| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| VIRTUS CONTRACTS LIMITED |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| FOR |
| VIRTUS CONTRACTS LIMITED |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 7 |
| Income Statement | 12 |
| Other Comprehensive Income | 13 |
| Balance Sheet | 14 |
| Statement of Changes in Equity | 15 |
| Cash Flow Statement | 16 |
| Notes to the Cash Flow Statement | 17 |
| Notes to the Financial Statements | 18 |
| VIRTUS CONTRACTS LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and |
| Statutory Auditor |
| 146 New London Road |
| Chelmsford |
| Essex |
| CM2 0AW |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their strategic report for the year ended 31 December 2024. |
| Year ended 31 December 2024 |
| The purpose of the Strategic report is to inform members of the company and help them assess how the Directors have performed their duty under section 172 Companies Act 2006. |
| REVIEW OF BUSINESS |
| The company's principal activity continues to be that of contractors specialising in high class fit out and refurbishment work. We operate predominantly within the south and home counties and specialise in the London area. Our expertise is in the carefully considered planning, co-ordination, and management of the whole construction process from tender to project completion. 2024 saw a continuation of several issues that arose during the previous 5 years, namely the cost-of-living crisis, a stagnant economy, high inflation and high interest rates. Whilst it is undeniable that price rises and interest rate rises have real impacts on the industry, the ability of the business and its employees to adapt and remain flexible allowed us to remain at the forefront of the industry and to continue to thrive as a business. Whilst we are aware the market is going to continue changing over the next 5 years, we remain confident we have the foundations in place to adapt with the market and continue to provide a highly demanded product. With our broad range of Construction Management expertise across all industry and business sectors, we can provide clients with high-calibre teams for a wide range of projects. In addition, clients work alongside one of our dedicated Account Managers who are focused on building a lasting client relationship. We continue to see the benefits of the Employee Ownership business model, following the change in ownership structure in 2021, with high staff retention rates, especially amongst senior staff, repeat business from clients citing consistency of team and performance as well as stability over the business financials. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The company faces a number of business risks and uncertainties due to market trading conditions. The Directors monitor both financial and quality performance on a job-by-job basis throughout the life of each project to ensure proper performance. The key risks are: |
| Poor results from individual contracts |
| Subcontractor quality and financial stability |
| Clients' financial stability |
| Retention and recruitment of high-quality staff |
| Health and safety site risks |
| These risks are mitigated by: |
| Financial and operational monitoring and reporting of projects |
| Monitoring of client financial position and debtor levels |
| Employee engagement with training and development opportunities and a good working environment |
| Investment risks are managed closely whilst most excess funds are retained as cash deposits |
| Risks have also been identified from the effect of political uncertainty, together with the high interest rates and global unrest which can cause supply chain issues. The Directors continue to monitor the effect of these matters at both a macroeconomic level and on individual contracts and activities particularly the effects on the workforce. |
| RESULTS |
| The detailed results for the year and the financial position of the company are as shown in the financial statements. The financial results of 2024 reflect the strong business fundamentals put in place across the last 24 years. The commitment to the long-term success of the business is also reflected in our ability to build back our net assets so quickly.. |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| BUSINESS ENVIRONMENT |
| The results for 2024 demonstrate that even with external macro-economic challenges and the effect of worldwide uncertainty, Virtus is well placed and well equipped to deal with these challenges and prosper. Our financial stability and longstanding reputation within the industry makes us a more appealing choice for our clients and as they look to adapt to the new way of working our collaborative approach means we can help clients achieve their goals whilst keeping within their budgets. As a result. and even considering the uncertainty faced, we anticipate that 2025 will be another strong year. As the sector remains extremely competitive the Board has agreed that it is in the best interests of the company to only take on work which will achieve acceptable margins and allow their hands-on approach to continue which contributes positively to the management of client risks. The company has an established reputation in the market and the Board intends to reinforce and extend this reputation by maintaining its philosophy of partnering. It will continue with the provision of a hands-on approach with all parties they meet as this results in a high client satisfaction rate, recommendations and repeat business and a continued profitable business. This is demonstrated primarily through its high volume of repeat business and recommendations from clients. |
| STRATEGY |
| The decision by the Directors to focus on fit-out opportunities in the market, that offer higher than general contracting margins with lower risk than the heavy refurbishment projects, continues to prove successful as demonstrated in the profit margins of the company. It is the intention of the Directors to continue its focus on fit out opportunities. The company has maintained financial independence by having no debt, borrowings, or overdrafts. Cash flow remains strong to support the day-to-day activities which is achieved through good debtor management. This is passed on to the benefit of the loyal and supportive subcontractors and other creditors. |
| FUTURE DEVELOPMENTS |
| The Directors are confident that if the company continues with the philosophies implemented in previous years it will maintain its activities at similar levels of revenue and profitability. To achieve the company's objectives a well-motivated workforce is essential, and the Board are pleased with the retention of good staff supplemented with high-calibre new recruits. Our Employee- Ownership business model ensures that staff remain motivated whilst providing them with the stability and assurances they need to focus on providing the highest quality results. Regular training and a good working environment are provided. and subcontractors are also monitored closely. Health and safety matters are taken seriously by all staff and the management team to ensure risks from day-to-day activities are managed effectively. Whilst we continue to see market fluctuations and supply chain issues we have taken a proactive and open approach to resolving these, securing materials as early as possible on projects to guarantee prices and providing for larger lead times on materials. |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| KEY PERFORMANCE INDICATORS |
| The KPl's have been designed to support the overall objectives of the company as set out in the value statement. They are constantly revisited with a view of enhancing the company's ability to grow successfully and give management team the tools to manage the business more effectively and deliver substantial shareholder value. The key performance indicators used by the company for monitoring remain: |
| Client satisfaction and retention |
| Target profit before tax margin |
| Company net asset position |
| Cash balances |
| Revenue growth |
| Staff turnover |
| Health and Safety issues |
| For the year ending 31 December 2024, we can confirm that client satisfaction scores remained high, with our repeat business for the year accounting for over 74% of the total business of the business. Our profit before tax margin was above the national average for main contractors, which is where we set our KPI. Our Health and Safety scores from third party inspections all scored over our minimum 85% requirement and our staff turnover for 2024 was below 10%, demonstrating our ability to identify and keep the best talent in the industry. |
| ON BEHALF OF THE BOARD: |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
| PRINCIPAL ACTIVITY |
| The company's principal activity continues to be that of main contractors specialising in high class fit out and refurbishment work. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2024. |
| The directors do not recommend the payment of a dividend. |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| Other changes in directors holding office are as follows: |
| DIRECTORS INSURANCE AND INDEMNITIES |
| The directors have the benefit of the indemnity provisions contained in the company's Articles of Association ('Articles'), and the company has maintained throughout the year, directors' and officers liability insurance for the benefit of the company, the directors and its officers. The company has entered into qualifying third party indemnity arrangements for the benefit of all directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force thorough the year and remain in force. |
| GOING CONCERN |
| The directors have assessed the potential impact of the cost of living crisis, the Ukraine war and the UK economy on the company's business plan as detailed under business environment in the strategic report. |
| The directors recognise it is extremely challenging to predict the full extent and duration of the impact on company's businesses operations for future periods. |
| The directors have prepared budgets covering a period of 12 months from the date of approval of these financial statements which indicate that, taking account of severe but plausible downsides, the company will have sufficient funds to meet its liabilities as they fall due for that period. They have therefore prepared these financial statements on a going concern basis. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| Certain matters required by regulation to be dealt with in the annual report have been dealt with in the strategic report, as above, rather than in the Directors Report. |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, Edmund Carr LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| VIRTUS CONTRACTS LIMITED |
| Opinion |
| We have audited the financial statements of Virtus Contracts Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| VIRTUS CONTRACTS LIMITED |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| VIRTUS CONTRACTS LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows; - |
| The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
| We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations for the company, including the Companies Act 2006, tax legislation and data protection, anti-bribery, employment, environmental and health and safety legislation. |
| We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management. |
| Identified laws and regulations were communicated with the audit team regularly and the team remained alert of instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by; - |
| Making enquiries of management as to where they considered there was susceptibility to fraud. their knowledge of actual, suspected and alleged fraud. |
| Considering the internal controls in place to mitigate the risks of fraud and non-compliance with laws and regulations To address the risk of fraud through management bias and override of controls, we; |
| Performed analytical procedures to identify any unusual or unexpected relationships |
| Tested journal entries to identify unusual transactions |
| Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
| Investigated the rationale behind significant or unusual transactions In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - |
| Agreeing financial statement disclosures to underlying supporting documentation |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| VIRTUS CONTRACTS LIMITED |
| Enquiring of management as to actual and potential litigation and claims Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
| 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 insignificant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| VIRTUS CONTRACTS LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Accountants and |
| Statutory Auditor |
| 146 New London Road |
| Chelmsford |
| Essex |
| CM2 0AW |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 4 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| 936,417 | 802,917 |
| Interest receivable and similar income |
| 982,215 | 818,948 |
| Interest payable and similar expenses | 6 | ( |
) |
| PROFIT BEFORE TAXATION | 7 |
| Tax on profit | 8 | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME |
| Contribution to employee ownership trust | ( |
) |
| Income tax relating to other comprehensive income |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| BALANCE SHEET |
| 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 10 |
| CURRENT ASSETS |
| Debtors | 11 |
| Investments | 12 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 13 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 15 |
| Share premium | 16 |
| Capital redemption reserve | 16 |
| Retained earnings | 16 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 January 2023 |
| Changes in equity |
| Total comprehensive income | - | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Total comprehensive income | - | - |
| Balance at 31 December 2024 |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) |
| Interest paid | ( |
) |
| Tax paid |
| Net cash from operating activities | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Interest received |
| Proceeds from sale of other investments |
| Recovery of other investments |
| Net cash from investing activities |
| (Decrease)/increase in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
1,388,711 |
| Cash and cash equivalents at end of year |
2 |
3,435,979 |
3,676,072 |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Contribution to employee ownership trust | (492,114 | ) | - |
| Finance costs | - | 26 |
| Finance income | (45,798 | ) | (16,031 | ) |
| 453,750 | 811,771 |
| Decrease/(increase) in trade and other debtors | ( |
) |
| (Decrease)/increase in trade and other creditors | ( |
) |
| Cash generated from operations | ( |
) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 December 2024 |
| 31/12/24 | 1/1/24 |
| £ | £ |
| Cash and cash equivalents | 3,435,979 | 3,676,072 |
| Year ended 31 December 2023 |
| 31/12/23 | 1/1/23 |
| £ | £ |
| Cash and cash equivalents | 3,676,072 | 1,388,711 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1/1/24 | Cash flow | At 31/12/24 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 3,676,072 | (240,093 | ) | 3,435,979 |
| 3,676,072 | ( |
) | 3,435,979 |
| Liquid resources |
| Current asset investments | 343 | (64 | ) | 279 |
| 343 | (64 | ) | 279 |
| Total | 3,676,415 | (240,157 | ) | 3,436,258 |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Virtus Contracts Limited is a |
| 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 preparing the financial statements |
| Critical accounting judgements and key sources of estimation uncertainty |
| In preparing these financial statements, the directors have made the following judgements: - The timing of revenue recognition on long-term contracts depends on the assessed stage of completion of contract activity at the balance sheet date. This assessment requires the expected total contract revenues and costs to be estimated based on the current progress of the contract. The directors recognise revenue in line with accounting policy stated. - Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. - Tangible assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. |
| Turnover |
| The turnover shown in the profit and loss account represents the value of work carried out in the year, exclusive of VAT. Revenue from construction contracts includes amounts initially agreed in contracts plus variations in contract work to the extent that it is probable that the variation will result in revenue that can be reliably measured. The revenue recognised reflects the value of the contract at the reporting date, with reference to a survey of work performed. The value of work carried out during the year includes amounts which have not yet been invoiced. |
| Tangible fixed 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 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: |
| Equipment 33 % straight line |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash and other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Research and development |
| Expenditure on research and activities is recognised in the profit and loss as incurred. |
| Development expenditure is capitalised only if the the expenditure can be measured reliably, the product or process is technically feasible, future economic are probable and the Company intend to and has sufficient resources to complete development and to use or sell the asset. Otherwise it is recognised in the profit and loss as incurred. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Construction contracts |
| Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments. |
| Operating leases |
| Rentals payable under operating leases are charged in the income statement on a straight line basis over the lease term. Lease incentives are recognised over the lease term on a straight line basis |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| 2024 | 2023 |
| £ | £ |
| An analysis of turnover by geographical market is given below: |
| 2024 | 2023 |
| £ | £ |
| United Kingdom |
| 5. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 5. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Production | 42 | 41 |
| Administration | 1 | 1 |
| Management | 4 | 4 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| Compensation to director for loss of office |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 2024 | 2023 |
| £ | £ |
| Emoluments etc |
| Pension contributions to money purchase schemes |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| Other Interest |
| 7. | PROFIT BEFORE TAXATION |
| The profit is stated after charging: |
| 2024 | 2023 |
| £ | £ |
| Depreciation - owned assets |
| Auditors' remuneration |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 8. | TAXATION |
| Analysis of the tax (credit)/charge |
| The tax (credit)/charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Prior year amendment | (68,155 | ) | - |
| Tax on profit | ( |
) |
| Tax effects relating to effects of other comprehensive | income |
| 2024 |
| Gross | Tax | Net |
| £ | £ | £ |
| Contribution to employee ownership trust | ( |
) | - | (492,114 | ) |
| 9. | EMPLOYEE BENEFITS |
| Defined contribution plans |
| The amount recognised in the profit or loss as an expense in relation to defined contribution plans was £162,816 (2023 : £125,440) |
| 10. | TANGIBLE FIXED ASSETS |
| Computer |
| equipment |
| £ |
| COST |
| At 1 January 2024 |
| Additions |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Provision for credit notes | - | (246,546 | ) |
| Season ticket loans |
| Staff loans | 1,523 | 2,855 |
| Amounts recoverable on |
| contracts | 1,310,037 | 2,371,995 |
| Prepayments |
| 12. | CURRENT ASSET INVESTMENTS |
| 2024 | 2023 |
| £ | £ |
| Other investments |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Subcontractor tax | 50,995 | 74,630 |
| Tax |
| Social security and other taxes |
| VAT | 676,405 | 1,351,151 |
| Other creditors |
| Pension liability | - | 16,308 |
| Amounts payable on contracts | 2,752,256 | 3,769,628 |
| Accrued expenses |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 15. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | 1 | 71,286 | 71,286 |
| Preference | 1 | 2 | 2 |
| 71,288 | 71,288 |
| 16. | RESERVES |
| Capital |
| Retained | Share | redemption |
| earnings | premium | reserve | Totals |
| £ | £ | £ | £ |
| At 1 January 2024 | 1,308,786 |
| Profit for the year |
| Contribution to employee |
| ownership trust | (492,114 | ) | - | - | (492,114 | ) |
| At 31 December 2024 | 1,867,042 |
| 17. | RELATED PARTY TRANSACTIONS |
| As directors of Virtus Contracts Limited and Virtus Contracts Trustees Limited, M A Cooper and A O Smith are considered related parties. |
| The Ordinary shares of Virtus Contracts Limited are registered in the name of Virtus Contracts Trustees Limited on behalf of the Virtus Contracts Employee Ownership Trust. |
| 18. | EVENTS AFTER THE END OF THE REPORTING PERIOD |
| In March 2025 the company made a capital contribution of £415,213 to Virtus Contracts Trustees Limited. |