Company registration number 04012850 (England and Wales)
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2024
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
5
Directors' responsibilities statement
4
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11 - 12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 28
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr P Jones
Mr S Flay
Mr C Jones
Mr R Livings
Secretary
Mrs E C Jones
Company number
04012850
Registered office
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
Auditor
Haines Watts Wales LLP
7 Neptune Court
Vanguard Way
Cardiff
CF24 5PJ
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present the strategic report for the year ended 30 April 2024.
Principal activities and review of the business
The principal activities of the company continue to be General Construction, incorporating New Build Housing Development, Refurbishment & Capital Improvement Schemes. These works are carried out for a wide range of public sector clients.
Our head office location allows good access and availability to the high concentration of works within the public sector in South-East Wales. Our broad client base and ability to deliver varied schemes ensures we have a diverse portfolio of both secured works and enquiries. Our forward order book remains consistent at around £25m.
UK construction continues to face many challenges, principally around skills shortages. In order to address this, we continue to expand our self-delivery model, ensuring we train, develop and retain staff whilst increasing our supply chain and partnerships with manufacturers, supplier and sub-contractors.
Summary of results
During the financial year, turnover increased to £14m from £10.6m in 2023. This revenue increase (32%) compared to the previous year, has been driven by our targeting of larger value schemes and more volume of works, particularly refurbishment schemes. Gross profit increased to £1.8m and despite unprecedented levels of inflation over the accounting period a credible £556k operating profit was achieved.
Principal risks and uncertainties
The principal risks and uncertainties of the business are examined below:
Economic Conditions
Whilst inflation is returning to more manageable levels and longer-term projects are incorporating inflationary measures, there is still uncertainty within the sector. The number of high profile failures has had a detrimental effect on the risk consideration of clients, lenders and construction bond providers. We continue to implement robust systems to ensure payment procedures and terms, contract terms & conditions and credit terms do not impact adversely on our ability to trade.
Labour and Skills Shortage
The continuing shortage of skilled workers can constrict the ability of a business. However, due to our ongoing people development programme are staff are highly motivated, we work tirelessly to ensure we provide opportunities to our staff, are innovative in our solutions and remain an employer of choice. Effective partnerships with sub-contractors allows us to be flexible and meet peaks & troughs in demand.
Parliament and Government
The recent change in UK government will result in a change of policy and public spending over the next period. However, the social housing sector continues to be well supported and a high priority for local government. Additionally the focus on sustainability & carbon reduction will present increased opportunities in the short & long term.
Cyber Security
We continue to be diligent and robust in our approach to Cyber Security. We continue to deliver training and awareness of security protocols with our IT provider and consistently review of our systems to effectively mitigate against adverse issues.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Mr S Flay
Director
7 May 2025
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
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;
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.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of construction of domestic buildings.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £360,851. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P Jones
Mr S Flay
Mr C Jones
Mr R Livings
Auditor
Haines Watts Wales LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr S Flay
Director
7 May 2025
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF P & P BUILDING AND ROOFING CONTRACTORS LIMITED
- 6 -
Opinion
We have audited the financial statements of P & P Building and Roofing Contractors Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 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.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF P & P BUILDING AND ROOFING CONTRACTORS LIMITED
- 7 -
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 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF P & P BUILDING AND ROOFING CONTRACTORS LIMITED
- 8 -
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 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:
Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial
statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation.
Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include:
• Discussing with Directors and management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities.
• Discussing with Directors and management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non-compliance.
• Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally.
• Assessing the risk of management override and review and testing of journal entries made into the accounting system.
• Challenging assumptions and judgements made by the company in relation to the significant accounting estimates employed in the preparation of the financial statements.
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls.
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.
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.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF P & P BUILDING AND ROOFING CONTRACTORS LIMITED
- 9 -
Victoria Carter (Senior Statutory Auditor)
for and on behalf of Haines Watts Wales LLP, Statutory Auditors
7 May 2025
7 Neptune Court
Vanguard Way
Office: Cardiff
CF24 5PJ
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
as restated
Notes
£
£
Turnover
13,958,366
10,629,689
Cost of sales
(12,178,127)
(9,151,594)
Gross profit
1,780,239
1,478,095
Administrative expenses
(1,240,191)
(1,059,400)
Other operating income
15,886
16,711
Operating profit
2
555,934
435,406
Interest payable and similar expenses
(39,141)
(35,006)
Amounts written off investments
5
668,364
(244,657)
Profit before taxation
1,185,157
155,743
Tax on profit
7
(286,938)
(45,906)
Profit for the financial year
898,219
109,837
Other comprehensive income
Revaluation of tangible fixed assets
(112,659)
719,000
Tax relating to other comprehensive income
28,165
(268,355)
Total comprehensive income for the year
813,725
560,482
The profit and loss account has been prepared on the basis that all operations are continuing operations.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
8
1,293,547
525,183
Tangible assets
9
1,144,445
907,349
Investment properties
10
1,085,000
1,247,659
3,522,992
2,680,191
Current assets
Stocks
388,248
387,885
Debtors
11
1,529,332
897,002
Cash at bank and in hand
212,121
590,191
2,129,701
1,875,078
Creditors: amounts falling due within one year
12
(2,089,109)
(1,476,099)
Net current assets
40,592
398,979
Total assets less current liabilities
3,563,584
3,079,170
Creditors: amounts falling due after more than one year
13
(418,484)
(409,851)
Provisions for liabilities
Deferred tax liability
14
432,204
409,297
(432,204)
(409,297)
Net assets
2,712,896
2,260,022
Capital and reserves
Called up share capital
15
103
103
Share premium account
14,490
14,490
Revaluation reserve
720,572
805,066
Profit and loss reserves
1,977,731
1,440,363
Total equity
2,712,896
2,260,022
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024
30 April 2024
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 7 May 2025 and are signed on its behalf by:
Mr S Flay
Director
Company Registration No. 04012850
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 30 April 2023:
Balance at 1 May 2022
103
14,490
651,775
1,661,644
2,328,012
Effect of change in accounting policy
-
(297,354)
(297,354)
As restated
103
14,490
354,421
1,661,644
2,030,658
Year ended 30 April 2023:
Profit for the year
-
-
-
109,837
109,837
Other comprehensive income:
Revaluation of intangible assets
-
-
719,000
-
719,000
Tax relating to other comprehensive income
-
-
(268,355)
(268,355)
Total comprehensive income for the year
-
-
450,645
109,837
560,482
Dividends
-
-
-
(341,118)
(341,118)
Transfers
-
-
10,000
10,000
Balance at 30 April 2023
103
14,490
805,066
1,440,363
2,260,022
Year ended 30 April 2024:
Profit for the year
-
-
-
898,219
898,219
Other comprehensive income:
Revaluation of tangible fixed assets and intangible assets
-
-
(112,659)
-
(112,659)
Tax relating to other comprehensive income
-
-
28,165
28,165
Total comprehensive income for the year
-
-
(84,494)
898,219
813,725
Dividends
-
-
-
(360,851)
(360,851)
Balance at 30 April 2024
103
14,490
720,572
1,977,731
2,712,896
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
18
465,197
(104,900)
Interest paid
(39,141)
(35,006)
Income taxes paid
(14,979)
(20,178)
Net cash inflow/(outflow) from operating activities
411,077
(160,084)
Investing activities
Purchase of intangible assets
(100,000)
(45,000)
Purchase of tangible fixed assets
(391,616)
(212,423)
Proceeds from disposal of tangible fixed assets
3,899
21,000
Proceeds from disposal of investment property
170,000
Net cash used in investing activities
(487,717)
(66,423)
Financing activities
Repayment of bank loans
(114,962)
(49,332)
Payment of finance leases obligations
174,383
25,681
Dividends paid
(360,851)
(341,118)
Net cash used in financing activities
(301,430)
(364,769)
Net decrease in cash and cash equivalents
(378,070)
(591,276)
Cash and cash equivalents at beginning of year
590,191
1,181,467
Cash and cash equivalents at end of year
212,121
590,191
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information
P & P Building and Roofing Contractors Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Acorn Business Centre, Northarbour Road, Cosham, Portsmouth, Hampshire, PO6 3TH.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Change in accounting estimate
The directors have applied a change in accounting estimate to update the depreciation method applied to the plant and equipment asset class. The depreciation has now been calculated on a reducing balance basis as this reflects the method that has always been applied in the accounts. This change has no impact on the financial statements.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Intangible fixed assets other than goodwill
Intangible assets are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently they measured at fair value at the reporting end date based on the open cryptocurrency market value. Changes in fair value are recognised in profit or loss.
Amortisation 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:
1.6
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:
Freehold land and buildings
2% straight line
Property improvements
2% straight line
Plant and equipment
20% reducing balance
Fixtures and fittings
30% reducing balance
Motor vehicles
25% reducing balance
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.
1.7
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
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.
1.11
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.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.
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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
2
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(15,886)
(16,711)
Fees payable to the company's auditor for the audit of the company's financial statements
Depreciation of owned tangible fixed assets
203,156
176,149
Profit on disposal of tangible fixed assets
(2,535)
(17,508)
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
78
69
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,227,414
1,782,328
Pension costs
254,080
151,684
2,481,494
1,934,012
4
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
50,280
62,850
Company pension contributions to defined contribution schemes
182,377
101,026
232,657
163,876
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
5
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
668,364
(244,657)
6
Prior period adjustment
A prior year adjustment has been made to restate the comparatives within these financial statements to correct for a material accounting error relating to the previous year. Land and buildings to the value of £170,000 had previously been recognised within investment property within the financial statements. An adjustment has been made to reduce investment property by £170,000 and increase land and buildings by £170,000.
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
251,957
15,019
Adjustments in respect of prior periods
(16,091)
(8,460)
Total current tax
235,866
6,559
Deferred tax
Origination and reversal of timing differences
51,072
39,347
Total tax charge
286,938
45,906
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
8
Intangible fixed assets
Other
£
Cost
At 1 May 2023
525,183
Additions
100,000
Revaluation
668,364
At 30 April 2024
1,293,547
Amortisation and impairment
At 1 May 2023 and 30 April 2024
Carrying amount
At 30 April 2024
1,293,547
At 30 April 2023
525,183
9
Tangible fixed assets
Freehold land and buildings
Property improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 May 2023
170,000
147,699
1,175,316
105,704
1,054,888
2,653,607
Additions
6,660
122,080
16,777
246,099
391,616
Disposals
(1,387)
(1,387)
Revaluation
50,000
50,000
At 30 April 2024
220,000
154,359
1,296,009
122,481
1,300,987
3,093,836
Depreciation and impairment
At 1 May 2023
36,134
853,757
80,321
776,046
1,746,258
Depreciation charged in the year
3,087
89,670
9,934
100,465
203,156
Eliminated in respect of disposals
(23)
(23)
At 30 April 2024
39,221
943,404
90,255
876,511
1,949,391
Carrying amount
At 30 April 2024
220,000
115,138
352,605
32,226
424,476
1,144,445
At 30 April 2023
170,000
111,565
321,559
25,383
278,842
907,349
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Tangible fixed assets
(Continued)
- 24 -
Land and buildings with a carrying amount of £220,000 were revalued in March 2025 by Lambert Smith Hampton independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
Freehold land and buildings are carried at valuation. If freehold land and buildings were measured using the cost model, the carrying amounts would have been approximately £117,750 (2023 -£120,750), being cost £150,000 2023 - £150,000) and depreciation £32,250 (2023 - £29,250).
2024
2023
£
£
Cost
150,000
150,000
Accumulated depreciation
(32,250)
(29,250)
Carrying value
117,750
120,750
10
Investment property
2024
£
Fair value
At 1 May 2023
1,247,659
Net gains or losses through fair value adjustments
(162,659)
At 30 April 2024
1,085,000
Investment property comprises a number of commercial and residential units. The fair value of the investment property has been arrived at on the basis of a valuation carried out in March 2025 by Lambert Smith Hampton Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,206,386
427,665
Other debtors
322,345
468,753
Prepayments and accrued income
601
584
1,529,332
897,002
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
108,195
115,713
Obligations under hire purchase agreements
148,647
90,341
Trade creditors
1,158,862
875,973
Corporation tax
244,745
23,858
Other taxation and social security
163,443
20,147
Other creditors
245,456
350,067
Accruals and deferred income
19,761
2,089,109
1,476,099
The aggregate amount of creditors for which security has been provided amounted to £148,647 (2023 - £90,340).
The liabilities in respect of hire purchase agreements are secured on the relevant plant, equipment and vehicles.
The bank loan liability is secured by a bank debenture over the company's assets.
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
164,702
272,146
Obligations under hire purchase agreements
253,782
137,705
418,484
409,851
The aggregate amount of creditors for which security has been provided amounted to £153,782 (2023 - £137,705).
The liabilities in respect of hire purchase agreements are secured on the relevant plant, equipment and vehicles.
The bank loan liability is secured by a bank debenture over the company's assets.
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
192,014
140,942
Investment property
240,190
268,355
432,204
409,297
2024
Movements in the year:
£
Liability at 1 May 2023
409,297
Charge to profit or loss
51,072
Credit to other comprehensive income
(28,165)
Liability at 30 April 2024
432,204
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
60
60
60
60
Ordinary A of £1 each
40
40
40
40
Ordinary B of £1 each
1
1
1
1
Ordinary C of £1 each
1
1
1
1
Ordinary D of £1 each
1
1
1
1
103
103
103
103
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
16
Related party transactions
Mr P Jones maintains a loan account with the company. At the balance sheet date the company owed £201,639 (2023 - £305,107) to Mr P Jones.
C C S S Limited is a company of which Mr P Jones and Mr C Jones are directors and shareholders. During the year the company provided services totalling £993 (2023 - £59,471) and received services totalling £301,016 (2023 - £184,304) from C C S S Limited. At the balance sheet date the company was owed £80,373 (2023 - £89,652) from C C S S Limited.
The Lion Hotel Blaenavon Limited is a company of which Mr P Jones is a director and shareholder. During the year the company received services totalling £11,135 (2023 - £16,184) from The Lion Hotel Blaenavon Limited. As at the balance sheet date the company was owed £275,413 (2023 - £265,413) by The Lion Hotel Blaenavon Limited.
During the year dividends were paid to the directors totalling £295,396 (2023 - £282,375).
17
Ultimate controlling party
The company was under the control of Mr P Jones throughout the current and previous year.
The company ownership was restructured post year-end in April 2025. The immediate parent company is now P&P Building and Roofing Holdings Limited.
18
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
898,219
109,837
Adjustments for:
Taxation charged
286,938
45,906
Finance costs
39,141
35,006
Gain on disposal of tangible fixed assets
(2,535)
(17,508)
Depreciation and impairment of tangible fixed assets
203,156
176,149
Other gains and losses
(668,364)
244,657
Movements in working capital:
Increase in stocks
(363)
(136,729)
Increase in debtors
(632,330)
(360,326)
Increase/(decrease) in creditors
341,335
(201,892)
Cash generated from/(absorbed by) operations
465,197
(104,900)
P & P BUILDING AND ROOFING CONTRACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
19
Analysis of changes in net debt
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
590,191
(378,070)
212,121
Borrowings excluding overdrafts
(387,859)
114,962
(272,897)
Obligations under finance leases
(228,046)
(174,383)
(402,429)
(25,714)
(437,491)
(463,205)
2024-04-302023-05-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100Mr P JonesMr S FlayMr C JonesMr R LivingsMrs E C 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