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Registration number: 01249197

R.J Heathman (Contractors) Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2025

image-name
 

R.J Heathman (Contractors) Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 8

Statement of Directors' Responsibilities

9

Independent Auditor's Report

10 to 13

Statement of Comprehensive Income

14

Statement of Financial Position

15

Statement of Changes in Equity

16

Statement of Cash Flows

17

Notes to the Financial Statements

18 to 32

 

R.J Heathman (Contractors) Limited

Company Information

Directors

R J Heathman

I N Cook

M K Heathman

K J Lee

Company secretary

K A Mercer

Registered office

105-107 High Street
Worle
Weston super Mare
North Somerset
BS22 6HA

Auditors

Westcotts (SW) LLP Tallford House
38 Walliscote Road
Weston-super-Mare
Somerset
BS23 1LP

 

R.J Heathman (Contractors) Limited

Strategic Report for the Year Ended 31 March 2025

The directors present their strategic report for the year ended 31 March 2025.

Fair review of the business

Since its formation in 1976 the company has grown steadily over the years under its trading name of County Contractors, building upon its reputation of giving an excellent and reliable service to its many clients, and delivering its contracts on time. The company is now one of the leading refurbishment specialists to hotels, retail, hospitality, and commercial outlets.

County Contractors prides itself on its continuity of service to its clientele, with Boots the Chemist being a prime example. The company has worked continuously since its formation in 1976 to be one of their leading contractors, refurbishing their stores on a national coverage.

The hotel refurbishment sector of the company has shown its largest increase in turnover in the last ten years, and the company is now a leading player in this specialist field, where quality and reliability are of prime importance to clients. Contracts ranging from £0.5m to £40 million plus in value have been successfully completed to a large number of hotel chains and independent boutique brands across various parts of the country, with a major involvement in London.

Along with its Electrical and 24 hour Maintenance and Minor Works divisions which are also involved in this expansion programme, these are indeed exciting times for the company.

The company is pleased to present its results for the year which show an improvement in underlying profit across all divisions, resulting in a strong increase in overall profit and net margin from the previous year. Turnover is up on previous year which is in line with expectations given the nature and the timing of the contracted work. At the year end the company was in a strong net assets position, with significant cash resources.

At the prior year end, the directors noted that there was a material uncertainty regarding the outcome a large contract. The company has now reached an agreement with its customer, resolving the uncertainty. The directors note that the performance of this contract has negatively affected the company’s results for three years.

The directors would like to record their thanks and appreciation to all staff on their endeavours during the last 12 months.

Key performance indicators
The directors measure the performance of the business through the following KPIs; cash flow and margin. Whilst turnover is an important metric, as mentioned above, the natural fluctuations in turnover mean it is not a reliable performance measure in and of itself:

Cash flow - During the course of the year, the company maintained sufficient cash flows to effectively operate the business and did not require any additional working capital support over and above the facilities it has in place.
 

Margin - The directors are satisfied with this metric given the improvement in net margin across the business compared to the previous year.

 

R.J Heathman (Contractors) Limited

Strategic Report for the Year Ended 31 March 2025 (continued)

Principal risks and uncertainties

The company faces risks in the following categories:

Financial strength and liquidity - this relates to the increasing credit terms imposed by our clients, most notably in the Retail sector. This risk is unchanged.

Health and Safety - The work on our sites can often be complex and hazardous and we continuously strive to manage this risk down to a minimum level. This risk is unchanged.

Winning and executing work - In a tendered environment, the timing of work is always a risk. However, the company manages this risk by having complementing business models for each of its sectors. The company is also careful not to undertake work it is not familiar with to minimise the risk of failures or delays. This risk is unchanged.

Inflation - UK inflation has returned and maintained a more sustainable level during the last period and this period. Whilst there are global threats to UK inflation, the directors consider this risk to be unchanged.

Government - the change of government following the 2024 General Election has resulted in a change of approach to fiscal policy. We have already seen an increase in business taxes, notably around Employers National Insurance, which have the potential to impact margins. Whilst this is understood and, where possible, factored into our pricing models, it is unclear what future changes may be coming. The directors consider this risk to be increasing.

Future developments

The directors anticipate that, in light of the risk factors above, the business environment will remain uncertain. However, they believe that the current workload and forward pipeline will sustain the company now and into the future.

Financial instruments

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are mostly conducted in sterling. The company does not enter any hedging transaction.

Stakeholder engagement

As the Board at County Contractors, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company’s success for the benefit of its employees as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board undertake this responsibility.

Promoting the company’s success for its employees

County Contractors was founded in 1976 and continues to be controlled and run as a privately owned family business. We are proud of the ways in which, over nearly 45 years, the company has provided employment, training and financial reward for its owners and employees.

We aim to continue our success in the markets in which we operate by serving our numerous existing clients, branching out to new clients and developing our skills base. In doing so, our twin aims are to maximise the company’s ability to grow profits and market share whilst returning the highest possible value to the shareholders.

As a company we recognise that the tendering business does not always follow a smooth cycle and there may be gaps between large contracts. As such we maintain a very conservative profit retention policy to allow us to weather these gaps and reinvest in working capital as required.

 

R.J Heathman (Contractors) Limited

Strategic Report for the Year Ended 31 March 2025 (continued)

Engaging with stakeholders

Our key stakeholders, and the ways in which we engage with them, are as follows:

Engagement with employees and tradespeople

Our projects are bespoke and varied and therefore we rely on a skilled team including contracts managers, site managers and skilled and unskilled operatives.

Recruitment and retention of staff and operatives is therefore a critical business activity. We help to engage with team members by:
• setting effective pay and remuneration packages with additional benefits for employed members of staff;
• providing training and career development support;
• providing, where possible, continuous work for our trusted self-employed operatives within stable teams

Engagement with suppliers, customers and other relationships

We have structured our business in such a way that allows us to offer a complete turnkey service to our client base whilst maintaining a flexible and personal feel.

We deal very fairly with our trusted suppliers and as a result we enjoy a consistently high level of service, which in turn allows us to meet the exacting demands of our clients.

Engagement with our community

We are a family-run company with its roots in Weston-super-Mare and have often invested in our community through our charity and community donations.

We have supported local school initiatives, church fundraising events and community sports associations.

Engagement with our planet

Our industry inevitably contributes to the increase in greenhouse gasses principally through transportation and site activities such as waste removal, and we are working hard to minimise this impact. The vast majority of site waste is recycled and transportation emissions are kept to a minimum by replacing the van fleet at regular intervals.

Our office lighting has been upgraded to LED to minimise electricity and company car drivers are encouraged to drive efficient, low polluting vehicles.

Approved and authorised by the Board on 17 July 2025 and signed on its behalf by:
 

.........................................
M K Heathman
Director

 

R.J Heathman (Contractors) Limited

Directors' Report for the Year Ended 31 March 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

Directors of the company

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

R J Heathman

I N Cook

M K Heathman

K J Lee

Dividends

Particulars of recommended dividends are detailed in note 22 to the financial statements.

Non-financial and sustainability information

Energy and carbon report

We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. R.J Heathman (Contractors) Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.

 

R.J Heathman (Contractors) Limited

Directors' Report for the Year Ended 31 March 2025 (continued)

Emissions and energy consumption

This report considers the UK energy used by R.J Heathman (Contractors) Limited for the financial year 1 April 2024 to 31 March 2025 split by the following energy types:

Natural Gas
This is gas purchased by the company for use in its office boilers.

Diesel
This is the consumption of diesel fuel for the purposes of transport within company vans or cars as well as private cars used for company business.

Petrol
This is the consumption of petrol fuel for the purposes of transport within company vans or cars as well as private cars used for company business.

Electricity
This is the electricity purchased directly by the company for use within its offices. This does not include electricity used by the company paid for by a third party, for example electricity used on sites.

Where possible actual data has been used. This includes kWh of gas and electricity directly purchased and litres of diesel fuel purchased with fuel cards.

Between 2024 and 2025, the company maintained its use of diesel fuel as levels of business activity predominantly in the divisions supported by the LGV fleet remained constant. Petrol use reduced once again in line with the company move towards electrification of the car fleet. Gas use has continued to fall due to continued improvements in heating management within its offices. Electricity remained constant which shows a reduction in base use of electricity offset by the increase in the use of electric vehicle (EV) charging points. The company expects to reduce its reliance on fossil fuels in cars further as it continues to electrify the fleet where possible. This will inevitably increase the reliance on electricity to charge the EV fleet.

Where actual data is not known, estimates have been used. For example, litres of fuel used in company cars without fuel cards. This data has been derived from data that is known, in this case the miles driven and applying an average miles per gallon rate.

A conversion factor (as published by the Department for Business, Energy & Industrial Strategy) has then been applied to the actual or derived data to calculate the GHG emissions figure in kg CO₂e.

Summary of greenhouse gas emissions and energy consumption for the year ended 31 March 2025:

Name and
description

Unit of
measurement

2025

2024

Scope 1 - Natural gas

kWh

38,592.00

42,789.00

Scope 1 - Diesel (average biofuel blend)

Litres

140,757.00

140,639.00

Scope 1 - Petrol (average biofuel blend)

Litres

27,866.00

29,430.00

Scope 2 - Electricity

kWh

60,675.00

65,589.00

267,890.00

278,447.00

 

R.J Heathman (Contractors) Limited

Directors' Report for the Year Ended 31 March 2025 (continued)

Summary of scope 1 (direct) greenhouse gas emissions for the year ended 31 March 2025:

Name and
description

Tonnes CO2e
2025

Tonnes CO2e
2024

Scope 1 - Natural gas

7.05

7.81

Scope 1 - Diesel (average biofuel blend)

357.19

348.63

Scope 1 - Petrol (average biofuel blend)

57.27

61.32

Intensity metric: g CO2 per mile driven

275.24

313.86

696.75

731.62

Summary of scope 2 (indirect) greenhouse gas emissions for the year ended 31 March 2025:

Name and
description

Tonnes CO2e
2025

Tonnes CO2e
2024

Scope 2 - Electricity

10.61

13.44

   

Intensity ratio

The company has selected petrol use as a valid intensity ratio as, over time, this should reduce given the greater emphasis on hybrid or electric vehicles. The intensity metric for g CO2 per mile driven has been selected.

Intensity measurement

2025
275.24

2024
313.86

Energy efficiency action taken

The company takes its responsibility to minimise the impact its activities have on the environment very seriously. That is why it is constantly looking at ways to improve energy efficiency and reduce energy use.
Measures taken to date include:
• Upgrading the van fleet to ensure all large vans have the most efficient Euro 6 engines
• Upgrading IT hardware
• Upgrading of office lighting to LED lights
• Monitoring and enacting behavioural change in company van drivers through tracking devices
• Promoting the use of electric or hybrid vehicles within the car fleet (82% cars are either fully electric, hybrid or PHEV (81% 2024))

Going concern

The directors have considered the company’s ability to continue to operate as a going concern for the foreseeable future and at least the next 12 months. The directors have prepared forecasts and budgets. As part of the normal part of trading, the directors expect variation in the company’s income and fluctuations in its capital requirements as the business is required to fund working capital and ongoing projects in advance of receiving customer payment. The directors believe that with the company’s strong track record and the support of its bankers that it should be able to access funding as required to support its investment in its projects.

 

R.J Heathman (Contractors) Limited

Directors' Report for the Year Ended 31 March 2025 (continued)

Disclosure of information to the auditors

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

Approved and authorised by the Board on 17 July 2025 and signed on its behalf by:
 


M K Heathman
Director

 

R.J Heathman (Contractors) Limited

Statement of Directors' Responsibilities

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

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

R.J Heathman (Contractors) Limited

Independent Auditor's Report to the Members of R.J Heathman (Contractors) Limited

Opinion

We have audited the financial statements of R.J Heathman (Contractors) Limited (the 'company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

 

R.J Heathman (Contractors) Limited

Independent Auditor's Report to the Members of R.J Heathman (Contractors) Limited (continued)

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 9], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit.

 

R.J Heathman (Contractors) Limited

Independent Auditor's Report to the Members of R.J Heathman (Contractors) Limited (continued)

The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements including health and safety laws and regulations, employment, anti-bribery, anti-money laundering and certain aspects of companies legislation.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

 

R.J Heathman (Contractors) Limited

Independent Auditor's Report to the Members of R.J Heathman (Contractors) 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 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.

......................................
Peter Lomax (Senior Statutory Auditor)
For and on behalf of Westcotts (SW) LLP, Statutory Auditor
 Tallford House
38 Walliscote Road
Weston-super-Mare
Somerset
BS23 1LP

24 July 2025

 

R.J Heathman (Contractors) Limited

Statement of Comprehensive Income for the Year Ended 31 March 2025

Note

2025
£

2024
£

Turnover

3

65,206,820

59,018,093

Other operating income

4

61,367

46,504

Raw materials and consumables used

 

(52,757,217)

(49,906,229)

Employee benefits expense

 

(6,132,260)

(5,266,230)

Depreciation and amortisation expense

 

(209,866)

(240,242)

Other expenses

 

(1,657,348)

(1,612,788)

Other gains

3,300

34,426

Operating profit

5

4,514,796

2,073,534

Other interest receivable and similar income

6

62,248

6,058

Interest payable and similar expenses

7

(126,309)

(45,634)

 

(64,061)

(39,576)

Profit before tax

 

4,450,735

2,033,958

Tax on profit

11

(1,150,530)

(527,415)

Profit for the year

 

3,300,205

1,506,543

The above results were derived from continuing operations.

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

 

R.J Heathman (Contractors) Limited

(Registration number: 01249197)
Statement of Financial Position as at 31 March 2025

Note

2025
£

2024
£

Fixed assets

 

Tangible assets

12

1,073,459

1,109,933

Investment property

13

480,000

480,000

 

1,553,459

1,589,933

Current assets

 

Debtors

14

21,203,559

23,222,519

Cash at bank and in hand

 

6,325,049

3,594,862

 

27,528,608

26,817,381

Creditors: Amounts falling due within one year

16

(13,099,671)

(15,116,150)

Net current assets

 

14,428,937

11,701,231

Total assets less current liabilities

 

15,982,396

13,291,164

Creditors: Amounts falling due after more than one year

16

-

(50,000)

Net assets

 

15,982,396

13,241,164

Capital and reserves

 

Called up share capital

41

41

Capital redemption reserve

19

67

67

Profit and loss account

19

15,982,288

13,241,056

Shareholders' funds

 

15,982,396

13,241,164

Approved and authorised by the Board on 17 July 2025 and signed on its behalf by:
 


M K Heathman
Director

 

R.J Heathman (Contractors) Limited

Statement of Changes in Equity for the Year Ended 31 March 2025

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 April 2024

41

67

13,241,056

13,241,164

Profit for the year

-

-

3,300,205

3,300,205

Dividends

-

-

(558,973)

(558,973)

At 31 March 2025

41

67

15,982,288

15,982,396

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 April 2023

41

67

12,056,870

12,056,978

Profit for the year

-

-

1,506,543

1,506,543

Dividends

-

-

(322,357)

(322,357)

At 31 March 2024

41

67

13,241,056

13,241,164

 

R.J Heathman (Contractors) Limited

Statement of Cash Flows for the Year Ended 31 March 2025

Note

2025
£

2024
£

Cash flows from operating activities

Profit for the year

 

3,300,205

1,506,543

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

209,866

240,242

Profit on disposal of tangible assets

(3,300)

(34,426)

Finance income

6

(62,248)

(6,058)

Finance costs

7

126,309

45,634

Income tax expense

11

1,150,530

527,415

Accrued expenses

 

879,581

950,946

Tax paid

 

(897,468)

(497,468)

 

4,703,475

2,732,828

Working capital adjustments

 

Decrease/(increase) in debtors

14

2,037,933

(4,159,167)

(Decrease)/increase in creditors

16

(4,631,971)

1,350,024

Increase in deferred income, including government grants

 

2,063,876

-

Net cash flow from operating activities

 

4,173,313

(76,315)

Cash flows from investing activities

 

Interest received

6

62,248

6,058

Acquisitions of tangible assets

(188,382)

(638,272)

Proceeds from sale of tangible assets

 

18,290

80,513

Net cash flows from investing activities

 

(107,844)

(551,701)

Cash flows from financing activities

 

Interest paid

7

(126,309)

(45,634)

Bank borrowing repayments

 

(650,000)

(550,000)

Dividends paid

22

(558,973)

(322,357)

Net cash flows from financing activities

 

(1,335,282)

(917,991)

Net increase/(decrease) in cash and cash equivalents

 

2,730,187

(1,546,007)

Cash and cash equivalents at 1 April

 

3,594,862

5,140,869

Cash and cash equivalents at 31 March

 

6,325,049

3,594,862

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025

1

General information

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

The address of its registered office is:
105-107 High Street
Worle
Weston super Mare
North Somerset
BS22 6HA

Principal activity

The principal activity of the company is a refurbishment specialist to hotels, hospitals, education establishments and commercial outlets.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the profit and loss account.

The financial statements are prepared in sterling which is the functional currency of the entity and are presented to the nearest £.

Going concern

The directors have considered the company’s ability to continue to operate as a going concern for the foreseeable future and at least the next 12 months. The directors have prepared forecasts and budgets. As part of the normal part of trading, the directors expect variation in the company’s income and fluctuations in its capital requirements as the business is required to fund working capital and ongoing projects in advance of receiving customer payment. The directors believe that with the company’s strong track record and the support of its bankers that it should be able to access funding as required to support its investment in its projects.

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

2

Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

The judgements (apart from those involving estimates) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

Bad debt provision

The bad debt provision is assessed by management by reviewing the age of the debt and the circumstances surrounding the unpaid debt. After consideration of these factors a provision is made where considered necessary.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:.

Construction contracts

Construction contracts are reviewed against sales to date, total expected sales, costs to date and expected costs to complete to give an expected profit margin. Stage of completion is considered based on costs to date plus costs expected to complete, and unbilled sales calculated accordingly. Contract accruals are also recognised where costs to date are understated, by reference to the expected margin..

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion determined with regards to the costs to date plus expected costs to complete.

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

2

Accounting policies (continued)

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Any gains or losses arising are taken the the profit and loss account.

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

2

Accounting policies (continued)

Depreciation

Depreciation is charged so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows;

Asset class

Depreciation method and rate

Freehold property

2% straight line

Fixtures and fittings

15% reducing balance, 4 or 6 years straight line

Motor vehicles

commercial 2,4 or 6 years straight line, cars 25% reducing balance

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Investment property

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.

Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

This is in accordance with FRS102, which unlike the Companies Act 2006, does not require depreciation of investment properties. Investment properties are held for their investment potential and not for use by the company and so their current value is of prime importance. The departure from the provisions of the ACT is required in order to give a true and fair view.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

2

Accounting policies (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Lease payments are recognised as an expense over the lease on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight line basis.

Lease income is recognised in profit and loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Defined contribution pension obligation

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

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

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

2

Accounting policies (continued)

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Construction contracts

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised.

Where the collectability of an amount already recognised as contract revenue is no longer probable, the uncollectible amount is expensed rather than recognised as an adjustment to the amount of contract revenue.

The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2025
£

2024
£

Rendering of services

65,206,820

59,018,093

The amount of contract revenue recognised as turnover in the year was £65,206,820 (2024 - £59,018,093).

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

3

Turnover (continued)

The whole of turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4

Other operating income

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

2025
£

2024
£

Miscellaneous other operating income

61,367

46,504

Miscellaneous other operating income relates to rental income.

5

Operating profit

Arrived at after charging/(crediting)

2025
£

2024
£

Depreciation expense

209,866

240,242

Foreign exchange losses

2

-

Profit on disposal of property, plant and equipment

(3,300)

(34,426)

6

Other interest receivable and similar income

2025
£

2024
£

Interest income on bank deposits

62,248

6,058

7

Interest payable and similar expenses

2025
£

2024
£

Interest on bank overdrafts and borrowings

126,309

45,634

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

8

Staff costs

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

2025
£

2024
£

Wages and salaries

5,058,519

4,337,893

Social security costs

580,717

514,219

Pension costs, defined contribution scheme

493,024

414,118

6,132,260

5,266,230

As at the year end there were unpaid pension contributions of £233,540 (2024 - £168,279), relating entirely to bonus payments opted to be taken as pension.

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

2025
No.

2024
No.

Production

25

24

Administration and support

22

20

Other departments

35

34

82

78

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2025
£

2024
£

Remuneration

1,026,842

711,722

Contributions paid to money purchase schemes

42,466

80,638

1,069,308

792,360

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

2025
No.

2024
No.

Accruing benefits under money purchase pension scheme

3

3

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

9

Directors' remuneration (continued)

In respect of the highest paid director:

2025
£

2024
£

Remuneration

429,681

296,464

Company contributions to money purchase pension schemes

-

2,055

10

Auditors' remuneration

2025
£

2024
£

Audit of the financial statements

26,770

25,000

Other fees to auditors

Taxation compliance services

1,600

1,500

All other non-audit services

2,205

2,073

3,805

3,573


 

11

Taxation

Tax charged/(credited) in the statement of comprehensive income

2025
£

2024
£

Current taxation

UK corporation tax

1,169,503

497,468

Deferred taxation

Arising from write-down or reversal of write-down of deferred tax asset

(18,973)

29,947

Tax expense in the income statement

1,150,530

527,415

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

11

Taxation (continued)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 25%).

The differences are reconciled below:

2025
£

2024
£

Profit before tax

4,450,735

2,033,958

Corporation tax at standard rate

1,112,684

508,489

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

37,846

30,385

Deferred tax credit from unrecognised temporary difference from a prior period

-

(11,459)

Total tax charge

1,150,530

527,415

Deferred tax

Deferred tax assets and liabilities consist of the tax effect of timing difference in respect of:

2025

Asset
£

Accelerated capital allowances

(29,876)

Unpaid employer pension contributions

82,606

Fair value adjustment of investment property

(33,426)

19,304

The deferred tax asset has been included in Debtors at the year-end.

2024

Asset
£

Accelerated capital allowances

(30,957)

Unpaid employer pension contributions

64,714

Fair value adjustment of investment property

(33,426)

331

The deferred tax asset has been included within Debtors at the prior year-end.

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

12

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2024

650,499

529,038

1,122,543

2,302,080

Additions

-

19,279

169,103

188,382

Disposals

-

-

(103,945)

(103,945)

At 31 March 2025

650,499

548,317

1,187,701

2,386,517

Depreciation

At 1 April 2024

262,377

468,876

460,894

1,192,147

Charge for the year

10,649

26,863

172,354

209,866

Eliminated on disposal

-

-

(88,955)

(88,955)

At 31 March 2025

273,026

495,739

544,293

1,313,058

Carrying amount

At 31 March 2025

377,473

52,578

643,408

1,073,459

At 31 March 2024

388,122

60,162

661,649

1,109,933

13

Investment properties

2025
£

At 1 April

480,000

At 31 March

480,000


The investment properties have been revalued by the directors based on their knowledge and professional experience of the local property market. Their valuation is in line with that of Alder King, a qualified independent valuer, who in March 2020 reported on the property's valuation. This is included in the Statement of Financial Position at a value of £480,000, the Directors believe that this valuation remains appropriate.

Tangible assets held at valuation

In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount would have been recognised if the asset had been carried under the historical cost model are as follows:

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

13

Investment properties (continued)

Investment property
£

At 31 March 2025

Aggregate cost

242,089

Aggregate depreciation

(74,090)

Carrying value

167,999

At 31 March 2024

Aggregate cost

242,089

Aggregate depreciation

(70,863)

Carrying value

171,226

14

Debtors

Current

Note

2025
£

2024
£

Trade debtors

 

10,361,116

12,700,562

Prepayments

 

271,425

304,559

Gross amount due from customers for contract work

 

10,551,714

10,217,067

Deferred tax assets

11

19,304

331

   

21,203,559

23,222,519

The uncertainty of the amounts due by customers on construction work has been disclosed in Note 2, within Key Sources of Estimation Uncertainty.

15

Cash and cash equivalents

2025
£

2024
£

Cash at bank

6,325,049

3,594,862

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

16

Creditors

Note

2025
£

2024
£

Due within one year

 

Loans and borrowings

20

-

600,000

Trade creditors

 

2,987,998

6,578,319

Social security and other taxes

 

738,368

2,304,987

Other payables

 

1,060,993

695,927

Accruals

 

6,248,436

4,936,917

Deferred income

 

2,063,876

-

 

13,099,671

15,116,150

Due after one year

 

Loans and borrowings

20

-

50,000

The HSBC bank loan was taken out in March 2020 for £3,000,000 for 3 years, it was secured by a legal charge over the freehold property of the company and a fixed and floating charge over all assets of the company.

The interest on the loan was 8.1% per annum.

This loan was repaid in full in March 2025. The fixed and floating charge remain in effect, as they did not just relate to the loan.

Accruals include £4,829,002 (2024 - £4,150,465) of contract accruals.

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £493,024 (2024 - £414,118).

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

18

Share capital

Allotted, called up and fully paid shares

2025

2024

No.

£

No.

£

Ordinary A shares of £0.50 each

18

9

18

9

Ordinary B shares of £0.50 each

27

14

27

14

Ordinary C shares of £0.50 each

27

14

27

14

Ordinary D shares of £0.50 each

10

5

10

5

82

41

82

41

The A, B, C and D ordinary shares at this year end carry one vote each at all general meetings of the company, and rank equally in its entitlement to dividends, proceeds or winding up or other return of capital of the company.

19

Reserves

Profit and loss account
This reserve records retained earnings and accumulated losses.

Capital redemption reserve
This reserve records the nominal value of shares repurchased by the company.

Within the profit and loss account reserve is an element of undistributable reserves relating to the revaluation of the investment property and total £204,484.

 

R.J Heathman (Contractors) Limited

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

20

Loans and borrowings

Non-current loans and borrowings

2025
£

2024
£

Bank borrowings

-

50,000

Current loans and borrowings

2025
£

2024
£

Bank borrowings

-

600,000

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2025
£

2024
£

Not later than one year

149,596

123,061

Later than one year and not later than five years

155,682

137,025

305,278

260,086

The amount of non-cancellable operating lease payments recognised as an expense during the year was £171,735 (2024 - £149,025).

22

Dividends

Final dividends paid

2025
£

2024
£

Final dividend of £9,146.34 (2024 - £5,792.68) per each Ordinary A shares

164,634

104,268

Final dividend of £9,146.34 (2024 - £5,792.67) per each Ordinary B shares

246,951

156,402

Final dividend of £5,458.81 (2024 - £2,284.72) per each Ordinary C shares

147,388

61,687

558,973

322,357

Subsequent to the year end, a dividend of £200,610 was declared and paid on 17 April 2025.