| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Year Ended 30 September 2024 |
| for |
| C.R. Reynolds Limited |
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Financial Statements for the Year Ended 30 September 2024 |
| for |
| C.R. Reynolds Limited |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Contents of the Financial Statements |
| for the Year Ended 30 September 2024 |
| Page |
| Strategic Report | 1 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Income Statement | 9 |
| Other Comprehensive Income | 10 |
| Statement of Financial Position | 11 |
| Statement of Changes in Equity | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Strategic Report |
| for the Year Ended 30 September 2024 |
| The directors present their strategic report of the company for the year ended 30 September 2024. |
| REVIEW OF BUSINESS |
| The key financial highlights are as follows: |
| 2024 | 2023 | 2022 | 2021 | 2020 |
| £ | £ | £ | £ | £ |
| Turnover | 39,764,098 | 32,880,311 | 30,258,336 | 30,790,041 | 23,240,836 |
| Turnover Growth | 21% | 6% | (2%) | 33% | 36% |
| Gross Profit | 8,289,206 | 5,506,809 | 6,007,808 | 4,733,765 | 3,826,217 |
| Gross Profit Margin |
21% |
17% |
20% |
15% |
16% |
| Net Profit | 5,667,596 | 3,305,041 | 3,633,878 | 2,782,123 | 2,055,876 |
| Net Profit Margin | 14% | 10% | 12% | 9% | 9% |
| The directors are delighted to report the increased turnover and profitability for the trading period. |
| These excellent results are in line with the ongoing structured sustainable growth plan set up by the directors five years ago which is regularly reviewed to accommodate our client expectations and the market conditions. |
| The increase in turnover demonstrates the plan is effective and the growth in profitability reassures that we have good levels of staff suitably qualified to manage the growth without compromising systems, operations and efficiency of the business. |
| The company regards its ethical trading policy and strong respect from all in the commercial market as being a key driver in its effective trading. The company does not adopt any specific non-financial and sustainability policies but holds a regard for these practices throughout its management of the company. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The company's principle financial instruments comprise of bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds and finance the company operations. |
| Price Risk |
| The company conducts trade within the construction contracts market. The company has sufficient and adequate knowledge of the construction industry and sector which it undertakes work within. The company feels that this risk is managed by the personnel the company holds who hold sufficient knowledge of the construction industry. |
| Credit risk (trade receivables) |
| Credit checks are carried out on all customers. Amounts outstanding for both time and credit limits are regularly monitored. The company has little experience of material bad debts in general. The company reviews and undertakes regular construction contract valuations on the contracts which are undertaken to ensure that cashflow and the credit risk is mitigated. |
| Liquidity risk |
| The company's liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due and does not consider that liquidity poses a significant risk. |
| Interest rate and cash flow risk |
| The company had a favorable cash balance during the year and therefore does not consider that interest rates or cash flow pose a significant risk. |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Strategic Report |
| for the Year Ended 30 September 2024 |
| FUTURE TRADING AND DEVELOPMENTS |
| The 24/25 trading period starts with record secured workload of £39,000,000, the majority of this will be undertaken in the period. |
| Bid requests remain extremely buoyant and the expectation is that turnover will continue to grow for the foreseeable future. |
| MATTERS OF STRATEGIC IMPORTANCE |
| The directors are alert to risks associated with the current economic climate particularly in respect of public sector works. The considered expectation is that the current trend whereby schemes under financial scrutiny still proceed but with reduced budgets will prevail, given government commitment to infrastructure spending. This has recently happened on several projects and has been successfully managed by our teams to a great extent by offering our skill in value engineering cost efficiencies. |
| ON BEHALF OF THE BOARD: |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Report of the Directors |
| for the Year Ended 30 September 2024 |
| The directors present their report with the financial statements of the company for the period 1 October 2023 to 30 September 2024. |
| PRINCIPAL ACTIVITIES |
| The principal activities of the company in the year under review were those of civil engineers and building contractors. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 30 September 2024 will be £ |
| RESEARCH AND DEVELOPMENT |
| The company are constantly looking for innovative civil engineering methods, they are therefore carrying out multiple research and development activities. |
| FUTURE DEVELOPMENTS |
| The company intends to maintain its policy of steady organic growth whilst still attempting to remain competitive in the current market. |
| DIRECTORS |
| The directors set out in the table below have held office during the whole of the period from 1 October 2023 to the date of this report. |
| The beneficial interests of the directors holding office at 30 September 2024 in the shares of the company, according to the register of directors' interests, were as follows: |
| 30.9.24 | 1.10.23 |
| Ordinary C shares of £1 each |
| - | - |
| - | - |
| 3,519 | 3,519 |
| - | - |
| - | - |
| - | - |
| These directors did not hold any beneficial interests in the Ordinary A shares of £1 each. |
| These directors did not hold any non-beneficial interests in any of the shares of the company. |
| FINANCIAL INSTRUMENTS |
| These details are outlined in the strategic report. |
| 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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. |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Report of the Directors |
| for the Year Ended 30 September 2024 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
| 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, Harris Lacey and Swain, 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 |
| C.R. Reynolds Limited |
| Opinion |
| We have audited the financial statements of C.R. Reynolds Limited (the 'company') for the year ended 30 September 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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. |
| An overview of the scope of our audit |
| An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the directors report and strategic report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. |
| Report of the Independent Auditors to the Members of |
| C.R. Reynolds Limited |
| 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. |
| 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 pages three and four, 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 |
| C.R. Reynolds 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| 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. |
| Extent to which our procedures are capable of detecting irregularities, including fraud: |
| 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud 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 identified the laws and regulations applicable to the company through discussions with directors and other |
| management, and from our commercial knowledge and experience of the sector in which the company operates; |
| - We focused on specific laws and regulations which we considered may have a direct impact material effect on the |
| financial statements, or the operations of the company which included the Companies Act 2006, taxation |
| legislation, 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 and inspecting legal correspondence; and |
| - Identified laws and regulations were communicated within the audit team and the team remained alert to instances |
| of non-compliance throughout the audit. |
| We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management. |
| To address the risk of fraud in relation to revenue recognition, we: |
| - Performed detailed substantive testing to address completeness and accuracy of sales; |
| - Assessed the appropriateness and application of the accounting policy concerning income recognition; and |
| - Performed detailed cut-off testing either side of the balance sheet date. |
| 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. |
| 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. |
| Report of the Independent Auditors to the Members of |
| C.R. Reynolds Limited |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: |
| https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-audit ors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report. |
| 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. |
| 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 Auditors |
| Suite 1 |
| The Riverside Building |
| Hessle |
| East Yorkshire |
| HU13 0DZ |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Income Statement |
| for the Year Ended 30 September 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| PROFIT BEFORE TAXATION |
| Tax on profit | 6 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL YEAR |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Other Comprehensive Income |
| for the Year Ended 30 September 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Statement of Financial Position |
| 30 September 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 8 |
| CURRENT ASSETS |
| Debtors | 9 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 10 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 12 |
| Share premium | 13 |
| Retained earnings | 13 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Statement of Changes in Equity |
| for the Year Ended 30 September 2024 |
| Called up |
| share | Retained | Share | Total |
| capital | earnings | premium | equity |
| £ | £ | £ | £ |
| Balance at 1 October 2022 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 30 September 2023 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 30 September 2024 |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Statement of Cash Flows |
| for the Year Ended 30 September 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) |
| Interest received |
| Net cash from investing activities |
| Cash flows from financing activities |
| Amount introduced by directors | - | 5 |
| Amount withdrawn by directors | (404 | ) | (1,346 | ) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Increase in cash and cash equivalents |
| Cash and cash equivalents at beginning of year |
2 |
5,274,597 |
| Cash and cash equivalents at end of year | 2 | 8,377,730 | 6,859,224 |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Notes to the Statement of Cash Flows |
| for the Year Ended 30 September 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Finance income | (159,474 | ) | (117,681 | ) |
| 5,527,356 | 3,207,450 |
| (Increase)/decrease in trade and other debtors | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 30 September 2024 |
| 30.9.24 | 1.10.23 |
| £ | £ |
| Cash and cash equivalents | 8,377,730 | 6,859,224 |
| Year ended 30 September 2023 |
| 30.9.23 | 1.10.22 |
| £ | £ |
| Cash and cash equivalents | 6,859,224 | 5,274,597 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.10.23 | Cash flow | At 30.9.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 6,859,224 | 1,518,506 | 8,377,730 |
| 6,859,224 | 8,377,730 |
| Total | 6,859,224 | 1,518,506 | 8,377,730 |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Notes to the Financial Statements |
| for the Year Ended 30 September 2024 |
| 1. | STATUTORY INFORMATION |
| C.R. Reynolds Limited is a |
| Registered number: |
| Registered office: |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Significant judgements and estimates |
| The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of the estimation means the actual outcomes could differ from those estimates. |
| The following judgements (apart from those involving estimates) have had the most significant impact on amounts recognised in the financial statements. |
| Revenue recognition |
| The percentage of completion method and the determination of revenues to recognise on claims and variations to contracts are reliant on estimates in particular in respect of future expected costs and revenues. The company reviews the appropriateness of assumptions made on a regular basis. |
| Turnover |
| Construction contracts |
| Contract revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive payments to the extent that it is probable that they will result in revenue and can be measured reliably. As soon as the outcome of a construction contract can be estimated reliably, contract revenue and contract cost are recognised in the profit and loss in proportion to the stage of completion of the contract. Contract expenses are recognised as incurred unless they create an asset related to future contract activity. |
| The stage of completion is assessed by reference to the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised only to the extent of contract costs incurred that are likely to be recoverable. An expected loss on a contract is recognised immediately in the profit and loss. |
| Work done on long term contracts has been prepared in accordance with FRS 102. |
| Goods sold and services rendered |
| Revenue from sale of goods is measured at fair value of the consideration received or receivable and is recognised in the profit and loss when the significant risks and rewards of ownership have been transferred to the buyer. It is stated after trade discounts, other sales taxes and excluding value added tax. |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Long leasehold | - |
| Computer equipment | - |
| Financial instruments |
| Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
| Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. |
| 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 statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 development is written off in the year in which it is incurred. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| 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. |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2024 |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the principal activities of the company. |
| An analysis of turnover by geographical market is given below: |
| 2024 | 2023 |
| £ | £ |
| United Kingdom |
| CONSTRUCTION CONTRACTS |
| The gross amount due from customers as at 30 September 2024 is £6,554,416 (2023: £5,627,806). The percentage of revenue that relates to construction contracts is 100% (2023: 100%). |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries | 2,924,074 | 2,396,803 |
| Social security costs | 156,080 | 131,095 |
| Other pension costs | 155,735 | 128,340 |
| 3,235,889 | 2,656,238 |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Production Staff | 30 | 27 |
| Office Staff | 24 | 23 |
| 54 | 50 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | 1,002,192 | 733,099 |
| Gross directors' wages included within cost of sales is £175,794 (2023: £165,550) |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2024 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Defined contribution scheme | 4 | 4 |
| Information regarding the highest paid director is as follows: |
| 2024 | 2023 |
| £ | £ |
| Emoluments etc | 348,997 | 227,974 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 2024 | 2023 |
| £ | £ |
| Hire of plant & machinery |
| Depreciation - owned assets |
| Auditors' remuneration |
| Auditors' remuneration for non audit work |
| 6. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Depreciation in excess of capital allowances |
| Research and development claim | (96,210 | ) | (41,926 | ) |
| Change in corporation tax rate | - | (104,983 | ) |
| Prior Year Correction | (180,532 | ) | - |
| Total tax charge | 1,144,966 | 682,732 |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2024 |
| 7. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| Ordinary A shares of £1 each |
| Interim |
| Ordinary C shares of £1 each |
| Interim |
| 8. | TANGIBLE FIXED ASSETS |
| Short | Long | Computer |
| leasehold | leasehold | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 October 2023 |
| and 30 September 2024 |
| DEPRECIATION |
| At 1 October 2023 |
| Charge for year |
| At 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 |
| At 30 September 2023 |
| 9. | DEBTORS |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year: |
| Trade debtors |
| Other debtors |
| Prepayments |
| Debtors recoverable on |
| contract | 6,554,416 | 5,627,806 |
| Amounts falling due after more than one year: |
| Other debtors |
| Aggregate amounts |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2024 |
| 10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Tax |
| Social security and other taxes |
| VAT | 938,591 | 793,694 |
| Other creditors |
| Directors' current accounts | 178 | 582 |
| Accrued expenses |
| 11. | LEASING AGREEMENTS |
| A rent agreement is in place, of £50,000 per annum. |
| 12. | CALLED UP SHARE CAPITAL |
| Allotted and issued: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary A | £1 | 31,667 | 31,667 |
| Ordinary C | £1 | 3,519 | 3,519 |
| 35,186 | 35,186 |
| 13. | RESERVES |
| Retained | Share |
| earnings | premium | Totals |
| £ | £ | £ |
| At 1 October 2023 | 6,507,945 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| At 30 September 2024 | 7,780,575 |
| 14. | ULTIMATE PARENT COMPANY |
| In the opinion of the directors, the ultimate parent company is Reynolds 2000 Limited, a company registered and incorporated in England and Wales, copies of the group accounts can be obtained at Companies House. |
| C.R. Reynolds Limited (Registered number: 01772107) |
| Notes to the Financial Statements - continued |
| for the Year Ended 30 September 2024 |
| 15. | RELATED PARTY DISCLOSURES |
| C.R. Reynolds Limited is a subsidiary of Reynolds 2000 Limited. |
| During the year the company traded with Reynolds 2000 Limited, the amount of purchases being £148,153 (2023: £194,645) and sales being £1,012,555 (2023: £nil), all made on a normal commercial basis. |
| During the year the company traded with Melton Industrial Limited, the amount of sales being £23,243 (2023: £nil), all made on a normal commercial basis. |
| During the financial period, C.R. Reynolds Limited paid £3,150,000 (2023: £2,196,000) dividend to Reynolds 2000 Limited. |
| At the balance sheet date the company owed Mr C R Reynolds £156 (2023: £293) by way of an interest free loan to the company, repayable on demand. The company also owed Mr A Gaze £22 (2022: £289) by way of an interest free loan to the company, repayable on demand. |
| 16. | CONTROLLING PARTIES |
| Mr C.R. Reynolds and Mrs F.R. Reynolds controlled the company throughout the current and previous year. |