Company registration number 944470 (England and Wales)
RICHARDSON & STARLING (NORTHERN) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
RICHARDSON & STARLING (NORTHERN) LIMITED
COMPANY INFORMATION
Directors
J O Brown
G Bruce
M Barghati
(Appointed 1 December 2024)
Company number
944470
Registered office
Pacific House
Fletcher Way
Parkhouse
Carlisle
England
CA3 0LJ
Auditor
MHA
6 St Colme Street
Edinburgh
EH3 6AD
RICHARDSON & STARLING (NORTHERN) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
RICHARDSON & STARLING (NORTHERN) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 November 2024.
Fair review of the business
The principal activity of the company continued to be that of building preservation contractors.
The company has continued to focus on its principal activity of building preservation contractors. However, the
board have reviewed where the company's key skills lie, and have put a strategy in place to concentrate on the
areas where they can add value. The directors do not envisage any material change in this strategy in the next
twelve months.
Key performance indicators
Turnover
The company's turnover decreased by 0.4% in the year. This insignificant movement is due to an effective focus on maintaining turnover levels under challenging market conditions within public sector contracts.
Gross Profit
The gross profit margin decreased marginally to 42.5% compared to 42.8% in the previous year. Again, this was due to an effective focus on maintaining margin levels under challenging market conditions with a greater focus on contracting efficiencies.
Overheads
Administrative expenses increased by 4.6% in the year. This was due to investment in staff to maintain profitability levels on projects.
Financial Risk Management Objectives and Policies
The company uses various financial instruments to raise and facilitate the financing of the business. These instruments include inter group borrowings, cash, trade debtors and trade creditors. These instruments carry a variety of financial risks.
Liquidity Risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs by reviewing trading and preparing forecasts. Short-term flexibility is achieved with parent company support through inter-group cash transfers.
Credit Risk
The company's principal financial assets are work in progress and trade debtors, which carry the predominant credit risk. This risk is managed through directors setting limits for customers based on a combination of industry reputation, payment history and third party references. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
J O Brown
Director
28 March 2025
RICHARDSON & STARLING (NORTHERN) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J O Brown
J Stewart
(Resigned 30 April 2024)
G Bruce
M Barghati
(Appointed 1 December 2024)
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £540,000. The directors do not recommend payment of a further dividend.
Auditor
In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditor of the company will be put to the Annual General Meeting.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.
RICHARDSON & STARLING (NORTHERN) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
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
J O Brown
Director
28 March 2025
RICHARDSON & STARLING (NORTHERN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RICHARDSON & STARLING (NORTHERN) LIMITED
- 4 -
Opinion
We have audited the financial statements of Richardson & Starling (Northern) Limited (the 'company') for the year ended 30 November 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:
give a true and fair view of the state of the company's affairs as at 30 November 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.
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.
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:
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.
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.
RICHARDSON & STARLING (NORTHERN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RICHARDSON & STARLING (NORTHERN) LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;
Performing audit work over the risk of management 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 bias;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
RICHARDSON & STARLING (NORTHERN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RICHARDSON & STARLING (NORTHERN) LIMITED (CONTINUED)
- 6 -
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.
Iain Binnie (Senior Statutory Auditor)
For and on behalf of MHA, Statutory Auditor
Edinburgh, United Kingdom
28 March 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
RICHARDSON & STARLING (NORTHERN) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
12,638,536
12,690,211
Cost of sales
(7,263,831)
(7,260,735)
Gross profit
5,374,705
5,429,476
Administrative expenses
(4,657,311)
(4,453,673)
Other operating income
2,742
2,741
Operating profit
4
720,136
978,544
Interest receivable and similar income
8
5,914
Profit before taxation
720,136
984,458
Taxation
9
(177,500)
(49,305)
Profit for the financial year
542,636
935,153
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
RICHARDSON & STARLING (NORTHERN) LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
68,559
79,158
Investments
12
110
110
68,669
79,268
Current assets
Stocks
14
131,589
169,825
Debtors
15
3,100,616
2,677,607
Cash at bank and in hand
486,551
663,372
3,718,756
3,510,804
Creditors: amounts falling due within one year
16
(2,784,633)
(2,589,916)
Net current assets
934,123
920,888
Net assets
1,002,792
1,000,156
Capital and reserves
Called up share capital
19
5,000
5,000
Profit and loss reserves
997,792
995,156
Total equity
1,002,792
1,000,156
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
J O Brown
Director
Company registration number 944470 (England and Wales)
RICHARDSON & STARLING (NORTHERN) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2022
5,000
1,503,003
1,508,003
Year ended 30 November 2023:
Profit and total comprehensive income
-
935,153
935,153
Dividends
10
-
(1,443,000)
(1,443,000)
Balance at 30 November 2023
5,000
995,156
1,000,156
Year ended 30 November 2024:
Profit and total comprehensive income
-
542,636
542,636
Dividends
10
-
(540,000)
(540,000)
Balance at 30 November 2024
5,000
997,792
1,002,792
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 10 -
1
Accounting policies
Company information
Richardson & Starling (Northern) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Pacific House, Fletcher Way, Parkhouse, Carlisle, England, CA3 0LJ.
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:
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’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; 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.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Richardson & Starling (Northern) Limited is a wholly owned subsidiary Veitchi (Holdings) Limited and the results of Richardson & Starling (Northern) Limited are included in the consolidated financial statements of Veitchi (Holdings) Limited which are available from 8 Cambuslang Way, Gateway Glasgow, Glasgow G32 8ND.
1.2
Going concern
Atruet the time of approving the financial statements, the directors are confident that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover, which is stated net of value added tax, represents amounts invoiced to third parties, except in respect of long term contracts where turnover represents the sale value of work done in the year, including estimates in respect of amounts not invoiced. Turnover in respect of long term contracts is calculated based on the estimated stage of completion compared to the overall value of the contract. If the outcome of the contract is judged to be uncertain then turnover is calculated based on costs to date.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings leasehold
10 years
Plant and machinery
4 years
Fixtures, fittings & equipment
5 years
Computer equipment
5 years
Motor vehicles
4 years
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 credited or charged to profit or loss.
The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
1.6
Fixed asset investments
Investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Stocks and work in progress
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Work in progress is valued at cost less payments on account. Cost comprises direct materials and direct labour.
1.8
Long term contracts
Profit on long term contracts is recognised as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Full provision is made for losses on all contracts at the time which they are first foreseen.
1.9
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.10
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.
Debtors
Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income.
Creditors
Creditors with no stated interest rate payable within one year are recorded at transaction price.
All interest bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable. After initial recognition they are measured at amortised cost.
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
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 statement of comprehensive income, 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 when the company has 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.
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.13
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.
1.14
Retirement benefits
The assets and liabilities of the group defined benefit pension scheme are disclosed in the financial statements of Veitchi (Holdings) Limited. The scheme was closed to new members on 1 December 2002. The scheme became paid up with effect from 30 November 2004.
Contributions payable to the group's defined contribution pension scheme are charged to the statement of comprehensive income in the period to which they relate.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the statement of comprehensive income 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 lease asset are consumed.
1.16
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 trading 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.
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 14 -
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.
Turnover and margin recognition
The company’s turnover policy, set out in note 1.3, requires projections to be made of the outcomes of construction contracts, based on their stage of completion. This requires both estimates and judgements to be made of both cost and income recognition on each contract.
In regards to contract income, judgements and estimates are made in the following areas:
Stage of completion
Variations to be considered due to changes in scope of work and its impact on claim value
Recovery of claim value from customers, potentially leading to contract sales provisions
In regards to contract costs, judgements and estimates are made in the following areas:
Work in progress valuation and recoverability
The company only recognises profit on construction contracts as the work is carried out if the final outcome can be assessed with reasonable certainty, in line with its long term contract policy set out in note 1.8. Judgement and estimates are made when calculating the stage of completion on a contract and its projected final outcome as noted above. When the final outcome of a contract is judged to be uncertain, it is recognised at sales equals costs and any anticipated losses are recognised immediately.
Judgements and estimates are reviewed on a monthly basis and throughout the contract life based on the latest available information and adjustments are made where necessary.
3
Turnover and other revenue
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(2,742)
(2,741)
Depreciation of owned tangible fixed assets
36,487
38,962
Profit on disposal of tangible fixed assets
(4,474)
-
Cost of stocks recognised as an expense
1,424,742
1,702,800
Operating lease charges
646,050
569,991
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 15 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
10,850
10,351
For other services
Taxation compliance services
1,900
1,835
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Staff
54
53
Operatives
98
94
152
147
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,671,656
5,441,315
Social security costs
575,936
560,437
Pension costs
380,257
405,748
6,627,849
6,407,500
Remuneration of key management personnel
The remuneration of key management personnel, which also includes directors, is as follows:
2024
2023
£
£
Aggregate compensation
695,810
890,701
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
329,871
408,091
Company pension contributions to defined contribution schemes
104,462
129,412
434,333
537,503
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
7
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
120,193
111,948
Company pension contributions to defined contribution schemes
52,760
48,622
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
5,914
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
180,000
57,500
Adjustments in respect of prior periods
(2,500)
(8,195)
Total current tax
177,500
49,305
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:
2024
2023
£
£
Profit before taxation
720,136
984,458
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
180,034
226,524
Tax effect of expenses that are not deductible in determining taxable profit
12,973
12,661
Group relief
(165,863)
Permanent capital allowances in excess of depreciation
132
(601)
Under/(over) provided in prior years
(2,500)
(8,195)
Deferred tax adjustments in respect of prior years
(73)
Deferred tax not recognised
(5,225)
914
Share scheme deductions
(13,101)
(18,346)
Other tax adjustments
5,187
2,284
Taxation charge for the year
177,500
49,305
Adjustments in respect of prior years above relate to the release of previous overprovisions.
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 17 -
10
Dividends
2024
2023
£
£
Final paid
540,000
1,443,000
11
Tangible fixed assets
Land and buildings leasehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 December 2023
89,675
86,888
51,681
29,337
22,897
280,478
Additions
3,077
6,597
16,740
26,414
Disposals
(15,546)
(7,950)
(23,496)
At 30 November 2024
89,675
74,419
50,328
29,337
39,637
283,396
Depreciation and impairment
At 1 December 2023
85,460
44,959
21,346
26,658
22,897
201,320
Depreciation charged in the year
1,054
18,601
10,053
2,594
4,185
36,487
Eliminated in respect of disposals
(15,546)
(7,424)
(22,970)
At 30 November 2024
86,514
48,014
23,975
29,252
27,082
214,837
Carrying amount
At 30 November 2024
3,161
26,405
26,353
85
12,555
68,559
At 30 November 2023
4,215
41,929
30,335
2,679
79,158
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
110
110
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
12
Fixed asset investments
(Continued)
- 18 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 December 2023 & 30 November 2024
110
Carrying amount
At 30 November 2024
110
At 30 November 2023
110
13
Subsidiaries
Details of the company's subsidiaries at 30 November 2024 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Property Repair Network Limited
1
Non-trading
Ordinary
100.00
Registered Office addresses:
1
8 Cambuslang Way, Gateway Glasgow, Glasgow, G32 8ND
14
Stocks
2024
2023
£
£
Raw materials and consumables
39,973
45,922
Work in progress
91,616
123,903
131,589
169,825
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,667,983
1,950,611
Gross amounts owed by contract customers
85,683
591,603
Amounts owed by group undertakings
1,249,216
Prepayments and accrued income
87,995
86,477
3,090,877
2,628,691
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
15
Debtors
(Continued)
- 19 -
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
9,739
48,916
Total debtors
3,100,616
2,677,607
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Payments received on account
116,713
65,738
Trade creditors
389,888
570,586
Amounts owed to group undertakings
140,395
Corporation tax
182,274
60,000
Other taxation and social security
378,749
306,484
Deferred income
17
2,742
Other creditors
59,766
78,184
Accruals and deferred income
1,657,243
1,365,787
2,784,633
2,589,916
17
Deferred income
2024
2023
£
£
Arising from Scottish Enterprise Grant
-
2,742
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
380,257
405,748
The company is a participating company in the Veitchi (Holdings) Limited defined benefit and defined contribution pension schemes.
The proportion of assets and liabilities of the group defined pension scheme relating to the company are not disclosed in these financial statements.
Details of these schemes can be found in the notes to the Veitchi (Holdings) Limited accounts for the year ended 30 November 2024.
RICHARDSON & STARLING (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000
20
Financial commitments, guarantees and contingent liabilities
Santander UK plc group bank facilities are secured by cross guarantees and floating charges between Veitchi (Holdings) Limited, Veitchi Flooring Limited, Veitchi Industrial Flooring Limited, Richardson & Starling (Northern) Limited, Property Repair Network Limited, Linotol Products Limited, Veitchi Homes Limited and Veitchi Interiors Limited.
In the case of certain contracts it is a condition of the contract that the company's bankers give counter guarantees in respect of progress claims which are paid during the course of a contract. In some instances the company offsets its liability by agreeing counter guarantees against subcontractors on the relevant contracts. The value of guarantees payable at the year end amounted to £nil (2023: £nil).
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
329,693
295,251
Between two and five years
692,266
569,743
1,021,959
864,994
22
Related party transactions
The company has taken advantage of the disclosure exemption available in FRS102 section 33 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
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