Company registration number 06892284 (England and Wales)
HARPER GROUP MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HARPER GROUP MANAGEMENT LIMITED
COMPANY INFORMATION
Directors
Miss V Overton
Mr A Rees
Mr M Harvey
Secretary
Miss V Overton
Company number
06892284
Registered office
Units 1 & 2
Bevan Industrial Estate
Brierley Hill
West Midlands
DY5 3TF
Auditor
CK Audit
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
Business address
Southern Avenue
Leominster
Herefordshire
HR6 0QF
HARPER GROUP MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 9
Directors' responsibilities statement
10
Independent auditor's report
11 - 13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Company statement of cash flows
20
Notes to the financial statements
21 - 37
HARPER GROUP MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The principal activity of the Company continues to be the provision of building contractor services delivering all construction types, including but not restricted to commercial, industrial, leisure and retail, health, education, refurbishment, public buildings, affordable and private housing of all sizes under all procurement routes.

 

We aim to present a considered and balanced review of the performance of the business and its position at the year end.

 

Turnover has reduced, as anticipated, to circa £23 million as the Company continues with the delivery of high-quality projects, on time and to client requirements. Turnover for 2025 looks encouraging with projects already secured in excess of £26 million.

 

The Group continues to be profitable (despite challenging market conditions) through the principals of strong, stable and professional management systems and support. We strategically target key Clients predominately in the Public Sector, such as Housing Associations and Local Authorities, whilst maintaining our links with organisations, who are strong within their own sector and provide a stable long-term informed relationship. Our continued success and stability has enabled us to retain our local workforce and supply chain.

 

The group continues to invest for future performance and long-term stability by maintaining a balanced well trained, highly motivated workforce. The business takes its health and safety obligations very seriously and to this end employees attend numerous courses during the year both internally and externally, to ensure that all staff have received the necessary training to perform their duties safely.

 

Market conditions remain competitive and with the added complexity of high inflation it is important that we continue to invest in the business. The Group has continued to invest in its people’s skills and capabilities through our training and development programs. We continually look for operational efficiencies across the business.

Principal risks and uncertainties

The demand for services of the group are dependent upon the confidence within the UK housing and construction market. This includes factors such as interest rates and the availability of credit, which are outside the group’s control. The business however continues to reduce risk and uncertainty by increasing its customer base, whilst keeping fixed costs to a minimum. Forward workload levels have reduced as expected although the business has already secured 80% of its anticipated workload for 2025.

HARPER GROUP MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Development and performance

The Directors monitor the performance of the group by reviewing actual monthly results with expected performance and by completing detailed reviews of the performance on individual contracts on a monthly basis.

 

In addition to this process the Directors measure financial performance for the year using the following indicators:-

 

 

2023

 

2024

Turnover

31,600,039

 

23,025,979

Profit Before Tax % Turnover

0.54%

 

2.00%

Profit for Year before Tax

173,599

 

460,645

Total Equity

4,423,954

 

4,597,894

 

The balance sheet remains strong.

 

Other Key Performance Indicators

 

The group uses a suite of non-financial KPI’s to monitor and measure success on a regular basis, which cover the whole business operating functions (these are monitored on a monthly basis).

 

HARPER GROUP MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Additional information and explanations

Quality, Health & Safety and Environmental Policies

 

The group places a great importance on ensuring the business undertakes its functions in a safe manner, whilst maintaining quality and ensuring that environmental impacts are minimised. To this end we maintain our CHAS Certification, together with our IS0 9001 and 14001 external accreditation whilst carrying out extensive training and development.

 

Health and Safety Risk

 

The Group’s activities are significant and complex which require the continuous monitoring and management of health, safety and environmental risks. Failure to manage these risks could result in serious harm to employees, subcontractors, the public or the environment and could expose the Group to significant potential liabilities and reputational damage

 

The Group is committed to ensure a safe working environment. These risks are managed by the Group through the strong promotion of a health and safety culture and well-defined health and safety policies and procedures.

 

Technology / IT

 

The impact of digital technology continues, with the industry rapidly adjusting to consumers, clients and service providers operating in a mobile connected world, albeit through fragmented media. The Group has invested in its “IT” infrastructure to facilitate current and continued developments in this field.

 

Future Developments

 

The Board of Directors continue to actively review the Company’s performance on an ongoing basis ensuring that projects are secured with appropriate risk analysis and that suitable and sufficient resources are available to ensure the companies systems, procedures and policies are maintained at all times to ensure business success.

 

We continue to develop our personnel with increased focus on staff training and staff/personal development reviews. All employees have an opportunity to develop their skills within an environment of open and honest reporting systems, support mechanisms and a hierarchy of control mechanisms for key functions.

HARPER GROUP MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Additional information and explanations (ctd.)

Social, Political and Macro Implications

 

The coronavirus pandemic and the associated social changes, Brexit, world events and inflation has, and continues to, create a level of uncertainty for the UK construction sector. We have been following Government guidance since the outset and will continue to adjust the companies activities in line with outside influences.

 

The Group will continue to monitor the situation regarding the wider impact on service delivery resulting from changing client and supply chain behaviours.

 

People

 

The success of the group depends on its ability to recruit, retrain and develop people with the necessary experience and expertise. It is critical that the group has a highly skilled, diverse and motivated workforce as the demands and complexity of project requirements increase.

 

The Group seeks to mitigate this risk by offering market-competitive remuneration, training and career development opportunities. Remuneration and incentive packages are reviewed annually to assist in the attraction and retention of key employees.

 

Supply Chain

 

As a business, our success depends heavily on our ability to appropriately manage our supply chain. Failure to do this could result in project delivery issues, compliance issues and strained customer relationships, ultimately leading to damage to the group reputation and financial penalties.

The Group seeks to develop long-term relationships with its key subcontractors whilst at the same time not becoming over-reliant on any particular one for the delivery of certain services. As part of its selection criteria, the Group seeks to work with subcontractors /suppliers who share its values.

Finance

 

The Group is able to operate through the cash reserves which have been built up through retained profits and management of working capital. Given the growth within the Group it is important that strong finances are in place and that key financial risks are managed. The Group depends on appropriate, accurate and timely financial information to manage the business effectively; if there is lack of visibility then poor decisions can be made. The Group continually reviews its financial position to ensure there are sufficient resources to meet current and potential future operational demands.

Compliance

 

As a major employer and contractor, we have to comply with the complex and developing legal and regulatory frameworks in areas such as:

• Health and safety

• Taxation

• Fraud, bribery and corruption

• Modern Slavery Act

• Criminal Finances Act

• Payment Practices and Performance Reporting

• Gender Pay Gap Reporting

• General Data Protection Regulation (GDPR).

 

It is essential that we can evidence our compliance to avoid the material, financial and reputational impacts associated with non-compliance.

The Group monitors and responds to legal and regulatory developments applicable to the markets in which it operates. Detailed policies and procedures exist to minimise risks and are subject to review and monitoring by Operating Companies and The Group. Where considered appropriate, staff will be provided with training on such regulatory requirements, to ensure polices procedures and expected behaviours are clearly understood.

HARPER GROUP MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Promoting the success of the company

The following S172 statement focuses on matters of strategic importance to the Harper Group of companies and the level of information disclosed is consistent with the size and complexity of the business. The following Group statements should be read together with the Groups Strategic Report.

 

The Directors are required by the Companies Act 2006 to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so, are required to have regard for the following:-

 

 

The Directors continue to recognise the importance of giving due consideration to the interests of the company’s employees and other stakeholders, including the impact of its activities on the community the environment and the company’s reputation when making decisions.

 

The Group Board considers that its major stakeholders are its employees, customers and shareholders. When making decisions, the interests of these stakeholders is considered informally as part of the Board’s discussions. Engaging with our stakeholders, including shareholders, suppliers, customers and employees strengthens our relationships and helps the Board to understand the issues that matter most to them and our business and enables us to make better business decisions and deliver on our commitments.

 

Strategy

 

Our business plans are designed to have a long term beneficial impact on the company and to contribute to a delivery of quality finished products and services.

 

Staff

 

Our staff are fundamental to the delivery of our plans. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and well being of our team members is one of our primary considerations in the way we do business.

 

Customers

 

Engagement with our customers is key to our success. We meet with all regularly and are flexible to changing business environments needs, whilst applying the most up to date regulations.

 

Suppliers

 

We engage with our suppliers regularly, developing relationships through our due diligence processes that ensure suppliers trade responsibly, whilst minimising risk to supply chain. We aim to pay suppliers on time wherever possible and do not tolerate modern slavery, corruption or bribery.

 

Environment and Community

 

We take account of the impact of our operations on the community and environment and our wider social responsibilities and we comply with the environmental legislation and pursue waste saving opportunities wherever possible.

 

The Harper Group’s intention is to act responsibly, collaboratively, considerately and to the highest standard of business conduct and governance.

HARPER GROUP MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

By order of the board

Miss V Overton
Secretary
23 May 2025
HARPER GROUP MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The company is the ultimate parent undertaking of the Harper Group. The principal activities of the subsidiary undertakings are private lettings, property development, and the provision of building contractor services delivering all construction types, including but not restricted to, commercial, industrial, leisure and retail, health, education, refurbishment, public buildings, affordable and private housing of all sizes under all procurement routes.

Results and dividends

The results for the year are set out on page 14.

Ordinary dividends were paid amounting to £142,500. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Miss V Overton
Mr A Rees
Mr M Harvey
Auditor

The auditor, CK Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The figures below represent the energy use and associated greenhouse gas (GHG) emissions of The Harper Group of companies, through the use of electricity and fuel in the UK for the year ended 31 December 2024.

 

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
424,385
556,459
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
45.00
60.00
- Fuel consumed for owned transport
268.00
371.00
313.00
431.00
Scope 2 - indirect emissions
- Electricity purchased
13.00
16.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
326.00
447.00
Intensity ratio
Tonnes CO2e per employee
14.17
14.41
HARPER GROUP MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Quantification and reporting methodology

The SECR Submission has been complied using the 2019 HM Government Environmental Reporting Guidelines. Emissions have been grouped according to the GHG Protocol Corporate Accounting and Reporting Standard.

 

We have used the following data sources for the report

Electricity – Supplier Billing data in kWh

Natural Gas – Supplier Billing data in units converted to kWh

Fuel – Consumption reports in litres converted to kWh

Gas/Oil – supplier delivery data converted to kWh

 

CO2 emissions have been calculated using the 2023/2024 UK Government Conversion factors for company reporting. Emissions have been calculated for the company financial year 1st January 2024 - 31st December 2024.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

We are committed to responsible energy management and practice energy efficiency throughout our organisation. We recognise that climate change is one of the most serious environmental challenges currently threatening the global community and we understand the role we must play in reducing greenhouse gas emissions.

 

Steps we have already taken to minimise our environmental impact include:-

 

Further steps we will be taking in the forthcoming financial year include:-

Local Communities

The Board are cognisant of the effect our operations have upon local communities and we aim to reduce the impact our operations have on local communities and make a positive contribution to the communities within which we work. This includes minimising disruption; fostering local involvement and enterprise through the use of local labour, equipment, materials and supply chain partners; engaging effectively with the local community by proactively communicating and encouraging feedback about our operations; supporting educational initiatives and encouraging staff to share knowledge and skills within the wider community.

 

We remain confident that the company has sufficient and appropriate measures/resources in place to appropriately respond to all requirements.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

HARPER GROUP MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
By order of the board
Miss V Overton
Secretary
23 May 2025
HARPER GROUP MANAGEMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HARPER GROUP MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARPER GROUP MANAGEMENT LIMITED
- 11 -
Opinion

We have audited the financial statements of Harper Group Management Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent 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 group's and parent 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

HARPER GROUP MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARPER GROUP MANAGEMENT LIMITED
- 12 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 parent 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group by discussion and enquiry with the directors and management team and our general knowledge and experience of the construction industry.

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Group, including the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with relevant regulators.

HARPER GROUP MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARPER GROUP MANAGEMENT LIMITED
- 13 -
Audit response to risks identified

We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed included but were not limited to:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Blake Morris (Senior Statutory Auditor)
For and on behalf of CK Audit, Statutory Auditor
Chartered Accountants
No 4 Castle Court 2
Castlegate Way
Dudley
West Midlands
DY1 4RH
23 May 2025
HARPER GROUP MANAGEMENT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
Turnover
3
23,025,980
31,600,639
Cost of sales
(20,346,730)
(28,686,624)
Gross profit
2,679,250
2,914,015
Administrative expenses
(2,495,688)
(3,085,612)
Other operating income
114,801
186,754
Operating profit
4
298,363
15,157
Interest receivable and similar income
8
162,283
158,442
Profit before taxation
460,646
173,599
Tax on profit
9
(119,838)
(68,401)
Profit for the financial year
24
340,808
105,198
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HARPER GROUP MANAGEMENT LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
-
0
-
0
Tangible assets
12
15,120
20,160
Investment property
13
1,680,373
1,680,373
1,695,493
1,700,533
Current assets
Stocks
16
917,687
952,646
Debtors falling due after more than one year
17
2,631,800
2,072,707
Debtors falling due within one year
17
4,994,146
6,053,436
Cash at bank and in hand
5,220,383
4,984,263
13,764,016
14,063,052
Creditors: amounts falling due within one year
18
(10,807,061)
(11,300,783)
Net current assets
2,956,955
2,762,269
Total assets less current liabilities
4,652,448
4,462,802
Provisions for liabilities
Deferred tax liability
19
37,686
38,848
(37,686)
(38,848)
Net assets
4,614,762
4,423,954
Capital and reserves
Called up share capital
21
58,551
58,551
Share premium account
22
143,900
143,900
Capital redemption reserve
23
65,349
65,349
Profit and loss reserves
24
4,346,962
4,156,154
Total equity
4,614,762
4,423,954
The financial statements were approved by the board of directors and authorised for issue on 23 May 2025 and are signed on its behalf by:
23 May 2025
Mr A  Rees
Director
Company registration number 06892284 (England and Wales)
HARPER GROUP MANAGEMENT LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 16 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
13
1,380,373
1,380,373
Investments
14
67,800
67,800
1,448,173
1,448,173
Current assets
Cash at bank and in hand
5,868
25,890
Creditors: amounts falling due within one year
18
(74,817)
(11,760)
Net current (liabilities)/assets
(68,949)
14,130
Total assets less current liabilities
1,379,224
1,462,303
Creditors: amounts falling due after more than one year
(645,000)
(775,000)
Provisions for liabilities
Deferred tax liability
19
19,354
19,354
(19,354)
(19,354)
Net assets
714,870
667,949
Capital and reserves
Called up share capital
21
58,551
58,551
Share premium account
22
143,900
143,900
Capital redemption reserve
23
65,349
65,349
Profit and loss reserves
24
447,070
400,149
Total equity
714,870
667,949

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £189,421 (2023 - £238,807 profit).

The financial statements were approved by the board of directors and authorised for issue on 23 May 2025 and are signed on its behalf by:
23 May 2025
Mr A  Rees
Director
Company registration number 06892284 (England and Wales)
HARPER GROUP MANAGEMENT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
58,551
143,900
65,349
4,350,956
4,618,756
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
105,198
105,198
Dividends
10
-
-
-
(300,000)
(300,000)
Balance at 31 December 2023
58,551
143,900
65,349
4,156,154
4,423,954
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
340,808
340,808
Dividends
10
-
-
-
(150,000)
(150,000)
Balance at 31 December 2024
58,551
143,900
65,349
4,346,962
4,614,762
HARPER GROUP MANAGEMENT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
58,551
143,900
65,349
461,343
729,143
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
238,806
238,806
Dividends
10
-
-
-
(300,000)
(300,000)
Balance at 31 December 2023
58,551
143,900
65,349
400,149
667,949
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
189,421
189,421
Dividends
10
-
-
-
(142,500)
(142,500)
Balance at 31 December 2024
58,551
143,900
65,349
447,070
714,870
HARPER GROUP MANAGEMENT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
293,505
1,644,908
Income taxes (paid)/refunded
(69,668)
376,706
Net cash inflow from operating activities
223,837
2,021,614
Investing activities
Interest received
162,283
158,442
Net cash generated from investing activities
162,283
158,442
Financing activities
Dividends paid to equity shareholders
(150,000)
(300,000)
Net cash used in financing activities
(150,000)
(300,000)
Net increase in cash and cash equivalents
236,120
1,880,056
Cash and cash equivalents at beginning of year
4,984,263
3,104,207
Cash and cash equivalents at end of year
5,220,383
4,984,263
HARPER GROUP MANAGEMENT LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
54,350
50,068
Income taxes paid
(11,872)
(6,439)
Net cash inflow from operating activities
42,478
43,629
Investing activities
Dividends received
150,000
200,000
Net cash generated from investing activities
150,000
200,000
Financing activities
Repayment of borrowings
(70,000)
-
Dividends paid to equity shareholders
(142,500)
(300,000)
Net cash used in financing activities
(212,500)
(300,000)
Net decrease in cash and cash equivalents
(20,022)
(56,371)
Cash and cash equivalents at beginning of year
25,890
82,261
Cash and cash equivalents at end of year
5,868
25,890
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
1
Accounting policies
Company information

Harper Group Management Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Units 1 & 2, Bevan Industrial Estate, Brierley Hill, West Midlands, DY5 3TF Units 1 & 2, Bevan Industrial Estate, Brierley Hill, West Midlands, DY5 3TF.

 

The Group consists of Harper Group Management Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

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

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Harper Group Management Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
10% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance

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

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Construction contracts

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 reporting end date. 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.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

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 that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.12
Financial instruments
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 24 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 25 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 26 -
1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Construction contract revenue

Construction contract revenue reflects management's best estimate of the outcome and stage of completion of each contract. This includes the assessment of the profitability of each ongoing contract and estimates of costs to complete. For certain contracts the costs to complete and contract profitability are subject to significant estimation uncertainty.

Recoverability of amounts due from contract customers

The directors have considered the recoverability of amounts due from contract customers which at the year end amounted to £4,362,308 (2023 £3,895,663). Where amounts represent current valuations the directors are satisfied that amounts will be settled promptly on presentation of an invoice. The directors review amounts outstanding relating to retentions and consider whether there are any issues on the contract which need to be resolved, whether any further costs need to be taken in to account and the likelihood of amounts being recovered. Based on these reviews, the directors are satisfied with the recoverability of balances due from contract customers at the year end.

Valuation of investment properties

Investment properties are currently recorded at fair value as provided by the directors.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Construction
23,025,980
31,600,639
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 27 -
2024
2023
£
£
Other revenue
Interest income
162,283
158,442

The whole of the turnover is attributable to the UK market.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
5,040
6,719
Amortisation of intangible assets
-
115,515
Operating lease charges
305,654
307,119
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,800
4,800
Audit of the financial statements of the company's subsidiaries
17,450
16,700
22,250
21,500
For other services
Taxation compliance services
2,000
2,000
All other non-audit services
2,000
2,000
4,000
4,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Adminstration staff
23
37
-
-
Site based
58
89
-
-
Total
81
126
-
0
-
0
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 28 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,445,111
4,829,098
-
0
-
0
Social security costs
335,853
490,598
-
-
Pension costs
188,278
240,839
-
0
-
0
3,969,242
5,560,535
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
283,079
292,102
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
145,106
142,904

A subsidiary undertaking made contributions to a money purchase pension scheme in relation to the highest paid director amounting to £15,469 (2023 £0).

 

The number of parent undertaking directors for whom retirement benefits are accruing under money purchase pension schemes operated by subsidiary undertakings is 3 (2023 - 3).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
162,267
74,901
Interest receivable from connected companies
-
0
83,541
Other interest income
16
-
Total income
162,283
158,442
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
162,267
158,442
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
120,889
69,961
Adjustments in respect of prior periods
111
-
0
Total current tax
121,000
69,961
Deferred tax
Origination and reversal of timing differences
(1,162)
(1,560)
Total tax charge
119,838
68,401

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
460,646
173,599
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
115,162
40,830
Tax effect of expenses that are not deductible in determining taxable profit
2,402
1,175
Tax effect of utilisation of tax losses not previously recognised
(1,718)
-
0
Unutilised tax losses carried forward
-
0
1,617
Change in unrecognised deferred tax assets
4,466
(2,121)
Adjustments in respect of prior years
111
-
0
Effect of change in corporation tax rate
(455)
(136)
Amortisation on assets not qualifying for tax allowances
-
0
27,169
Other non-reversing timing differences
(130)
-
0
Tax at marginal rate
-
0
(133)
Taxation charge
119,838
68,401
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
142,500
300,000
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,400,133
Amortisation and impairment
At 1 January 2024 and 31 December 2024
1,400,133
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
-
0
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
12
Tangible fixed assets
Group
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2024 and 31 December 2024
109,554
10,003
514,757
634,314
Depreciation and impairment
At 1 January 2024
109,554
10,003
494,597
614,154
Depreciation charged in the year
-
0
-
0
5,040
5,040
At 31 December 2024
109,554
10,003
499,637
619,194
Carrying amount
At 31 December 2024
-
0
-
0
15,120
15,120
At 31 December 2023
-
0
-
0
20,160
20,160
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024 and 31 December 2024
1,680,373
1,380,373
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Investment property
(Continued)
- 31 -

Investment property comprises residential property held for letting to third parties. The properties are considered to be held at fair value based on completed purchases in the year from individuals not connected with the company, and will be subject to independent valuations in future periods to confirm any adjustments to their fair value.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
67,800
67,800
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
67,800
Carrying amount
At 31 December 2024
67,800
At 31 December 2023
67,800
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Harper Group Construction Limited
England and Wales
Civil engineering construction
Ordinary shares
0
100.00
Harper Group plc
England and Wales
Parent company
Ordinary shares
100.00
-
J Harper & Sons (Leominster) Limited
England and Wales
Civil engineering construction
Ordinary shares
0
100.00

The investments in subsidiaries are all stated at cost.

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Property developments
917,687
952,646
-
0
-
0
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
90,628
544,308
-
0
-
0
Gross amounts owed by contract customers
4,391,612
4,064,127
-
0
-
0
Other debtors
366,869
1,325,892
-
0
-
0
Prepayments and accrued income
145,037
119,109
-
0
-
0
4,994,146
6,053,436
-
-
Amounts falling due after more than one year:
Amount owed by related parties
2,631,800
2,072,707
-
0
-
0
Total debtors
7,625,946
8,126,143
-
-

Included in other debtors is an amount of £2,687,000 (2023 - £3,126,313) due from connected companies, of which £2,631,800 is due > 1 year (2023 - £2,072,707).

18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
-
0
-
0
60,000
-
0
Payments received on account
28,995
168,464
-
0
-
0
Trade creditors
10,319,434
10,624,882
-
0
-
0
Corporation tax payable
66,646
15,315
14,817
11,760
Other taxation and social security
226,137
262,307
-
-
Other creditors
48,788
27,313
-
0
-
0
Accruals and deferred income
117,061
202,502
-
0
-
0
10,807,061
11,300,783
74,817
11,760
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
19
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£
£
ACAs
3,332
4,494
Investment property
34,354
34,354
37,686
38,848
Liabilities
Liabilities
2024
2023
Company
£
£
Investment property
19,354
19,354
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
38,848
19,354
Credit to profit or loss
(1,162)
-
Liability at 31 December 2024
37,686
19,354
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
188,278
240,839

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
58,551 Ordinary Shares of £1 each
58,551
58,551
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
22
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
143,900
143,900
143,900
143,900
23
Capital redemption reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
65,349
65,349
65,349
65,349
24
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
4,156,154
4,350,956
400,149
461,343
Profit for the year
340,808
105,198
189,421
238,806
Dividends
(150,000)
(300,000)
(142,500)
(300,000)
At the end of the year
4,346,962
4,156,154
447,070
400,149
25
Non-distributable profits reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
103,059
103,059
58,059
58,059
26
Financial commitments, guarantees and contingent liabilities

Performance bonds

Performance bonds require the bondsmen to make payments to third parties in the event that the company does not perform what is expected of it under the terms of any related contracts or commercial arrangements. Performance bonds at the year end amounted to £1,780,656 (2023 £3,390,911). Cash collateral deposits in connection with performance bonds held with insurance companies at the year end amount to £nil (2023 £nil) and are included in cash at bank.

HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 35 -
27
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain of its properties which include, property rental, equipment rental and motor vehicles rentals.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
263,164
224,334
-
-
Between two and five years
539,382
546,779
-
-
In over five years
1,598,000
1,699,000
-
-
2,400,546
2,470,113
-
-

At the reporting end date the total future minimum sublease payments expected to be received under non cancellable subleases was £13,600 (2023 £13,600).

 

28
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Connected companies
30,592
3,382,209
1,334
55
Other related parties
-
-
12,947
36,564
Rent
Loan interest
2024
2023
2024
2023
£
£
£
£
Group
Connected companies
-
-
-
83,541
Key management personnel
61,000
61,000
-
-

 

HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
28
Related party transactions
(Continued)
- 36 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Connected companies
2,687,000
3,126,313

The amounts due from connected parties relate to loans given to two companies in which the directors of this company are directors and shareholders. The loans are interest free. The repayment terms on the loans vary from 3 to 37 years.

 

During the year, a net amount of £2,318,109 (2023 - £3,402,269) was repaid from connected companies on a prior loan issued.

29
Directors' transactions

Dividends totalling £142,500 (2023 - £300,000) were paid in the year in respect of shares held by the company's directors.

 

 

30
Cash generated from group operations
2024
2023
£
£
Profit after taxation
340,808
105,198
Adjustments for:
Taxation charged
119,838
68,401
Investment income
(162,283)
(158,442)
Amortisation and impairment of intangible assets
-
115,515
Depreciation and impairment of tangible fixed assets
5,040
6,719
Movements in working capital:
Decrease/(increase) in stocks
34,959
(40,653)
Decrease in debtors
500,196
4,389,709
Decrease in creditors
(545,053)
(2,841,539)
Cash generated from operations
293,505
1,644,908
HARPER GROUP MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 37 -
31
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
189,421
238,806
Adjustments for:
Taxation charged
14,928
11,761
Investment income
(150,000)
(200,000)
Movements in working capital:
Decrease in debtors
1
1
Decrease in creditors
-
(500)
Cash generated from operations
54,350
50,068
32
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
4,984,263
236,120
5,220,383
33
Analysis of changes in net debt - company
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
25,890
(20,022)
5,868
Borrowings excluding overdrafts
(775,000)
70,000
(705,000)
(749,110)
49,978
(699,132)
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