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Champion Groundworks Limited

Annual Report and Consolidated Financial Statements
Year Ended 30 September 2024

Registration number: 08209199

 

Champion Groundworks Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 8

Statement of Directors' Responsibilities

9

Independent Auditor's Report

10 to 13

Consolidated Profit and Loss Account

14

Consolidated Balance Sheet

15

Balance Sheet

16

Consolidated Statement of Changes in Equity

17

Statement of Changes in Equity

18

Consolidated Statement of Cash Flows

19

Notes to the Financial Statements

20 to 42

 

Champion Groundworks Limited

Company Information

Directors

F C Champion

J S Cleaton-Roberts

Registered office

Doublebois Industrial Estate
Doublebois
Liskeard
Cornwall
PL14 6LE

Auditors

PKF Francis Clark
Statutory AuditorMelville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

 

Champion Groundworks Limited

Strategic Report

Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is as an investment holding company.

The principal activity of the group is a groundworks contractor.

Fair review of the business

In July 2024 the entire share capital of the company was acquired by Champion Groundworks & Construction Limited as part of a group restructure. As part of this transaction Champion Groundworks acquired the share capital of Champion Scaffolding Limited.

The group’s turnover, primarily in relation to groundworks, increased this year to £81,684,347 compared to £78,451,403 in 2023. This was achieved by securing a number of new larger sites which commenced in 2024.

The gross profit margin decreased this year to 8.98% from 10.4% in 2023. The group completed an enhanced review of ongoing contracts during the year and as a result the construction contract liability remained at £3,532,448. This was completed to ensure that profitability is recognised evenly over the contract life in line with the stage of completion. The group has made a profit before tax of £1,284,289 compared to a profit of £4,438,132 in 2023.

The balance sheet position has decreased at the year end with net assets of £32,012,326 (2023: £35,964,414). Current assets exceed current liabilities by £13,926,518 (2023: £15,982,653), which shows that there are no liquidity issues in the group. The Directors remain satisfied with the strength of the balance sheet, in particular the cash position, as at the end of the year.

Key Peformance Indicators
Management consider turnover and profit after tax to be the key financial performance indicators. With regards to non-financial KPIs the group has maintained its customer base and increased the
number of groundworkers employed compared to the prior financial year. The group is well placed for continued growth in the future.

Principal risks and uncertainties

One of the principal business risks facing the group is the loss of key management and staff. The group has expanded its subsidiaries' board of directors in year and continues to focus on the retention and training of staff to mitigate this risk.

The industry the group operates in can be heavily impacted by general downturns in the UK economic climate, including significant price inflation of materials as has been seen over the past financial years.

The group prides itself on delivering a high quality service and therefore management continuously monitor service quality, environmental impact and its health and safety proceedures in order to protect the business' reputation.

 

Champion Groundworks Limited

Strategic Report

Year Ended 30 September 2024

Section 172(1) statement

While the outlook remains challenging due to broader economic uncertainties and industry pressures, our group has remained resilient and focussed on quality and timely delivery. We continue to work on strengthening relationships with our customers and suppliers and implementing efficiencies wherever possible. We have actively worked to broaden our client horizons and the group has expanded their operations beyond Cornwall and Devon into Somerset. This move represents a key milestone in our growth. We continue to invest heavily to ensure we have the newest and most efficient fleet of machinery and vans possible.

Our highest key objective remains the preservation and engagement of our workforce, both site and office based. The Health, Safety and Wellbeing of our employees is paramount and we promote a robust safety culture across all sites. We have introduced Mental Health First Aid training across the group and as a result have designated Mental Health First Aiders both in the offices and on sites. This promotes psychological wellbeing and demonstrates to employees that they can feel safe to seek support and can be signposted to professional help when required. Health & Safety documents are communicated through our time & attendance software and time-stamps and signatures are recorded so that we can ensure our employees are fully compliant with regulations.

Our supply chain remains robust and we continue to nurture and maintain strong relations. We continue to focus on material management and look to rationalise the use of materials as much as possible. We have targeted certain products to be supplied by certain merchants and suppliers, and as a result, we have offered volume purchasing in return for additional discount. We have managed to negotiate favourable terms with suppliers so that any increases are kept to a minimum or indeed not applied to our accounts at all. Supply is currently stable and we are managing to obtain product without any long delays.

We continue to focus on our impact to the environment. All of our construction plant has been kept up to date with consistent investment in GPS for the machinery meaning less movements and more economical production. All vehicles and vans have been updated and we are actively looking to introduce electric vehicles into the fleet as soon as possible. We are also printing far less in our offices and scanning and storing documents electronically. We are also now using some recycled materials rather than quarried, resulting in a cost saving in addition to the reduction of CO2 produced in obtaining these materials.

Our business has a strong reputation in the market and we will look to protect this and build on this in tandem with our workforce who are key in achieving this objective. Our social media presence is key to publicising our values and projects.

Acting in a fair and reasonable way is also key when we need to protect our workforce and act fairly between all members of the group. We must aspire to be the ‘go to’ groundwork business in the South West and our staff are key to us achieving and maintaining this.

Engagement with employees

Engagement with employees discussed in S172 statement.

Engagement with suppliers, customers and other relationships

Engagement with suppliers, customer and others discussed in S172 statement.

 

Champion Groundworks Limited

Strategic Report

Year Ended 30 September 2024

Approved by the Board on 26 June 2025 and signed on its behalf by:

J S Cleaton-Roberts
Director

   
     
 

Champion Groundworks Limited

Directors' Report

Year Ended 30 September 2024

The directors present their report and the for the year ended 30 September 2024.

Directors of the group

The directors who held office during the year were as follows:

F C Champion

J S Cleaton-Roberts

Financial instruments

Price risk, credit risk, liquidity risk and cash flow risk

The group considers the major financial risks of the business to be linked to liquidity, cash flow and cyclical changes in the economy. The group mitigates these risks by carefully managing cash, stock and debt levels.

The group is funded through its cash at bank balance and has only a minimal amount of loans and borrowings, being small hire purchase contracts. The group operates a regular billing cycle, applying to customers at each month end, to ensure a consistent cash-flow cycle. At points when the group has sufficient cash reserves, beyond forecast working capital requirements, the group has invested in property, either to develop for onward sale or hold for capital appreciation and the associated rental yields.

To manage price risk the group has been able to secure tenders on a much reduced fixed price period and ensure significant inflationary increases can be passed on to customers.

The experience of management enables the group to respond to changes in the economy and to adapt the group's strategies accordingly.

Employment of disabled persons

All applications received by disabled persons for employment by the group are fairly considered with due regard to their expertise and experience in relation to the requirements of the advertised vacancy. The group is committed to employing disabled persons and should a current employee become disabled, where possible and if required, the group will retrain the employee in a suitable alternative job role.

Employee involvement

Within the Champion Group we now have a team of over 300 people, the vast majority being involved with the group for a long period of time, some from when the group started in 1983. This level of loyalty is reflected in our commitment to our Clients. Within the Champion Group we constantly provide team development through internal and external training programmes. Our main priority is to ensure all staff fulfil their full potential.

 

Champion Groundworks Limited

Directors' Report

Year Ended 30 September 2024

Environmental matters
Large Companies are mandated to disclose energy and carbon information in the Directors’ Report for financial reporting years starting on or after 1 April 2019. The section below presents the energy usage and associated carbon dioxide emissions for Champion Groundworks Limited. This section has been prepared in compliance to the SECR Framework as implemented in the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. GHG emissions and energy use data for period 1 October 2023 - 30 September 2024 compared to previous year:

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Champion Groundworks Limited

Directors' Report

Year Ended 30 September 2024

Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines and GHG Reporting Protocol - Corporate Standard. We have used the 2024 UK Government's Conversion Factors for Company Reporting and used an operational approach to define our boundary and scopes.

Scope 1 emissions relate to usage of on-site gas, cylinder gas, diesel fuel, and company owned vehicles. Scope 2 emissions relate to on-site electricity usage and the Scope 3 emissions are associated to the transmission and distribution losses of the electricity usage as well as transport via employee-owned vehicles.

The primary source for energy consumption is supplier invoices. Where invoices are not in line with the financial year, a pro rata calculation has been used to estimate the usage that falls within the reporting period.

Transport usage and emissions are calculated from claimed mileage and fuel card records. Please note, additional transport related transactions were discovered for FY2022/23 after the issue of that report. These transactions would have contributed an additional 170,000 litres of petrol and diesel fuel. As such, the transport-based year on year comparisons in this 2023/24 report cannot be taken with 100% confidence. This will no longer be of issue in future years.

All bulk fuel usage has been included as it was deemed that the majority of this is used by on site transport, these emissions have been calculated from purchasing records.

Intensity measurement
The chosen intensity measurement ratio is the Annual Turnover.
 

Measures taken to improve energy efficiency
Champion Groundworks Limited have continued to concentrate on energy efficiency in all our activities and operations on our sites and are fully committed to responsible energy consumption throughout all our operations.

We continue to improve our fleet by replacing older vehicles with newer, more efficient models.

All our excavators are fitted with geosystems, allowing them to work more efficiently and save fuel. We carry out energy efficiency practices and focus on operational efficiency of our plant and equipment and introduced switching off policies to help reduce fuel usage.

We also endeavour to keep employees’ travel to a minimum and monitor driving styles via our tracking system.
 

 

Champion Groundworks Limited

Directors' Report

Year Ended 30 September 2024

Going concern

As at the current time the group remains in a strong financial position, with a strong cash balance and improving trading reserves. The directors continue to monitor the ongoing impact of the increasing inflationary cost pressure currently being experienced in the UK.

At the balance sheet date the group maintains a strong cash balance. The business continues to have access to its pre-existing bank facilities and the directors take further comfort from their long-standing relationships with key customers and the underlying strength and robustness of the business that has weathered other financial downturns and competitive pressures before.

Due to the business’ strong net asset position it retains the flexibility to obtain additional financing from multiple sources or further delay repayment of certain liabilities in the event that the economic environment is more challenging than originally forecast.

In the medium term the directors believe that the demand for the groundworking services the business provides will remain strong due to the continued housing developments in the South West. The group has expanded its operations and client base and now covers Cornwall, Devon and Somerset.

On the basis of the forecasts completed and analysis, the directors remain confident that the company and group will continue to be a going concern for a period of at least 12 months from the date of approving these financial statements. The accounts have accordingly been prepared on a going concern basis.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 26 June 2025 and signed on its behalf by:

.........................................
J S Cleaton-Roberts
Director

   
     
 

Champion Groundworks Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

Champion Groundworks Limited

Independent Auditor's Report to the Members of Champion Groundworks Limited

Opinion

We have audited the financial statements of Champion Groundworks Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows and 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 group's and the parent company's affairs as at 30 September 2024 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.

 

Champion Groundworks Limited

Independent Auditor's Report to the Members of Champion Groundworks Limited

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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 9, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

 

Champion Groundworks Limited

Independent Auditor's Report to the Members of Champion Groundworks Limited

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. The key laws and regulations we identified were construction, employment and health and safety legislation.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102) , the Companies Act and the relevant tax compliance regulations in the UK.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Reviewed legal and professional costs to identify legal costs in respect of non compliance;
• Enquiries with management whether there have been any known instances, allegations or suspicions of fraud or non compliance with laws and regulations.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting. Our proceedures involved the following;
• Review of nominal journal entries for reasonableness;
• Review of significant accounting estimates for bias;
• Substantive testing of revenue cut-off;
• Review of construction contract revenue and cost recognition.

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. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

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

 

Champion Groundworks Limited

Independent Auditor's Report to the Members of Champion Groundworks 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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Duncan Leslie (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

27 June 2025

 

Champion Groundworks Limited

Consolidated Profit and Loss Account

Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

81,684,347

78,451,403

Cost of sales

 

(74,348,494)

(70,266,596)

Gross profit

 

7,335,853

8,184,807

Administrative expenses

 

(7,054,380)

(5,325,488)

Other operating income

4

139,261

175,739

Operating profit

5

420,734

3,035,058

Income from shares in joint ventures

 

1,040,000

1,000,000

Other interest receivable and similar income

9

128,840

65,277

Interest payable and similar expenses

(44,867)

(3,170)

   

1,123,973

1,062,107

Share of (loss)/profit of equity accounted investees

 

(260,418)

340,967

Profit before tax

 

1,284,289

4,438,132

Tax on profit

10

(389,569)

(723,232)

Profit for the financial year

 

894,720

3,714,900

Profit/(loss) attributable to:

 

Owners of the company

 

894,720

3,714,900

The group has no recognised gains or losses for the year other than the results above.

 

Champion Groundworks Limited

Consolidated Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

15,992,290

14,836,177

Investment property

13

1,621,836

3,340,281

Investments

14

3,560,638

3,821,057

 

21,174,764

21,997,515

Current assets

 

Stocks

15

1,616,535

3,945,234

Debtors

16

21,411,356

21,602,938

Cash at bank and in hand

 

7,657,481

5,908,369

 

30,685,372

31,456,541

Creditors: Amounts falling due within one year

18

(16,758,854)

(15,473,888)

Net current assets

 

13,926,518

15,982,653

Total assets less current liabilities

 

35,101,282

37,980,168

Creditors: Amounts falling due after more than one year

18

(934,249)

-

Provisions for liabilities

21

(2,154,707)

(2,015,754)

Net assets

 

32,012,326

35,964,414

Capital and reserves

 

Called up share capital

23

71

71

Capital redemption reserve

4,000,024

4,000,024

Fair value reserve

93,796

112,158

Profit and loss account

27,918,435

31,852,161

Equity attributable to owners of the company

 

32,012,326

35,964,414

Total equity

 

32,012,326

35,964,414

Approved and authorised by the Board on 26 June 2025 and signed on its behalf by:
 

.........................................
J S Cleaton-Roberts
Director

Company Registration Number: 08209199

 

Champion Groundworks Limited

Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

14

4,000,150

4,000,050

Current assets

 

Debtors

16

361,489

-

Cash at bank and in hand

 

891,025

353,155

 

1,252,514

353,155

Creditors: Amounts falling due within one year

18

(7,237)

(234,142)

Net current assets

 

1,245,277

119,013

Net assets

 

5,245,427

4,119,063

Capital and reserves

 

Called up share capital

23

71

71

Capital redemption reserve

4,000,024

4,000,024

Profit and loss account

1,245,332

118,968

Shareholders' funds

 

5,245,427

4,119,063

The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £5,973,172 (2023 - profit of £1,161,783).

Approved and authorised by the Board on 26 June 2025 and signed on its behalf by:
 

.........................................
J S Cleaton-Roberts
Director

Company Registration Number: 08209199

 

Champion Groundworks Limited

Consolidated Statement of Changes in Equity

Year Ended 30 September 2024

Share capital
£

Capital redemption reserve
£

Fair value reserve
£

Profit and loss account
£

Total
£

At 1 October 2023

71

4,000,024

112,158

31,852,161

35,964,414

Profit for the year

-

-

-

894,720

894,720

Total comprehensive income

-

-

-

894,720

894,720

Dividends

-

-

-

(4,846,808)

(4,846,808)

New share capital subscribed

71

-

-

-

71

Share capital cancelled

(71)

-

-

-

(71)

Transfers

-

-

(18,362)

18,362

-

At 30 September 2024

71

4,000,024

93,796

27,918,435

32,012,326

Share capital
£

Capital redemption reserve
£

Fair value reserve
£

Profit and loss account
£

Total
£

At 1 October 2022

71

4,000,024

112,158

29,173,261

33,285,514

Profit for the year

-

-

-

3,714,900

3,714,900

Total comprehensive income

-

-

-

3,714,900

3,714,900

Dividends

-

-

-

(1,036,000)

(1,036,000)

At 30 September 2023

71

4,000,024

112,158

31,852,161

35,964,414

 

Champion Groundworks Limited

Statement of Changes in Equity

Year Ended 30 September 2024

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 October 2023

71

4,000,024

118,968

4,119,063

Profit for the year

-

-

5,973,172

5,973,172

Total comprehensive income

-

-

5,973,172

5,973,172

Dividends

-

-

(4,846,808)

(4,846,808)

New share capital subscribed

71

-

-

71

Share capital cancelled

(71)

-

-

(71)

At 30 September 2024

71

4,000,024

1,245,332

5,245,427

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 October 2022

71

4,000,024

(6,815)

3,993,280

Profit for the year

-

-

1,161,783

1,161,783

Total comprehensive income

-

-

1,161,783

1,161,783

Dividends

-

-

(1,036,000)

(1,036,000)

At 30 September 2023

71

4,000,024

118,968

4,119,063

 

Champion Groundworks Limited

Consolidated Statement of Cash Flows

Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

894,720

3,714,900

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

3,569,204

2,620,659

Loss/(profit) on disposal of tangible assets

21,137

(147,796)

Loss from sales of investment properties

211,446

-

Finance income

 

(1,168,840)

(1,065,277)

Finance costs

44,867

3,170

Share of profit/loss of equity accounted investees

 

260,418

(340,967)

Income tax expense

 

389,569

723,232

 

4,222,521

5,507,921

Working capital adjustments

 

Decrease/(increase) in stocks

15

2,328,699

(1,077,353)

Decrease/(increase) in trade debtors

16

627,473

(1,741,215)

Decrease in trade creditors

18

(805,600)

(742,294)

Increase in deferred income, including government grants

 

-

1,440,000

Cash generated from operations

 

6,373,093

3,387,059

Income taxes paid

 

(942,485)

(613,091)

Net cash flow from operating activities

 

5,430,608

2,773,968

Cash flows from investing activities

 

Interest received

1,168,840

1,065,277

Acquisitions of tangible assets

(1,834,755)

(3,965,745)

Proceeds from sale of tangible assets

 

664,475

1,254,832

Acquisition of investment properties

13

(3,000)

(4,335)

Proceeds from sale of investment properties

 

1,509,999

-

Acquisition of investments

 

(75,153)

-

Net cash flows from investing activities

 

1,430,406

(1,649,971)

Cash flows from financing activities

 

Payments to finance lease creditors

 

(340,247)

(490,040)

Dividends paid

(4,846,808)

(1,036,000)

Net cash flows from financing activities

 

(5,187,055)

(1,526,040)

Net increase/(decrease) in cash and cash equivalents

 

1,673,959

(402,043)

Cash and cash equivalents at 1 October

 

5,908,369

6,310,412

Cash and cash equivalents at 30 September

 

7,582,328

5,908,369

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Doublebois Industrial Estate
Doublebois
Liskeard
Cornwall
PL14 6LE
United Kingdom

These financial statements were authorised for issue by the Board on 26 June 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

FRS 102 grants a qualifying entity exemptions from the full requirements of FRS 102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity.

The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and the company's cash flows is included in its own consolidated financial statements. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other wholly owned members of the Champion Groundworks Ltd group.

No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006.

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 September 2024.

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

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

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

A joint venture is an entity which is jointly controlled by the group and one or more other venturers under a contractual arrangement.

Joint ventures are accounted for using the equity method. Investments in joint ventures are carried in the Consolidated Balance Sheet at cost plus post-acquisition changes in the Group's share of net assets of the entity, less any impairment in value.

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Going concern

As at the current time the group remains in a strong financial position, with a strong cash balance and improving trading reserves. The directors continue to monitor the ongoing impact of the increasing inflationary cost pressure currently being experienced in the UK.

At the balance sheet date the group maintains a strong cash balance. The business continues to have access to its pre-existing bank facilities and the directors take further comfort from their long-standing relationships with key customers and the underlying strength and robustness of the business that has weathered other financial downturns and competitive pressures before.

Due to the business’ strong net asset position it retains the flexibility to obtain additional financing from multiple sources or further delay repayment of certain liabilities in the event that the economic environment is more challenging than originally forecast.

In the medium term the directors believe that the demand for the groundworking services the business provides will remain strong due to the continued housing developments in the South West. The group has expanded its operations and client base and now covers Cornwall, Devon and Somerset.

On the basis of the forecasts completed and analysis, the directors remain confident that the company and group will continue to be a going concern for a period of at least 12 months from the date of approving these financial statements. The accounts have accordingly been prepared on a going concern basis.

Key sources of estimation uncertainty

In the application of the Company’s accounting policies management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience and include the following:

Depreciation
Depreciation is provided on tangible and intangible fixed assets respectively so as to write off the cost of an asset over its expected useful economic life. Detail of the useful economic lives assigned to assets can be seen in the related accounting policies. Management continuously review the accuracy of the estimates applied, particularly when assets are disposed/written off, and are comfortable that the rates applied are materially accurate.

Revenue and amounts recoverable on contracts

Contract revenue for provision of groundwork services under construction contracts is determined by the completion percentage at year end. The completion percentage is determined by the assessment of the company surveyors at each month end with reference to the revenue agreed in the contract for each phase and each plot. Contract costs are released to the profit and loss account at the same completion percentage. In rare circumstances when it is probable that a contract will generate a loss overall, the loss is recognised as an expense immediately. The estimation of completion percentage, total contract costs and potential contract losses are all subject to inherent uncertainty. As at year end the construction contract liability balance, by which cost recognition is matched to the same completion percentage as revenue, was £3,532,448 (2023: £3,532,448).

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Revenue recognition
Turnover comprises the fair value of consideration received or receivable for contracted groundwork services, hire of assets, sales of purchased plant and equipment and sales of developed properties. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company. Turnover from groundwork contracts is recognised based on the stage of completion with reference to the agreed contract. Rental payments are recognised in the period to which they relate on a straight line basis over the agreed rental period. Sales of purchased plant are recognised when possession is taken by the customer. Sales of developed properties are recognised on exchange of contract.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

2% on cost

Motor vehicles

25% on reducing balance

Other property, plant and equipment

3% on cost - 25% reducing balance

Furniture, fittings and equipment

10-14% on reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually either by management or external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss. Properties held for capital appreciation or rental yield are classified in investment properties

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of development properties comprises direct materials and, where applicable, direct labour
costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Properties developed for onward sale are classified in stock.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Provisions

Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Cash and bank balances.
• Bank loans.


All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of developed properties and machinery

3,448,753

386,842

Rendering of services

77,670,712

77,899,059

Leasing of equipment

563,401

164,971

Other revenue

1,481

531

81,684,347

78,451,403

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

The analysis of the group's Turnover for the year by market is as follows:

2024
£

2023
£

UK

81,684,347

78,451,403

The amount of contract revenue recognised as Turnover in the year was £77,670,712 (2023 - £77,899,059).
Contract revenue for provision of groundwork services is determined by the value of work completed. The value of work is determined by the assessment of the company surveyors at each month end with reference to the revenue agreed in the contract for each phase and each plot.

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Rental income

139,261

150,740

Miscellaneous other operating income

-

24,999

139,261

175,739

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

2,633,843

2,620,659

Impairment of Goodwill

935,361

-

Loss on disposal of investment property

211,446

-

Loss/(profit) on disposal of property, plant and equipment

21,137

(147,796)

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

15,392,454

14,846,893

Social security costs

1,618,727

1,613,980

Pension costs, defined contribution scheme

469,163

457,856

Other employee expense

40,200

34,243

17,520,544

16,952,972

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

339

326

Administration and support

19

19

358

345

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

301,687

365,880

Contributions paid to money purchase schemes

53,333

40,000

355,020

405,880

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

1

1

In respect of the highest paid director:

2024
£

2023
£

Remuneration

152,478

184,461

Company contributions to money purchase pension schemes

53,333

40,000

8

Auditor's remuneration

2024
£

2023
£

Audit of these financial statements

2,500

2,500

Audit of the financial statements of subsidiaries of the company pursuant to legislation

32,260

24,425

34,760

26,925

Other fees to auditors

Taxation compliance services

4,750

5,259

All other non-audit services

12,311

27,771

17,061

33,030


 

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

9

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

90,520

34,928

Other finance income

38,320

30,349

128,840

65,277

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

320,228

306,619

UK corporation tax adjustment to prior periods

16,306

17,189

336,534

323,808

Deferred taxation

Arising from origination and reversal of timing differences

53,035

399,424

Tax expense in the income statement

389,569

723,232

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 22.01%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,284,289

4,438,132

Corporation tax at standard rate

321,072

976,744

Increase in UK and foreign current tax from adjustment for prior periods

16,306

17,189

Effect of revenues exempt from taxation

(260,000)

(220,080)

Effect of expense not deductible in determining taxable profit (tax loss)

252,980

19,320

Increase from tax losses for which no deferred tax asset was recognised

227

-

Increase/(decrease) from effect of joint-ventures and associates results reported net of tax

65,105

(75,043)

Deferred tax expense relating to changes in tax rates or laws

-

34,358

Decrease from effect of tax incentives

-

(29,256)

Further item of tax decrease

(6,121)

-

Total tax charge

389,569

723,232

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Deferred tax

Group

Deferred tax assets and liabilities

2024

Liability
£

Accelerated tax depreciation

(2,201,152)

Provisions

22,606

Fair valuation of investment property

(31,265)

Tax losses carried forward

154,803

(2,055,008)

2023

Liability
£

Accelerated tax depreciation

(1,890,545)

Provisions

11,876

Fair valuation of investment property

(37,386)

(1,916,055)

11

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 October 2023

-

-

Additions acquired separately

935,361

935,361

At 30 September 2024

935,361

935,361

Amortisation

At 1 October 2023

-

-

Impairment

935,361

935,361

At 30 September 2024

935,361

935,361

Carrying amount

At 30 September 2024

-

-

At 30 September 2023

-

-

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

12

Tangible assets

Group

Freehold property
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 October 2023

2,372,720

33,762

4,539,368

19,037,839

25,983,689

Additions

111,360

2,916

499,660

2,998,597

3,612,533

Acquired through business combinations

-

6,027

109,619

1,813,058

1,928,704

Disposals

-

-

(295,330)

(1,397,527)

(1,692,857)

At 30 September 2024

2,484,080

42,705

4,853,317

22,451,967

29,832,069

Depreciation

At 1 October 2023

270,848

3,770

2,532,765

8,340,129

11,147,512

Charge for the year

53,010

4,178

609,788

1,966,867

2,633,843

Eliminated on disposal

-

-

(228,216)

(779,029)

(1,007,245)

Acquired through business combinations

-

4,863

94,252

966,554

1,065,669

At 30 September 2024

323,858

12,811

3,008,589

10,494,521

13,839,779

Carrying amount

At 30 September 2024

2,160,222

29,894

1,844,728

11,957,446

15,992,290

At 30 September 2023

2,101,872

29,992

2,006,603

10,697,710

14,836,177

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Other property, plant and equipment

1,690,756

392,678

   
 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

13

Investment properties

Group

2024
£

At 1 October

3,340,281

Additions

3,000

Disposals

(1,721,445)

At 30 September

1,621,836

Fair value has been estimated with reference to an independent valuation (FRICS FAAV) completed in February 2016 or for assets purchased after this date purchase price. The directors valued the investment property as at 30 September 2024 and concluded that fair value was not materially different to current carrying value.

14

Investments

Group and company

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Fred Champion Groundworks Limited*

Doublebois Industrial Estate, Doublebois, Liskeard, PL14 6LE

Ordinary

100%

100%

 

England and Wales

     

Fred Champion Hire Limited*

Doublebois Industrial Estate, Doublebois, Liskeard, PL14 6LE

Ordinary

100%

100%

 

England and Wales

     

Champion Scaffolding Limited*

Doublebois Industrial Estate, Doublebois, Liskeard, Cornwall, PL14 6LE

Ordinary

100%

0%

 

England and Wales

     

Fred Champion Scaffolding Limited

Doublebois Industrial Estate, Doublebois, Liskeard, Cornwall, PL14 6LE

Ordinary

100%

0%

 

England and Wales

     
 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Joint ventures

Groundfix Limited*

C/O Turnbull & Company Accountants Ltd, Pilgrim House Oxford Place, Plymouth, PL1 5AJ

Ordinary

50%

50%

 

England and Wales

     

* indicates direct investment of the company.

Subsidiary undertakings

Fred Champion Groundworks Limited

The principal activity of Fred Champion Groundworks Limited is a groundwork contractors.

Fred Champion Hire Limited

The principal activity of Fred Champion Hire Limited is hire of equipment.

Champion Scaffolding Limited

The principal activity of Champion Scaffolding Limited is an investment holding company.

Fred Champion Scaffolding Limited

The principal activity of Fred Champion Scaffolding Limited is that of scaffolders.

Groundfix Limited
The principal activity of Groundfix Limited is groundworks contractors.

Aggregate financial information of joint ventures

2024
£

2023
£

Group's share of profit or loss in joint ventures

(260,418)

340,967

Group's share of balance sheet in joint ventures

3,560,638

3,821,057

Company

2024
£

2023
£

Investments in subsidiaries

4,000,100

4,000,000

Investments in joint ventures

50

50

4,000,150

4,000,050

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Subsidiaries

£

Cost or valuation

At 1 October 2023

4,000,000

Additions

100

At 30 September 2024

4,000,100

Provision

At 1 October 2023

-

At 30 September 2024

-

Carrying amount

At 30 September 2024

4,000,100

At 30 September 2023

4,000,000

Joint ventures

£

Cost

At 1 October 2023

50

At 30 September 2024

50

Provision

At 1 October 2023

-

At 30 September 2024

-

Carrying amount

At 30 September 2024

50

At 30 September 2023

50

15

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Raw materials

821,801

742,516

-

-

Properties under development

793,761

3,061,574

-

-

Other inventories

973

141,144

-

-

1,616,535

3,945,234

-

-

Group

Impairment of inventories

The amount of impairment loss included in profit or loss is £Nil (2023 - £Nil).

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

16

Debtors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Amounts recoverable on contracts

 

13,425,431

12,973,517

-

-

Amounts owed by related parties

27

1,280,981

-

361,489

-

Other debtors

 

5,296,285

6,226,193

-

-

Prepayments

 

656,696

598,696

-

-

Accrued income

 

172,762

1,661,220

-

-

Income tax asset

10

579,201

143,312

-

-

 

21,411,356

21,602,938

361,489

-

Details of non-current trade and other debtors

Group

£368,455 (2023 - £841,664) of retentions is classified as non current. This comprises retentions on groundwork contracts due after more than one year from the balance sheet date.

17

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

310

461

-

-

Cash at bank

7,657,171

5,907,908

891,025

353,155

7,657,481

5,908,369

891,025

353,155

Bank overdrafts

(75,153)

-

-

-

Cash and cash equivalents in statement of cash flows

7,582,328

5,908,369

891,025

353,155

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

18

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

19

741,500

101,532

-

-

Trade creditors

 

9,320,546

9,772,515

-

15,000

Amounts due to group undertakings

27

-

-

-

211,941

Social security and other taxes

 

699,308

683,470

-

-

Outstanding defined contribution pension costs

 

96,259

102,997

-

-

Other creditors

 

1,247,078

231,593

3,705

3,706

Accruals

 

1,007,648

765,204

3,532

3,495

Corporation tax

10

114,067

284,129

-

-

Construction contract liabilities

 

3,532,448

3,532,448

-

-

 

16,758,854

15,473,888

7,237

234,142

Due after one year

 

Loans and borrowings

19

934,249

-

-

-

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

19

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

6,667

-

-

-

Hire purchase contracts

927,582

-

-

-

934,249

-

-

-

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

10,000

-

-

-

Bank overdrafts

75,153

-

-

-

Hire purchase contracts

656,347

101,532

-

-

741,500

101,532

-

-

The bank holds an unlimited debenture dated 26th July 2002, incorporating a fixed and floating charge over the assets of Fred Champion Groundworks Limited and Fred Champion Hire Limited, and a letter of omnibus set-off and guarantee between Fred Champion Groundworks Limited and Fred Champion Scaffolding Limited dated 5th May 2008. All hire purchase liabilities are secured against the asset to which it relates.

20

Obligations under leases and hire purchase contracts

Group

Finance leases and hire purchase agreements

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

740,145

112,209

Later than one year and not later than five years

970,052

-

1,710,197

112,209

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

24,525

24,139

Later than one year and not later than five years

22,734

42,106

47,259

66,245

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

The amount of non-cancellable operating lease payments recognised as an expense during the year was £24,265 (2023 - £22,044).

21

Deferred tax and other provisions

Group

Deferred tax
£

Other provisions
£

Total
£

At 1 October 2023

1,916,055

99,699

2,015,754

Increase (decrease) in existing provisions

53,035

-

53,035

Increase (decrease) through business combinations

85,918

-

85,918

At 30 September 2024

2,055,008

99,699

2,154,707

The other provision is in regard to a project that has been historically loss making and is expected to continue at the same negative margin for the remainder of the contract.

22

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £469,163 (2023 - £457,856).

Contributions totalling £96,259 (2023 - £102,997) were payable to the scheme at the end of the year and are included in creditors.

23

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary A shares of £0.10 (2023 - £1) each

290

29

29

29

Ordinary B shares of £0.10 (2023 - £1) each

40

4

4

4

Ordinary C shares of £0.10 (2023 - £1) each

330

33

33

33

Ordinary D shares of £0.10 (2023 - £1) each

50

5

5

5

 

710

71

71

71

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
All Ordinary shares classes (A-D) have equal full rights to voting, income and capital in event of winding up or other return on capital.

As part of the group restructure the pre-existing shares were cancelled and re-issued.

24

Business combinations

On 23 July 2024, Champion Groundworks Limited acquired 100% of the issued share capital of Champion Scaffolding Limited group, obtaining control.

Champion Scaffolding Limited group contributed £251,358 revenue and £63,248 to the group's profit for the period between the date of acquisition and the Balance Sheet date.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:
 

Book value
2024
£

Fair value
2024
£

Assets and liabilities acquired

Financial assets

307,595

307,595

Stocks

2,015

2,015

Tangible assets

863,034

863,034

Financial liabilities

(2,107,905)

(2,107,905)

Total identifiable assets

(935,261)

(935,261)

Goodwill

935,361

935,361

Total consideration

100

100

25

Parent and ultimate parent undertaking

The most senior parent entity producing publicly available financial statements is Champion Groundworks & Construction Limited.The ultimate controlling party is the Directors of Champion Groundworks & Construction Limited by virtue of their controling shareholding.

On 30 July 2024 a change of control occurred when Champion Groundworks & Construction Limited acquired the share capital of the group from the previous shareholders.

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

26

Financial instruments

Group

Categorisation of financial instruments

2024
 £

2023
 £

Financial assets measured at fair value through profit or loss

1,621,836

3,340,281

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually either by management or by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset.

27

Related party transactions

Group

The company has taken advantage of the exemption in FRS102 "Related Party Disclosures" from disclosing transactions with other wholly owned members of the Champion Groundworks Limited group.

The directors do not consider any employees other than statutory directors, whose remuneration is disclosed in note 8, to be key management personnel within the definition contained in FRS102.

Transactions with directors

2024

At 1 October 2023
£

Advances to director
£

Repayments by director
£

Acquired on business combination
£

At 30 September 2024
£

Director 1

Director's loan account

(69,567)

(4,156,613)

4,166,000

-

(60,180)

Director 2

Director's loan account

424

(226,916)

226,916

949,994

950,418

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

2023

At 1 October 2022
£

Advances to director
£

Repayments by director
£

At 30 September 2023
£

Director 1

Director's loan account

(10,202)

(564,025)

504,660

(69,567)

Director 2

Director's loan account

(17,326)

(351,892)

369,642

424

Other transactions with directors

In the year the Group sold two properties to a Director at market value of £3,995,000 and one property to a Trust, for which Directors are Trustees, at a market value of £715,000.

Key management personnel
Transactions with Directors. All loan accounts are interest free and repayable on demand.

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Income and receivables from related parties

2024

Joint ventures
£

Other related parties
£

Rendering of services

3,185,338

457,082

Amounts receivable from related party

545,103

32,048

2023

Joint ventures
£

Other related parties
£

Rendering of services

2,736,380

629,070

Amounts receivable from related party

182,643

45,383

Expenditure with and payables to related parties

2024

Joint ventures
£

Other related parties
£

Receipt of services

58,454

2,789,956

Purchase of property or other assets

-

3,319,577

58,454

6,109,533

Amounts payable to related party

1,616

448,585

2023

Joint ventures
£

Other related parties
£

Receipt of services

251,700

1,280,247

Purchase of property or other assets

-

2,308,725

251,700

3,588,972

Amounts payable to related party

57,396

459,038

Loans to related parties

2024

Joint ventures
£

Other related parties
£

Total
£

At start of period

523

1,635,430

1,635,953

Repaid

-

(506,175)

(506,175)

No longer related

-

(693,810)

(693,810)

At end of period

523

435,445

435,968

 

Champion Groundworks Limited

Notes to the Financial Statements

Year Ended 30 September 2024

2023

Joint ventures
£

Other related parties
£

Total
£

At start of period

523

1,718,724

1,719,247

Advanced

-

448,847

448,847

Repaid

-

(532,141)

(532,141)

At end of period

523

1,635,430

1,635,953

Terms of loans to related parties

There are no formal terms or interest charged on loans provided to related parties.
 

Summary of transactions with other related parties

Companies related by common control. Trade sales, trade purchases and loan account provided to related parties. All loan accounts are interest free and repayable on demand.

Summary of transactions with joint ventures

Entities which are joint ventures of the Champion Groundworks Limited group. Trade sales, trade purchases and loan account provided to related parties. All loan accounts are interest free and repayable on demand.

28

Analysis of changes in net debt

Group

At 1 October 2023
£

Financing cash flows
£

Acquisition of subsidiaries
£

New finance leases
£

At 30 September 2024
£

Cash and cash equivalents

Cash

5,908,367

1,749,115

-

-

7,657,482

Overdrafts

-

-

(75,153)

-

(75,153)

5,908,367

1,749,115

(75,153)

-

7,582,329

Borrowings

Long term borrowings

-

-

(6,667)

-

(6,667)

Short term borrowings

-

-

(10,000)

-

(10,000)

Lease liabilities

(101,532)

295,380

-

(1,777,777)

(1,583,929)

(101,532)

295,380

(16,667)

(1,777,777)

(1,600,596)

 

5,806,835

2,044,495

(91,820)

(1,777,777)

5,981,733