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Registered number: 09146684









Rowcon Limited









Annual Report and Financial Statements

For the year ended 31 December 2024

 
Rowcon Limited
 
 
Company Information


Directors
S J Weir 
D S Chilton 




Company secretary
M T Holloway



Registered number
09146684



Registered office
Gardale House
118b Gatley Road

Gatley

Cheadle

Cheshire

SK8 4AU




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Bankers
Royal Bank of Scotland plc
1 Hardman Boulevard

Manchester

M3 3AQ





 
Rowcon Limited
 

Contents



Page
Group strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Consolidated statement of comprehensive income
 
9
Consolidated balance sheet
 
10
Company balance sheet
 
11
Consolidated statement of changes in equity
 
12
Company statement of changes in equity
 
13
Consolidated statement of cash flows
 
14
Consolidated analysis of net debt
 
15
Notes to the financial statements
 
16 - 34


 
Rowcon Limited
 
 
Group Strategic Report
For the year ended 31 December 2024

Introduction
 
The directors present their strategic report for the year ended 31 December 2024.

Business review
 
The principal activity of the group during 2024 was that of building contractor on a range of residential projects. Turnover in the year was £33m which was a significant increase of over £6m when compared to 2023. Around 80% of turnover related to contracts with registered providers and councils. The contracts were mainly  with existing clients, however 20% of turnover came from new clients. 
The directors report a profit after tax of £195k.
During 2024, the construction industry continued to be impacted by wider market influences with industry cost inflation remaining higher than pre-2020 years and supply chains still being disrupted. Shortages of materials and lack of availability of labour remained key challenges during the year leading to build costs remaining high. However the group has been able to manage a number of pressures to ensure delivery and turnover have increased. Energy prices which peaked during 2022 still remain high and present a significant challenge to contracts agreed prior to 2022. 
Understanding these challenges and how to deliver for clients in these, still uncertain, times has been key to driving the increase in turnover during the year. Work during the period has been split almost equally between contracts priced pre-2022 and contracts priced more recently. Those contracts priced after the period of high inflation in 2022 have allowed for current prices and expected fluctuations to be managed more appropriately. The group has also delivered 75% of its first Management Contract with a new client during the year offering up a better cost risk share than traditional Design and Build contracts. The group is already engaged in negotiations around delivering a second Management Contract.
Looking forward, for future years the pipeline of work remains strong with prospects for group performance in the next few years improving. The group has benefitted from a number of opportunities which were originally developed through pre-contract agreements and it remains a key focus for the group developing stronger partnerships with clients through this method. During the year we were awarded a place on the ICN Framework which will continue to gives us access to key clients across the North West.
During the year the group increased the balance sheet to a Net Assets position of £70k, returning to a positive position for the first time since 2021. The strong prospects within the Group means the forecast is for this group position to continue to grow returning to the levels seen in 2020 and prior. 
Strategically the group is looking to continue to use its pre-contract business model which has worked well throughout the period building budget certainty to underpin relationships with a trusted client base in the North West. The pre-contract model gives the group a high degree of confidence around converting schemes in the pipeline to contracted work and then on the ability to deliver positive margins on these schemes. Building on the strategic alliances we have formed with key partners will help ensure we are well placed to address any volatility in the market going forward.
During the year the group has continued its internal development of Senior Managers, continuing to form the Strategic Management Team. This team has been key in driving the delivery during the year and in developing the strong pipeline for the group. The group remains committed to developing its internal staff and recognising the key talent in the business as well as recruiting in staff to ensure we have the necessary skills to manage the challenges going forward. The directors are confident they have the required skills to develop and deliver the business model supported by key members of the group. 
The group remains debt free with cash balances of £3.8m at the year end, which have increased and meet the cash flow requirements of the current level of turnover.
 
Page 1

 
Rowcon Limited
 

Group Strategic Report (continued)
For the year ended 31 December 2024


Future developments
Following the General Election in July 2024 the government has set an ambitious target to deliver 1.5m homes in the next 5 years. They have also recently announced £2bn of new grant funding to help deliver this. The strong relationships with key local partners means the group is confident that we will be a key part of delivering these new homes in the North West. 
The skills and competencies across the group will be key for our clients to support them in being able to deliver the output central government requires. The group’s model of being involved through pre-contract will enable the group further strengthen the forward order book so delivery and turnover remains as strong as it currently is. 

Principal risks and uncertainties
 
Current world events mean there is still a degree of risk of economic disruption which will impact prices and supply chains for the group. To mitigate this risk the group has included allowances for movements in price in contracts recently signed so enjoys a degree of protection against potential movement. 
The group also maintains a constructive dialogue with clients throughout contracts which helps to mitigate any impact of disruption in the supply chain by working with the client at the initial point of being aware of any impact. The group employs suitably qualified and experienced staff to manage the relationship and process. 

Financial key performance indicators
 

2024
2023
2022
2021
2020






Turnover £'000
33,430
27,044
31,903
32,392
29,147
Gross profit £'000
2,894
2,300
2,364
530
2,086
Gross profit %
9%
9%
7%
2%
7%
Operating profit/(loss) £'000
224
34
103
(1,496)
346
Operating profit/(loss) /turnover %
1%
1%
1%
(5%)
1%
Number of employees
67
69
75
78
76
Operating profit/(loss) per employee £'000
3
1
1
(19)
5



This report was approved by the board and signed on its behalf.



D S Chilton
Director

Date: 17 April 2025

Page 2

 
Rowcon Limited
 
 
 
Directors' Report
For the year ended 31 December 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the group strategic report, the directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group 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 for the Group's financial statements and then 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;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £195,411 (2023 - £94,574).

The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the year were:

S J Weir 
D S Chilton 

Future developments

The likely future developments in the group's business and its subsidiary undertakings are detailed in the strategic report.

Page 3

 
Rowcon Limited
 
 
 
Directors' Report (continued)
For the year ended 31 December 2024

Financial instruments

The group's principal financial instruments comprise bank deposits, and various items such as trade debtors, trade creditors, finance and operating lease agreements, which arise directly from its operations. The main purpose of these instruments is to finance the group's operations. 
Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group operates wholly within the UK and foreign exchange risk is not material. 
The group's approach to managing other risks applicable to the financial instruments concerned is shown below. 
The group's treasury management policies are designed to ensure continuity of funding. The group makes use of money market facilities, when funds are available, in order to maximise interest received. 
Trade debtors are managed in respect of credit and cash flow risk by policies concerning contract terms and the regular monitoring of amounts outstanding. 
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet both anticipated requirements and to provide a prudent level of headroom. 
The group is a lessee in respect of finance and operating leased assets. The liquidity risk in respect of these is managed in the same way as trade creditors above.

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 



D S Chilton
Director

Date: 17 April 2025

Page 4

 
Rowcon Limited
 
 
 
Independent Auditors' Report to the Members of Rowcon Limited
 

Opinion


We have audited the financial statements of Rowcon Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 of the parent Company's affairs as at 31 December 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


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


We have nothing to report in this regard.


Page 5

 
Rowcon Limited
 
 
 
Independent Auditors' Report to the Members of Rowcon Limited (continued)


Opinion 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 group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the group strategic report and the 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 the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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 directors' responsibilities statement set out on page 3, 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.


Page 6

 
Rowcon Limited
 
 
 
Independent Auditors' Report to the Members of Rowcon Limited (continued)


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 an auditors' 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 Group 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• The nature of the industry and sector in which the company operates; the control environment and business     performance including key drivers for directors' remuneration, bonus levels and performance targets.
• The outcome of enquiries of local management and parent company management, including whether management    was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge   of any actual, suspected, or alleged fraud. 
• Supporting documentation relating to the Company's policies and procedures for:
    - Identifying, evaluating, and complying with laws and regulations
    - Detecting and responding to the risks of fraud
• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
• The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the    financial statements and any potential indicators of fraud.
• The legal and regulatory framework in which the Company operates, particularly those laws and regulations which    have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or    which had a fundamental effect on the operations of the Company, including General Data Protection requirements,   and Anti-bribery and Corruption.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
• Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with    the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
• Discussions with management, including consideration of known or suspected instances of non-compliance with laws  and regulations and fraud.
• Evaluation of management’s controls designed to prevent and detect irregularities.
• Enquiring of management about any actual and potential litigation and claims.
• Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of    material misstatement due to fraud.


 
Page 7

 
Rowcon Limited
 
 
 
Independent Auditors' Report to the Members of Rowcon Limited (continued)


We have also considered the risk of fraud through management override of controls by:
• Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to    identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or   error.
• Challenging assumptions made by management in their significant accounting estimates, and assessing whether the    judgements made in making accounting estimates are indicative of a potential bias; and
• Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of    business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, 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 concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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 auditors' report.


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 2006Our 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 auditors' 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.



Anthony Woodings (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

17 April 2025
Page 8

 
Rowcon Limited
 
 
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024

2024
2023
Note
£
£

  

Turnover
 4 
33,429,851
27,044,493

Cost of sales
  
(30,535,961)
(24,744,870)

Gross profit
  
2,893,890
2,299,623

Administrative expenses
  
(2,692,353)
(2,306,458)

Other operating income
 5 
22,871
40,920

Operating profit
 6 
224,408
34,085

Interest receivable and similar income
 10 
72,552
62,313

Interest payable and similar expenses
 11 
-
(1,113)

Profit before taxation
  
296,960
95,285

Tax on profit
 12 
(101,549)
(711)

Profit for the financial year
  
195,411
94,574

  

Unrealised (deficit)/surplus on revaluation of tangible fixed assets
  
-
30,199

Other comprehensive income for the year
  
-
30,199

Profit for the year attributable to:
  

Owners of the parent Company
  
195,411
94,574

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

The notes on pages 16 to 34 form part of these financial statements.

Page 9

 
Rowcon Limited
Registered number: 09146684

Consolidated Balance Sheet
As at 31 December 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
137,692
132,618

Investments
 15 
258,653
258,653

  
396,345
391,271

Current assets
  

Stocks
 16 
-
1,447

Debtors: amounts falling due within one year
 17 
7,919,064
5,256,138

Cash at bank and in hand
 18 
3,757,437
2,441,532

  
11,676,501
7,699,117

Creditors: amounts falling due within one year
 19 
(11,388,437)
(7,570,355)

Net current assets
  
 
 
288,064
 
 
128,762

Total assets less current liabilities
  
684,409
520,033

Creditors: amounts falling due after more than one year
 20 
-
(1,328)

Provisions for liabilities
  

Deferred taxation
 22 
(11,339)
(4,296)

Other provisions
 23 
(603,000)
(639,750)

  
 
 
(614,339)
 
 
(644,046)

Net assets/(liabilities)
  
70,070
(125,341)


Capital and reserves
  

Called up share capital 
 24 
100,000
100,000

Capital redemption reserve
 25 
500,000
500,000

Profit and loss account
 25 
(529,930)
(725,341)

Equity attributable to owners of the parent Company
  
70,070
(125,341)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


D S Chilton
Director

Date: 17 April 2025

The notes on pages 16 to 34 form part of these financial statements.

Page 10

 
Rowcon Limited
Registered number: 09146684

Company Balance Sheet
As at 31 December 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 15 
9,030,269
9,030,269

Current assets
  

Debtors: amounts falling due within one year
 17 
180
180

Cash at bank and in hand
 18 
1,170
2,687

  
1,350
2,867

Creditors: amounts falling due within one year
 19 
(8,223,520)
(8,225,037)

Net current liabilities
  
 
 
(8,222,170)
 
 
(8,222,170)

Total assets less current liabilities
  
808,099
808,099

  

  

Net assets
  
808,099
808,099


Capital and reserves
  

Called up share capital 
 24 
100,000
100,000

Capital redemption reserve
 25 
500,000
500,000

Profit and loss account brought forward
  
208,099
208,099

Profit for the year
  
-
-

Profit and loss account carried forward
  
208,099
208,099

  
808,099
808,099


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


D S Chilton
Director

Date: 17 April 2025

The notes on pages 16 to 34 form part of these financial statements.

Page 11

 
Rowcon Limited
 

Consolidated Statement of Changes in Equity
For the year ended 31 December 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2024
100,000
500,000
(725,341)
(125,341)
(125,341)


Comprehensive income for the year

Profit for the year
-
-
195,411
195,411
195,411
Total comprehensive income for the year
-
-
195,411
195,411
195,411


At 31 December 2024
100,000
500,000
(529,930)
70,070
70,070


The notes on pages 16 to 34 form part of these financial statements.


Consolidated Statement of Changes in Equity
For the year ended 31 December 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2023
100,000
500,000
(850,114)
(250,114)
(250,114)


Comprehensive income for the year

Profit for the year
-
-
94,574
94,574
94,574

Deferred tax on revaluation of freehold property
-
-
30,199
30,199
30,199
Total comprehensive income for the year
-
-
124,773
124,773
124,773


At 31 December 2023
100,000
500,000
(725,341)
(125,341)
(125,341)


The notes on pages 16 to 34 form part of these financial statements.

Page 12

 
Rowcon Limited
 

Company Statement of Changes in Equity
For the year ended 31 December 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2024
100,000
500,000
208,099
808,099
Total comprehensive income for the year
-
-
-
-


At 31 December 2024
100,000
500,000
208,099
808,099


The notes on pages 16 to 34 form part of these financial statements.


Company Statement of Changes in Equity
For the year ended 31 December 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
100,000
500,000
208,099
808,099
Total comprehensive income for the year
-
-
-
-


At 31 December 2023
100,000
500,000
208,099
808,099


The notes on pages 16 to 34 form part of these financial statements.

Page 13

 
Rowcon Limited
 

Consolidated Statement of Cash Flows
For the year ended 31 December 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
195,411
94,574

Adjustments for:

Depreciation of tangible assets
39,663
42,488

Profit on disposal of tangible assets
(4,583)
(4,799)

Interest paid
-
1,113

Interest received
(72,552)
(62,313)

Taxation charge
101,549
711

Decrease in stocks
1,447
31,513

(Increase) in debtors
(2,662,926)
(1,084,121)

Increase/(decrease) in creditors
3,735,306
(753,600)

(Decrease) in provisions
(36,750)
(141,250)

Corporation tax (paid)/received
(5,988)
196,499

Net cash generated from operating activities

1,290,577
(1,679,185)


Cash flows from investing activities

Purchase of intangible fixed assets
-
(20,184)

Purchase of tangible fixed assets
(44,737)
-

Sale of tangible fixed assets
4,583
372,299

Interest received
72,552
62,313

HP interest paid
-
(1,113)

Net cash from investing activities

32,398
413,315

Cash flows from financing activities

Repayment of/new finance leases
(7,070)
(7,371)

Net cash used in financing activities
(7,070)
(7,371)

Net increase/(decrease) in cash and cash equivalents
1,315,905
(1,273,241)

Cash and cash equivalents at beginning of year
2,441,532
3,714,773

Cash and cash equivalents at the end of year
3,757,437
2,441,532


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,757,437
2,441,532


The notes on pages 16 to 34 form part of these financial statements.

Page 14

 
Rowcon Limited
 

Consolidated Analysis of Net Debt
For the year ended 31 December 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

2,441,532

1,315,905

3,757,437

Finance leases

(9,214)

7,070

(2,144)


2,432,318
1,322,975
3,755,293

The notes on pages 16 to 34 form part of these financial statements.

Page 15

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

1.


General information

Rowcon Limited is a private company limited by shares and incorporated in England. The address of the registered office and principal place of business is Gardale House, 118b Gatley Road, Gatley, Cheadle, SK8 4AU. The company's registered number is 09146684.
The nature of the company's operation and its principal activity is that of a holding company. The group continues to operate predominantly in the social housing and speculative housing construction markets.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The group is currently undertaking a number of profitable contracts and has secured a strong order book with activity scheduled throughout 2025 and 2026. The group also maintains strong relationships with its network of clients which will further increase the number of live enquiries already in progress and the group expects to continue to be successful in being awarded future contracts from these live enquiries. 
The group’s cash flow forecast reflects the expected timing of income from clients and the payment of costs to the supply chain. This cash flow forecast is expected to be cash positive throughout the forecast period. 
Accordingly, the directors believe it is appropriate to prepare the financial statement to 31 December 2024 on a going concern basis. 

Page 16

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)

  
2.4

Revenue

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:
Construction contracts
When the outcome of construction contracts can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion at the end of the reporting period.
Reliable estimation of the outcome of construction contracts requires reliable estimates of the stage of completion, future costs and collectability of billings. The stage of completion is measured by surveys of work performed.
When the outcome of a construction contract cannot be estimated reliably, revenue is only recognised to the extent of contract costs incurred that it is probable will be recoverable.
When it is probable that the total contract costs will exceed total contract revenue on a construction contract, the expected loss shall be recognised as an expense immediately, with a corresponding provision for an onerous contract.
Revenue in respect of variations to contracts and incentive payments is recognised when it is probable it will be agreed by the customer.
Own developments
Revenue derived from the sale of speculative developments is recognised upon the transfer of risks and rewards of ownership to the buyer, when there is an exchange of unconditional contracts.

  
2.5

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at costs less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the profit and loss account over its useful economic life of 5 years.

Page 17

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)

  
2.6

Leased assets: Lessee

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases.
Finance leases are capitalised as tangible fixed assets at commencement of the lease at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined the company's incremental borrowing rate is used. Incremental direct cost, incurred in negotiating and arranging the lease, are included in the cost of the asset.
Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.
The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method to produce a constant rate of charge on the balance of the capital repayments outstanding.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 18

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

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.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 19

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

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:

Long-term leasehold property
-
2%
straight line
Short-term leasehold property
-
7%
straight line
Plant and machinery
-
25%
straight line
Motor vehicles
-
25%
straight line
Fixtures and fittings
-
25%
straight line

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 profit or loss.

  
2.10

Operating leases: Lessee

Leases are classified as operating leases whenever the terms of the lease do not transfer substantially all the risks and rewards of ownership to the company. Rentals payable under operating leases are charged to the profit or loss on a straight line basis over the lease term. The aggregate benefit of lease incentives are recognised as a reduction to the expense over the lease term on a straight line basis. 

  
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.
Investments held as fixed assets are shown at cost, which is considered to be the fair value.
Other fixed asset investments, as detailed in note 15, represent sold properties in which the company retains an interest comprising a proportion of the costs of units being sold under a shared ownership scheme.

  
2.12

Stocks

Stock of land for development is included at the lower of acquisition cost or net realisable value. Net realisable value for this purpose is the estimated selling value less estimated selling costs.
The group recognises costs that relate to future activity on a construction contract as an asset if it is probable that the costs will be recovered.
Contract and speculative building work in progress is valued at cost or net realisable value, whichever is the lower. Cost for this purpose includes all direct costs as follows:- direct labour and materials, work done by subcontractors, hire of plant and equipment used on contract sites, and all overheads except those relating to administration. Net realisable value for this purpose is estimated selling value less cost to completion including selling costs.

Page 20

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)

  
2.13

Financial instruments

The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, and loans to and from related parties.
Debt instruments that are payable or receivable within one year, typically trade payable or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.
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 profit or loss.
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, 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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions.  The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the group as at 31 December 2024 are discussed below. 
a)  Revenue and margin recognition 
The group's revenue recognition and margin recognition policies, which are set out in note 2.4, are central to how the group values the work it has carried out in each financial year.  These policies require forecasts to be made of the outcomes of construction contracts, which require assessments and judgements to be made.  The group reviews and, when necessary, revises the estimates of revenue and costs as the contract progresses. 
b)  Provisions 
Provisions are liabilities of uncertain timing or amount and therefore making a reliable estimate of the quantum and timing of liabilities judgement is applied and re-evaluated at each reporting date. The group recognised provisions at 31 December 2024 of £603,000 (
2023 - £639,750).

Page 21

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Contract revenue
33,429,851
27,043,468

Sale of properties
-
1,025

33,429,851
27,044,493


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
22,871
40,920



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets owned by the company
33,571
36,396

Depreciation of tangible fixed assets held under finance leases
6,092
6,092

Operating lease rentals
79,000
72,500

Defined contribution pension cost
103,208
93,362

Profit on disposal of tangible fixed assets
(4,583)
(4,799)


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
18,750
17,865




All other services
17,250
16,435

Page 22

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
3,516,315
3,111,308
262,694
239,000

Social security costs
369,955
337,298
34,381
30,564

Cost of defined contribution scheme
103,208
93,362
24,109
21,700

3,989,478
3,541,968
321,184
291,264


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administration
18
20



Construction and development work
49
49

67
69

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
274,496
240,802

Group contributions to defined contribution pension schemes
24,109
21,700

298,605
262,502


During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £145,638 (2023 - £126,979).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £13,332 (2023 - £12,000).

Page 23

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
72,552
62,313


11.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
-
1,113


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
88,518
-

Adjustments in respect of previous periods
5,988
-


94,506
-


Total current tax
94,506
-

Deferred tax


Origination and reversal of timing differences
7,043
711

Total deferred tax
7,043
711


Taxation on profit on ordinary activities
101,549
711
Page 24

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
296,960
95,285


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
74,240
23,821

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
20,579
8,565

Utilisation of tax losses
-
(32,372)

Adjustments to tax charge in respect of prior periods
5,988
-

Other timing differences leading to an increase (decrease) in taxation
742
697

Total tax charge for the year
101,549
711


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

13.


Intangible assets

Group and Company





Goodwill

£



Cost


At 1 January 2024
1,640,847



At 31 December 2024

1,640,847



Amortisation


At 1 January 2024
1,640,847



At 31 December 2024

1,640,847



Net book value



At 31 December 2024
-



At 31 December 2023
-

Goodwill which arose upon the acquisition by the company of Rowlinson Holdings Limited, and its subsidiary, Rowlinson Constructions Limited in 2014 has a carrying value of £nil. 
No impairment losses on goodwill have been recognised in profit or loss during the period.



Page 26

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

14.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
110,525
17,600
58,279
89,599
276,003


Additions
-
-
-
44,737
44,737


Disposals
-
-
(14,315)
-
(14,315)



At 31 December 2024

110,525
17,600
43,964
134,336
306,425



Depreciation


At 1 January 2024
29,480
17,600
44,571
51,734
143,385


Charge for the year on owned assets
7,374
-
6,092
26,197
39,663


Disposals
-
-
(14,315)
-
(14,315)



At 31 December 2024

36,854
17,600
36,348
77,931
168,733



Net book value



At 31 December 2024
73,671
-
7,616
56,405
137,692



At 31 December 2023
81,045
-
13,708
37,865
132,618

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
7,616
13,708

Page 27

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

15.


Fixed asset investments

Group





Other fixed asset investments

£



Cost or valuation


At 1 January 2024
258,653



At 31 December 2024
258,653




Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
9,030,269



At 31 December 2024
9,030,269





Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Rowlinson Holdings Limited
Gardale House, 118b Gatley Road, Gatley, Cheadle SK8 4AU
Holding company
Ordinary
100%


Indirect subsidiary undertaking


The following was an indirect subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Rowlinson Constructions Limited
Gardale House, 118b Gatley Road, Gatley, Cheadle SK8 4AU
Building contractor
Ordinary
100%

Page 28

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

16.


Stocks

Group
Group
2024
2023
£
£

Work in progress
-
1,447


No impairment loss was recognised in costs of sales against stock during the current year or prior year. 


17.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
6,275,805
3,631,746
-
-

Other debtors
1,444,380
1,405,106
180
180

Prepayments and accrued income
198,879
219,286
-
-

7,919,064
5,256,138
180
180



18.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
3,757,437
2,441,532
1,170
2,687


Page 29

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
6,469,952
5,186,029
-
-

Amounts owed to group undertakings
-
-
8,211,997
8,215,612

Corporation tax
88,518
-
-
-

Other taxation and social security
186,908
134,584
11,523
9,425

Obligations under finance lease and hire purchase contracts
2,144
7,886
-
-

Other creditors
57,933
37,281
-
-

Accruals and deferred income
4,582,982
2,204,575
-
-

11,388,437
7,570,355
8,223,520
8,225,037


Net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.


20.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
-
1,328


Net obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.




21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
2,103
7,886

Between 1-5 years
-
1,328

2,103
9,214

Page 30

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

22.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(4,296)
(33,784)


Charged to profit or loss
(7,043)
29,488



At end of year
(11,339)
(4,296)

Company


2024
2023





At beginning of year
-
-



At end of year
-
-
The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
(26,106)
(22,571)

Other timing differences
14,767
18,275

(11,339)
(4,296)

Page 31

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

23.


Provisions


Group



Contract provisions

£





At 1 January 2024
639,750


Charged to profit or loss
17,250


Utilised in year
(54,000)



At 31 December 2024
603,000

Contract provisions include defect, warranty and other provisions on construction contracts that are ongoing or have reached practical completion.


24.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



20,000 (2023 - 20,000) Ordinary A shares of £1.00 each
20,000
20,000
20,000 (2023 - 20,000) Ordinary B shares of £1.00 each
20,000
20,000
20,000 (2023 - 20,000) Ordinary C shares of £1.00 each
20,000
20,000
20,000 (2023 - 20,000) Ordinary D shares of £1.00 each
20,000
20,000
20,000 (2023 - 20,000) Ordinary E shares of £1.00 each
20,000
20,000

100,000

100,000

The Ordinary A, Ordinary B, Ordinary C, Ordinary D and Ordinary E shares all have equal rights with regards to voting and distribution of dividends.



25.


Reserves

Capital redemption reserve

Capital redemption reserve - a non distributable reserve and represents paid up share capital. 

Profit and loss account

Profit and loss account - includes all current and period retained profits and losses.   

Page 32

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

26.


Contingent liabilities

At the 31 December 2024 there existed performance bonds and similar agreements entered into in the normal course of business totalling £2,196,747 (2023 - £2,474,213)


27.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £103,208 (2023 - £93,362). Contributions totalling £20,566 (2023 - £17,100) were payable to the fund at the balance sheet date.


28.


Commitments under operating leases

At 31 December 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
79,000
79,000

Later than 1 year and not later than 5 years
316,000
316,000

Later than 5 years
510,417
589,417

905,417
984,417

The company had no commitments under non-cancellable operating leases as at the balance sheet date.


29.


Related party transactions

The following transactions occurred during the year, and balances existed at the year end date, with companies related by common control and/or common directorship.


2024
2023
£
£

Sales
-
411,100
Debtors
965,600
1,108,429
Rent payable
(79,000)
(72,500)
Interest receivable
37,978
35,590
Sale of land and building
-
367,500

During the prior year, a related company purchased the long-term leasehold property at market value.
In preparing these financial statements, the directors have taken advantage of the exemption available under section 33 paragraph 1A of the Financial Reporting Standard 102, and have not disclosed transactions entered into between wholly owned group undertakings.

Page 33

 
Rowcon Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

30.


Controlling party

The company is jointly controlled by the directors.

 
Page 34