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Company Registration Number 02641120























CUBBY CONSTRUCTION LIMITED





FINANCIAL STATEMENTS





 31 MAY 2024
























img57e5.png

 
CUBBY CONSTRUCTION LIMITED
 

COMPANY INFORMATION


Directors
J D Cubby (resigned 19 December 2024)
S A Cubby (resigned 19 December 2024)
T J Cubby 
W A Tinkler (appointed 1 July 2025)




Registered number
02641120



Registered office
Units H & L
Knights Drive

Kingmoor Park Central

Carlisle

Cumbria

CA6 4SG




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors

James Watson House

Montgomery Way

Rosehill

Carlisle

Cumbria

CA1 2UU





 
CUBBY CONSTRUCTION LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11 - 12
Company Balance Sheet
 
13 - 14
Consolidated Statement of Changes in Equity
 
15 - 16
Company Statement of Changes in Equity
 
17 - 18
Consolidated Statement of Cash Flows
 
19
Consolidated Analysis of Net Debt
 
20
Notes to the Financial Statements
 
21 - 42


 
CUBBY CONSTRUCTION LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The directors present their strategic report for the year ended 31 May 2024.
The principal activities of the group continued to be that of a civil engineering, construction and joinery throughout the period.

Business review
 
The financial year ended 31 May 2024 has been particularly challenging, resulting in significant losses. The key factors contributing to these financial results are outlined below.
The financial year ended 31 May 2024 was challenging for the Group due to unforeseen complexities in a small number of contracts and wider macroeconomic pressures affecting the UK construction sector.
Revenue for the year was £22.9m (2023: £24m) with a gross profit of £2.1m (2023: £3.6m), reflecting a decline in gross margin to 9% (2023: 15%). Two major contracts experienced unexpected delivery challenges which impacted profitability; however, lessons learned from these projects have already been applied to strengthen bidding, contract management, and risk control processes.
The company experienced significant challenges with one significant contract, the Carlisle Southern Link Road (CSLR). Following a successful mediation with the Principle Contractor, and the Client, all parties mutually agreed to terminate the contract. While the cost to the company was significant along with the loss of secured work, it prevented further losses on a project that faces significant cost and time issues.
Despite these challenges, the Group remains resilient. After the balance sheet date, a substantial £12 million investment was secured to strengthen working capital and support future growth. This strategic investment is complemented by the integration of additional businesses in Rail Civil Engineering, Renewable Energy and Utilities, bringing profitable contracts and broadening the Group’s capabilities.

Page 1

 
CUBBY CONSTRUCTION LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Principal risks and uncertainties
 
The directors consider the principal risks and uncertainties faced by the group to be those in relation to contracting, the economic environment, cash flow, and credit risk.
Contracting
Given that contracting involves forecasting future costs to agree a price for works that is often fixed to an extent, there is inherently a risk involved, in that the profitability of those contracts cannot be known at the point at which the contract is entered into. Lessons have been learned on the CLSR contract and are now being applied to contract negotiations and bidding processes to prevent the recurrence of similar issues. This risk is also managed by ensuring that the estimating and commercial departments are well-resourced and expertly trained through the ongoing monitoring of contract performance, agreeing escalator clauses in contracts where possible, and ensuring that margins on contracts are robust.
Economic environment 
Continued macroeconomic volatility could impact demand for construction projects and the cost of labour and materials. The directors monitor the economic environment and particularly input prices and the market for contracts closely, so that they can respond appropriately to changes in the environment. Increasing requirements for sustainable construction methods and materials could impact costs but also present new business opportunities.
Regulation
Compliance with evolving health, safety, and environmental regulations remains a key focus and the SHEQ continues to underpin all areas of the business.
Cash flow
Contracting requires significant investments in working capital and is to an extent seasonal with lower activity levels at certain times of year. This presents a cash flow risk. The directors manage the cash flow risk through ongoing cash flow forecasting, monitoring the adequacy of facilities against anticipated requirements, seeking to reduce working capital requirements where possible via utilising stock and closely managing debtors, and controlling costs.
Credit
The group is exposed to credit losses from its customers. The directors manage this risk by applying strict credit checks, ensuring that stage payments are included in contrac.

Post balance sheet events
On 21 February 2025, Cubby Construction Limited acquired the trade and assets of Colin Briscoe Construction Limited: Established in 1993 in Carnforth, this high-quality Civil Engineering and Building Contractor has a strong reputation for working with blue-chip companies.
On 1 July 2025, the entire share capital of Cubby Construction Limited was sold to a new company Svella Bidco 1 Limited.  On the same date the group secured £12million investment. The investment will be utilised to strengthen the company’s working capital position, support key strategic initiatives and drive growth. This growth strategy also promises future investment for acquisitions, asset purchases, and most importantly, investment in people. 






 
Page 2

 
CUBBY CONSTRUCTION LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024




Outlook
With the support of new investment and experience, the Group is well-positioned to grow sustainably and profitably. The enlarged Group now operates across the Northwest, Northeast, Midlands, and Southern Scotland with six core divisions: Construction, Civil Engineering, Rail, Utilities, Plant, and Joinery.
Management remains focused on:
• Securing the right projects that deliver sustainable margins
• Building strong relationships with clients and supply chain partners
• Investing in our people and systems to enhance quality and efficiency
• Diversifying revenue streams to reduce risk
The Board is confident that the lessons learned, new investment, and strengthened operations provide a solid platform for future growth, benefiting employees, clients, and stakeholders alike. The Board wishes to thank our dedicated employees, loyal clients, and stakeholders for their support throughout this period of transition.


This report was approved by the board and signed on its behalf.



T J Cubby
Director

Date: 18 July 2025

Page 3

 
CUBBY CONSTRUCTION LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the Group 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 for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £1,326,737 (2023 - profit £357,652).

Directors

The directors who served during the year were:

J D Cubby (resigned 19 December 2024)
S A Cubby (resigned 19 December 2024)
T J Cubby 

Matters covered in the group strategic report

The following information, which would otherwise be disclosed in the directors' report is instead disclosed in the strategic report, as permitted by section 414c(11) of the Companies Act 2006:
- post balance sheet events, and;
- future developments.

Page 4

 
CUBBY CONSTRUCTION LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





T J Cubby
Director

Date: 18 July 2025

Page 5

 
CUBBY CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBBY CONSTRUCTION LIMITED
 

Opinion


We have audited the financial statements of Cubby Construction Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 of the parent Company's affairs as at 31 May 2024 and of the Group's loss 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
CUBBY CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBBY CONSTRUCTION LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the 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 the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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 Directors' Responsibilities Statement set out on page 4, 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.


Page 7

 
CUBBY CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBBY CONSTRUCTION LIMITED (CONTINUED)


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 an Auditors' 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 Group financial statements.


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence,   capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and    other management;
• we assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management; and
• identified laws and regulations were communicated within the audit team regularly and the team remained   alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their    knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations.
To address the risk of fraud through management bias and override of controls, we: 
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected     relationships;
• tested journal entries to identify unusual transactions; and
• reviewed the application of accounting policies.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and
• enquiring of management as to actual and potential litigation and claims.


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 Auditors' Report.

Page 8

 
CUBBY CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBBY CONSTRUCTION LIMITED (CONTINUED)



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 2006Our 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 Auditors' 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.





Joanna Gray (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors
Carlisle

21 July 2025
Page 9

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

As restated
2024
2023
Note
£
£

  

Turnover
 4 
22,858,511
24,041,119

Cost of sales
  
(20,802,413)
(20,439,993)

Gross profit
  
2,056,098
3,601,126

Administrative expenses
  
(3,636,272)
(2,934,861)

Other operating income
 5 
34,110
30,332

Operating (loss)/profit
 6 
(1,546,064)
696,597

Interest receivable and similar income
 10 
-
31

Interest payable and similar expenses
 11 
(160,103)
(114,311)

(Loss)/profit before taxation
  
(1,706,167)
582,317

Tax on (loss)/profit
 12 
379,430
(224,665)

(Loss)/profit for the financial year
  
(1,326,737)
357,652

  

Unrealised surplus/(deficit) on revaluation of tangible fixed assets
  
134,280
(30,000)

Other comprehensive income for the year
  
134,280
(30,000)

Total comprehensive income for the year
  
(1,192,457)
327,652

(Loss)/profit for the year attributable to:
  

Owners of the parent Company
  
(1,326,737)
357,652

  
(1,326,737)
357,652

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
(1,192,457)
327,652

  
(1,192,457)
327,652

The notes on pages 21 to 42 form part of these financial statements.

Page 10

 
CUBBY CONSTRUCTION LIMITED
REGISTERED NUMBER: 02641120

CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
5,248,463
4,469,688

Investment property
 16 
-
400,000

  
5,248,463
4,869,688

Current assets
  

Stocks
 17 
491,763
440,607

Debtors: amounts falling due within one year
 18 
4,036,737
4,365,879

Cash at bank and in hand
 19 
223,564
97,864

  
4,752,064
4,904,350

Creditors: amounts falling due within one year
 20 
(6,854,863)
(5,768,248)

Net current liabilities
  
 
 
(2,102,799)
 
 
(863,898)

Total assets less current liabilities
  
3,145,664
4,005,790

Creditors: amounts falling due after more than one year
 21 
(889,559)
(441,216)

Provisions for liabilities
  

Deferred taxation
 24 
(87,235)
(466,665)

Other provisions
 25 
(413,621)
-

  
 
 
(500,856)
 
 
(466,665)

Net assets
  
1,755,249
3,097,909


Capital and reserves
  

Called up share capital 
 26 
100,002
100,002

Revaluation reserve
 27 
1,419,887
1,310,607

Profit and loss account
 27 
235,360
1,687,300

Equity attributable to owners of the parent Company
  
1,755,249
3,097,909


Page 11

 
CUBBY CONSTRUCTION LIMITED
REGISTERED NUMBER: 02641120

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




T J Cubby
Director

Date: 18 July 2025

The notes on pages 21 to 42 form part of these financial statements.

Page 12

 
CUBBY CONSTRUCTION LIMITED
REGISTERED NUMBER: 02641120

COMPANY BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
5,187,482
4,391,262

Investments
 15 
1
1

Investment Property
 16 
-
400,000

  
5,187,483
4,791,263

Current assets
  

Stocks
 17 
468,776
416,324

Debtors: amounts falling due within one year
 18 
3,535,223
3,731,748

Cash at bank and in hand
 19 
18,140
44,466

  
4,022,139
4,192,538

Creditors: amounts falling due within one year
 20 
(6,697,946)
(5,424,594)

Net current liabilities
  
 
 
(2,675,807)
 
 
(1,232,056)

Total assets less current liabilities
  
2,511,676
3,559,207

  

Creditors: amounts falling due after more than one year
 21 
(887,418)
(433,910)

Provisions for liabilities
  

Deferred taxation
 24 
(82,226)
(459,770)

Other provisions
 25 
(413,621)
-

  
 
 
(495,847)
 
 
(459,770)

Net assets excluding pension asset
  
1,128,411
2,665,527

Net assets
  
1,128,411
2,665,527


Capital and reserves
  

Called up share capital 
 26 
100,002
100,002

Revaluation reserve
 27 
1,419,887
1,310,607

Profit and loss account
 27 
(391,478)
1,254,918

  
1,128,411
2,665,527


Page 13

 
CUBBY CONSTRUCTION LIMITED
REGISTERED NUMBER: 02641120

COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


T J Cubby
Director

Date: 18 July 2025

The notes on pages 21 to 42 form part of these financial statements.

Page 14

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 June 2023
100,002
1,310,607
1,687,300
3,097,909


Comprehensive income for the year

Loss for the year
-
-
(1,326,737)
(1,326,737)

Surplus on revaluation of freehold property
-
134,280
-
134,280


Other comprehensive income for the year
-
134,280
-
134,280


Total comprehensive income for the year
-
134,280
(1,326,737)
(1,192,457)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(150,203)
(150,203)

Transfer to/from profit and loss account
-
(25,000)
25,000
-


Total transactions with owners
-
(25,000)
(125,203)
(150,203)


At 31 May 2024
100,002
1,419,887
235,360
1,755,249


The notes on pages 21 to 42 form part of these financial statements.

Page 15

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 June 2022
100,002
1,350,607
1,514,510
2,965,119


Comprehensive income for the year

Profit for the year

-
-
357,652
357,652

Deficit on revaluation of freehold property
-
(30,000)
-
(30,000)


Other comprehensive income for the year
-
(30,000)
-
(30,000)


Total comprehensive income for the year
-
(30,000)
357,652
327,652


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(194,862)
(194,862)

Transfer to/from profit and loss account
-
(10,000)
10,000
-


Total transactions with owners
-
(10,000)
(184,862)
(194,862)


At 31 May 2023
100,002
1,310,607
1,687,300
3,097,909


The notes on pages 21 to 42 form part of these financial statements.

Page 16

 
CUBBY CONSTRUCTION LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 June 2023
100,002
1,310,607
1,254,918
2,665,527


Comprehensive income for the year

Loss for the year
-
-
(1,521,193)
(1,521,193)

Surplus on revaluation of freehold property
-
134,280
-
134,280


Other comprehensive income for the year
-
134,280
-
134,280


Total comprehensive income for the year
-
134,280
(1,521,193)
(1,386,913)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(150,203)
(150,203)

Transfer to/from profit and loss account
-
(25,000)
25,000
-


Total transactions with owners
-
(25,000)
(125,203)
(150,203)


At 31 May 2024
100,002
1,419,887
(391,478)
1,128,411


The notes on pages 21 to 42 form part of these financial statements.

Page 17

 
CUBBY CONSTRUCTION LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 June 2022
100,002
1,350,607
1,218,238
2,668,847


Comprehensive income for the year

Profit for the year

-
-
221,542
221,542

Deficit on revaluation of freehold property
-
(30,000)
-
(30,000)


Other comprehensive income for the year
-
(30,000)
-
(30,000)


Total comprehensive income for the year
-
(30,000)
221,542
191,542


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(194,862)
(194,862)

Transfer to/from profit and loss account
-
(10,000)
10,000
-


Total transactions with owners
-
(10,000)
(184,862)
(194,862)


At 31 May 2023
100,002
1,310,607
1,254,918
2,665,527


The notes on pages 21 to 42 form part of these financial statements.

Page 18

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

As restated
2024
2023
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(1,326,737)
357,652

Adjustments for:

Depreciation of tangible assets
462,464
406,561

Loss on disposal of tangible assets
57,584
(50,899)

Interest paid
160,103
114,280

Taxation charge
(379,430)
224,665

(Increase) in stocks
(51,156)
(4,726)

Decrease/(increase) in debtors
329,143
(1,220,871)

Increase in creditors
188,354
760,064

Increase/(decrease) in provisions
413,621
(85,000)

Transfer from revaluation reserve
-
(30,000)

Net cash generated from operating activities

(146,054)
471,726


Cash flows from investing activities

Purchase of tangible fixed assets
(60,158)
(523,318)

Sale of tangible fixed assets
489,965
584,779

HP interest paid
(136,048)
(76,141)

Net cash from investing activities

293,759
(14,680)

Cash flows from financing activities

Repayment of/new loans
500,000
(238,809)

Repayment of/new finance leases
(610,247)
(103,412)

Dividends paid
(150,203)
(194,862)

Interest paid
(24,055)
(38,139)

Net cash used in financing activities
(284,505)
(575,222)

Net (decrease) in cash and cash equivalents
(136,800)
(118,176)

Cash and cash equivalents at beginning of year
(305,519)
(187,343)

Cash and cash equivalents at the end of year
(442,319)
(305,519)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
223,564
97,864

Bank overdrafts
(665,883)
(403,383)

(442,319)
(305,519)


The notes on pages 21 to 42 form part of these financial statements.

Page 19

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024





At 1 June 2023
Cash flows
New finance leases
At 31 May 2024
£

£

£

£

Cash at bank and in hand

97,864

125,700

-

223,564

Bank overdrafts

(403,383)

(262,500)

-

(665,883)

Debt due within 1 year

(162,655)

(430,916)

-

(593,571)

Finance leases

(809,436)

610,247

(1,194,351)

(1,393,540)


(1,277,610)
42,531
(1,194,351)
(2,429,430)

The notes on pages 21 to 42 form part of these financial statements.

Page 20

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Cubby Construction Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. 
The principal activity of the company and group is that of a construction contractor. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 21

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.3

Going concern

The group has made a loss of £1,326,737 for the financial year and at the year-end had net current
liabilities of £2,102,799 due to challenging trading conditions, details of which have been included in the group’s strategic report.
Despite these challenges, the directors have assessed the company’s ability to continue as a going concern and have considered the following factors:
• Post balance sheet investment: The group has secured a significant investment of £12million from   investors, strengthening its liquidity position.
• New contract wins: the company has secured new contracts and been awarded frameworks post year-end, which are expected to contribute positively to revenue and profitability.
• Acquisitions: recent acquisitions alongside the transfer of subsidiaries as part of the new group structure following the sale of the business is anticipated to bring opportunities in new geographies as well as capabilities in specialist sectors that typically attract higher margins.
• Debt and cash flow: the company has sufficient resources to meet its obligations as they fall due. The current banking partner has indicated its willingness to continue to lend to the group and the new investment provides funding to support working capital and for future growth.
The directors acknowledge that there are inherent risks, including macroeconomic uncertainty and ongoing market volatility. However, based on the mitigating actions taken, financial support secured, and projection, they are confident that the company has adequate resources to continue in operational existence for the foreseeable future.
Accordingly, the financial statements have been prepared on a going concern basis.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue from long-term contracts is recognised according to the stage of completion of that contract, with reference to the proportion of work done (output method). Profit is recognised on only where the outcome of the contract can be measured reliably. Amounts receivable on contracts, included in debtors, is stated at the valuation of work performed, including profit where applicable, to the extent that it is probable that these amounts will be recovered, less any stage payments received. 
Where contracts are anticipated to be loss making, the expected loss is recognised in full as soon as that loss is foreseen.
Revenue from the provision of services, where these do not constitute long-term contractual arrangements, are recognised in accordance with the stage of completion of those services. 
Revenue from the provision of goods is recognised on dispatch.
 

Page 22

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 23

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


  
2.11

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. 
Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. The useful economic life of goodwill was determined to be one year in a previous period, and as such this value has now been fully amortised. 

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 24

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as detailed below.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and machinery
-
15%
reducing balance
Motor vehicles
-
15%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.14

Investment property

Investment property is carried at fair value determined annually by the directors, with external valuations undertaken periodically, and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

Page 25

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans 
Page 26

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)

due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 27

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Judgments
Provision for bad or doubtful debts
Management provide for bad or doubtful debts when there is evidence that the asset will not be recoverable. Debts are reviewed individually, with no standard policy being applied, owing to the relatively low level of bad debts historically. 
Estimates
Land and building revaluation (including investment property)
Property valuations have been undertaken by external valuers, with reference to the sale prices of similar properties in the locality of the properties being valued. The price a property would attract is inherently unknowable unless that property is sold, and therefore there is a degree of estimation involved, particularly as a result of changes in the market since the reference property sales, and differences between the comparator properties and those being valued.
Contracts
Revenue is recognised in line with the estimated stage of completion of the contract. The stage of completion is calculated with reference to progress on the specified works within the contract (also known as the Output Method).
Where available, internal and external valuations and certifications by Quantity Surveyors are used to determine the stage of completion. Where these are not available or are not coterminous with the reporting date, management estimate the stage of completion using knowledge of the contract considering, amongst other factors, the days on which work was performed, time elapsed between valuations, key milestones within contracts, and the anticipated final margin on the contract.
The stage of completion of contracts is inherently uncertain and requires estimation.
Where contracts are anticipated to be loss-making after the reporting date, the loss is recognised in full as a provision. Determining whether a contract will be loss-making involves estimating future costs, which is inherently uncertain.
Stock provision
Stock is held at the lower of cost and net realisable value. Where the net realisable value is considered to be lower than the cost, a provision is made against the cost of the stock. The amount of this provision is assessed with reference to factors such as the volume of usage of the stock line and estimated scrap or direct sales value. Calculating this provision involves predicting future events, and as a result there is inherent uncertainty in this estimate.  


4.


Turnover

The whole of the turnover is attributable to the principal activity of the group, which is that of a construction contractor. All turnover arose in the United Kingdom.

All turnover arose within the United Kingdom.

Page 28

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

5.


Other operating income

2024
2023
£
£

Construction Industry Training Board grant income
17,784
11,375

Net rents receivable
2,000
16,868

Other income
14,326
2,089

34,110
30,332



6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
101,187
120,793


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
29,770
28,350

Page 29

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
6,596,344
5,610,953
5,441,817
4,465,800

Social security costs
716,699
616,072
606,925
507,019

Cost of defined contribution scheme
211,180
202,014
182,989
174,513

7,524,223
6,429,039
6,231,731
5,147,332


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
3
3
3
3



Production
139
123
109
92



Administration
27
31
20
24

169
157
132
119


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
29,574
32,372

29,574
32,372



10.


Interest receivable and similar income

2024
2023
£
£


Other interest receivable
-
31

-
31

Page 30

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
3,218
38,170

Other loan interest payable
20,837
-

Finance leases and hire purchase contracts
136,048
76,141

160,103
114,311


12.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
(379,430)
224,665

Total deferred tax
(379,430)
224,665


Tax on (loss)/profit
(379,430)
224,665

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(1,706,167)
582,316


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
(426,542)
110,640

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,931
-

Capital allowances for year in excess of depreciation
36,072
114,025

Adjustments to tax charge in respect of prior periods
(8)
-

Movement in deferred tax not recognised
9,117
-

Total tax charge for the year
(379,430)
224,665

Page 31

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
12.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends on ordinary shares
150,203
194,862

150,203
194,862


14.


Tangible fixed assets

Group






Property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 June 2023
2,100,720
4,415,366
1,517,143
8,033,229


Additions
-
1,045,300
209,209
1,254,509


Disposals
-
(298,288)
(85,832)
(384,120)


Revaluations
134,280
-
-
134,280



At 31 May 2024

2,235,000
5,162,378
1,640,520
9,037,898



Depreciation


At 1 June 2023
32,455
2,506,649
1,024,437
3,563,541


Charge for the year on owned assets
10,000
117,467
68,010
195,477


Charge for the year on financed assets
-
253,408
13,580
266,988


Disposals
-
(210,900)
(25,671)
(236,571)



At 31 May 2024

42,455
2,666,624
1,080,356
3,789,435



Net book value



At 31 May 2024
2,192,545
2,495,754
560,164
5,248,463



At 31 May 2023
2,068,265
1,908,717
492,706
4,469,688

Page 32

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           14.Tangible fixed assets (continued)

The group's properties have been revalued.
The properties at Kingmoor Park, Carlisle which have a historical cost of £1,074,190 and aggregate depreciation of £251,966 were valued at £2,000,000 on an open market basis by Walton Goodland, Chartered Surveyors on 28th February 2024. The directors confirm this valuation remains appropriate for the year ended 31 May 2024.
Land at Irthington which has a historical cost of £48,789 was valued at £235,000 on an open market basis by Ian Ritchie Land Management on 7th July 2024. The directors confirm this valuations is appropriate for the year ended 31 May 2024.
Land included at £875,000 (2023 - £865,720) is not depreciated. 
Fixed assets include assets under hire purchase and finance leases with a net book value of £2,053,883 (2023 - £780,432). 

Page 33

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           14.Tangible fixed assets (continued)


Company






Property
Plant and machinery
Motor vehicles
Total

£
£
£
£

Cost or valuation


At 1 June 2023
2,100,720
4,386,443
1,318,545
7,805,708


Additions
-
1,042,266
209,209
1,251,475


Disposals
-
(298,288)
(85,832)
(384,120)


Revaluations
134,280
-
-
134,280



At 31 May 2024

2,235,000
5,130,421
1,441,922
8,807,343



Depreciation


At 1 June 2023
32,455
2,489,983
892,008
3,414,446


Charge for the year on owned assets
10,000
113,531
51,467
174,998


Charge for the year on financed assets
-
253,408
13,580
266,988


Disposals
-
(210,900)
(25,671)
(236,571)



At 31 May 2024

42,455
2,646,022
931,384
3,619,861



Net book value



At 31 May 2024
2,192,545
2,484,399
510,538
5,187,482



At 31 May 2023
2,068,265
1,896,460
426,537
4,391,262

The company's properties have been revalued.
The properties at Kingmoor Park, Carlisle which have a historical cost of £1,074,190 and aggregate depreciation of £251,966 were valued at £2,000,000 on an open market basis by Walton Goodland, Chartered Surveyors on 28th February 2024. The directors confirm this valuation remains appropriate for the year ended 31 May 2024.
Land at Irthington which has a historical cost of £48,789 was valued at £235,000 on an open market basis by Ian Ritchie Land Management on 7th July 2024. The directors confirm this valuations is appropriate for the year ended 31 May 2024.
Land included at £875,000 (2023 - £865,720) is not depreciated. 
Fixed assets include assets under hire purchase and finance leases with a net book value of £2,046,538 (2023 - £769,939). 






Page 34

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
1



At 31 May 2024
1





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Finlaysons Contracts Limited
Finlaysons Contracts Limited, Botany Mill/Roxburgh St, Galashiels, Scotland, TD1 1PB
Ordinary
100%

The aggregate of the share capital and reserves as at 31 May 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/
(Loss)

Finlaysons Contracts Limited
626,840
194,459

Page 35

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


Investment property

Group and Company


Freehold investment property

£





At 1 June 2023
400,000


Disposals
(400,000)



At 31 May 2024
-

The investment property was disposed of early in the financial year at its market value. 2024 valuations were made by Walton Goodland Chartered Surveyors in 2022, on an open market value for existing use basis.





17.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Raw materials and consumables
491,763
440,607
468,776
416,324

491,763
440,607
468,776
416,324



18.


Debtors

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£


Trade debtors
914,963
595,067
507,187
124,251

Amounts owed by group undertakings
-
-
-
136

Other debtors
1,171,332
196,726
1,151,631
155,069

Prepayments and accrued income
170,836
156,353
151,613
131,005

Amounts recoverable on long-term contracts
1,779,606
3,417,733
1,724,792
3,321,287

4,036,737
4,365,879
3,535,223
3,731,748


Page 36

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
223,564
97,864
18,140
44,466

Less: bank overdrafts
(665,883)
(403,383)
(665,883)
(403,383)

(442,319)
(305,519)
(647,743)
(358,917)



20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
665,883
403,383
665,883
403,383

Loans
500,000
-
500,000
-

Trade creditors
3,342,025
2,447,085
3,272,563
2,267,919

Amounts owed to related companies
68,534
94,466
130,962
94,466

Other taxation and social security
264,566
763,022
161,290
673,831

Obligations under finance lease and hire purchase contracts
503,981
368,220
498,721
363,029

Other creditors
387,464
462,938
382,523
448,274

Accruals and deferred income
1,122,410
1,229,134
1,086,004
1,173,692

6,854,863
5,768,248
6,697,946
5,424,594


Secured creditors
Bank borrowings are secured by a legal charge over the company's land & buildings at Kingmoor Park Industrial Estate, Carlisle; land at Kingmoor Park, Rockcliffe, Carlisle; Buildings at Lamb Street, Carlisle and a debenture. £300,000 of the loan balance is secured over the Company's land at Irthington. Hire purchase agreements are secured over the assets to which they relate.
One of the directors has given a personal guarantee over the borrowings of the company of £150,000.

Page 37

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Net obligations under finance leases and hire purchase contracts
889,559
441,216
887,418
433,910

889,559
441,216
887,418
433,910


Secured creditors
Hire purchase agreements are secured over the assets to which they relate.




22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Bank loans
500,000
-
500,000
-


500,000
-
500,000
-





23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Within one year
503,981
368,220
498,721
363,029

Between 1-5 years
853,648
441,216
851,507
433,910

1,357,629
809,436
1,350,228
796,939

Page 38

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

24.


Deferred taxation


Group



2024


£






At beginning of year
(466,665)


Charged to profit or loss
1,886


Utilised in year
377,544



At end of year
(87,235)

Company


2024


£






At beginning of year
(459,770)


Utilised in year
377,544



At end of year
(82,226)

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(698,227)
(489,978)
(693,218)
(483,083)

Property revaluations
(302,923)
(301,334)
(302,923)
(301,334)

Losses
856,657
310,240
856,657
310,240

Pension contributions
57,258
14,407
57,258
14,407

(87,235)
(466,665)
(82,226)
(459,770)


The directors expect that some of the losses and some of the accelerated capital allowances will reverse in the upcoming accounting period.

Page 39

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

25.


Provisions


Group



Provision for onerous contracts
Total

£
£





Charged to profit or loss
413,621
413,621



At 31 May 2024
413,621
413,621



Company


Provision for onerous contracts
Total

£
£





Charged to profit or loss
413,621
413,621



At 31 May 2024
413,621
413,621

The provision for onerous contracts consists of anticipated losses on contracts committed to at the balance sheet date.

Page 40

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

26.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



40,000 (2023 - 40,000) A shares shares of £1.00 each
40,000
40,000
28,501 (2023 - 28,501) B shares shares of £1.00 each
28,501
28,501
28,501 (2023 - 28,501) C shares shares of £1.00 each
28,501
28,501
3,000 (2023 - 3,000) D shares shares of £1.00 each
3,000
3,000

100,002

100,002



27.


Reserves

Revaluation reserve

This reserve represents the historic increases in the value of tangible fixed assets net of deferred tax liabilities in relation to those increases in value.

Profit and loss account

This reserve represents cumulative retained profits and losses.


28.


Prior year adjustment

During the preparation of the financial statements for the year ended 31 May 2024, the company identified an error in the calculation of deferred tax in the prior year’s financial statements. The deferred tax liability was misstated due to incorrect recognition of temporary differences relating to property, plant, and equipment, as well as losses carried forward.
To correct this misstatement, a prior year adjustment has been made, and the impact of this adjustment is as follows:
The deferred tax liability as at 31 May 2023 was understated by £770,010, and has now been restated accordingly. Retained earnings as at 1 June 2023 have been reduced by £770,010 to reflect the correction of this error and the comparative figures in the statement of financial position and statement of comprehensive income have been restated to reflect the correct deferred tax position.
This adjustment has no impact on the company’s cash flow position but has resulted in a decline to net assets and retained earnings in the prior year. The directors have reviewed the company’s accounting policies and internal controls to prevent similar misstatements in the future.


29.


Pension commitments

The group contributes to defined contribution pension schemes. The assets of the schemes are held separately from those of the company in funds administered by Trustees. The Schemes provide money purchase benefits for certain employees based on the accumulated contribution paid on behalf of each member. The group had outstanding contributions under pension schemes at 31st May 2024 of £29,031 (2023 £67,559).

Page 41

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

30.


Commitments under operating leases

At 31 May 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
7,022
-
7,022
-

7,022
-
7,022
-


31.


Related party transactions

Rent was paid to Cubby Construction Limited Retirement Benefits Scheme totaling £42,000 (2023 - £42,000). £45,800 (2023 - £25,200) was outstanding at the year end date.   
The company's directors are also directors of Cubby Developments Limited. There was a balance due to Cubby Developments Limited at 31st May 2024 of £68,534 (2023 - £71,205). This loan is undated, unsecured and no interest is charged.
At 31st May 2024 there was a loan due from two of the directors to the Company of £273,527 (2023 - £118,004 owed by the company to the director). There were loans due to one other director by the company totaling £93,571 (2023 - £165,171). These loans are unsecured and interest free.


32.


Post balance sheet events

On 21 February 2025, Cubby Construction Limited acquired the trade and assets of Colin Briscoe Construction Limited: Established in 1993 in Carnforth, this high-quality Civil Engineering and Building Contractor has a strong reputation for working with blue-chip companies.
On 1 July 2025, the entire share capital of Cubby Construction Limited was sold to a new company Svella Bidco 1 Limited, an intermediary holding company.  The new ultimate parent, by viture of its 75% holding in Svella Bidco 1 Limited, is Svella Plc.   
On 1 July 2025 the group secured £12million investment available for draw down as the group requires to support working capital and growth. 


33.


Controlling party

For the year ended 31 May 2024, the company was controlled by the Directors, who together owned 100% of the issued share capital. 


Page 42