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COMPANY REGISTRATION NUMBER: 04935751
Reach Active Limited
Financial Statements
30 April 2024
Reach Active Limited
Financial Statements
Year ended 30 April 2024
Contents
Page
Strategic report
1
Directors' report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
10
Statement of financial position
11
Statement of cash flows
12
Notes to the financial statements
13
Reach Active Limited
Strategic Report
Year ended 30 April 2024
REVIEW OF THE BUSINESS The Directors present their Strategic Report for the period 1st May 2023 to 30th April 2024. Principal Activities Reach Active Ltd is specialist design and build multi utility infrastructure contractor with a special emphasis within the power and renewables sector. The company is a Lloyds Accredited Independent Connections Provider (ICP) qualified up to 132kV and its principal activities during the year were the provision of a full turnkey design and build strategy for the construction of High Voltage underground power networks and substations for five-star major commercial developer clients in urban and congested areas of London and the South East of England. Through its multi HV Power frameworks with a major Utility Group, the company has also delivered contracts for EV Car charging Hubs across the UK and extended the companies HV power offering into the North of England. The company continued to deliver complex design and build multi-utility diversions contracts with regards to HV power, gas, foul and potable water, telecommunications and district heating for their major property developer clients. Business Review There has been no change in principal activities during the year. Financially the company performed well, increasing its turnover and gross profit on a pro rata basis enabling the company to achieve an operating profit percentage of 2%, (2023: 6%). Profit after tax was £338,905 increasing the reserves in the company to £2.7m. Whilst economic and political conditions were challenging, the business maintained resilience with a healthy order book, with repeat business from our long term prestigious clients and a high level of quality tender opportunities in the market awaiting award. Results and performance The results for the year are set out on page 10.
Highlights and Key Performance Indicators (KPI's): Managing Health and Safety is a core value at the company. Protecting our people, and the people who come into contact with our works is paramount. We track and pay close attention to our safety performance and the Accident Frequency Rate (AFR) for 2024 is zero, which continues to be lower than industry levels. Our STRIVE (Safety, Teamwork, Respect, Integrity, Vision and Excellence) values continue to be firmly embedded in the business. The company received a further ROSPA gold award for its Safety performance and also received a further Gold award from the City of London Considerate Contractors Scheme. Turnover increased by 19% on prior year (prorated basis) to £24.1m. Gross profit increased by £0.2m (5%) on prior year (prorated basis) to £4.6m. Gross profit and Operating profit margins fell in the period primarily as a result of a new contract undertaken in Ireland where losses were incurred. The company's key financial performance indicators during the period were as follows:
2024 2023
£ £
Turnover (£) 24,120,734 10,102,687
Gross profit margin (£) 4,600,084 2,190,047
Gross profit margin (%) 19 22
Operating profit (£) 580,547 604,361
Operating profit (%) 2 6
Business environment The HV power, the multi utility and the renewables sector remain buoyant in the UK as they strive to meet the Net Zero targets. The order book remains healthy and outlook promising with the company’s quality clients. The company is an industry leader in the field of multi-utility diversions, planning, designing and delivering complex projects for prestigious clients in London and the South East of England. As an experienced long term Independent Connections Provider (ICP) focusing primarily in London and the South of England, the directors consider that Reach Active Limited has a strong business model with a sustainable future. Strategy and future developments The company's success is dependent on the appropriate selection, pricing and ongoing management of the projects won. The current business model has proved robust, even in difficult times and provides a sound basis on which to grow the company further. However, to consolidate the company's position and concentrate efforts in achieving maximum growth and profit, the company aims to continue to focus on an integrated digital infrastructure approach for all business departments, with particular emphasis on on operational and commercial controls. The standardisation and accuracy of information flow throughout the business is providing the ability to replicate successful operations and management, leading to further efficiencies and reduction of costs. The company remains dedicated to training its staff and developing their skills, reducing errors and improving safety. The company continues with its award-winning programme of Proficiency Based Training to facilitate a move from competency to proficiency. The company's vision is to be the foremost utility engineering provider in the UK. Looking forward and on the basis of the healthy order book as well as a further pipeline of opportunities, the Directors are optimistic about the future prospects of the company. PRINCIPAL RISKS AND UNCERTAINTIES The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a priority for the company. The principal risks arise from inaccurate pricing and inadequate management of projects. The directors have a reasonable expectation that the company has adequate resources to continue in existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and the accounts. The directors consider the state of affairs to be satisfactory at 30 April 2024.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The company's principal financial instruments comprise bank balances, trade creditors, trade debtors finance lease agreements and loans. The main purpose of these instruments is to raise funds and to finance the company's operations. Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below. In respect of bank balances the liquidity risk is managed by maintaining a positive cash balance and making use of bank deposit facilities where excess funds are available. The liquidity risk in respect of loans is managed by ensuring there is adequate funds to make the payments due. The company is a lessee in respect of finance leased assets. The liquidity risk is managed by ensuring there are sufficient funds to meet the payments. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers, on-going project management and the monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
This report was approved by the board of directors on 2 June 2025 and signed on behalf of the board by:
Mr S A Gallagher
Mr J T Gallagher
Director
Director
Registered office:
Printing House
66 Lower Road
Harrow
HA2 0DH
Reach Active Limited
Directors' Report
Year ended 30 April 2024
The directors present their report and the financial statements of the company for the year ended 30 April 2024 .
Directors
The directors who served the company during the year were as follows:
Mr S A Gallagher
Mr J T Gallagher
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
Details of the business review and future developments of Reach Active Limited are discussed in the Strategic Report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 2 June 2025 and signed on behalf of the board by:
Mr S A Gallagher
Mr J T Gallagher
Director
Director
Registered office:
Printing House
66 Lower Road
Harrow
HA2 0DH
Reach Active Limited
Independent Auditor's Report to the Members of Reach Active Limited
Year ended 30 April 2024
Opinion
We have audited the financial statements of Reach Active Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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; - 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'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.
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. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and industry, we identified the principal risks of non compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, FRS102, Health and Safety laws, employment laws, contract laws, General Data Protection Regulations and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to fraudulent transactions that may lead to an overstatement of profits such as manipulation of amounts recoverable under contracts and understatement of expenses, in order to increase the value of the company. Audit procedures performed by the audit team included: - To perform audit testing in different sections in order to check the compliance with applicable regulations and discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, significant one-off amounts or posted by senior management. - Challenging and validating the reasonableness and judgement of any key management assumptions with particular focus on amounts recoverable under contracts, depreciation and accruals as these are the key accounting estimates. 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/library/standards-codes-policy/audit-assurance-and-ethics/auditors-responsibilities-for- the-audit/. This description forms part of our auditor's report. There are inherent limitations on the audit procedure described above. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Rosa Maria Garcia Nunez
(Senior Statutory Auditor)
For and on behalf of
Abbots
Chartered Certified Accountants & Statutory Auditor
Printing House
66 Lower Road
Harrow
HA2 0DH
2 June 2025
Reach Active Limited
Statement of Income and Retained Earnings
Year ended 30 April 2024
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
Note
£
£
Turnover
4
24,120,734
10,102,687
Cost of sales
19,520,650
7,912,640
--------------
--------------
Gross profit
4,600,084
2,190,047
Administrative expenses
4,019,537
1,585,686
------------
------------
Operating profit
5
580,547
604,361
Interest payable and similar expenses
9
114,145
( 33,733)
------------
------------
Profit before taxation
466,402
638,094
Tax on profit
10
127,497
180,354
----------
----------
Profit for the financial year and total comprehensive income
338,905
457,740
----------
----------
Retained earnings at the start of the year
2,388,112
1,930,372
------------
------------
Retained earnings at the end of the year
2,727,017
2,388,112
------------
------------
All the activities of the company are from continuing operations.
Reach Active Limited
Statement of Financial Position
30 April 2024
2024
2023
Note
£
£
£
£
Fixed assets
Intangible assets
11
233,872
218,486
Tangible assets
12
480,355
579,539
----------
----------
714,227
798,025
Current assets
Stocks
13
216,216
177,479
Debtors
14
19,401,559
15,265,858
Cash at bank and in hand
313,198
93,064
--------------
--------------
19,930,973
15,536,401
Creditors: amounts falling due within one year
15
15,724,567
11,819,241
--------------
--------------
Net current assets
4,206,406
3,717,160
------------
------------
Total assets less current liabilities
4,920,633
4,515,185
Creditors: amounts falling due after more than one year
16
2,174,507
2,088,188
Provisions
Taxation including deferred tax
17
19,108
38,884
------------
------------
Net assets
2,727,018
2,388,113
------------
------------
Capital and reserves
Called up share capital
20
1
1
Profit and loss account
21
2,727,017
2,388,112
------------
------------
Shareholders funds
2,727,018
2,388,113
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 2 June 2025 , and are signed on behalf of the board by:
Mr S A Gallagher
Mr J T Gallagher
Director
Director
Company registration number: 04935751
Reach Active Limited
Statement of Cash Flows
Year ended 30 April 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
338,905
457,740
Adjustments for:
Depreciation of tangible assets
183,343
80,697
Interest payable and similar expenses
114,145
( 33,733)
Loss on disposal of tangible assets
1,250
Tax on profit
127,497
180,354
Accrued expenses
1,298,357
1,904,322
Changes in:
Stocks
( 38,737)
( 76,361)
Trade and other debtors
( 2,503,563)
( 1,781,599)
Trade and other creditors
2,649,077
( 450,929)
Intercompany loans
( 1,632,138)
( 99,857)
------------
------------
Cash generated from operations
536,886
181,884
Interest paid
( 114,145)
33,733
Tax paid
( 33,439)
( 131,115)
----------
----------
Net cash from operating activities
389,302
84,502
----------
----------
Cash flows from investing activities
Purchase of tangible assets
( 84,159)
( 17,637)
Proceeds from sale of tangible assets
4,289
Purchase of intangible assets
( 15,386)
( 84,388)
----------
----------
Net cash used in investing activities
( 99,545)
( 97,736)
----------
----------
Cash flows from financing activities
Proceeds from borrowings
( 30,000)
121,053
Proceeds from loans from group undertakings
( 39,623)
( 136,603)
----------
----------
Net cash used in financing activities
( 69,623)
( 15,550)
----------
----------
Net increase/(decrease) in cash and cash equivalents
220,134
( 28,784)
Cash and cash equivalents at beginning of year
93,064
121,848
----------
----------
Cash and cash equivalents at end of year
313,198
93,064
----------
----------
Reach Active Limited
Notes to the Financial Statements
Year ended 30 April 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Printing House, 66 Lower Road, Harrow, HA2 0DH, Middlesex. The business address of the company is 4 Centrus, Mead Lane, Hertford, Hertfordshire, SG13 7GX. The company's accounting reference date for the prior period was shortened to 30th April 2023 due to commercial and management reasons. The comparative figures are therefore not directly comparable.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Judgements There are no judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies that have had a significant effect on amounts recognised in the financial statements. Key Sources of estimation uncertainty Recognition of revenue is based on judgements made in respect of profitability of contracts in place. Such judgements are arrived at through the use of estimates in relation to work performed and variations in contract work.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the date of the statement of financial position. This is normally measured by the proportion contract costs incurred for work performed to date bear to the estimated contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract value, the expected loss is recognised as an expense immediately.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. The intangible assets in the financial statements have not been amortised as the asset is currently in the development stage.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Equipment
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Construction contracts
24,120,734
10,102,687
--------------
--------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
United Kingdom
23,488,241
10,102,687
Overseas
632,493
--------------
--------------
24,120,734
10,102,687
--------------
--------------
5. Operating profit
Operating profit or loss is stated after charging:
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Depreciation of tangible assets
183,343
80,697
Loss on disposal of tangible assets
1,250
Foreign exchange differences
9,859
614
----------
--------
6. Auditor's remuneration
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Fees payable for the audit of the financial statements
32,000
20,000
--------
--------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
35,902
11,785
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
44
44
Administrative staff
24
16
Management staff
2
2
----
----
70
62
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Wages and salaries
3,801,870
1,658,194
Social security costs
458,027
200,358
Other pension costs
126,609
42,923
------------
------------
4,386,506
1,901,475
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Remuneration
320,624
153,797
Company contributions to defined contribution pension plans
37,150
2,850
----------
----------
357,774
156,647
----------
----------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
Remuneration of the highest paid director in respect of qualifying services:
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Aggregate remuneration
160,312
85,253
Company contributions to defined contribution pension plans
20,800
1,425
----------
--------
181,112
86,678
----------
--------
9. Interest payable and similar expenses
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Interest on banks loans and overdrafts
4,434
Loss on financial instruments
66,910
( 43,396)
Other interest payable and similar charges
47,235
5,229
----------
--------
114,145
( 33,733)
----------
--------
10. Tax on profit
Major components of tax expense
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Current tax:
UK current tax expense
147,273
165,671
Deferred tax:
Origination and reversal of timing differences
( 19,776)
14,683
----------
----------
Tax on profit
127,497
180,354
----------
----------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 20 %).
Period from
Year to
1 Nov 22 to
30 Apr 24
30 Apr 23
£
£
Profit on ordinary activities before taxation
466,402
638,094
----------
----------
Profit on ordinary activities by rate of tax
116,601
127,619
Adjustment to tax charge in respect of prior periods
26,819
Effect of expenses not deductible for tax purposes
42,466
8,271
Effect of capital allowances and depreciation
2,627
2,962
Effect of loss surrendered in respect of group relief
( 14,421)
Deferred tax
( 19,776)
14,683
----------
----------
Tax on profit
127,497
180,354
----------
----------
11. Intangible assets
Patents, trademarks and licences
£
Cost
At 1 May 2023
218,486
Additions
Additions from internal developments
15,386
----------
At 30 April 2024
233,872
----------
Amortisation
At 1 May 2023 and 30 April 2024
----------
Carrying amount
At 30 April 2024
233,872
----------
At 30 April 2023
218,486
----------
12. Tangible assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 May 2023
1,357,925
41,538
552,829
340,916
2,293,208
Additions
79,340
4,819
84,159
------------
--------
----------
----------
------------
At 30 April 2024
1,437,265
41,538
552,829
345,735
2,377,367
------------
--------
----------
----------
------------
Depreciation
At 1 May 2023
932,461
38,143
482,015
261,050
1,713,669
Charge for the year
138,953
970
19,782
23,638
183,343
------------
--------
----------
----------
------------
At 30 April 2024
1,071,414
39,113
501,797
284,688
1,897,012
------------
--------
----------
----------
------------
Carrying amount
At 30 April 2024
365,851
2,425
51,032
61,047
480,355
------------
--------
----------
----------
------------
At 30 April 2023
425,464
3,395
70,814
79,866
579,539
------------
--------
----------
----------
------------
13. Stocks
2024
2023
£
£
Raw materials and consumables
216,216
177,479
----------
----------
14. Debtors
2024
2023
£
£
Trade debtors
9,438,192
7,267,818
Amounts owed by group undertakings
7,162,609
5,530,470
Prepayments and accrued income
1,646,461
1,742,788
Other debtors
1,154,297
724,782
--------------
--------------
19,401,559
15,265,858
--------------
--------------
The debtors above include the following amounts falling due after more than one year:
2024
2023
£
£
Amounts owed by group undertakings
4,335,201
4,335,201
Amounts owed by customers on construction contracts
866,209
435,790
------------
------------
5,201,410
4,770,991
------------
------------
Of the trade debtors, £7,011,852 (2023 - £6,891,394) is attributable to amounts recoverable under construction contracts. Amounts owed by customers on construction contracts and group undertakings after one year has been recognised at the present value of future payment discounted at a market rate of interest for a similar debt instrument.
15. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,219,664
1,765,525
Amounts owed to group undertakings
695,281
734,904
Accruals and deferred income
8,779,176
7,480,819
Corporation tax
312,943
199,109
Social security and other taxes
2,160,282
551,477
Director loan accounts
127,336
157,336
Other creditors
1,429,885
930,071
--------------
--------------
15,724,567
11,819,241
--------------
--------------
There is an intercompany guarantee between Reach Active Group Limited, Reach Active Properties Limited, Reach Active Limited , Energoinvest Reach Active Limited and Energoinvest Reach Active (UK) Limited in favour of HSBC Bank Plc. There is a fixed and floating charge secured over all the assets of the company in favour of HSBC Bank Plc in respect of the bank loans and overdrafts of £Nil (2023 -£Nil).
16. Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
2,174,507
2,088,188
------------
------------
Other creditors has been recognised at the present value of future payment discounted at a market rate of interest for a similar debt instrument.
17. Provisions
Deferred tax (note 18)
£
At 1 May 2023
38,884
Charge against provision
( 19,776)
--------
At 30 April 2024
19,108
--------
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 17)
19,108
38,884
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
19,108
38,884
--------
--------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 126,609 (2023: £ 42,923 ).
20. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
1
1
1
1
----
----
----
----
21. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. Still within reserves is £430,198 that was transferred to the profit and loss reserve in relation to the difference between the transaction value of a loan to a fellow subsidiary, Energoinvest Reach Active Limited , and its fair value. The loan arrangement is considered to be a financial transaction under FRS 102 and it is measured at its present value of future receipts discounted at a market rate of interest.
22. Analysis of changes in net debt
At 1 May 2023
Cash flows
At 30 Apr 2024
£
£
£
Cash at bank and in hand
93,064
220,134
313,198
Debt due within one year
(892,240)
69,623
(822,617)
----------
----------
----------
( 799,176)
289,757
( 509,419)
----------
----------
----------
23. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
140,000
140,000
Later than 1 year and not later than 5 years
70,000
140,000
----------
----------
210,000
280,000
----------
----------
Included within administrative expenses is £187,500 (2023 - £138,750) paid in respect of operating leases.
24. Related party transactions
Reach Active Limited is a 100% owned subsidiary of Reach Active Group Limited. During the year, Mr S A Gallagher and Mr J T Gallagher were directors and shareholders of Reach Active Group Limited, a company incorporated in the UK. Reach Active Group Limited intends to prepare consolidated accounts therefore Reach Active Limited has taken advantage of the exemption within paragraph 33.1A of FRS 102 which eliminates the requirement to report related party balances.
25. Controlling party
100% of the share capital of the Company is owned by Reach Active Group Limited, a company incorporated in the UK. The directors consider this to be the ultimate parent company. The group consolidated accounts can be obtained from the company's registered office; the address is stated on page 3 of these accounts.