowing costs |
All borrowing costs are recognised in Statement of Comprehensive Income in the year in which they are incurred. |
Debtors |
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Provisions for liabilities |
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. |
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. |
Increases in provisions are generally charged as an expense to Statement of Comprehensive Income. |
Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price, net of transaction cost, and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date. |
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the Company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
All turnover arose within the United Kingdom. |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Vehicle lease recharges |
CITB training |
466,987 | 154,950 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production staff | 23 | 28 |
Administrative staff | 79 | 76 |
Management staff | 7 | 7 |
6. | DIRECTORS' EMOLUMENTS |
During the year, directors' emoluments totalled £130,491 (2023 - £120,816). |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts or finance leases |
Loss on disposal of fixed assets |
Operating lease rentals |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
8. | AUDITORS' REMUNERATION |
During the year, the Company obtained the following services from the Company's auditors and their associates: |
2024 | 2023 |
£ | £ |
Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements | 25,000 |
26,000 |
Fees payable to the Company's auditors and their associates in respect of: |
Taxation compliance services | 3,500 | 3,500 |
All non-audit services not included above | - | 52,792 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other loan interest payable |
Other interest |
Finance leases and hire purchase contracts |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods |
Other timing differences leading to an increase in taxation |
Loss on disposal of tangible fixed assets |
Changes in provisions leading to an increase in the tax charge |
Total tax charge | 964,477 | 1,470,527 |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
11. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares shares of 0.01 each |
Equity dividends on ordinary shares |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 October 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 September 2024 |
Depreciation |
At 1 October 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 September 2024 |
Net book value |
At 30 September 2024 |
At 30 September 2023 |
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows: |
2024 | 2023 |
£ | £ |
Plant and machinery | 13,763,563 | 10,759,059 |
Motor vehicles | 4,770,555 | 3,996,605 |
18,534,118 | 14,755,664 |
13. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials and consumables |
Work-in-progress |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Obligations under finance lease and HP contracts |
4,045,675 |
4,095,337 |
Accruals and deferred income |
Arbuthnot Commercial Asset Based Lending Limited hold a fixed and floating charge dated 11 July 2022 over all the property or undertakings of the Company. |
Lloyds Bank Plc hold a debenture dated 23 August 2016 over all of the property and assets of the Company. |
Net obligations under hire purchase contracts amounting to £4,045,675 (2023 - £4,095,337) are secured by the Company against the assets to which they relate. |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Obligations under finance lease and HP contracts |
6,617,104 |
6,688,514 |
Arbuthnot Commercial Asset Based Lending Limited hold a fixed and floating charge dated 11 July 2022 over all the property or undertakings of the Company. |
Lloyds Bank Plc hold a debenture dated 23 August 2016 over all of the property and assets of the Company. |
Net obligations under hire purchase contracts amounting to £6,617,104 (2023 - £6,688,514) are secured by the Company against the assets to which they relate. |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
18. | HIRE PURCHASE CONTRACTS |
Minimum lease payments under hire purchases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year | 4,045,675 | 4,095,337 |
Between 1-5 years | 6,617,104 | 6,688,514 |
10,662,779 | 10,783,851 |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
19. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 4,630,890 | 4,182,287 |
Deferred tax |
£ |
Balance at 1 October 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 30 September 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary shares | 0.01 | 145 | 145 |
21. | CONTROLLING PARTY |
The immediate parent company is C3 Construction Holdings Limited. C3 Construction Holdings Limited is registered in England and Wales and the registered office is 1 Merus Court, Meridian Business Park, Leicester, LE19 1RJ. |
The parent company preparing consolidated accounts for the smallest and largest group of which the Company is a member is C3 Construction Group Limited. Group accounts can be obtained from 1 Merus Court, Meridian Business Park, Leicester, LE19 1RJ. |
The directors do not consider there to be an ultimate controlling party in the year. |
22. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The Company has agreed to act as guarantor for £3,945,150 (2023 - £4,145,150) fixed loan notes created by C3 Construction Group Limited and owed to J Denham, M Johnson and D Humberstone. The charge, registered on 22 March 2018, is secured against all of the property and assets of the Company. |
The directors had interest free loans during the year that are repayable on demand. |
24. | RELATED PARTY DISCLOSURES |
During the year amounts totalling £200,000 (2023 - £1,322,000) were advanced to associated undertakings of the Company. At the year end £8,489,624 (2023 - £8,289,624) was due to the Company in respect of these advances. |
Total key management personnel remuneration for the year was £225,659 (2023 - £142,510). |
No other transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 102, section 1AC.35. |
C3 CONSTRUCTION LIMITED (REGISTERED NUMBER: 04814422) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2024 |
25. | COMMITMENTS UNDER OPERATING LEASES |
At 30 September 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods: |
2024 | 2023 |
£ | £ |
Land and building |
Not later than 1 year | 114,391 | 105,000 |
Later than 1 year and not later than 5 years | 367,500 | 420,000 |
Later than 5 years | 78,750 |
481,891 | 603,750 |
2024 | 2023 |
£ | £ |
Other |
Not later than 1 year | 200,912 | 200,912 |
Later than 1 year and not later than 5 years | 205,789 | 129,499 |
Later than 5 years | - | 54,349 |
406,701 | 384,760 |