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REGISTERED NUMBER: 05016806 (England and Wales)












D R GROUNDWORKS LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

1 DECEMBER 2023 TO 31 OCTOBER 2024






D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


D R GROUNDWORKS LTD

COMPANY INFORMATION
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024







DIRECTORS: N P Fryer
P R Whistler
S A Thatcher


REGISTERED OFFICE: Unit A
Meadow View Business Park
Winchester Road
Upham
Hampshire
SO32 1HJ


REGISTERED NUMBER: 05016806 (England and Wales)


SENIOR STATUTORY AUDITOR: Tom Young FCA


AUDITORS: Hopper Williams & Bell Limited
Statutory Auditor
Highland House
Mayflower Close
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR


BANKERS: Lloyds TSB Bank plc
20-24 High Street
Gosport
Hampshire
PO12 1DE

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

STRATEGIC REPORT
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


The directors present their strategic report for the period 1 December 2023 to 31 October 2024.

REVIEW OF BUSINESS
The principle activity of the company is the provision of groundworks and civil engineering in the construction industry.

The full results for the period are shown on the following pages. The company turnover was £13,695,968 in this period. Our gross profit percentage has increased to 12.1% in comparison to 4.5% in the previous period.

Despite the slow market in 2024 we are pleased to report that the net profit before tax achieved of £589,155 has met our expectation and we remain positive that 2025 will match our budgeted forecast, both in turnover and net profit. Despite tough market conditions DR Groundworks continues to hold a strong market share in the industry and was successful in securing a number of key contracts over the year.

Business Environment
We have seen a tentative return to confidence in the market throughout 2024, fuelled mainly by a settling of interest rates and a more stable business environment. We successfully secured several new medium and large contracts throughout 2024, from both long-standing repeat clients and newly acquired clients to our business. This has allowed us to maintain our forecast turnover and increase margins.

We remain optimistic regarding the marketplace and new tendering opportunities continues to be consistent, thus, enabling us to work alongside clients that share our values of delivering work to the highest levels of Safety and quality.

The company continues to differentiate from a growing number of competitors in the marketplace, by maintaining strong client relationships and providing the high level of service the company's customers have come to expect.

Strategy
The company plans to steadily increase its turnover during the coming year, whilst continuing to maintain its gross margins and progressively invest in the company's growth.

The key elements to achieving this being:

- Continuing re-structure and investment in the management level of the business. This has been achieved by employing key individuals from within the industry. Throughout 2025 we will continue to support and grow, with a view to increase productivity with a close eye on overhead costs at all levels.
- Investing on delivering a quality product on time and within predetermined budgets.
- Maintaining strong relationships with existing clients, whilst diversifying our client portfolio to protect against market fluctuations.

Going concern
The financial statements have been prepared under the going concern assumption. The directors' consideration of the going concern assumption is set out in note 2 to the financial statements and is also specifically referred to in the independent auditors' report which accompanies the financial statements.


D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

STRATEGIC REPORT
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and execution of the company's strategy are subject to several risks. The key business risks are set out below.

Competition
The company provides civil-engineering services to major housebuilders. The activities of these companies are heavily dependent on the broader economy and consumer confidence. This is influenced by various factors outside the company's control, including general business confidence, unemployment levels, availability of credit, and interest rates.

The company operates in an increasingly competitive market, particularly around price and availability of skilled labour. This results not only in downward pressure on our margins but also in the risk that customer's expectations will not be met.

In order to mitigate this risk, regular pricing and profitability evaluations are undertaken. Regular reviews of the labour force and other resources take place to ensure that production efficiency is maximised.

The company's performance depends largely on the strength of its managers and staff. The resignation of key individuals and the inability to recruit people with the right experience and skills could adversely impact the company's results.

To mitigate these issues the company has regular reviews of its management team at all levels, and aims to train and recruit internally where possible, with the intention of retaining key individuals in the business.

FUTURE DEVELOPMENTS
The directors consider the development of its employees as integral to remaining a successful contractor within its sector and ensuring it offers the best quality of workmanship to the valued client base. To this end it intends to invest further in training schemes and quality control to ensure the workforce continues to produce the best possible finished products in the safest possible way.

KEY PERFORMANCE INDICATORS
As noted above, the company has made a profit in the period which has allowed them to make progress in the period on the overriding objective and two key elements of the strategy for growth with its performance. The board monitors progress on the overall strategy and the individual strategic elements by reference to KPIs.

Performance during the period, together with historical trend data is set out in the table below:

Oct 2024 Nov 2023 Definition, method of calculation

Growth in sales (%)
0.01%
-9.30% Annualised year on year sales growth
expressed as a percentage.

Gross Margin (%)
12.12%
-4.50% Ratio of operating profit before exceptional
items expressed as a percentage of turnover.

ON BEHALF OF THE BOARD:





N P Fryer - Director


23 April 2025

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


The directors present their report with the financial statements of the company for the period ended 30 November 2024. Information regarding likely future developments is included within the Strategic report.

DIVIDENDS
No dividends will be distributed for the period ended 31 October 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 December 2023 to the date of this report.

N P Fryer
P R Whistler
S A Thatcher

Other changes in directors holding office are as follows:

A S Hodges - resigned 12 July 2024

CHARITABLE DONATIONS AND EXPENDITURE
Charitable donations in the year totalled £2,908 (2023 - £2,067).

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

REPORT OF THE DIRECTORS
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


AUDITORS
The auditors, Hopper Williams & Bell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





N P Fryer - Director


23 April 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
D R GROUNDWORKS LTD


Opinion
We have audited the financial statements of D R Groundworks Ltd (the 'company') for the period ended 31 October 2024 which comprise the Income Statement, Other Comprehensive Income, 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 October 2024 and of its profit for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

Material uncertainty related to going concern
We draw attention to note 2 in the financial statements, which indicates that the company incurred a net profit of £501,108 (2023: net loss of £711,266) during the period to 31 October 2024 which decreased the net liabilities position. As of that date, the company's current liabilities exceeded its total assets by £1,009,178 (2023: £1,488,003) and its total net liabilities position when taking into account additional long term liabilities is £1,097,729 (2023: £1,598,837). As stated in note 2, these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

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 in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
D R GROUNDWORKS LTD


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 Report of the Directors.

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 four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
D R GROUNDWORKS LTD


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Practice and the relevant tax compliance regulations for the company.

- We obtained an understanding of how the company is complying with these frameworks through discussions with management.

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs, correspondence and a review of board minutes.

- We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
D R GROUNDWORKS LTD


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 a Report of the Auditors 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.




Tom Young FCA (Senior Statutory Auditor)
for and on behalf of Hopper Williams & Bell Limited
Statutory Auditor
Highland House
Mayflower Close
Chandler's Ford
Eastleigh
Hampshire
SO53 4AR

25 April 2025

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

INCOME STATEMENT
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024

Period
1.12.23
to Year Ended
31.10.24 30.11.23
Notes £ £

TURNOVER 13,695,968 14,863,067

Cost of sales (12,037,705 ) (14,187,422 )
GROSS PROFIT 1,658,263 675,645

Administrative expenses (1,335,153 ) (1,492,123 )
OPERATING PROFIT/(LOSS) 4 323,110 (816,478 )

Intercompany loan written off 5 300,000 -
623,110 (816,478 )

Interest receivable and similar income - 17
623,110 (816,461 )

Interest payable and similar expenses 6 (33,955 ) (45,790 )
PROFIT/(LOSS) BEFORE TAXATION 589,155 (862,251 )

Tax on profit/(loss) 7 (88,047 ) 151,025
PROFIT/(LOSS) FOR THE FINANCIAL
PERIOD

501,108

(711,226

)

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024

Period
1.12.23
to Year Ended
31.10.24 30.11.23
Notes £ £

PROFIT/(LOSS) FOR THE PERIOD 501,108 (711,226 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD

501,108

(711,226

)

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

BALANCE SHEET
31 OCTOBER 2024

2024 2023
Notes £ £
FIXED ASSETS
Tangible assets 8 55,305 14,676

CURRENT ASSETS
Stocks 9 65,958 101,366
Debtors 10 2,117,815 2,310,834
Cash at bank and in hand 89,301 119,477
2,273,074 2,531,677
CREDITORS
Amounts falling due within one year 11 (3,337,557 ) (4,034,356 )
NET CURRENT LIABILITIES (1,064,483 ) (1,502,679 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(1,009,178

)

(1,488,003

)

CREDITORS
Amounts falling due after more than one
year

12

(82,714

)

(110,834

)

PROVISIONS FOR LIABILITIES 16 (5,837 ) -
NET LIABILITIES (1,097,729 ) (1,598,837 )

CAPITAL AND RESERVES
Called up share capital 17 1,053 1,053
Share premium 8,500 8,500
Retained earnings (1,107,282 ) (1,608,390 )
SHAREHOLDERS' FUNDS (1,097,729 ) (1,598,837 )

The financial statements were approved by the Board of Directors and authorised for issue on 23 April 2025 and were signed on its behalf by:





N P Fryer - Director


D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024

Called up
share Retained Share Total
capital earnings premium equity
£ £ £ £
Balance at 1 December 2022 1,053 (897,164 ) 8,500 (887,611 )

Changes in equity
Total comprehensive income - (711,226 ) - (711,226 )
Balance at 30 November 2023 1,053 (1,608,390 ) 8,500 (1,598,837 )

Changes in equity
Total comprehensive income - 501,108 - 501,108
Balance at 31 October 2024 1,053 (1,107,282 ) 8,500 (1,097,729 )

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


1. STATUTORY INFORMATION

D R Groundworks Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standards applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006, including the provisions of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Going concern
The directors have considered the impact and risk on the company of the trading conditions in the construction sector and the company's prospects, recognising the high degree of uncertainty. The company made a profit in the period of £501,108 (2023: loss of £711,226), which decreased the net liabilities position. At the year end, the company's current liabilities exceeded its total assets by £1,009,178 (2023: £1,488,003) and its total net liabilities position when taking into account additional long term liabilities is £1,097,729 (2023: £1,598,837). The directors recognise that should they not be able to win new contracts and maintain turnover at a consistent level, this would create a material uncertainty that would cast significant doubt over the company's ability to continue to trade as a going concern, however recent performance indicates that this risk has reduced.

The directors have carried out a review of the company's position and forecasts at the date of signing the accounts. They consider the company has adequate resources and mitigation strategies to enable it to continue in operational existence for the foreseeable future. The following actions implemented throughout 2024 will continue to be reviewed and rolled out moving through 2025:

- Reviewing overheads, restructuring management, and recruiting key employees to improve operational output and maintain a high-quality product.
- Constant review and monitoring of contract activity on an operational and commercial level.
- Continue to review labour levels, and recruit on a subcontract basis where possible, to deal with the peaks and troughs of activity.
- Vet, negotiate and accept new customer contracts, based on customer financial strength and payment record, improved payment terms, projected profit margins and operational risk within contracts.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Construction contracts
When the outcome of a fixed price construction contract can be reliably estimated, revenue and costs are recognised on a percentage of completion basis, measured by reference to the proportion that costs incurred to date bear to estimated total costs for each contract. Variations in contract work and claims are included in contract revenue to the extent that they have been accepted by the customer. When the outcome of a cost plus construction contract can be reliably estimated, revenue is recognised by reference to the recoverable costs incurred during the period plus the fee earned, measured by the proportion that the costs incurred to date bear to the estimated total costs of the contract. When the outcome of a construction contract cannot be reliably estimated, revenue is recognised only to the extent of contract costs incurred that is probable will be recoverable and contract costs are recognised as an expense in the period in which they are incurred. When it is probable that the total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life within the group or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery - 20% Straight line
Computer equipment - 20% Straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the income statement.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial assets
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 assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables 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 financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities
Basic financial liabilities, which include trade and other payables, are initially measured at transaction price and subsequently measured at amortised cost, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Equity instruments
Equity instruments issued by the company are recorded at the fair value of the proceeds received net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3. EMPLOYEES AND DIRECTORS
Period
1.12.23
to Year Ended
31.10.24 30.11.23
£ £
Wages and salaries 2,616,485 3,167,429
Social security costs 295,351 366,857
Other pension costs 59,713 74,244
2,971,549 3,608,530

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the period was as follows:
Period
1.12.23
to Year Ended
31.10.24 30.11.23

Direct 50 59
Administration and management 18 20
68 79

Period
1.12.23
to Year Ended
31.10.24 30.11.23
£ £
Directors' remuneration 166,492 149,152
Directors' pension contributions to money purchase schemes 4,000 6,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

4. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging:

Period
1.12.23
to Year Ended
31.10.24 30.11.23
£ £
Hire of plant and machinery 34,881 34,479
Depreciation - owned assets 7,292 14,204
Auditors' remuneration 10,583 10,080
Auditors' remuneration for non audit work 5,292 5,040
Operating lease expense 64,861 61,974

5. EXCEPTIONAL ITEMS
Period
1.12.23
to Year Ended
31.10.24 30.11.23
£ £
Intercompany loan written off 300,000 -

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


6. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.12.23
to Year Ended
31.10.24 30.11.23
£ £
Bank loan interest 16,532 15,835
Interest on PAYE 17,423 29,955
33,955 45,790

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the period was as follows:
Period
1.12.23
to Year Ended
31.10.24 30.11.23
£ £
Current tax:
UK corporation tax 11,070 (113,477 )
Prior year under provision - 29,735
Total current tax 11,070 (83,742 )

Deferred tax 76,977 (67,283 )
Tax on profit/(loss) 88,047 (151,025 )

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period
1.12.23
to Year Ended
31.10.24 30.11.23
£ £
Profit/(loss) before tax 589,155 (862,251 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 22%)

147,289

(189,695

)

Effects of:
Expenses not deductible for tax purposes 15,758 34,803
Prior year under provision - 29,735
Intercompany loan written off (75,000 ) -
Effect of different rates used for deferred and corporation tax - (25,868 )
Total tax charge/(credit) 88,047 (151,025 )

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


8. TANGIBLE FIXED ASSETS
Plant and Computer
machinery equipment Totals
£ £ £
COST
At 1 December 2023 58,730 62,678 121,408
Additions 34,069 13,852 47,921
Disposals - (24,440 ) (24,440 )
At 31 October 2024 92,799 52,090 144,889
DEPRECIATION
At 1 December 2023 48,968 57,764 106,732
Charge for period 3,627 3,665 7,292
Eliminated on disposal - (24,440 ) (24,440 )
At 31 October 2024 52,595 36,989 89,584
NET BOOK VALUE
At 31 October 2024 40,204 15,101 55,305
At 30 November 2023 9,762 4,914 14,676

9. STOCKS
2024 2023
£ £
Stocks 65,958 101,366

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 1,683,838 1,784,386
Other debtors 247,414 261,627
VAT 148,720 107,942
Deferred tax asset - 71,140
Prepayments and accrued income 37,843 85,739
2,117,815 2,310,834

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Bank loans and overdrafts (see note 13) 70,000 70,000
Hire purchase contracts (see note 14) 9,584 -
Trade creditors 2,144,110 2,618,475
Amounts owed to group undertakings 64,733 240,608
Tax 11,070 -
Social security and other taxes 202,228 436,392
Other creditors 575,799 436,743
Directors' current accounts - 4,731
Accruals and deferred income 260,033 227,407
3,337,557 4,034,356

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£ £
Bank loans (see note 13) 46,667 110,834
Hire purchase contracts (see note 14) 36,047 -
82,714 110,834

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans - less than 1 year 70,000 70,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 46,667 70,000

Amounts falling due between two and five years:
Bank loans - 2-5 years - 40,834

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£ £
Net obligations repayable:
Within one year 9,584 -
Between one and five years 36,047 -
45,631 -

Non-cancellable
operating leases
2024 2023
£ £
Within one year 58,497 41,051
Between one and five years 125,593 65,362
184,090 106,413

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£ £
Bank loans 116,667 180,834
Hire purchase contracts 45,631 -
162,298 180,834

Loans are secured by debenture, including fixed and floating charges over the company's assets.

The above hire purchase debts are secured on the assets to which they relate.

16. PROVISIONS FOR LIABILITIES
2024
£
Deferred tax 5,837

Deferred tax
£
Balance at 1 December 2023 (71,140 )
Losses utilised in the year 76,977
Balance at 31 October 2024 5,837

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
1,053 Ordinary £1 1,053 1,053

18. PENSION COMMITMENTS

The company operates a defined contribution scheme. The contributions payable during the year totalled £57,212 (2023: £64,567).

At the balance sheet date, there is a pension commitment of £44,249 (2023: £36,643).

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


19. RELATED PARTY DISCLOSURES

Pyramid Holdings Limited
Parent Company

During the period, the company undertook the following transactions with Pyramid Holdings Limited:

A) Hired plant equipment amounting to £269,187 (2023: £277,685) and bought fuel amounting to £nil (2023: £15,415). At the balance sheet date, the company owed Pyramid Holdings Limited £82,877 (2023: £nil) in respect of these services, which is included within trade creditors.

B) At the balance sheet date, D R Groundworks Limited owed the company £64,733 (2023: £240,608) in respect of a loan. The loan was interest free and repayable on demand.

FWT Properties Limited
A company under the control of N Fryer, P Whistler and S Thatcher.

During the period, the company undertook the following transactions with FWT Properties Limited:

A) Hired vehicles amounting to £115,047 (2023: £103,560). At the balance sheet date, the company owed FWT Properties Limited £29,814 (2023: £16,899) in respect of these services which is included within trade creditors.

J Whistler Plant Limited
A company where J Whistler (son of P Whistler) is a director.

During the period, the company undertook the following transactions with J Whistler Plant Limited:

A) Hired plant and vehicles amounting to £34,614 (2023: £39,042). At the balance sheet date, the company owed J Whistler Plant Limited £15,582 (2023: £17,820) in respect of these services which is included within trade creditors. The transactions were made on an arms length basis.

Earthfix Plant Limited
A company where S Whistler (wife of P Whistler) was a director and shareholder, who resigned 30 November 2023.

During the period, the company undertook the following transactions with Earthfix Plant Limited:

A) Hired plant and vehicles amounting to £7,140 (2023: £23,933). At the balance sheet date, the company owed Earthfix Plant Limited £nil (2023: £18,538) in respect of these services which is included within trade creditors. The transactions were made on an arms length basis.

D.E.A Properties Limited
A company where A Hodges (former director of D R Groundworks Limited - resigned 12 July 2024) is a director and shareholder.

During the period, the company undertook the following transactions with D.E.A Properties Limited.

A) Estate management estimations amounting to £777 (2023: £nil). At the balance sheet date, the company owed D.E.A Properties Limited £537 (2023: £nil) in respect of these services which is included within trade creditors. The transactions were made on an arms length basis.

D R GROUNDWORKS LTD (REGISTERED NUMBER: 05016806)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 DECEMBER 2023 TO 31 OCTOBER 2024


20. ULTIMATE PARENT COMPANY

Pyramid Holdings Limited is regarded by the directors as being the company's ultimate parent company.

Copies of the consolidated financial statements of Pyramid Holdings Limited can be obtained from Unit A, Meadow View Business Park, Winchester Road, Upham, Hampshire, SO32 1HJ.