Company registration number 01343317 (England and Wales)
GRACELANDS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
GRACELANDS LIMITED
COMPANY INFORMATION
Directors
Mr D Cleary
Mr W B Cleary
Mr A Grogan
Mr S Cleary
Mr D Downie
Secretary
Mr A Grogan
Company number
01343317
Registered office
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
Auditor
Sumer Audit
53 Kent Road
Southsea
Portsmouth
Hampshire
PO5 3HU
Business address
Highbridge Road
Highbridge
Colden Common
Eastleigh
Hampshire
SO50 6HS
GRACELANDS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
GRACELANDS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

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

Review of the business

During the financial year the business continued to be a major player in the market space which has seen increased competition in the construction sector generally. The housing market has seen a lot of volatility throughout the year with a strong early trading period followed by a slower period due to poor housing sales. The ongoing global political landscape caused further burdens on the supply chain, leading to a continuation of extraordinary cost increases. Despite the tough market conditions and a reduction of turnover, Gracelands continues to hold a strong market share in the industry and was successful in securing a number of large contracts over the year which will provide a stable workflow for the following period. A key focus of the business has been diversifying our client portfolio to further protect against market fluctuations whilst maintaining a focus on profitability.

Principal risks and uncertainties

As with all industries currently, the biggest risk to the business is the continued material and energy cost fluctuations. As the housing market starts to see a slow down due to market conditions, margins are tightening, and the business will need to manage this accordingly. The company continues to hold a strong enough financial position to be able to withstand any future shocks that may arise.

The company is exposed to other normal trading risks, including fluctuations in the economy, Cost of Living Crisis, bad debt risk, potential supply issues, but management has controls in place designed to mitigate those risks and the company is well-placed to respond positively.

There is severe lack of appropriately skilled personnel in the industry, which provides a risk to the growth of the business. Employee incentive schemes and continual investment in staff training with an environment encouraging staff development and retention is helping to mitigate those risks. The business continues to invest and commit to our apprenticeship program.

Development and performance

Activities fell in the year, producing a turnover smaller than the previous year, profit margins were up despite the cost increases affecting ongoing contracts. The company has been strategic in contracts it is pursuing, with peers reducing margins in a competitive market, the company has not followed this trend. The reduced turnover in the short term is part of the building strategy with a strong future pipeline of contracts at healthier margins going forward.

Key performance indicators

The company's key performance indicators are turnover, gross profit and profit before tax ("PBT").

In 2024 the company's turnover decreased by 12.79% to £40,771,521 (2023: £46,749,647).

In 2024 the company's gross profit margin increased by 2.96% to 7.30% (2023: 4.34%)

In 2024 the company has loss before taxation of £339 (2023: loss before taxation £993,386).

Other performance indicators

The business enters into long term contracts with its clients, and financial success is dependent on close control of costs on those contracts. This is a continuing focus for the business going forward. The directors monitor gross profit margins on its contracts as this is the key indicator of the profitability of the company.

GRACELANDS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
S172 statement

The success of our business is dependent on the support of all of our stakeholders. Building positive relationships with stakeholders that share our values is important to us and working together towards shared goals assists us in delivering long-term sustainable success.

The company has a single executive board which is responsible for oversight of the contracting business and for making any major strategic or operational decisions.

When the business reviews its long term plans, it ensures that it take into account all stakeholders from staff to supply chain and all our business partners.

Employees – our employees are the heart of the business and management therefore look to engage with them regularly. The management team maintains individual relationships with all employees and provides opportunity for staff to develop and raise any concerns that they may have about their role within the business.

Customers – The relationship between the business and its customers is paramount to our future success and a key focus for all our management and employees with regular communication at a number of levels. The company prides itself on delivering a quality service and this is what is at the core of the culture of the business and ensuring our ongoing customer relationships.

Suppliers – Our supply chain is vital in ensuring we deliver our product and the company has a long-standing reputation in the marketplace as a business to work for, built up through years of trust, regular communication and delivery on our promises. In particular, we pride ourselves on ensuring we maintain excellent payment terms to our suppliers as we see this as the most important lever in engendering really positive relationships and loyalty.

Environment – We are conscious of the impact construction has on the environment and this is an area of continuing focus for the company.

On behalf of the board

Mr D Cleary
Director
28 April 2025
GRACELANDS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of groundworks and civil engineering contractors.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £35,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr D Cleary
Mr W B Cleary
Mr A Grogan
Mr S Cleary
Mr J P Coakley
(Resigned 30 June 2023)
Mr D Downie
Financial instruments
Treasury options and financial instruments

The company’s principal financial instruments include bank balances, trade debtors and trade creditors arising directly from its operations.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Credit risk

Investments of cash surpluses and borrowings are made through financial instruments which must fulfil credit rating criteria approved by the board.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Pricing risk

The directors consider that the company faces the usual pricing risk of any other company operating in a competitive, commercial environment. The business minimises these risks with the strong working relationships we have built with customers.

Future developments

The challenges facing the business regards cost control have continued into the April 2024 trading year, however through collaborative dialogue with our clients and supply chain the business has been able to manage these cost increases. The general industry in the south coast is seeing strong levels of production albeit lower than the previous year and the business has continued to secure contracts at fair market value, with a strong order book going forward. The company has expanded its client base in order to manage production fluctuations better.

Auditor

The auditor, Sumer Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

GRACELANDS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Energy and carbon report

The company's annual energy consumption, greenhouse gas emissions and energy efficiency activities are included and disclosed within Changeregard Limited consolidated accounts.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr D Cleary
Director
28 April 2025
GRACELANDS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRACELANDS LIMITED
- 5 -
Opinion

We have audited the financial statements of Gracelands Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GRACELANDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRACELANDS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law, long-term contract valuations and compliance with the UK Companies Act.

GRACELANDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRACELANDS LIMITED
- 7 -

In addition to the above, our procedures to respond to risks identified included the following:

 

 

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transaction's reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

 

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.

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.

Peter Reading FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
29 April 2025
Chartered Accountants
Statutory Auditor
53 Kent Road, Southsea, Portsmouth, Hampshire PO5 3HU
Sumer Audit is the trading name of Sumer Auditco Limited
GRACELANDS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
40,771,521
46,749,647
Cost of sales
(37,795,157)
(44,722,431)
Gross profit
2,976,364
2,027,216
Administrative expenses
(3,167,345)
(3,245,203)
Other operating income
76,055
183,857
Operating loss
4
(114,926)
(1,034,130)
Interest receivable and similar income
8
114,587
40,744
Loss before taxation
(339)
(993,386)
Tax on loss
9
-
0
-
0
Loss for the financial year
(339)
(993,386)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GRACELANDS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Current assets
Stocks
11
15,000
15,000
Debtors
12
16,278,529
16,355,783
Cash at bank and in hand
5,322,034
6,497,463
21,615,563
22,868,246
Creditors: amounts falling due within one year
13
(11,324,582)
(12,541,926)
Net current assets
10,290,981
10,326,320
Provisions for liabilities
Provisions
14
325,000
325,000
(325,000)
(325,000)
Net assets
9,965,981
10,001,320
Capital and reserves
Called up share capital
16
22,500
22,500
Share premium account
62,300
62,300
Profit and loss reserves
9,881,181
9,916,520
Total equity
9,965,981
10,001,320
The financial statements were approved by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
Mr D Cleary
Director
Company registration number 01343317 (England and Wales)
GRACELANDS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
22,500
62,300
10,916,406
11,001,206
Year ended 30 April 2023:
Loss and total comprehensive income
-
-
(993,386)
(993,386)
Dividends
10
-
-
(6,500)
(6,500)
Balance at 30 April 2023
22,500
62,300
9,916,520
10,001,320
Year ended 30 April 2024:
Loss and total comprehensive income
-
-
(339)
(339)
Dividends
10
-
-
(35,000)
(35,000)
Balance at 30 April 2024
22,500
62,300
9,881,181
9,965,981
GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information

Gracelands Limited is a private company limited by shares incorporated in England and Wales. The registered office is Stag Gates House, 63/64 The Avenue, Southampton, Hampshire, SO17 1XS.

1.1
Accounting convention

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of Changeregard Limited. These consolidated financial statements are available from its registered office, 97 Leigh Road, Eastleigh, Hampshire, SO50 9DR. The consolidated financial statements are available from Companies House.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered relevant information, including the company's principal risks and uncertainties, the revenue forecasts and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.

1.3
Turnover

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.

1.4
Stocks

Stock and work in progress are valued at the lower of costs and net realisable value.

GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Construction contracts

In respect of long term contracts for on-going services, turnover represents the value of work done in the year. Turnover and costs in respect of long term contract and contracts for on-going services are recognised by reference to the stage of completion.

 

The stage of completion of contracts in progress is determined using the proportion that sales applied for to date bear to the estimated total sales. The amount of total profit expected is applied to the current stage of completion to identify the proportion of total turnover earned.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Retentions are stated at a lower amount that the initial retentions held based on their recoverability. Retentions are recognised as income when it is probable that the company will receive the consideration due under the contract.

1.6
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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

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

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.

Impairment of financial assets

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.

GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Equity instruments

Equity instruments issued by the company 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 company.

GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.9
Employee benefits

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.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Accounting for construction contracts

Recognition of revenue and profit is based on judgements made in respect of the ultimate profitability of a contract. Such judgements are arrived at through the use of estimation in relation to costs and value of work performed to date and to be performed in bringing contracts to completion. These estimates are made by reference to recovery of pre-contracts costs, variations in work scopes, claim recoveries and expected contract costs to complete. The company has appropriate control procedures to ensure all estimates are determined on a consistent basis.

 

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Revenue from construction contracts
40,771,521
46,749,647
2024
2023
£
£
Other revenue
Interest income
114,587
40,744
Grants received
63,769
181,357

All turnover is generated in the United Kingdom in the current and comparative period

4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Government grants
(63,769)
(181,357)
Fees payable to the company's auditor for the audit of the company's financial statements
24,000
15,000
Hire of plant and equipment
7,821,746
7,576,537
GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,000
15,000
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Office and management
25
23
Direct
98
104
Total
123
127

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,287,743
5,375,465
Social security costs
619,887
647,372
Pension costs
224,311
539,028
6,131,941
6,561,865
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
342,077
355,692
Company pension contributions to defined contribution schemes
130,000
443,082
472,077
798,774

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 6).

GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
96,000
96,000
Company pension contributions to defined contribution schemes
60,000
149,061
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
114,587
40,744
9
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(339)
(993,386)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
(85)
(193,710)
Tax effect of expenses that are not deductible in determining taxable profit
62,591
62,488
Unutilised tax losses carried forward
(62,506)
131,222
Taxation charge for the year
-
-
10
Dividends
2024
2023
£
£
Interim paid
35,000
6,500
11
Stocks
2024
2023
£
£
Raw materials and consumables
15,000
15,000
GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
15,387,204
15,721,884
Corporation tax recoverable
19,492
-
0
Other debtors
871,833
633,899
16,278,529
16,355,783

Included in trade debtor are gross amounts due from contract customers of £11,752,958 (2023: £12,490,288).

13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
5,324,344
6,529,374
Gross amounts owed to contract customers
1,296,630
1,931,278
Amounts owed to group undertakings
3,953,781
3,385,043
Corporation tax
19,492
-
0
Other taxation and social security
261,569
263,277
Other creditors
158,285
82,442
Accruals and deferred income
310,481
350,512
11,324,582
12,541,926
14
Provisions for liabilities
2024
2023
£
£
Remedial works provision
325,000
325,000
Movements on provisions:
Remedial works provision
£
At 1 May 2023 and 30 April 2024
325,000
GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
224,311
539,028

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £7,559 (2023: £7,563) were payable at the year end and are included in creditors.

16
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
20,450 Ordinary of £1 each
20,450
20,450
250 Ordinary A of £1 each
250
250
1,800 Ordinary B of £1 each
1,800
1,800
22,500
22,500

The ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.

 

The ordinary A shares and B shares have dividend rights but do not have voting nor capital distribution (including on winding up) rights.

17
Related party transactions

Gracelands Limited has taken advantage of the exemption available in FRS 102 whereby it has not disclosed transactions with its ultimate parent company or any wholly owned subsidiary undertakings of the group.

 

During the year the company entered into transactions with the following connected companies:

 

Highbridge Property Investments Limited - joint venture

 

The company made total purchases of £3,813 ( 2023: £27,336) and total sales of £nil (2023: £4,329). At the reporting date £82,711 ( 2023: £80,401) was included in trade creditors, £1,054,268 (2023: £1,054,268) was included in trade debtors.

 

Darkwater Homes Limited - with common directors

 

The company made total sales of £373,320 (2023: £61,808). At the reporting date £95,512 (2023: £61,808) was included in trade debtors.

GRACELANDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
18
Directors' transactions

The company operated loan accounts with the directors during the year. All loans were interest free.

 

At the year end year end 30 April 2023, four directors owed the company £96,070. During the year ended 30 April 2024, there were transactions with four of the directors, where amounts advanced totalled £264,811, amounts written off was £23,090 and amounts repaid totalled £55,949. At the year end 30 April 2024, three directors owed the company £281,842.

19
Ultimate controlling party

The ultimate parent company is Changeregard Limited, a company incorporated in England and Wales. Its registered office is Stag Gates House, 63/64 The Avenue, Southampton, SO17 1XS and copies of the consolidated financial statements can be obtained at Companies House.

 

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