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REGISTERED NUMBER: 03955554 (England and Wales)















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: A O Smith
M A Cooper
P J W Jeapes
J H Rogers





SECRETARY: A O Smith





REGISTERED OFFICE: 50 Seymour Street
London
W1H 7JG





REGISTERED NUMBER: 03955554 (England and Wales)





AUDITORS: Edmund Carr LLP
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:





A O Smith - Secretary


10 June 2025

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.

A O Smith
M A Cooper
P J W Jeapes

Other changes in directors holding office are as follows:

J H Rogers - appointed 1 January 2024
A J Smith - resigned 3 May 2024

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:



A O Smith - Secretary


10 June 2025

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.




Thomas C York FCCA (Senior Statutory Auditor)
for and on behalf of Edmund Carr LLP
Chartered Accountants and
Statutory Auditor
146 New London Road
Chelmsford
Essex
CM2 0AW

10 June 2025

VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   

TURNOVER 4 26,923,550 27,315,452

Cost of sales (22,147,066 ) (22,546,109 )
GROSS PROFIT 4,776,484 4,769,343

Administrative expenses (3,840,067 ) (3,966,426 )
936,417 802,917

Interest receivable and similar income 45,798 16,031
982,215 818,948

Interest payable and similar expenses 6 - (26 )
PROFIT BEFORE TAXATION 7 982,215 818,922

Tax on profit 8 68,155 (67,002 )
PROFIT FOR THE FINANCIAL
YEAR

1,050,370

751,920

VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 1,050,370 751,920


OTHER COMPREHENSIVE INCOME
Contribution to employee ownership trust (492,114 ) -
Income tax relating to other
comprehensive income

-

-
OTHER COMPREHENSIVE
INCOME FOR THE YEAR, NET OF
INCOME TAX


(492,114


)


-
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR

558,256

751,920

VIRTUS CONTRACTS LIMITED (REGISTERED NUMBER: 03955554)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 10 20,886 9,409

CURRENT ASSETS
Debtors 11 3,242,374 5,214,179
Investments 12 279 343
Cash at bank 3,435,979 3,676,072
6,678,632 8,890,594
CREDITORS
Amounts falling due within one year 13 (4,761,188 ) (7,519,929 )
NET CURRENT ASSETS 1,917,444 1,370,665
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,938,330

1,380,074

CAPITAL AND RESERVES
Called up share capital 15 71,288 71,288
Share premium 16 139,555 139,555
Capital redemption reserve 16 2,000 2,000
Retained earnings 16 1,725,487 1,167,231
SHAREHOLDERS' FUNDS 1,938,330 1,380,074

The financial statements were approved by the Board of Directors and authorised for issue on 10 June 2025 and were signed on its behalf by:





A O Smith - Director


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 71,288 415,311 139,555 2,000 628,154

Changes in equity
Total comprehensive income - 751,920 - - 751,920
Balance at 31 December 2023 71,288 1,167,231 139,555 2,000 1,380,074

Changes in equity
Total comprehensive income - 558,256 - - 558,256
Balance at 31 December 2024 71,288 1,725,487 139,555 2,000 1,938,330

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 (265,031 ) 1,970,559
Interest paid - (26 )
Tax paid - 51,587
Net cash from operating activities (265,031 ) 2,022,120

Cash flows from investing activities
Purchase of tangible fixed assets (20,924 ) (9,149 )
Interest received 45,798 16,031
Proceeds from sale of other investments - 258,359
Recovery of other investments 64 -
Net cash from investing activities 24,938 265,241

(Decrease)/increase in cash and cash equivalents (240,093 ) 2,287,361
Cash and cash equivalents at
beginning of year

2

3,676,072

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 982,215 818,922
Depreciation charges 9,447 8,854
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 1,971,805 (1,474,022 )
(Decrease)/increase in trade and other creditors (2,690,586 ) 2,632,810
Cash generated from operations (265,031 ) 1,970,559

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 (240,093 ) 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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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
The financial statements have been prepared under the historical cost convention.

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
£    £   
Construction contracts 26,923,550 27,315,452
26,923,550 27,315,452

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 26,923,550 27,315,452
26,923,550 27,315,452

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,698,051 2,539,879
Social security costs 329,549 306,244
Other pension costs 162,816 125,440
3,190,416 2,971,563

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
47 46

2024 2023
£    £   
Directors' remuneration 567,483 547,814
Directors' pension contributions to money purchase schemes 79,357 52,652
Compensation to director for loss of office - 30,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 3

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 150,000 134,833
Pension contributions to money purchase schemes 7,500 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Other Interest - 26

7. PROFIT BEFORE TAXATION

The profit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 9,447 8,855
Auditors' remuneration 9,500 9,000

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 - 67,002
Prior year amendment (68,155 ) -

Tax on profit (68,155 ) 67,002

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Contribution to employee ownership trust (492,114 ) - (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 145,012
Additions 20,924
At 31 December 2024 165,936
DEPRECIATION
At 1 January 2024 135,603
Charge for year 9,447
At 31 December 2024 145,050
NET BOOK VALUE
At 31 December 2024 20,886
At 31 December 2023 9,409

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 1,724,096 3,050,709
Provision for credit notes - (246,546 )
Season ticket loans 333 1,838
Staff loans 1,523 2,855
Amounts recoverable on
contracts 1,310,037 2,371,995
Prepayments 206,385 33,328
3,242,374 5,214,179

12. CURRENT ASSET INVESTMENTS
2024 2023
£    £   
Other investments 279 343

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 955,584 1,989,386
Subcontractor tax 50,995 74,630
Tax - 68,155
Social security and other taxes 130,526 118,143
VAT 676,405 1,351,151
Other creditors 91,418 26,615
Pension liability - 16,308
Amounts payable on contracts 2,752,256 3,769,628
Accrued expenses 104,004 105,913
4,761,188 7,519,929

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 70,141 70,141
Between one and five years 93,684 163,825
163,825 233,966

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: £    £   
71,286 Ordinary 1 71,286 71,286
2 Preference 1 2 2
71,288 71,288

16. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2024 1,167,231 139,555 2,000 1,308,786
Profit for the year 1,050,370 1,050,370
Contribution to employee
ownership trust (492,114 ) - - (492,114 )
At 31 December 2024 1,725,487 139,555 2,000 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.