Registration number:
Britcon (UK) Limited
for the Year Ended 30 September 2024
Britcon (UK) Limited
Contents
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Britcon (UK) Limited
Strategic Report for the Year Ended 30 September 2024
The directors present their strategic report for the year ended 30 September 2024.
Principal activity
The principal activity of the company is that of civil engineering, general construction and structural steel design, fabrication & installation.
Business Overview
Britcon (UK) Limited is an award-winning contractor delivering civil engineering and building projects for both private and public sector organisations. Our specialist structural steel business, Britcon Steel provides design, fabrication, and installation services within key market sectors.
Operating from three regional offices, the core of our business remains in the North and Midlands, however for strategic and framework clients we also work nationally.
Our approach and core values have remained unchanged over our 34-year trading history, and we continue to collaborate as a genuine partner, providing exceptional service and value for money to exceed our clients’ expectations. Our continued focus is to deliver high quality projects, safely, sustainably, on time and within budget.
Our personnel remain our most critical asset. Over the past year, we sustained a robust workforce of around 90 people and are continuing to recruit to meet our long-term sustainable growth objectives. This includes strengthening our direct delivery team, who support our integrated working model to deliver efficiency savings for our clients. Our retention rate is industry leading, and we have provided upgraded working environments and access to personnel development programmes, to create a platform and culture to build on our successful history.
Fair review of the business
The directors are satisfied with the performance of the company in the year end 30 September 2024 with operating profit and net profit margins remaining strong. A steady increase in turnover from 2024 is forecast due to key larger contracts being delayed in the previous year now under way. This led to a slight decrease in the gross profit margin, down 1% to 11%, therefore leading to a reduction in gross profits in the year. The directors are committed to a business plan targeting organic growth in its three principal market sectors: civil engineering, building and steel. Sustainable growth is key to that plan ensuring the company has the right resources and resilience to meet changing demands.
The profit after tax generated in this financial period has further strengthened the balance sheet, with net assets increasing to £3.7 million from £3.6 million.
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2024 |
2023 |
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Turnover |
£000 |
37,153 |
33,913 |
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Turnover growth |
% |
10 |
(29) |
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Gross profit |
£000 |
4,003 |
4,159 |
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Gross profit margin |
% |
11 |
12 |
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Operating profit |
£000 |
643 |
1,102 |
Britcon (UK) Limited
Strategic Report for the Year Ended 30 September 2024
Strategy, structure, and resources
We continue to invest in people and technology to support sustainable growth and deliver our five-year strategic business plan. This has included increasing the size of our North East regional office in Stockton to support our geographic expansion. This includes onboarding local delivery teams and new suppliers as our workload increases in the region. We have also relocated our Wakefield office to modern open plan accommodation. To support our growth plans and to provide a collaborative environment with modern IT to support the recruitment and retention of team members.
Clients and strategic frameworks
Our selectivity strategy and focus on securing new collaborative frameworks has been successful, providing access to increased levels of public sector work to complement our strong private sector client base. Building further resilience within our business, our existing frameworks with NEPO, Pagabo, Procure Partnerships, and YORhub have provided continual access to work opportunities. We have also added several new frameworks to our portfolio for clients including Bradford Council and NEUPC. We have also secured a place on the £3.6bn Northumbrian Water AMP 8 framework a potential 12-year agreement. We continue to be selective and disciplined in the projects we target and have improved our win rate by 20%. Successfully securing major new contracts with Coca Cola European Partners, Leicestershire County Council, and the Harworth Group. We have also continued to deliver projects for long standing repeat business clients including British Steel, Associated British Ports, the Education Training Collective and Centrica. Our steel operations continue to operate within regulated industries including supporting UK Power Networks partners.
Digital collaboration tools
In line with the HM Government Industrial Strategy, our continued investment in digital tools is supporting operational efficiencies, this includes Procore contract management software to streamline processes from pre-construction to closeout. Helping to manage risks and drive productivity through automated processes and efficient document management. Providing a clear, compliant audit trail of our activities. This has been supported by the introduction and roll-out of MSite technologies on our sites, to monitor productivity and improve security. We have also made a major investment in EQUE2, industry leading cloud-based construction accounting, ERP, and commercial management software. Software that uniquely integrates with Sage Accounts and Microsoft Dynamics 365 to provide sector specific solutions to help protect margins, eliminate risk, streamline processes, and improving visibility of key financial information of projects from start to finish.
Britcon (UK) Limited
Strategic Report for the Year Ended 30 September 2024
Sustainability
Our Britcon Zero strategy and roadmap towards net zero in operation, recorded another milestone as we retained our certified carbon neutral company status for the second year. We also retained our Planet Mark certification for the fourth year. Positive actions have included increasing our green fleet and decarbonising our offices and workspace. We have continued our successful partnership with Ecologi and have planted 1200 new trees to date to support carbon reduction. Our ISO 14001 processes are implemented on all our projects and frameworks.
Health, safety, and wellbeing
We continue to prioritise a safe environment for our teams, suppliers, and stakeholders we have continued to use our award-winning ISO 45001 processes to promote health and safety best practices. Providing training and resources to support positive behavioural changes and upskill team members and supply chain partners. Our health and safety performance remains upper quartile and was recognised by another RoSPA gold award and a distinction from the British Safety Council. We have also continued to promote wellbeing; with mental health first aiders and super wellness leaders within the business. We have developed programmes, partners, and resources to support the positive wellbeing of our teams and stakeholders.
Corporate social responsibility
Our Britcon Foundation continues to support volunteering, fundraising, charity, and community groups. Supporting many of our clients to meet their Social Value Act 2012 and the HM Government’s Procurement Policy Note 06/20, by providing additional social benefits in the delivery of our contracts. We are using social value calculators to capture tangible data with measurements aligned to national standards, organisations supported include The Trussell Trust, Sheffield Hospitals Charity, Lindsey Lodge and A Way Out, an outreach and prevention charity.
Awards and recognition
Our business improvement initiatives, including our focus on safety, sustainability, innovation, collaboration, and high-quality project delivery was recognised by several high profile national and regional awards in 2023, including The Building Magazine, Building Contractor of the Year.
Our success has continued in 2024 with several prestigious awards including:
• Constructing Excellence National Award: People and Culture - Winner
• CECA: Linda Grant Health & Safety Innovation - Winner
• RoSPA: Gold Award
• British Safety Council: Distinction
• National Federation of Builders: Contractor of the Year - Finalist
• Insider: North East Contractor of the Year - Finalist
Britcon (UK) Limited
Strategic Report for the Year Ended 30 September 2024
Principal risks and uncertainties:
Company performance post year end remains in line with expectations, we continue to monitor risks using our ISO 9001 quality management system and processes, with regular reviews and systems to provide alerts. This has enabled us to successfully manage and mitigate potential risks essential to deliver our wider strategic objectives.
Noted below are key risks and uncertainties applicable to the company and our mitigation strategies. Our senior management team and directors are responsible for managing and communicating potential risks, supported by the management and delivery teams within the business.
Supply chain risk:
Supply chain administrations have increased within the market over the past twelve months, we remain diligent and have invested in a new Head of Procurement and continue to use tools including Compliance Chain, Constructionline and Creditsafe to select suppliers. This helps to ensure that our selection is not only fair but robust, with suitable and appropriate suppliers selected for the contract. With economic, financial, and capacity checks undertaken before any orders are placed. We have built a strong supply chain and positive relationships, by providing prompt payment, fair risk allocation and by using collaborative contracts. We continue to monitor the supply of materials which may be impacted by the war in Ukraine and challenges within the Middle East.
Financial risk:
Potential uncertainties include credit risk and liquidity risk, we continue to target clients that are aligned to achieving our wider business objectives. Undertaking appropriate credit checks and references; and monitoring new customers using similar processes we use for our suppliers and subcontractors, particularly when placing large orders. The company has no ongoing disputes or debts. Liquidity risk is managed by monitoring the cash flow position to ensure that sufficient funds remain available to meet amounts due for current and future operations. The company remains in a strong cash position and our management team continue to focus and monitor potential risks due to historical construction sector risks.
Market risk:
To minimise exposure to market risks we have continued to diversify our business, undertaking projects within our core market sectors for target customers. Our diverse activities within civil engineering, building and steel supports market resilience. We remain well positioned to deliver suitable work opportunities within both the public and private sector, generating a well-balanced workload. Our continued focus on collaborative working and building long term repeat business relationships and partnerships is continuing. This has proved to support improved operating margins, reducing risks, and supporting project efficiencies. We recognise the risk of not completing our contractual obligations and continue to update our processes and best practices to deliver safely, high quality, sustainable projects on time and within budget. Our success in this area generates repeat custom and protects the company position and reputation within the marketplace. Our investment in Salesforce software is also helping us to manage client relationships and ensure balanced workload activities.
Britcon (UK) Limited
Strategic Report for the Year Ended 30 September 2024
Workforce and materials risk:
If the availability of skilled workers, suppliers and materials is insufficient to meet market demand, this historically leads to increased costs and can impact profitability. We maintain regular engagement with suppliers, negotiating contract volumes, pricing, and delivery times. We provide high level project-specific programmes and visibility of our workload to support their planning and resource requirements. When selecting our subcontractors, we consider competencies particularly in relation to health and safety, quality, previous performance, and financial stability. With positive long-standing relationships built over many years. We continue to invest in our own workforce, through training and development programmes and apprenticeships, this includes our direct delivery capability to navigate any resource challenges on a project. Should there be a major negative impact on our supply chain, we have contingency suppliers in place and the company has the financial resources to mitigate the risk.
Health and safety risk:
Our ISO 45001 procedures and policies, supported by an in-house professional health and safety team, help us to minimise health and safety risks which are inherent due to the nature of the industry. Our directors take this responsibility seriously and lead from the top, to manage risks, our procedures and policies are constantly reviewed. This commitment to health and safety is further enhanced by our membership of RoSPA and the British Safety Council and ongoing engagement with the HSE.
Responsible Procurement
We have recruited a new Head of Procurement to support responsible buying from an audited supply chain, prioritising sustainably managed sources. We prioritise working with local suppliers and are committed to the development of collaborative working relationships, structured procurement processes and continuous improvement as outlined in our sustainable procurement policy.
We have engaged with our established supply chain and new suppliers to establish baseline capability and performance in respect of their current abilities to deliver on carbon reduction, circularity, and social value objectives. We have put a performance review system in place to monitor the performance of our supply chain in respect of these key deliverables.
Supporting a Circular Economy
We work with our clients and stakeholders to deliver circular economy commitments through minimising resource use, driving down waste, and reviewing material selection, as well as their impact on whole life carbon.
We continue to implement site-specific waste and resource management plans, setting targets based on construction waste resource efficiency benchmarks, which prioritise recycling and the minimisation of landfill waste. Recycled materials are used wherever possible, and we seek to promote ecological considerations and biodiversity.
In 2024, 99% of our waste was diverted from landfill.
Delivering Social Value
We are active in the local communities in which we operate to deliver high impact social value and sustainable opportunities. This includes delivering on social value targets for community partnerships and our clients, including local employment, local training, and qualifications. We also set targets to deliver health and well-being outcomes and charitable giving through our Britcon Foundation.
We successfully delivered more than 25% social return on investment on all our projects in 2024 as defined by the National TOMs Standards for calculation.
Britcon (UK) Limited
Strategic Report for the Year Ended 30 September 2024
Energy and Carbon Reporting
We are proud to be a Planet Mark certified carbon neutral company and are fully committed to reduce our environmental impact.
In 2024 all scope 1, 2 and 3 greenhouse gas emissions have been measured across the business using this code of conduct. The data for 2024 demonstrates a positive overall reduction in market-based emissions across all scopes by 9.2%. We target a minimum 5% reduction every year.
As well as continuing our own Britcon Zero strategy and roadmap, we continue to support our customers in delivering their waste and decarbonisation plans. By reducing embodied carbon emissions in our projects through innovative products and by using modern methods of construction.
We have used the following methodologies within the calculation of our emissions and energy consumption:
• Greenhouse Gas Protocol with PAS 2060 (International Standard for Carbon Neutrality)
• The Planet Mark Code of Conduct.
Emissions and energy consumption
During the year ended 30 September 2024, Britcon (UK) Limited recorded greenhouse gas emissions from:
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Scope 1 of |
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Scope 2 (market-based) of |
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Scope 3 of |
Britcon (UK) Limited
Strategic Report for the Year Ended 30 September 2024
Emission Intensity
An emission intensity of 2.3 tCO2e per employee, based on the average headcount.
Our stated goal is to be Net Zero Carbon for Scope 1 and 2 Emissions by 2035 and Net Zero Carbon for Scope 3 Emissions by 2045.
We continue to take proactive measures to reduce waste and improve our energy efficiency, including:
• Implementing the use of PVs to supplement diesel generated power on site.
• Using renewable diesel substitutes.
• Encouraging employees to car share, use park and ride facilities and use energy efficient electric and hybrid vehicles.
• Using Eco and A rated site accommodation with smart sockets and LEDs.
• Replacing chemical products with bio-alternatives.
• Reusing and recycling materials on site to reduce transport costs.
• Reducing the use of paper through our cloud based digital systems.
• Planting trees in collaboration with our partner Ecologi.
• Monitoring water usage and using water efficient equipment and technologies.
• Using modern methods of construction and off-site construction to mitigate waste and reduce transport.
Approved by the
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Britcon (UK) Limited
Directors' Report for the Year Ended 30 September 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The directors take the management of risk very seriously and as such have policies and procedures in place which have been authorised by the Board. Managing risk is seen as a key attribute of the group, as such all prospective projects are risk assessed and approved by a Director prior to final submission. Regular Board meetings are held where current management accounts are available to highlight any financial and delivery risks to be dealt with.
Price risk, credit risk, liquidity risk and cash flow risk
The business' principle financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the availability of cash balances and the monies held in investments. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Research and development
The company continues to utilise its technical expertise to make advancements in technology in order to supply specialist products and services to fulfil the needs of our customers. We continue to ensure our services are designed in partnership with our customers to ensure that their exacting requirements are met.
Britcon (UK) Limited
Directors' Report for the Year Ended 30 September 2024
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the Board on
Mr S A Hunt
Director
Britcon (UK) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Britcon (UK) Limited
Independent Auditor's Report to the Members of Britcon (UK) Limited
Opinion
We have audited the financial statements of Britcon (UK) Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 30 September 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Britcon (UK) Limited
Independent Auditor's Report to the Members of Britcon (UK) Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 10], 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
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the nature of the industry and sector, control environment and business performance; |
Britcon (UK) Limited
Independent Auditor's Report to the Members of Britcon (UK) Limited
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the company’s own assessment of the risks that irregularities may occur either as a result of fraud
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results of our enquiries of management about their own identification and assessment of the risks
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the key laws and regulations under which the business operates and whether management were
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whether the management have knowledge of any actual, suspected or alleged fraud; |
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the internal controls established to mitigate risks of fraud or non-compliance with laws and
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the matters discussed among the audit engagement team, regarding how and where fraud might
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As a result of these procedures, we considered the opportunities and incentives that may exist within
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We also obtained an understanding of the legal and regulatory framework that the company operates
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In addition, we considered provisions of other laws and regulations that do not have a direct effect on
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In addition to the above, our procedures to respond to risks identified included the following: |
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reviewing the financial statement disclosures and testing to supporting documentation to assess
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enquiring of management, concerning any actual and potential litigation and claims; |
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performing analytical procedures to identify any unusual or unexpected relationships that may
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in addressing the risk of fraud in revenue recognition, we have performed focussed testing on
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in addressing the risk of fraud in contract, we have we have tested the calculation of contract
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in addressing the risk of fraud in the use of purchase ledger/working capital transactions, we have
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Britcon (UK) Limited
Independent Auditor's Report to the Members of Britcon (UK) Limited
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in addressing the risk of fraud through management override of controls, testing the
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We also communicated relevant identified laws and regulations and potential fraud risks to all
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Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities,
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A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
50-54 Oswald Road
North Lincolnshire
DN15 7PQ
Britcon (UK) Limited
Profit and Loss Account for the Year Ended 30 September 2024
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Note |
2024 |
2023 |
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Revenue |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
642,738 |
1,102,496 |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
( |
- |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Britcon (UK) Limited
(Registration number: 2463833)
Balance Sheet as at 30 September 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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Approved and authorised by the
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Britcon (UK) Limited
Statement of Changes in Equity for the Year Ended 30 September 2024
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Share capital |
Retained earnings |
Total |
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At 1 October 2023 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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Dividends |
- |
( |
( |
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At 30 September 2024 |
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Share capital |
Retained earnings |
Total |
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At 1 October 2022 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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Dividends |
- |
( |
( |
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At 30 September 2023 |
200 |
3,564,833 |
3,565,033 |
Britcon (UK) Limited
Statement of Cash Flows for the Year Ended 30 September 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Profit on disposal of tangible assets |
( |
( |
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Finance income |
( |
( |
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Finance costs |
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- |
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Corporation tax expense |
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Working capital adjustments |
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Decrease in debtors |
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Increase/(decrease) in creditors |
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( |
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Cash generated from operations |
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( |
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Corporation taxes paid |
( |
( |
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Net cash flow from operating activities |
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( |
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Cash flows from investing activities |
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Interest received |
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Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
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Net cash flows from investing activities |
( |
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Cash flows from financing activities |
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Interest paid |
( |
- |
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Proceeds from other borrowing draw downs |
- |
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Repayment of other borrowing |
( |
- |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 October |
|
|
|
|
Cash and cash equivalents at 30 September |
5,401,939 |
1,226,107 |
|
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
Registered number: 2463833
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
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 reviewed where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods. |
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Contract revenue recognition
Turnover is only recognised on a construction contract where the outcome can be estimated reliably. Turnover and costs are recognised by reference to the stage of completion of contract activity at the year end date. This is normally measured by surveys of work performed to date. Contracts are only treated as construction contracts when they have been specifically negotiated for the construction of a development or property.
Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Plant and machinery |
20% per annum on cost |
|
Motor vehicles |
25% per annum on cost |
|
Long leasehold property |
20% per annum on cost |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured less a provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Sales retentions are held within debtors until they are received.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised at the transaction price.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Contract revenue |
|
|
Contract revenue is determined based on the completion stage of the project. Qualified Quantity Surveyors are employed to ensure this is done accurately.
The amount of contract revenue recognised as revenue in the year was £
The gross amount due from customers for contract work, included in debtors at 30 September 2024, was £3,025,506 (2023 - £2,174,972).
The gross amount due to customers for contract work, included in creditors at 30 September 2024, was £2,959,397 (2023 - £1,408,939).
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
|
Other finance income |
|
|
|
|
|
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
433,669 |
230,022 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
( |
|
(30,048) |
192,120 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the profit and loss account |
|
|
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
The tax on profit/(loss) before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease from effect of different tax rates |
- |
( |
|
Effect of expense not deductible in determining taxable profit |
|
|
|
Deferred tax expense |
|
|
|
Deferred tax expense from unused tax losses |
- |
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Tax decrease arising from group relief |
- |
( |
|
Prior period under/(over) provision |
( |
( |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
|
|
2023 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
|
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Tangible assets |
|
Long leasehold land and buildings |
Plant and machinery |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 October 2023 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
( |
( |
( |
|
At 30 September 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 October 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
|
At 30 September 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 30 September 2024 |
|
|
|
|
|
At 30 September 2023 |
|
|
|
|
|
Stocks |
|
2024 |
2023 |
|
|
Raw materials and consumables |
|
|
|
Debtors |
|
Note |
2024 |
2023 |
|
|
Trade debtors |
|
|
|
|
Amounts owed by group undertakings |
|
|
|
|
Prepayments |
|
|
|
|
Corporation tax |
|
|
|
|
|
|
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Accrued expenses and deferred income |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Other non-current financial liabilities |
|
|
|
Deferred tax provision |
|
Deferred tax |
Total |
|
|
At 1 October 2023 |
|
|
|
Increase in existing provisions |
|
|
|
At 30 September 2024 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
180 |
|
180 |
|
|
|
20 |
|
20 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
Ordinary A shares have the following rights, preferences and restrictions: |
|
Ordinary C shares have the following rights, preferences and restrictions: |
|
Dividends |
Final dividends paid
|
2024 |
2023 |
|
|
Final dividend of £ |
|
|
|
Final dividend of £ |
|
|
|
|
|
|
Related party transactions |
Summary of transactions with parent
During the year the company purchased goods and services to the value of £671,184 (2023 - £252,228) from the parent company. The company also made sales of goods and services to the value of £1,056,065 (2023 - £210,974) to the parent company.
At the balance sheet date the amount due to the parent company was £714,115 (2023 - £954,411).
Britcon (UK) Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Summary of transactions with entities with joint control or significant interest
During the year the company sold goods to the value of £221,425 (2023 - £6,824,407) to, and purchased goods and services to the value of £4,075,352 (2023 - £4,881,072) from group companies.
At the balance sheet date the amount due from group companies was £219,443 (2023 - £1,909,624).
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate controlling party is
The parent of the largest group in which these financial statements are consolidated is
The address of Hunt Group Limited is:
Scunthorpe
North Lincolnshire
DN16 1DQ