REGISTERED NUMBER: 03360925 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 September 2024

for

Renelec Groundworks Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

S M Boyd

V R Couse

S J Couse

Ms C L Couse

P M O'Shea

M J Roberts

J Skeen

SECRETARY:

A K Harper

REGISTERED OFFICE:

Brownston House

New Park Street

Devizes

Wiltshire

SN10 1DS

REGISTERED NUMBER:

03360925 (England and Wales)

AUDITORS:

Mander Duffill

Chartered Accountants & Statutory Auditor

The Old Post Office

41-43 Market Place

Chippenham

Wiltshire

SN15 3HR

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

REVIEW OF BUSINESS

Renelec Groundworks Ltd provides civil engineering works to housebuilders and property developers in the South-West of England.

Turnover in the year decreased by 31% to £17.8m from £25.8m. Affordability of homes continued to be an issue for homebuyers due to the current economic climate and higher interest rates which have contributed to the slowdown in new housing completions. Whilst we had previously broadened our split of works to include more contract housing there has been a lot of competition in this sector and projects were delayed in starting.

During the year there were several legacy contracts that had significant costs incurred. This impacted the profits made on all current contracts which resulted in the company making a loss for the year. These legacy contracts secured during and prior to the pandemic are now complete.

The company has continued to utilise our investment in drainage CCTV surveying equipment which has enabled us to have better quality control. Historically this was significant in terms of our remedial works costs. We have invested in expanding our Quality Assurance procedures to include a mobile phone app based system which will be used daily on all of our sites, monitored internally to ensure compliance.

The outlook going into 2025, despite the current economic climate is strong with a secured forward order book at over £23m and over £5m under consideration for. Enquiries remain strong for next year and beyond.

The company has proven that it can react to any situation and act accordingly, this should ensure its continued success.

PRINCIPAL RISKS AND UNCERTAINTIES

The construction industry is influenced by various factors outside the company's control. These would include government intervention, confidence, unemployment, inflation, interest rates and labour.

Lower levels of activity within housebuilding mean we continue to seek out Contract Housing which remains highly competitive as well as working on general commercial works. Cost increases across all materials and labour supply due to government increases on Employer's National Insurance contributions will impact us and every other company but we plan to mitigate this through our own efficiencies, salary & wage reviews will be limited and pricing this into tenders.

Tenders were being received steadily throughout the year. Planning permission delays and getting incoming services onto sites is contributing to reduced housing works being completed.

The availability of skilled labour also remains difficult at present with a high shortage of all trades and is a challenge replacing experience that leaves the industry with new skilled labour. The company is committed to training and development and will continue to aim for a minimum of six school and college leavers every academic year supporting them through their apprenticeships into groundworks roles.

Our engineering and management trainees will continue to be supported through their development and provided with day release college or university courses as necessary.

Retentions is a significant consideration in terms of cash flow and when they fall due, great emphasis is put collection to ensure this does not impact the liquidity of the company.

Given that the company works on construction sites which are inherently dangerous we take the health and safety of our employees, subcontractors, clients and general public as of paramount importance. We strive to ensure that all our stakeholders are well trained, kept up to date on new legislation and encourage a zero-harm environment in which they operate in. The company continues to review new technologies to minimise health and safety risks.

To mitigate both risk and uncertainty relationships with client and suppliers need to be maintained and new client and procurement opportunities developed.

FINANCE KEY PERFORMANCE INDICATORS

The directors monitor the company's progress against its strategic objectives and the financial performance of the company's operations on a regular basis producing monthly management accounts. Two key financial performance indicators are turnover (growth) and gross profit % (profitability).

For the year ended 30 September 2024, turnover was £17,767,737 (2023 - £25,820,095), this represents a 31.2% decrease on the previous year.

Gross profit % for the year ended 30 September 2024 was 5.4% (2023 - 6.7%), this represents a 1.3% decrease on the previous year.

The company is forecasting £22.3m turnover and around 9.3% gross profit for the forthcoming year and will make every effort to improve the gross profit margin, through efficient contract management and procurement savings.

GOING CONCERN

The directors prepare both budgets and cash flow forecasts for a period extending to at least twelve months from the date of approval of these financial statements. The directors are satisfied that those forecasts, which take account of trading performance, secured turnover and tendered contracts, provide a reasonable expectation that the company can continue in operational existence for the foreseeable future. For this reason, the company continues to adopt the going concern basis.

ON BEHALF OF THE BOARD:

A K Harper - Secretary

26 March 2025

The directors present their report with the financial statements of the company for the year ended 30 September 2024.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

S M Boyd

V R Couse

S J Couse

Ms C L Couse

P M O'Shea

M J Roberts

J Skeen

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Mander Duffill, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A K Harper - Secretary

26 March 2025

Opinion

We have audited the financial statements of Renelec Groundworks 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 loss 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In planning and designing our audit tests, we identify and assess the risks of material mis-statements, whether due to fraud or error. Our risk assessment procedures included:

- Enquiries of management about the entities policies and procedures on compliance with laws and regulations and whether they were aware of any instances of noncompliance together with the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

- Enquiries of management about the entities policies and procedures on fraud risks, including any actual, suspected or alleged fraud.

- Considered the nature of the industry and sector, control environment and business performance including the key drivers for directors' remuneration, bonus levels and performance targets.

- Reading minutes of meetings of those charged with governance.

We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that the entity operates in, through discussions with the director, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statement or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls including the following:

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Enquiry of management concerning actual and potential litigation and claims.

- Reviewing correspondence with HMRC, and the company's legal advisors.

- Addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether judgements made in making accounting estimates are indicative of a potential bias, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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

Julian Duffill FCA (Senior Statutory Auditor)

for and on behalf of Mander Duffill

Chartered Accountants & Statutory Auditor

The Old Post Office

41-43 Market Place

Chippenham

Wiltshire

SN15 3HR

26 March 2025

TURNOVER

4

17,767,737

25,820,095

Cost of sales

16,798,464

24,090,131

GROSS PROFIT

969,273

1,729,964

Administrative expenses

1,434,834

1,703,707

OPERATING (LOSS)/PROFIT

6

(465,561

)

26,257

Interest receivable and similar income

8

26,706

59,624

(438,855

)

85,881

Interest payable and similar expenses

9

569

158

(LOSS)/PROFIT BEFORE TAXATION

(439,424

)

85,723

Tax on (loss)/profit

10

(102,586

)

1,129

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(336,838

)

84,594

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(336,838

)

84,594

FIXED ASSETS

Tangible assets

11

10,267

9,221

CURRENT ASSETS

Stocks

12

244,625

131,489

Debtors

13

5,439,819

5,929,644

Cash at bank

-

996,031

5,684,444

7,057,164

CREDITORS

Amounts falling due within one year

14

4,868,415

5,903,251

NET CURRENT ASSETS

816,029

1,153,913

TOTAL ASSETS LESS CURRENT LIABILITIES

826,296

1,163,134

CAPITAL AND RESERVES

Called up share capital

18

1,000

1,000

Retained earnings

19

825,296

1,162,134

SHAREHOLDERS' FUNDS

826,296

1,163,134

The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2025 and were signed on its behalf by:

S J Couse - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2022

1,000

1,077,540

1,078,540

Changes in equity

Total comprehensive income

-

84,594

84,594

Balance at 30 September 2023

1,000

1,162,134

1,163,134

Changes in equity

Total comprehensive income

-

(336,838

)

(336,838

)

Balance at 30 September 2024

1,000

825,296

826,296

1.	STATUTORY INFORMATION

Renelec Groundworks Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been 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. The financial statements have been prepared under the historical cost convention.

Going Concern

The directors prepare both budgets and cash flow forecasts for at least 12 months from the date of approval of these financial statements and they are satisfied that those forecasts provide reasonable expectation that the company can continue in operational existence for the foreseeable future.

The forecasts prepared take account of current market conditions including the impact of higher interest rates and inflation, post year end trading performance, secured turnover and tendered contracts. The directors have also considered the amount by which turnover is required to fall such that the business may not be able to meet its liabilities as they fall due and on the basis of post year end trading to date, the current order book and market expectations, they consider chance of such a significant fall in turnover to be remote. Management continually reviews credit terms offered to customers and outstanding balances.

The result of these reviews is that the directors are satisfied that the company can meet its liabilities as they fall due for a period of at least 12 months from approval of the financial statements and therefore it is appropriate to prepare the financial statements on a going concern basis.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Rendering of services

Turnover 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 turnover 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;

- the costs incurred and the costs to complete the contract can be measured reliably

On contracts that are forecast to be profitable, profit is taken on the basis of the value of work carried out at the Statement of Financial Position date, taking into account the stage of completion of the contract and total expected costs at the various stages of the contract. Turnover derived from variations on contracts are recognised only when they have been accepted by the customer.

On contracts that are forecast to be loss-making, all of the loss is recognised as soon as it is foreseen irrespective of the stage of completion of the contract.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.

Depreciation is provided on the following basis:

Fixture, fittings, tools & equipment - 3 to 5 years straight line

The assets' residual values, useful lives and depreciation method 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 disposal are determined by comparing the proceeds with the carrying amount and are recognised in the 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 reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the 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 and loans to and from related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows 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 the 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.

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 reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position 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.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, 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 of not more than 24 hours. 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 transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of acquisition costs, and are measured subsequently at amortised cost using the effective interest method.

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.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In preparing the financial statements, the directors have not made any material judgements in applying accounting policies.

Key sources of estimation uncertainty:

- Long-term contracts.

Profit associated with a long-term contract can be recognised only where the profitable outcome can be estimated reliably. Estimation of the outcome requires estimates of the stage of completion or value of work completed at the end of the reporting period, future costs and the collectability of amounts claimed from the customer.

4.

TURNOVER

The whole of turnover is attributable to groundworks contracting.

All turnover arose within the United Kingdom.

5.	EMPLOYEES AND DIRECTORS

30.9.24

30.9.23

£

£

Wages and salaries

3,730,786

4,125,338

Social security costs

386,144

421,752

Other pension costs

148,218

183,547

4,265,148

4,730,637

The average number of employees during the year was as follows:

30.9.24

30.9.23

Staff and directors

21

26

Operatives including apprentices

71

70

92

96

30.9.24

30.9.23

£

£

Directors' remuneration

310,559

493,645

Directors' pension contributions to money purchase schemes

17,546

34,443

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

30.9.24

30.9.23

£

£

Emoluments etc

127,476

160,713

Pension contributions to money purchase schemes

-

17,431

6.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

30.9.24

30.9.23

£

£

Operating leases - plant and equipment

1,599,919

1,691,865

Depreciation - owned assets

9,497

10,005

Profit on disposal of fixed assets

(8,632

)

(146,933

)

7.	AUDITORS' REMUNERATION

30.09.24

30.09.23

£

£

Fees payable to the Company's auditor and its associates for the audit of the consolidated and parent company's financial statements

9,850

9,700

8.

INTEREST RECEIVABLE AND SIMILAR INCOME

30.9.24

30.9.23

£

£

Interest received

26,706

59,624

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.9.24

30.9.23

£

£

Interest payable

569

158

10.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

30.9.24

30.9.23

£

£

Current tax:

Group tax relief

(85,948

)

-

Deferred tax:

Deferred tax

(16,638

)

(1,615

)

Deferred tax - prior year

-

2,744

Total deferred tax

(16,638

)

1,129

Tax on (loss)/profit

(102,586

)

1,129

Reconciliation of total tax (credit)/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:

30.9.24

30.9.23

£

£

(Loss)/profit before tax

(439,424

)

85,723

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

(109,856

)

21,431

Effects of:

Expenses not deductible for tax purposes

7,270

12,023

Capital allowances in excess of depreciation

-

(34,684

)

Utilisation of tax losses

-

2,359

Total tax (credit)/charge

(102,586

)

1,129

11.	TANGIBLE FIXED ASSETS

Fixtures,

fittings,

tools &

equipment

£

COST

At 1 October 2023

95,980

Additions

10,543

At 30 September 2024

106,523

DEPRECIATION

At 1 October 2023

86,759

Charge for year

9,497

At 30 September 2024

96,256

NET BOOK VALUE

At 30 September 2024

10,267

At 30 September 2023

9,221

12.

STOCKS

30.9.24

30.9.23

£

£

Long term contract balances -

Net cost less foreseeable

losses

647,182

526,893

Excess payments on account

(402,557

)

(395,404

)

244,625

131,489

244,625

131,489

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.24

30.9.23

£

£

Trade debtors

4,748,689

4,855,893

Amounts owed by group undertakings

212,492

194,347

Amounts recoverable on contract

133,851

609,076

Other debtors

202,428

226,002

Tax

85,948

-

Deferred tax asset

24,307

7,669

Prepayments

32,104

36,657

5,439,819

5,929,644

Deferred tax asset

30.9.24

30.9.23

£

£

Accelerated capital allowances

(211

)

568

Tax losses carried forward

23,746

2,359

Short term timing differences

772

4,742

24,307

7,669

Amounts owed by group undertakings are unsecured, repayable on demand and do not bear interest.

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.24

30.9.23

£

£

Bank loans and overdrafts (see note 15)

59,514

-

Payments on account

1,958,952

2,280,917

Trade creditors

2,012,681

2,494,664

Social security and other taxes

242,377

299,679

Other creditors

93,550

300,382

Accrued expenses

501,341

527,609

4,868,415

5,903,251

15.

LOANS

An analysis of the maturity of loans is given below:

30.9.24

30.9.23

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

59,514

-

16.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

30.9.24

30.9.23

£

£

Within one year

5,223

5,127

17.	DEFERRED TAX

£

Balance at 1 October 2023

(7,669

)

Provided during year

(16,638

)

Balance at 30 September 2024

(24,307

)

18.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.9.24

30.9.23

value:

£

£

1,000

Ordinary

£1

1,000

1,000