DJ Civils Ltd 10866941 false 2023-08-01 2024-07-31 2024-07-31 The principal activity of the company is Groundworks, Drainage, Civil Engineering, Highways, Earthworks, Remediation, and Highways works across the UK. Digita Accounts Production Advanced 6.30.9574.0 true true true false true false false 10866941 2023-08-01 2024-07-31 10866941 2024-07-31 10866941 bus:OrdinaryShareClass1 2024-07-31 10866941 bus:OrdinaryShareClass2 2024-07-31 10866941 bus:Consolidated 2024-07-31 10866941 core:AcceleratedTaxDepreciationDeferredTax 2024-07-31 10866941 core:RetainedEarningsAccumulatedLosses 2024-07-31 10866941 core:ShareCapital 2024-07-31 10866941 core:HirePurchaseContracts core:CurrentFinancialInstruments 2024-07-31 10866941 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2024-07-31 10866941 core:CurrentFinancialInstruments 2024-07-31 10866941 core:CurrentFinancialInstruments core:WithinOneYear 2024-07-31 10866941 core:Non-currentFinancialInstruments 2024-07-31 10866941 core:Non-currentFinancialInstruments core:AfterOneYear 2024-07-31 10866941 core:BetweenTwoFiveYears 2024-07-31 10866941 core:WithinOneYear 2024-07-31 10866941 core:FurnitureFittingsToolsEquipment 2024-07-31 10866941 core:MotorVehicles 2024-07-31 10866941 1 2024-07-31 10866941 bus:FRS102 2023-08-01 2024-07-31 10866941 bus:Audited 2023-08-01 2024-07-31 10866941 bus:FullAccounts 2023-08-01 2024-07-31 10866941 bus:RegisteredOffice 2023-08-01 2024-07-31 10866941 bus:Director1 2023-08-01 2024-07-31 10866941 bus:Director2 2023-08-01 2024-07-31 10866941 bus:OrdinaryShareClass1 2023-08-01 2024-07-31 10866941 bus:OrdinaryShareClass2 2023-08-01 2024-07-31 10866941 bus:Consolidated 2023-08-01 2024-07-31 10866941 bus:PrivateLimitedCompanyLtd 2023-08-01 2024-07-31 10866941 core:RetainedEarningsAccumulatedLosses 2023-08-01 2024-07-31 10866941 core:ShareCapital 2023-08-01 2024-07-31 10866941 core:LandBuildingsUnderOperatingLeases 2023-08-01 2024-07-31 10866941 core:OtherAssetsUnderOperatingLeases 2023-08-01 2024-07-31 10866941 core:PlantEquipmentUnderOperatingLeases 2023-08-01 2024-07-31 10866941 core:ComputerEquipment 2023-08-01 2024-07-31 10866941 core:FurnitureFittingsToolsEquipment 2023-08-01 2024-07-31 10866941 core:MotorVehicles 2023-08-01 2024-07-31 10866941 core:PlantMachinery 2023-08-01 2024-07-31 10866941 core:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl 2023-08-01 2024-07-31 10866941 core:Subsidiary1 2023-08-01 2024-07-31 10866941 core:Subsidiary1 1 2023-08-01 2024-07-31 10866941 core:Subsidiary1 countries:England 2023-08-01 2024-07-31 10866941 core:Subsidiary2 2023-08-01 2024-07-31 10866941 core:Subsidiary2 1 2023-08-01 2024-07-31 10866941 core:Subsidiary2 countries:England 2023-08-01 2024-07-31 10866941 core:UKTax 2023-08-01 2024-07-31 10866941 1 2023-08-01 2024-07-31 10866941 countries:EnglandWales 2023-08-01 2024-07-31 10866941 2023-07-31 10866941 core:RetainedEarningsAccumulatedLosses 2023-07-31 10866941 core:ShareCapital 2023-07-31 10866941 core:FurnitureFittingsToolsEquipment 2023-07-31 10866941 core:MotorVehicles 2023-07-31 10866941 2022-08-01 2023-07-31 10866941 2023-07-31 10866941 bus:OrdinaryShareClass1 2023-07-31 10866941 bus:OrdinaryShareClass2 2023-07-31 10866941 core:AcceleratedTaxDepreciationDeferredTax 2023-07-31 10866941 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-07-31 10866941 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2023-07-31 10866941 core:CurrentFinancialInstruments 2023-07-31 10866941 core:CurrentFinancialInstruments core:WithinOneYear 2023-07-31 10866941 core:Non-currentFinancialInstruments 2023-07-31 10866941 core:Non-currentFinancialInstruments core:AfterOneYear 2023-07-31 10866941 core:BetweenTwoFiveYears 2023-07-31 10866941 core:WithinOneYear 2023-07-31 10866941 core:FurnitureFittingsToolsEquipment 2023-07-31 10866941 core:MotorVehicles 2023-07-31 10866941 1 2023-07-31 10866941 core:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 10866941 core:ShareCapital 2022-08-01 2023-07-31 10866941 core:LandBuildingsUnderOperatingLeases 2022-08-01 2023-07-31 10866941 core:OtherAssetsUnderOperatingLeases 2022-08-01 2023-07-31 10866941 core:PlantEquipmentUnderOperatingLeases 2022-08-01 2023-07-31 10866941 core:Subsidiary1 1 2022-08-01 2023-07-31 10866941 core:Subsidiary2 1 2022-08-01 2023-07-31 10866941 core:UKTax 2022-08-01 2023-07-31 10866941 2022-07-31 10866941 core:RetainedEarningsAccumulatedLosses 2022-07-31 10866941 core:ShareCapital 2022-07-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 10866941

DJ Civils Ltd

Annual Report and Financial Statements

for the Year Ended 31 July 2024

 

DJ Civils Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12 to 22

 

DJ Civils Ltd

Company Information

Directors

D C Donohoe

J R Beale

Registered office

Global House
5-10 Sparrow Way
Lakesview International Business Park
Hersden
Kent
CT3 4JH

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

DJ Civils Ltd

Strategic Report for the Year Ended 31 July 2024

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

Principal activity

The principal activity of the company is Groundworks, Drainage, Civil Engineering, Highways, Earthworks, Remediation, and Highways works across the UK.

Fair review of the business

In November 2023, the company was acquired by SOC UK Holdings Limited as part of a group restructure. SOC UK Holdings Limited, in turn, is controlled by Break UK Holdings Limited which has a 50.1% controlling interest in SOC UK Holdings Limited.

Following the restructure, the group undertook a review of its revenue recognition policy resulting in a change in the way that revenue is reported in these financial statements. As explained in note 22 to these financial statements, the comparative results have been restated as part of the application of this change.

The Company delivered a successful year of growth supported by strong investment in people and systems.

The results for the year which are set out in the profit and loss account show turnover of £22,653,737 (2023 - £20,607,700) and an operating profit of £2,363,332 (2023 - £21,277,567). At 31 July 2024 the company had net assets of £4,770,014 (2023 - £3,150,734). The directors consider the performance for the year and the financial position at the year end to be satisfactory.

The directors review the business performance on a quarterly basis and compare to available data for similar businesses. The directors believe the business performs well in its category.

The business has also developed a series of internal performance KPI’s used to monitor operational, financial and business performance, which are analysed and reported on monthly. The directors consider the following to be key performance indicators:

- Revenue growth: 6.5%
- Operating margin: 10.4%
- Health & safety external score – average for the year: 96.5%
- Net asset value: £4.8m

 

DJ Civils Ltd

Strategic Report for the Year Ended 31 July 2024

Principal risks and uncertainties

The Company is exposed to the risks of the traditional construction sector and seeks to manage these in a proactive and effective manner. Key risks identified by the directors, and their mitigations, include:

Market dynamics:
Many of the Group’s largest customers are blue chip residential developers who are exposed to the performance of the broader housing market. In the last financial year this remained at a slower pace than historically. The directors believe this will develop since the change of government, and have also overseen diversification of the Company’s revenues into other non-correlated sectors.

Health & safety:
The Company’s activities are monitored closely at every level of delivery to ensure compliance with industry standards for health and safety.

Liquidity:
The last twelve months saw many companies in the industry suffer significant disruption due to cashflow constraints. The Company has delivered strong positive cashflow in every year of its trading since inception, and further strengthened its balance sheet in 2023 via investment. The Company monitors cashflow on a regular basis to ensure the business remains sufficiently liquid.

People:
The ongoing retention and recruitment of high calibre people is a key risk, especially with a continued skilled labour shortage in the construction industry. The Company focuses on training and development, team building and culture to enhance our retention of key individuals.

Credit Risk:
The Company credit check all new customers and setup credit monitoring tools to notify of any significant changes to their financial status. Customer exposure is reviewed in detail on a quarterly basis, with customers being assigned to an internally developed risk based score, which triggers a tailored risk based management plan for the quarter ahead. In addition to this, we only maintain large credit exposures with customers that are well known to the Group, who are financially secure and have a strong proven track record of on time payment.

Approved by the Board on 29 April 2029 and signed on its behalf by:


D C Donohoe
Director


J R Beale
Director

 

DJ Civils Ltd

Directors' Report for the Year Ended 31 July 2024

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

Directors of the company

The directors who held office during the year were as follows:

D C Donohoe

J R Beale

Future developments

The Company’s strategic focus for the coming year will be a continued focus on delivering the highest quality performance for our clients, while broadening our client base across the UK. The Company intends to make several senior hires to support its continued growth, and move to state-of-the-art new offices which will future proof continued growth of the Company. Alongside organic growth, directors will explore the possibility of acquisitions to help diversify the Group and enhance its ability to service clients’ broader needs.

Financial instruments

The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk selling on credit and manages this through credit control procedures.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 29 April 2029 and signed on its behalf by:


D C Donohoe
Director


J R Beale
Director

 

DJ Civils Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

DJ Civils Ltd

Independent Auditor's Report to the Members of DJ Civils Ltd

Opinion

We have audited the financial statements of DJ Civils Ltd (the 'company') for the year ended 31 July 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

DJ Civils Ltd

Independent Auditor's Report to the Members of DJ Civils Ltd

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 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.

Extent to which the audit was 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, 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 considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks and irregularities.
• We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
• We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

DJ Civils Ltd

Independent Auditor's Report to the Members of DJ Civils Ltd

In addition to the above, our procedures to respond to the risks identified included the following:
• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;
• enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and
• reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of this 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.





Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

29 April 2025

 

DJ Civils Ltd

Profit and Loss Account for the Year Ended 31 July 2024

Note

2024
£

(As restated)

2023
£

Turnover

3

22,653,737

21,277,567

Cost of sales

 

(19,609,553)

(18,277,692)

Gross profit

 

3,044,184

2,999,875

Administrative expenses

 

(680,878)

(939,175)

Operating profit

4

2,363,306

2,060,700

Other interest receivable and similar income

5

215,026

-

Interest payable and similar expenses

6

(1,959)

(2,257)

   

213,067

(2,257)

Profit before tax

 

2,576,373

2,058,443

Tax on profit

10

(604,485)

(446,204)

Profit for the financial year

 

1,971,888

1,612,239

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

DJ Civils Ltd

(Registration number: 10866941)
Balance Sheet as at 31 July 2024

Note

2024
£

(As restated)

2023
£

Fixed assets

 

Tangible assets

11

161,038

192,667

Investments

12

42,550

42,550

 

203,588

235,217

Current assets

 

Stocks

13

143,000

291,533

Debtors

14

7,024,991

5,156,332

Cash at bank and in hand

 

755,972

3,096,612

 

7,923,963

8,544,477

Creditors: Amounts falling due within one year

15

(3,264,435)

(5,532,076)

Net current assets

 

4,659,528

3,012,401

Total assets less current liabilities

 

4,863,116

3,247,618

Creditors: Amounts falling due after more than one year

15

(14,246)

(48,716)

Provisions for liabilities

(39,247)

(48,167)

Net assets

 

4,809,623

3,150,735

Capital and reserves

 

Called up share capital

1

1

Retained earnings

4,809,622

3,150,734

Shareholders' funds

 

4,809,623

3,150,735

Approved and authorised by the Board on 29 April 2029 and signed on its behalf by:
 


D C Donohoe
Director


J R Beale
Director

 

DJ Civils Ltd

Statement of Changes in Equity for the Year Ended 31 July 2024

Share capital
£

Retained earnings
£

Total
£

At 1 August 2023

1

3,150,734

3,150,735

Profit for the year

-

1,971,888

1,971,888

Dividends

-

(313,000)

(313,000)

At 31 July 2024

1

4,809,622

4,809,623

Share capital
£

Retained earnings
£

Total
£

At 1 August 2022

1

1,882,495

1,882,496

Profit for the year

-

1,612,239

1,612,239

Dividends

-

(344,000)

(344,000)

At 31 July 2023

1

3,150,734

3,150,735

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Global House
5-10 Sparrow Way
Lakesview International Business Park
Hersden
Kent
CT3 4JH

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Name of parent of group

These financial statements are consolidated in the financial statements of Break UK Holdings Limited.

The financial statements of Break UK Holdings Limited may be obtained from the company's registered office.

Group accounts not prepared

The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small group.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Revenue in respect of long-term contracts for ongoing services represents the value of work done in the year recognised by reference to the overall stage of completion. This is measured by reference to costs incurred to date as a percentage of the expected total cost to completion of the contract. Variations in the contract work, claims and incentive payments are included to the extent that the amount can be measured reliably, and its receipt is considered probable. Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects partial performance of the contractual obligations. For such contracts, the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is recognised within debtors.

Tax

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

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15% reducing balance

Office equipment

15% reducing balance

Motor vehicles

25% reducing balance

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

3

Turnover

The analysis of the company's Turnover for the year from continuing operations, which are all in the UK, is as follows:

2024
£

(As restated)

2023
£

Rendering of services

22,653,737

21,277,567

 

4

Operating profit

Arrived at after charging/(crediting)

2024
£

(As restated)

2023
£

Depreciation expense

45,674

53,399

Operating lease expense - property

6,314

31,125

Operating lease expense - plant and machinery

2,056,646

2,161,214

Operating lease expense - other

94,945

64,387

 

5

Other interest receivable and similar income

2024
£

2023
£

Dividend income

215,000

-

Other finance income

26

-

215,026

-

 

6

Interest payable and similar expenses

2024
£

(As restated)

2023
£

Interest on obligations under finance leases and hire purchase contracts

1,364

1,410

Interest expense on other finance liabilities

595

847

1,959

2,257

 

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

(As restated)

2023
£

Wages and salaries

1,818,238

1,542,870

Social security costs

208,054

177,486

Pension costs, defined contribution scheme

39,652

20,674

2,065,944

1,741,030

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

33

30

33

30

 

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

238,736

193,092

Contributions paid to money purchase schemes

9,000

-

247,736

193,092

 

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

20,037

18,828


 

 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

(As restated)

2023
£

Current taxation

UK corporation tax

613,405

434,256

Deferred taxation

Arising from origination and reversal of timing differences

(8,920)

11,948

Tax expense in the income statement

604,485

446,204

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 20.5%).

The differences are reconciled below:

2024
£

(As restated)

2023
£

Profit before tax

2,576,373

2,058,443

Corporation tax at standard rate

644,093

421,981

Tax decrease from effect of capital allowances and depreciation

(53,750)

-

Effect of expense not deductible in determining taxable profit (tax loss)

14,142

24,223

Total tax charge

604,485

446,204

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

39,247

-

39,247

2023

Asset
£

Liability
£

Accelerated capital allowances

-

48,167

-

48,167

 

11

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 August 2023

86,065

210,127

296,192

Additions

8,297

12,709

21,006

Disposals

-

(22,000)

(22,000)

At 31 July 2024

94,362

200,836

295,198

Depreciation

At 1 August 2023

17,055

86,470

103,525

Charge for the year

11,583

34,091

45,674

Eliminated on disposal

-

(15,039)

(15,039)

At 31 July 2024

28,638

105,522

134,160

Carrying amount

At 31 July 2024

65,724

95,314

161,038

At 31 July 2023

69,010

123,657

192,667

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Motor vehicles

48,510

64,680

   
 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

12

Investments

2024
£

2023
£

Investments in subsidiaries

42,550

42,550

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Franklin Infrastructure Services Limited

Global House, 5-10 Sparrow Way, Lakesview International Business Park, Hersden, Kent, CT3 4JH

England

Ordinary

67%

67%

Franklin Highway Services Limited

Global House, 5-10 Sparrow Way, Lakesview International Business Park, Kent, CT3 4JH

England

Ordinary

50%

50%

Subsidiary undertakings

Franklin Infrastructure Services Limited

The principal activity of Franklin Infrastructure Services Limited is construction of civil engineering projects.

Franklin Highway Services Limited

The principal activity of Franklin Highway Services Limited is civil engineering.

 

13

Stocks

2024
£

(As restated)

2023
£

Raw materials and consumables

143,000

291,533

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

14

Debtors

Note

2024
£

(As restated)

2023
£

Trade debtors

 

3,837,563

2,276,162

Amounts owed by related parties

21

887,726

-

Other debtors

 

202,392

350,502

Prepayments

 

23,339

47,429

Gross amount due from customers for contract work

 

2,073,971

2,482,239

 

7,024,991

5,156,332

 

15

Creditors

Note

2024
£

(As restated)

2023
£

Due within one year

 

Loans and borrowings

16

32,860

44,902

Trade creditors

 

2,365,372

3,974,173

Amounts due to related parties

21

-

10,000

Social security and other taxes

 

89,777

61,437

Outstanding defined contribution pension costs

 

11,275

6,723

Other payables

 

22,086

55,736

Accruals

 

362,174

683,835

Corporation tax liability

10

122,068

438,670

Deferred income

 

258,823

256,600

 

3,264,435

5,532,076

Due after one year

 

Loans and borrowings

16

14,246

48,716

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

16

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

10,000

10,000

Hire purchase contracts

22,860

34,902

32,860

44,902

Non-current loans and borrowings

2024
£

(As restated)

2023
£

Bank borrowings

8,333

18,389

Hire purchase contracts

5,913

30,327

14,246

48,716

Bank borrowings

The Bounce Back Loan is denominated in GB£ with a nominal interest rate of 2.5%%, and the final instalment is due on 4 May 2026. The carrying amount at year end is £18,333 (2023 - £28,389).

 

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £39,652 (2023 - £20,674).

Contributions totalling £11,275 (2023 - £6,723) were payable to the scheme at the end of the year and are included in creditors.

 

18

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £0.10 each

10

1

10

1

Ordinary A shares of £0.10 each

2

-

2

-

12

1

12

1

 

DJ Civils Ltd

Notes to the Financial Statements for the Year Ended 31 July 2024

 

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

81,023

78,162

Later than one year and not later than five years

40,455

68,086

121,478

146,248

The amount of non-cancellable operating lease payments recognised as an expense during the year was £72,500 (2023 - £63,517).

 

20

Dividends

2024
 £

2023
 £

Dividends paid

313,000

344,000

 

21

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 8 to the financial statements.
 

 

22

Prior year restatement

The prior period figures have been restated following the application of a percentage completion model for the recognition of revenue in compliance with current accounting standards.

The application of this model has had the following impact on the comparative results as previously reported:

• Profit after tax reduced by £711,377 comprising of, a reduction in turnover of £1,123,356, gross profit of £899,912 and associated reductions in the corporation tax charge.
• Current assets reduced by £444,051;
• Total liabilities increased by £200,088; and
• The opening retained reserves decreased by £67,238.