The directors present the strategic report for the year ended 30 September 2024.
The group continues to operate as a leading principal contractor in the UK construction industry, delivering high-quality projects across a range of specialised sectors. During the financial year, the group achieved a turnover of £108 million, reflecting strong and consistent performance across some of its core divisions including London refurbishment, Heritage and Industrial.
Curo operates in the construction industry, primarily in London and the south of England. The group employs several individuals with vast experience across a range of sectors. Projects of varying sizes provide Curo with the ability to be flexible and successfully deliver a large range of construction-based projects.
A summary of the financial results for the year ended 30th September 2024, the financial position as at that date and certain key financial performance indicators, are set out below:
Key financial performance indicators
| 2024 | 2023 |
Turnover | £108.3m | £156.8m |
Gross Profit | £6.6m | £9.0m |
Operating margin | 6.0% | 5.8% |
Profit before tax | £1.2m | £3.2m |
Profit after tax | £1.0m | £2.7m |
Cash at bank | £11.1m | £22.3m |
Net current assets | £8.0m | £9.4m |
Net assets | £8.2m | £8.6m |
Key non-financial performance indicators
| 2024 | 2023 |
Average number of employees | 104 | 85 |
Accident frequency rate (Calendar Year) | 0.112 | 0.337 |
Output for the year was lower than the previous year. The reduction in revenue was principally related to the conclusion of the large Shinfield Studios project and several projects starting later than originally planned. Delayed projects impacting the year to September 2024 have now commenced and projects have already been secured for turnover of at least £150million in the year to 30th September 2025, with further major construction projects being acquired.
During the year we maintained excellent cash levels, whilst managing the payment cycle effectively to the supply chain and upheld positive levels of engagement with all our trusted partners.
Considerable investment has been made to grow our own supply chain and to also integrate LEAN Construction within the business, thus ensuring we continue to grow and deliver projects to the highest standard.
Group net assets as of 30th September 2024 have decreased to £8.2m (2023: £8.6m). However, the group continues to maintain a strong balance sheet, for investment in the future development and growth plans of the business.
The cash balance at the end of the year totaled £11.1m (2023: £22.3m).
Principal Activities and Sector Overview
Curo Industrial and Innovation (Industrial):
The Curo Industrial and Innovation team has continued to capitalise on demand for new and upgraded industrial facilities, delivering projects across logistics, manufacturing, and distribution sectors. Our technical expertise, efficient delivery models, and client-focused approach have contributed to ongoing success in this area.
Curo Heritage (Heritage):
Curo Heritage specialises in the restoration and adaptive reuse of listed and historic buildings. This year, we successfully delivered projects that required careful conservation, traditional craftsmanship, and compliance with heritage standards, demonstrating our commitment to protecting the built environment for future generations.
Curo Leisure (Leisure and Retail):
We are expecting to pick up Curo Leisure who will complete a range of fit-outs and refurbishment works for both national and boutique operators across the leisure and retail sectors. Projects were delivered to exact brand standards whilst minimising operational disruption, thanks to our close coordination and client-first delivery model.
The directors are familiar with the inherent risks associated with the construction industry. As the business grows, it is ensuring that it has all the resources required to reduce these risks as much as possible, through training and recruiting new employees with relevant industry experience.
The business maintains strong relationships with clients and suppliers to ensure that it is well equipped to adapt to business growth and changing market conditions.
In the construction industry, even minor unforeseeable problems can impact significantly on project profitability, therefore Curo ensures that it carries out extensive planning on new and prospective projects.
Other principal areas of risk:
Liquidity risk
The business regularly monitors cash, including forecasting cash flows to ensure sufficient cash is always available to meet the liquidity needs of the business
Credit risk
The business banks with a highly reputable high street bank to reduce credit risk. The business also regularly raises sales invoices to clients to ensure a timely flow of funds on large projects, as is the norm in the industry. Prospective clients are credit checked before engaging in any contracts.
The company has chosen to early adopt the amendments in the FRS102 (September 2024). The availability of guidance on the application of the new standard is limited at the time of preparing these accounts.
The group has continued to perform well in the year ended 30th September 2024, although there was a 31% decrease in turnover compared with the prior period. Gross Profit has stayed relatively the same 6.0% (2023: 5.8%).
The decrease in turnover was due to a large project finishing in April 2024 and new projects start dates being pushed back into the 2025 financial period due to the uncertainties in the UK economy at the time.
There is still demand for construction activities by businesses in London and the south of England, evidenced by our forward order book. Projects have already been secured for turnover of at least £150million in the year to 30th September 2025, and the business continues to acquire major construction projects for future financial periods. Expansion into the northern region of the UK is also being undertaken.
Due to the growth of the group over the past few years, the directors have continued to invest in the infrastructure of the business. This has largely been done through investment in a new ERP system, utilizing technology in the business, continued hiring of additional employees with the necessary large company expertise, whilst simultaneously developing relationships with other highly reputable companies within the construction industry.
Curo consistently delivers completed products within budget and on time.
Section 172 of the Companies Act requires directors to act in a way that they consider would be most likely to promote the success of the company. In doing so, directors must take into consideration the interest of various stakeholders of the company (including employees, clients, suppliers, shareholders, and others), the impact of the company's operations on the community and the environment and take a long-term view of the likely consequences of decisions they make as well as maintaining a reputation for high standards of business conduct.
The board has had constant dialogue during the year with all stakeholders including shareholders, our employees, clients, sub-contractors and suppliers, as well as the wider community.
Shareholders
We meet regularly through management meetings to review strategy, performance, and where necessary governance to ensure the long-term interests of the company are met. We continue to be focused on developing long-term value through increases in net assets to protect the company's position.
Employees
The average number of employees during the financial year was 104 (FY23: 85). The company continues to prioritise staff development, training, and wellbeing, underpinning a culture of quality, professionalism, and accountability across all levels of the organisation.
We are passionate about ensuring that all our employees are protected to ensure that their Health, Safety and Wellbeing is of the utmost priority.
Mental health first aiders are in place for confidential advice and support.
All staff are offered one of the best Private Medical Insurances on the market that is paid for by Curo. We issue a monthly newsletter to all employees which allows for any questions or training needs to be raised.
We hold annual conferences to communicate our strategy and performance, as well as hosting regular updates throughout the year.
Staff retention has remained good, and the business has continued to attract and retain quality personnel. This is very important to Curo to assist the business.
Health and Safety
Health and safety is embedded in the company’s culture, with robust systems in place to ensure the wellbeing of all employees, subcontractors, and stakeholders. We are pleased to report an accident frequency rate (AFR) of 0.112 as of September 2024 (FY23: 0.337), significantly outperforming the industry average and reflecting our commitment to a safe working environment.
Sustainability in Construction
The company remains dedicated to responsible and sustainable construction practices, actively reducing environmental impact through:
Prioritising low-carbon and responsibly sourced materials.
Designing and building to meet or exceed BREEAM and environmental performance targets.
Minimising waste through efficient site logistics and recycling.
Partnering with a supply chain aligned with our sustainability principles.
Promoting innovation in construction methods, including prefabrication and modern methods of construction (MMC).
Customer Satisfaction and Repeat Business
We continually seek feedback on our relationships and performance and drive our performance levels to improve where necessary.
Client satisfaction is central to the company’s sustained growth. A significant proportion of our annual turnover stems from repeat business with long-standing clients, underlining the strength of our relationships, service delivery, and commitment to quality. The company continually invests in early engagement, collaborative working practices, and continuous improvement to ensure clients return to Curo as a trusted construction partner.
Sub-contractors and suppliers
We pride ourselves on establishing and maintaining strong relationships with all our supply chain. We operate a preferred supplier scheme which allows for prompter payments and preferable payment terms.
Future Outlook
The company enters the new financial year with a strong pipeline of work across all sectors. The outlook remains positive, underpinned by our strategic sector focus, operational discipline, and strong client relationships. We will continue to invest in our people, systems, and sustainability agenda, ensuring we deliver lasting value across all our projects.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 September 2024.
The results for the year being profits after tax of £961,585 (2023 - £2,661,456) are set out on page 13.
Ordinary dividends were paid amounting to £943,637 (2023 - £601,264). The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group is exposed to various risks in relation to financial instruments, the main areas being liquidity risk, credit risk and pricing risk as described below.
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Pricing risk is mitigated by quotes being valid for a certain set period of time.
The Board is responsible for evaluating how the decisions made on behalf of the company impact the shareholders and other key stakeholders, in order to ensure the Company's success and create value for its shareholders. We engage with our employees through monthly newsletters, which allows effective communication on initiatives and matters affecting the Company. Regular meetings are held between management and employees to allow a free flow of information and ideas.
We employ various engagement mechanisms to connect with our key stakeholders, which includes collaborating with other industry organisations to promote safety initiatives.
We support long-term business relationships with our suppliers, collaborating to align our mutual interests while ensuring our payment terms and practices do not hinder their ability to achieve their objectives.
The Company upholds customer relationships by providing exceptional customer service and maintaining regular interactions, allowing customers to provide feedback early in the design phase. The Company is increasingly engaged as construction partners earlier in the design process, leveraging their cost and design expertise to add value. To gather both quantitative and qualitative measures of success, the Company regularly conducts customer satisfaction interviews.
Sam Rogoff & Co Ltd were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
A carbon plan report was commissioned, the "Curo Construction Streamlined Energy and Carbon Report 2023/24". The reporting included a recalculation of the base year to include additional categories for scope 3 (purchased goods and services and employee commuting).The relevant data and key findings are set out below
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the recommended ratio for the sector.
The following energy efficiency measures and projects have been completed or implemented in 2023/24.
Carbon Management Governance and Reporting:
Updated our ISO 14001 accredited Environmental Management System for renewed energy reduction focus.
Each project has a sustainability champion to drive the agenda on energy reductions
Launch of mandatory CITB approved SEATS training course, informing our project teams how they can make choices to reduce their energy consumption.
On Site Fuel Use
Completed companywide construction project anti idling campaign to reduce energy use.
Curo Controlled Assets
Mandated highly energy efficient eco cabins for all projects, They reduce water use by 70% and electricity use by 40%.
Mandated dehumidifiers in all site cabins, reduced heating requirements by up to 75%.
We have audited the financial statements of Curo Group Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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).
Basis for 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 and 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.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory framework that is applicable to the Company and determined that the most significant are those that relate to the reporting framework, e.g. Companies Act 2006 and FRS 102, as well as various construction industry specific laws and regulations.
We communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We enquired of management and those charged with governance concerning the Company's policies and procedures relating to the identification, evaluation and compliance with laws and regulations and the detection and response to the risks of fraud.
Audit procedures performed by the engagement team included testing manual journal entries, identifying and testing related party transactions, carrying out procedures designed to confirm the accuracy of revenue recognition.
These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations.
Discussions were held with the directors with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
In terms of the operating aspects of the business, there are a substantial number of laws and regulations which are applicable, including, but not limited to, construction regulations, health and safety regulations, control of substances hazardous to health regulations, listing operations and listing equipment regulations, work at height regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
The notes on pages 21 to 42 form part of these financial statements.
The notes on pages 21 to 42 form part of these financial statements.
The notes on pages 21 to 42 form part of these financial statements.
The company’s profit/(loss) and total comprehensive income for the year were £1,643,026 (2023 - £600,992) and £1,643,026 (2023 - £600,992), respectively.
The notes on pages 21 to 42 form part of these financial statements.
The notes on pages 21 to 42 form part of these financial statements.
The notes on pages 21 to 42 form part of these financial statements.
Curo Group Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3-4 New Street, London, EC2M 4TP.
The group consists of Curo Group Holdings Ltd and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The FRS102 Periodic review September 2024 amendments have been early adopted. The transition information is set out in note 2 below.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Curo Group Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The Directors have evaluated and considered detailed forecasts for the group to include cash flow considerations, consideration of projects in progress but also guaranteed and potential future projects. The forecasts of the group project a positive cash flow over the coming 12 months and the group has sufficient cash reserves to remain liquid and meet its liabilities as they fall due.
The group recognises revenue from the following major sources:
Sale of goods
Sale of services
Construction services
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
Sale of goods
Revenue from the sale of goods is recognised at the fair value of consideration received or receivable, once the performance obligation is satisfied through delivery of the goods.
Sale of services
Sales of services are recharges to related companies recognised at their fair value. These are informal arrangements with relates entities, with no formal contracts in place. The company pass on various costs incurred by them on behalf of related parties to these related parties at the cost to the company only, with no mark-up.
Construction services
Turnover represents the fair value of consideration received or receivable in respect of construction contracts undertaken during the year, net of value added tax, rebates and discounts.
Following the September 2024 periodic review of FRS 102, the company recognises revenue in accordance with Section 23: Revenue from Contracts with Customers, which now incorporates a five-step model for revenue recognition, consistent with international best practice.
Revenue from construction contracts is recognised over time, applying the following five-step approach:
1. Identify the contract with the customer
A contract is established when it is approved by both parties, has commercial substance, and collection of consideration is probable.
2. Identify the performance obligations
Each contract is assessed to identify distinct performance obligations. For typical construction contracts, this generally comprises a single performance obligation to deliver a completed project or a specified phase of works.
3. Determine the transaction price
The transaction price is the amount of consideration the company expects to be entitled to in exchange for fulfilling the performance obligation. This includes variations and claims where recovery is highly probable and can be reliably measured.
4. Allocate the transaction price to performance obligations
In contracts with multiple distinct performance obligations, the total transaction price is allocated based on the standalone selling price of each obligation. The vast majority of contracts undertaken by the company contain a single performance obligation.
5. Recognise revenue as performance obligations are satisfied
The company recognises revenue over time, as it satisfies its performance obligations through the delivery of construction services. The stage of completion is determined by reference to third-party surveyor valuations, which reflect the certified value of work performed to date as a proportion of the total contract value. This provides a faithful measure of progress towards satisfaction of the performance obligation. In the vast majority of the construction contracts, surveyor valuations are carried out monthly at or around each month-end and include third-party surveyors attendance on site to accurately assess the stage of completion of the project. Payment terms are as per the contract, and generally ensure that payment is made by the customer prior to the following month's surveyor valuation being carried out.
Where the outcome of a contract cannot be reliably estimated, revenue is recognised only to the extent of costs incurred that are expected to be recoverable. Expected contract losses are recognised in full when identified.
Contract assets (amounts recoverable on contracts) represent the company’s right to consideration in exchange for work performed but not yet billed and are included within Debtors.
This policy reflects the principles introduced in the revised FRS 102 (September 2024), with particular reference to contracts satisfied over time and updated guidance on variable consideration and contract modifications.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
As lessee
At inception, the company assesses whether a contract is, or contains, a lease. A lease arises where the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control of the use of an asset occurs where the company has both the right to direct the use of the asset, and the right to obtain substantially all the economic benefits from that use.
Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within the same line items on the Balance sheet as owned assets.
The right-of-use asset is initially measured at cost, which comprises the initial measurement of the lease liability adjusted for lease payments made at or before the commencement date less any lease incentives or grants received, plus initial direct costs and an estimate of the cost of obligations to dismantle, remove or restore the underlying asset and the site on which it is located.
The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease (for office leases) or, if that rate cannot be readily determined, the company's incremental borrowing rate or the company’s obtainable borrowing rate (for vehicle leases, based on indicative rates to borrow from the company's banker). Lease payments included in the measurement of the lease liability comprise fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be payable under residual value guarantees, the exercise price of any purchase options that the company is reasonably certain to exercise, and any penalties for early termination of a lease.
At each financial period end, the lease liability is adjusted to reflect payments made and interest accrued. Also, the lease liability is remeasured to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or recognised in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
In the comparative period, the company classified leases as finance leases whenever the terms of the lease transferred substantially all the risks and rewards of ownership to the lessees. All other leases were classified as operating leases. Assets held under finance leases were recognised as assets at the lower of the assets' fair value at the date of inception and the present value of the minimum lease payments. The related liability was included in the balance sheet as a finance lease obligation. Lease payments were treated as consisting of capital and interest elements and the interest was charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. Rentals payable under operating leases, less any lease incentives received, were charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis was more representative of the time pattern in which economic benefits from the leased asset were consumed.
In the current year, the FRS 102 Periodic Review was applied by the company for the first time and affects the financial statements as follows.
Leases
The company has applied the FRS 102 Periodic Review 2024 amendments to Section 20 Leases. The date of transition was 1st October 2023. All right-of-use assets were measured at present value of unpaid lease payments. Comparative information is not restated.
The company’s revised accounting policies for leases are set out in note 1 and the adjustment for each financial statement line item affected by the application of the Periodic Review 2024 in the current period is set out below.
Revenue
The company has applied the FRS 102 Periodic Review 2024 amendments to Section 23 Revenue.
Comparative information is not restated.
The company’s revised accounting policies for revenue are set out in note 1 and the adjustment for each financial statement line item affected by the application of the Periodic Review 2024 is set out below.
Current year adjustments as a result of applying the Periodic Review 2024 2024
Cumulative effect on the opening balance of retained earnings £
Increase/(decrease) in retained earnings:
- Effect of amendments to FRS 102 Section 20 - Leasing -
- Effect of amendments to FRS 102 Section 23 - Revenue -
Total adjustment -
Effect on current year profit or loss
Arising from amendments to FRS 102 Section 20 - Leasing:
- Decrease in profit or loss (58,782)
Arising from amendments to FRS 102 Section 23 - Revenue:
- Increase in total revenue -
- Increase in profit or loss -
Total effect on profit or loss (58,782)
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The stage of completion of construction contracts and hence the value of the work performed by the year end.
An analysis of the group's turnover is as follows:
All sales were in the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The main rate of corporation tax applicable to the company is 25%.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Tangible fixed assets includes right-of-use assets, as follows:
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| Land and | Motor | Total |
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| buildings | vehicles |
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| £ | £ | £ |
Previously shown as held under finance leases at 1 October 2023 | - | - | - |
Additions | 2,042,392 | 315,461 | 2,357,853 |
Depreciation charge | (222,806) | (98,818) | (321,624) |
Other movements | - | - | - |
Net carrying value at 30 September 2024 | 1,819,586 | 216,643 | 2,036,229 |
Details of the company's subsidiaries at 30 September 2024 are as follows:
2024 2023 2023
Period end Period end Period start
Balances relating to contracts in progress £ £ £
Contract receivables included in trade debtors 1,168,273 - -
Balances within Other debtors include retentions receivable within 1 year of £3,816,691 and loans repayable from related companies of £3,493,101.
Balances with group undertakings are repayable on demand.
Other creditors includes an amount of £2,998,409 held as retentions from subcontractors, expected to be payable within a year.
The long-term loan with Lloyds Bank Plc is secured by fixed charges and floating charges (floating charges covers all of the property or undertakings of Curo Construction Ltd). The debenture was entered into on 24 February 2021.
A fixed and floating charge over all the property and undertakings of the company was entered into by Curo Group Holdings Ltd (and with Curo Construction Ltd its subsidiary company, and New Street Inv Co Ltd) with Lloyds Bank PLC on 16th December 2022, guaranteeing repayment of loans taken out by New Street Inv Co Ltd.
The interest rate of the loan is Base Rate plus 1.78%. Monthly instalments are over five years, commencing thirteen months after drawdown of the loan.
£79,474 amount has been agreed with the liquidator and is expected to be paid within 12 months of the year end.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the year end £57,963 (2023 - nil) was owed to the pension scheme (shown within other creditors).
Payments were made to two shareholders in the period totalling £450,000 as consideration for changing their share class holding from Ordinary to C Ordinary.
The company leases the following which have been recognised as right-of -use assets:
Lease of office building at 3-4 New Street, London under a lease agreement with a contractual term of 10 years from the date of the lease until 15th December 2032. The discount rate applied is an estimate of the interest rate implicit in the lease. The cash outflow for the lease was £324,000
Motor vehicles are leased over periods of between 2 and 4 years. The interest rate applied is an estimate of the obtainable borrowing rate. The total cash outflow for all such leases was £125,875
The interest rates used are 8.1% for the office lease and 7% for the motor vehicle leases.
The remuneration of key management personnel is as follows.
During the year the following related party transactions took place
Curo Group Holdings Ltd (company)
At the year end £1,109,866 in total (2023 £1,564,866) was owed to the company by connected companies.
The company repaid £1,084,645 of a loan from its subsidiary. The balance of the loan at the year end was £565,081 (2023 £1,649,726).
Curo Group Holdings Ltd and subsidiaries (group)
Sales to connected companies in total £3,270,697 (2023: £1,645,366)
Purchases from connected companies in total £17,721,342 (2023 £11,682,472)
Loans made to connected companies in total £1,904,895 (2023 £2,182,144)
Loans repaid by connected companies in total £1,062,250 (2023 £865,016)
Loans received from and owing to connected companies in total £1,010,014 (2023 £597,815)
Total debtor balances at the year end with related companies £7,490,690 (2023 £4,284,267).
Total creditor balances at the year end with related companies £3,700,508 (2023 £4,773,593)
Accrued amounts payable to related companies £1,269,284 (2023 £267,046)