The Chairman presents his statement for the period.
I am pleased to state that, despite ongoing material cost increases in the construction sector, and amid political and economic uncertainties, that Simpson as a privately owned construction business, is once again successful and able to report as a profitable, debt-free business with cash reserves and a strong forward workload.
Our group turnover for 2024 is £67,873,304 and profits before tax are £2,112,629, giving a result in percentage terms of 3.1%.
I appreciate and acknowledge with thanks, the commitment of the Simpson Team at all levels and locations, be that in our offices, workshop or on site.
The percentage of employees who have been with the business for over 5 years is 60%, which has remained stable over the last twelve months, and reflects on our commitment to staff development & training, and wellbeing. Our accident and incident rate for Simpson employees continues to be consistently below the HSE quoted industry average.
My thanks to all of our Clients, both new and existing, for their continued support and trust in 2024 and moving forward into 2025.
We acknowledge with thanks, our supply chain including our subcontractors and suppliers, as working closely with them and ensuring their support has in turn meant that they have been confident and comfortable working with a safe and secure construction business that will be around at the start and at the completion of projects.
I remain convinced that the complexities and experiences that we’ve collectively worked through this year have created the opportunities to work collaboratively with both clients and subcontractors to show how we can work flexibly together and certainly helped Simpson demonstrate that our focus is not just about profitability, but on delivering safely and in a supportive and timely manner.
The coming year will globally bring its own challenges, as we are already experiencing. Simpson remains resilient and flexible in order to respond to these demands.
I also express our thanks to our Bankers, and our trusted Financial and Legal Advisors who have all continued to provide us with support and guidance through these challenging times.
We all continue to work as a team to support and enhance our delivery and have helped maintain our position as “the preferred choice” to our Clients.
The Directors present their Strategic Report for Simpson (York) Holdings Limited for the year ended 31 December 2024.
Our Directors continued to deliver a profitable business as we successfully navigate the continued political and economic uncertainty. The team remain committed and skilled in terms of delivering projects in a safe, sustainable and enjoyable manner. We maintain our environmental standards/commitments and have achieved a re-certification/accreditation for:
Chain of Custody Certification in terms of Bespoke Joinery works
Re-accreditation with the renewal of ISO 9001, 14001 & 45001
Constructionline Member
Other certifications include SafeContractor, Safe PQQ, CHAS, QMark, Investors in People and Acclaim.
We remain a recognised Contractor in both the fit-out and construction marketplace with our established reputation for delivering Heritage schemes, following successful completion of projects at Hull Maritime Museum and York Minster, and continuing works at Salford Cathedral. This is achieved importantly through our 152 direct employees who enable us to maintain our strong long-term relationships with our key Clients as well as assisting in developing new Client relationships. The foundation of these relationships is based on our collaborative approach with our Clients and their Professionals to enable them to achieve their own goals whilst in parallel sustainably delivering our projects.
The training, development and wellbeing of our employees remains a high priority to the business, and we continue to invest in supporting our employees mental health by training a number of staff to be “Mental Health First Aiders” both in the offices and on site. These individuals are a point of contact should anyone in the business be experiencing mental health distress and they are trained to provide initial support/ direct the individual to/or help engage further support if required. Furthermore, we have partnered with an external provider who provides 24-hour helplines, counselling sessions and general pastoral care.
We continue to conduct our business in an ethical manner with commitment to the highest standards of Health & Safety for our workforce whilst maintaining the ethos of our core values:
Passionate
Responsible
Integrity
Dedicated
Engaging
Simpson continue to be a debt free business whilst being accountable to all our Stakeholders.
I appreciate and acknowledge with thanks, the commitment of the Simpson team at all site levels and locations, at our Head Office, in the Joinery workshop, as well as our satellite office in Portsmouth, which supports our works in Southern England.
Our valued long-term relationships continue to prosper in fit-out, with particular focus on retail, leisure and veterinary care. We enjoy a continuing stream of workload nationwide with our Framework partners, M&S and Sainsbury’s.
The construction team have been busy with workload from a number of clients including the completion of factory extension works for Roberts Mart (Leeds), and works for Land Securities at the Trinity Centre (completed) and White Rose Centre (ongoing) in Leeds, as well as Kala Sangam Arts Centre in Bradford.
Guests continue to leave positive reviews for our holidays lets at Belle House in Filey, which has now been operating for over three years. Bookings for 2025 are up on the “like for like” basis and our repeat booking rate is higher than other comparable properties.
We have continued success with our Heritage workload, successfully delivering Hull Maritime Museum for Kingston-upon-Hull City Council and in our home city for York Minster, on their Centre of Excellence “Heritage Quad and Technology Hub”, where they aim to ensure the skills needed to preserve heritage buildings are maintained and shared, whilst works continue at Salford. We are delighted to have secured works at the Grade-2 listed South Ormsby Hall in Lincolnshire, as well as further heritage works in York at the church of St Michael le Belfrey.
Our development opportunities have continued, and we have our first tenant at Compass House next to our head office in Dunnington. We have now completed conversion of Endsleigh Convent in Filey, and the five luxury apartments are now on the market with views overlooking the sea. A few miles away, preparatory works have begun for our planned Business Park in Hunmanby where we aim to support local businesses with 23 industrial units, to be built as required. Our second Joint Venture, Bramham House, is currently progressing through a pre-application process with Leeds City Council prior to a new Planning Application being submitted.
The percentage of employees who have been with the business for over 5 years is 60%, which has remained stable over the last twelve months, and reflects on our commitment to staff training, morale and welfare. Our accident and incident rate for Simpson employees continues to be consistently below the HSE quoted industry average.
Awards secured for the year include:
Successfully retained all Management System standards – ISO 9001, 14001 and 45001
Continued robust implementation of our Chain of Custody certification
Re-Accreditation of IIP
NFB Heritage & Conservation Building Project of the Year for Clifford’s Tower
The Simpson business was again recognised within the Top 100 in the York St John College in York Press business review being ranked in twelfth position.
Our financial stability remains strong, and our cash reserves underpins this position; all of which is demonstrated by the Dun & Bradstreet rating of 3A to Simpson (York) Holdings Limited. This rating and assessment give continued comfort and assurance to both our existing clients and new potential clients, as well as our supply chain. This provides further confidence that we remain a solid business and one to trade with, both now and in the future.
Remaining profitable with substantial financial reserves and no debt helps illustrate the robust operational and financial systems that Simpson has in place. Our strategic focus remains with the growth and success of the business, through both our contracting business operations and development works. We feel confident that we are well placed to succeed, particularly with a strong secured forward workload for 2025.
Our construction activity for 2024 was at a turnover level of £28,902,911 and our fit-out works totalled £38,813,724. Non-construction work, including lettings at Belle House, combined to give us a turnover of £67,873,304 which has generated a profit before tax of £2,112,629.
Hassacarr Close our Business Park remains fully let at the year-end, and we are look forward to attracting further tenants for the newly refurbished Compass House development next to our head office.
The Directors use a range of performance measures to monitor and manage the business. These are split in to financial and non-financial Key Performance Indicators as set out below:
Profit retentions Gross profit margin, Net profit margin, Return on capital employed
Liquidity ratios Current ratio
Activity ratios Debtor days, Creditor days
Capital ratios Gearing
Non-financial Accident incident rate, Staff turnover, Client and public complaints, Client satisfaction, Insurance claims
People
Our Employee Accident Incident rate remains below the HSE reported industry average
Our provision of 5 training days per employee exceeds the industry average of 2 days per employee
Over 30 courses delivered to our employees through our new online training platform
61% of Simpson employees have been with the business for over 5 years
100% of all site management have a Site Managers Safety Training Scheme/ Site Supervisors Safety Training Scheme qualification as appropriate
11 trained Mental Health First Aiders and 1 trained Counsellor
Planet
Over 95% of total waste diverted from landfill – we are continually looking for innovative solutions to increase this figure
Chain of Custody registration audited and maintained for a further year, registration now being maintained for over 13 years
Carbon Reduction plan developed setting an overall target to be Net Zero by 2050.
The Business has set an interim target to reduce it’s Carbon footprint by 30% by 2027 (based on 2022 baseline data). A 10% reduction was achieved in 2023.
ISO 9001, 14001 & 45001 management system registration maintained (registered since 2003)
All Head Office lighting converted to energy efficient LED lighting, resulting in a 28% reduction in electricity consumption
Prosperity
8 charities (mainly local) were directly supported by the business, with donations made of £7k
NFB Heritage & Conservation Building Project of the Year for Clifford’s Tower
Consistently achieving “Excellent” Considerate Constructors Scheme scores, with an average score of 44 from an achievable 45, which is up from an average of 43 last year
The entire Simpson team remain committed to and are passionate regarding our business objective to be “the preferred choice” for our Clients’ project works, and to provide a quality, competitive, safe and sustainable delivery to all projects.
We, like many businesses, have faced new challenges posed by the worldwide political and economic uncertainty over the last few of years, which has continued into 2025, and with the ever-changing prices of materials within the construction sector. Nevertheless, throughout this our priority has remained with the safety, health and welfare of our people, clients, the public and all those involved in our projects. We feel that by working collaboratively with our clients and our team, we have and will continue to overcome these challenges.
To conclude, we remain a debt free business with significant financial strength and a substantial forward workload spread between our construction, fit-out and development activities. This helps ensure we are in a strong position to overcome any future challenges and we look forward to the opportunity of continuing to work with our Clients to deliver their activity.
Directors' statement of compliance with duty to promote the success of the Company
The Directors believe in building long-term, strong and sustainable relationships with our Clients and Suppliers. This approach has enabled the business to continue to grow and is evident in every project we undertake, and further demonstrated by the high levels of business we enjoy.
Simpson is part of the local community through its employment and engagement with its suppliers, its training and Charitable donations.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 12.
No ordinary dividends were paid during the year. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Directors believe in building long term, strong and sustainable relationships with our customers and suppliers. This approach has enabled us to win long term contracts with our customers. The company is an equal opportunities employer. Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. All disabled employees are eligible for training and promotion and, within the limits of their disabilities, are given equal consideration with other applicants.
The Directors are not expecting to make any significant changes in the nature of the business in the near future.
Matters covered in the Group Strategic Report |
Information is not shown in the director's report because it is shown in the strategic report instead under s414C (11). The strategic report includes a business review, principal risk and uncertainties and financial key performance indicators.
In accordance with the company's articles, a resolution proposing that Azets Audit Services Limited be reappointed as auditor of the group will be put at a General Meeting.
Greenhouse gas emissions, energy consumption and energy efficiency action |
The company has chosen to report energy and carbon data in its Annual Reporting in line with the UK Government Streamlined Energy and Carbon Reporting (SECR) legislation. Following a full analysis of the relevant Scopes & Categories of emissions, relating to Direct & Indirect emissions, the following Carbon Emissions have been calculated for the company in the reporting year.
Carbon Emissions for the Reporting Year were 513.3 tonnes, which has fallen by 11.9% from the baseline in 2022.
SECR Energy & Carbon Emissions (kWh & tonnes CO2e)
The data contained in the table below represents total emissions calculated and is consistent with SECR requirements. All sources of emissions that have been measured are included in the totals below.
| Benchmark Reporting Year Jan 22 – Dec 22 | Current Reporting Year Jan 24 – Dec 24 |
Energy consumption used to calculate emissions Electricity Scope 2 - UK and Offshore (kWh) | 438,264 | 273,836 |
Energy consumption used to calculate emissions – Global, excluding UK and Offshore (kWh) | N/A | N/A |
Basis of Energy reporting (Location or Market)* | Market | Market |
% of total energy sourced from certified renewable sources | 17.20% | 100% |
Emissions associated with energy consumption | 70.2 | 0 |
- UK, Offshore and Global (tCO2e) |
|
|
Emissions from activities for which the company is responsible including combustion of fuel and operation of facilities - Scope 1 (tCO2e) | 381.1 | 261.8 |
Emissions from purchase of electricity, heat, steam and cooling purchased for own use - Scope 2 (tCO2e) | 70.2 | 0 |
Total Scope 1 and 2 Emissions (tCO2e) | 451.3 | 261.8 |
Emissions from upstream activities out of operational control - Scope 3 (tCO2e) | 131.4 | 251.4 |
Emissions from use of sold products and services out of operational control - Scope 3 (tCO2e) | None included | None included |
Total Gross Scope 3 Emissions (tCO2e) | 131.4 | 251.4 |
Total Scope 1, 2 and 3 Emissions (tCO2e) | 582.7 | 513.3 |
Intensity ratio tCO2e (gross Scope 1, 2 and 3) per employee | 3.6 | 3.3 |
Carbon offsets (tCO2e) | 0 | 0 |
Total Annual Net Emissions (tCO2e) | 582.7 | 513.3 |
We have audited the financial statements of Simpson (York) Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for 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 and 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias;
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £484,484 (2023 - £617,292 profit).
The notes on pages 19 to 38 form part of these financial statements.
Simpson (York) Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 10 Hassacarr Close, Chessingham Park, Dunnington, York, North Yorkshire, YO19 5SN.
The group consists of Simpson (York) Holdings Limited, its subsidiaries and interests in a joint venture.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Simpson (York) Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The directors have considered all factors, including in the wider economy, as part of their assessment of going concern. Although the current economic and political climate creates both cashflow and profitability risks for the company and the group, the company and the group continue to trade profitably and are cash generative. Budgets and cashflows have been prepared using assumptions for capital expenditure, customer demand and supply chain costs. These budgets and cashflows indicate continuing profitability and cash generation, consequently the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements. Accordingly, these financial statements have been prepared on the going concern basis.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover from the provision of construction contracts is recognised by reference to the stage of completion, when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by assessing project costs incurred as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Holiday let income is recognised according to the date of the stay.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Investments in subsidiaries and joint ventures are measured at cost less accumulated impairment.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Outstanding trade debtor balances are reviewed on a line by line basis by the directors to identify possible amounts where a provision is required. Directors closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about recoverability, and determine what provision is required (if any).
The majority of the group's activities are undertaken via long-term construction contracts which can span more than one accounting period. These contracts are accounted for in accordance with FRS 102 which requires estimates to be made for the contract costs and revenue.
Directors base their judgement of contract costs and revenue on the latest available information, which includes detailed contract valuations. Contract costs and revenue are affected by a variety of uncertainties that depend on the outcome of future events and often need to be revised as events unfold and uncertainties are resolved. The estimates are updated regularly and any impact reflected as appropriate.
Investment properties are professionally valued when appropriate with periodic reviews by the directors on an ongoing basis in accordance with the applicable standards.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The latest formal independent valuations were made by Howard Jenkins Property Consultancy Limited on 15 December 2023, a firm of external qualified professional valuers, on an open market value for existing use basis. The directors believe the balances per the last external valuation still represent the values of the properties at the current accounting year end.
The carrying value of land and buildings comprises:
Freehold property is land which has been rented to another group entity and is not depreciated.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 31 December 2024 are as follows:
The registered office of these companies is Unit 10 Hassacarr Close, Chessingham Park, Dunnington, York, YO19 5SN, with the exception of Bramham House Limited and Freely Lane Limited, which have the address of 12 Middlethorpe Business Park, Sim Balk Lane, Bishopthorpe, York, YO23 2BD.
Simpson (York) Holdings Limited has, in accordance with S479C of the Companies Act 2006, provided a guarantee over the liabilities of its subsidiary Simpson (Belle House) Limited (company registration number 13260628; registered in England & Wales) which permits the subsidiary to not obtain an audit of its individual financial statements for the period ended 31 December 2024, in accordance with the exemptions conferred by S479A Companies Act 2006. The registered office of the subsidiary is Unit 10 Hassacarr Close, Chessingham Park, Dunnington, York, YO19 5SN.
Details of joint ventures at 31 December 2024 are as follows:
£2,577,350 (2023 - £2,537,350) of amounts owed by group undertakings represent secured loans that are repayable within one year.
The remaining amounts owed by group undertakings represent unsecured loans that are interest free and are repayable on demand.
The net obligations under finance lease and hire purchase creditors are secured over the assets they relate to. The amounts owed to group undertakings are interest free and repayable on demand.
The net obligations under finance lease and hire purchase creditors are secured over the assets they relate to. There are no amounts which are repayable over five years.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Contributions totalling £55,573 (2023 - £82,966) were payable to the fund at the balance sheet date.
The A and B Ordinary shares carry ten votes per share and the C ordinary shares have one vote per
share and dividends may be distributed at a differential rate between the classes of shareholders. There
are no restrictions on repayment of share capital between the different type of shareholders.
At December 2024, there were contingent liabilities in respect of performance bonds arranged with the insurance company which amounted to £4,250,000 (2023 - £3,287,120).
HSBC plc holds a fixed charge over book debts, goodwill, uncalled capital and intellectual property and a floating charge over the other assets of the group.
There are unlimited cross guarantees and a right of group set off between Simpson (York) Limited and Simpson (York) Holdings Limited in favour of HSBC plc.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The group is also a lessor and had the following minimum lease income under non-cancellable operating leases as follows:
Amounts contracted for but not provided in the financial statements:
The remuneration of key management personnel is as follows.
During the year the company entered into the following transactions with related parties:
The group rents premises from R.C. & B. Gatenby, directors, under a formal lease agreement. Rent of £159,936 (2023 - £159,936) was paid during the year. Included within creditors, amounts falling due within one year, is an amount of £1,299 (2023 - £1,299) due to R C & B Gatenby. The balance is interest free and repayable on demand.
The company rents premises from Crescent Trustees Limited under a formal lease agreement. Crescent Trustees Limited are the professional trustees of the SIPP of R.C. & B. Gatenby. Rent of £104,000 (2023 - £98,321) was paid during the year.
Simpson (York) Holdings Limited has given a loan to its subsidiary company, Bramham House Limited and was owed at 31 December 2024, £2,577,350 (2023 - £2,537,350) No interest was charged on this loan in the current accounting year.
During the year Bramham House Limited paid Vincent & Partners Ltd, a connected company, for services amounting to £33,069 (2023 - £150,668). These amounts were included in stock at the year end.
The company has taken advantage of the exemption contained in Section 33 of FRS 102 'Related Party Disclosures' from disclosing transactions with entities which are part of the group, since 100% of the voting rights in the company are controlled within the group and the company is included within the group accounts which are publicly available.
Included within debtors due within one year are amounts of £827,170 (2023 - £708,770) due from various directors and shareholders of Simpson (York) Limited. The balances are interest free and are repayable when their relative shareholdings are ultimately disposed of.
The inception of new finance leases above represent major non-cash transactions.