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Company Registration Number 02741458























HACS CONSTRUCTION LIMITED





FINANCIAL STATEMENTS





 31 DECEMBER 2024






















img1f8a.png

 
HACS CONSTRUCTION LIMITED
 

COMPANY INFORMATION


Directors
M R Smith 
E J Ashworth 
A J H Du Boulay 




Registered number
02741458



Registered office
Nidderdale House
Station Yard

Ripley

Harrogate

North Yorkshire

HG3 3BA




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditor

Third Floor

10 South Parade

Leeds

LS1 5QS





 
HACS CONSTRUCTION LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Statement of Financial Position
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 24


 
HACS CONSTRUCTION LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors have pleasure in presenting their report and the financial statements of the company for the year ended 31 December 2024.

Business review
 
The principal activity of the company for the year under review was that of building and civil engineering contractors. The company trades from their registered office at Nidderdale House, Station Yard, Ripley, Harrogate, North Yorkshire, HG3 3BA.
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and company's position at the year end. The review is consistent with the size and noncomplex nature of the business and is written in the context of the risks and uncertainties faced. 

Principal risks and uncertainties
 
The business environment in which the company operates continues to be challenging. The principal risks continue to be the general economic climate, staff, third party suppliers and health and safety. 
With these risks and uncertainties in mind, the directors are aware that any plans for future development of the business may be subject to unforeseen future events outside our control.

Financial risks

The company's operations expose it to a variety of financial risks that include the effect of changes in credit, liquidity and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company. The company does not use derivative financial instruments to manage interest rate costs.

Credit risk

The company has implemented policies that require appropriate credit checks on customers before contracts are entered in to.
Liquidity
The directors believe that the company has sufficient funds available to support its activities in the future. 

Financial key performance indicators
 
The directors consider the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, being turnover, gross margin and profitability before taxation.
During the year turnover has increased by £2,762,598 (13.7%) to £22,982,983 in 2024 from £20,220,385 in 2023.
 
Gross profit has slightly decreased from £2,478,169 in 2023 to £2,452,591 in 2024. 
Overall, profit before taxation has increased from £237,312 in 2023 to £301,621 in 2024 and the directors are satisfied with the result for the year.
After taxation and dividends, shareholders funds have decreased from £993,235 to £571,005 at the year end.

Page 1

 
HACS CONSTRUCTION LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


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





................................................
M R Smith
Director

Date: 18 August 2025

Page 2

 
HACS CONSTRUCTION LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 for the company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £222,787 (2023 - £235,112).

Dividends totalling £645,017 (2023: £97,994) have been declared and paid during the year.

Directors

The directors who served during the year were:

M R Smith 
E J Ashworth 
A J H Du Boulay 

Future developments

The directors are not expecting to make any significant changes in the nature of the business in the near future.

Matters covered in the Strategic Report

Information is not shown in the directors' report because it is shown in the strategic report instead under s414C (11). The strategic report includes a business review, principal risks and uncertainties and financial key performance indicators.

Page 3

 
HACS CONSTRUCTION LIMITED
 

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

Disclosure of information to auditors

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

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

Auditors

Under section 487(2) of the Companies Act 2006Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





................................................
M R Smith
Director

Date: 18 August 2025

Page 4

 
HACS CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HACS CONSTRUCTION LIMITED
 

Opinion


We have audited the financial statements of HACS Construction Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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





Page 5

 
HACS CONSTRUCTION LIMITED
 

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


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, 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 Director's Responsibilities Statement set out on page 3, 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.


Page 6

 
HACS CONSTRUCTION LIMITED
 

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


Auditors' responsibilities for the audit of the financial statements
 

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


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

• We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.
• We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting  minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the  directors have in place to ensure compliance.
• We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
• The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition and management override of controls.
• We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
• In addressing the risk of fraud due to management override of internal controls we tested the  appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
HACS CONSTRUCTION LIMITED
 

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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.







Matthew Osbourne (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Chartered Accountants
Statutory Auditor
Leeds

18 August 2025
Page 8

 
HACS CONSTRUCTION LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
22,982,983
20,220,385

Cost of sales
  
(20,530,392)
(17,742,216)

Gross profit
  
2,452,591
2,478,169

Administrative expenses
  
(2,641,214)
(2,560,471)

Other operating income
 5 
496,477
344,852

Operating profit
 6 
307,854
262,550

Interest receivable and similar income
 10 
14,627
1,429

Interest payable and similar expenses
 11 
(20,860)
(26,667)

Profit before tax
  
301,621
237,312

Tax on profit
 12 
(78,834)
(2,200)

Profit for the financial year
  
222,787
235,112

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
HACS CONSTRUCTION LIMITED
REGISTERED NUMBER: 02741458

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
85,392
18,265

  
85,392
18,265

Current assets
  

Debtors: amounts falling due within one year
 15 
6,102,271
5,422,634

Cash at bank and in hand
 16 
2,725,209
1,102,839

  
8,827,480
6,525,473

Creditors: amounts falling due within one year
 17 
(8,241,867)
(5,250,503)

Net current assets
  
 
 
585,613
 
 
1,274,970

Total assets less current liabilities
  
671,005
1,293,235

Creditors: amounts falling due after more than one year
 18 
(100,000)
(300,000)

  

Net assets
  
571,005
993,235


Capital and reserves
  

Called up share capital 
 21 
40,000
40,000

Profit and loss account
  
531,005
953,235

  
571,005
993,235


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




................................................
M R Smith
Director

Date: 18 August 2025

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
HACS CONSTRUCTION LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
40,000
816,117
856,117


Comprehensive income for the year

Profit for the year
-
235,112
235,112

Dividends: Equity capital
-
(97,994)
(97,994)



At 1 January 2024
40,000
953,235
993,235


Comprehensive income for the year

Profit for the year
-
222,787
222,787

Dividends: Equity capital
-
(645,017)
(645,017)


At 31 December 2024
40,000
531,005
571,005


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
HACS CONSTRUCTION LIMITED
 

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

1.


General information

The company is a private company limited by shares, incorporated and domiciled in the United Kingdom. The company is tax resident in the United Kingdom. It trades from its registered office address at Nidderdale House, Station Yard, Ripley, Harrogate, North Yorkshire, HG3 3BA.
The principal activity of the company is that of building and civil engineering contractors.
These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
• the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
• the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
• the requirements of Section 33 Related Party Disclosures paragraph 33.7.
 
 
2.3

Going concern

The directors continue to adopt the going concern basis in preparing the financial statements.
The company has traded profitably during the current accounting year and after the year end and have sufficient available reserves to meet its liabilities as they fall due. 

Page 12

 
HACS CONSTRUCTION LIMITED
 

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

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
15%
straight line
Computer equipment
-
15%
straight line

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

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

 
2.6

Operating leases: the Company as lessee

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

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

Page 13

 
HACS CONSTRUCTION LIMITED
 

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

2.Accounting policies (continued)

 
2.8

Interest income

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

 
2.9

Finance costs

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

 
2.10

Borrowing costs

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

 
2.11

Debtors

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

  
2.12

Long-term contracts

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of a total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
The directors present amounts relating to long-term contracts in trade debtors and trade creditors within the financial statements as they believe this represents a true and fair reflection of the substance of the transactions. 

 
2.13

Cash and cash equivalents

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

 
2.14

Creditors

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

 
2.15

Provisions for liabilities

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

Page 14

 
HACS CONSTRUCTION LIMITED
 

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

2.Accounting policies (continued)

 
2.16

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.17

Dividends

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

 
2.18

Pensions

Defined contribution pension plan

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

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

 
2.19

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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


Page 15

 
HACS CONSTRUCTION LIMITED
 

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

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements requires management to make judgements, estimates and assumptions that effect the application of policies and reported amounts of assets and liabilities, income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will be, by definition, seldom equal the related actual results.
Management estimate the stage of completion of long term contracts by comparing actual costs incurred to forecasts, relying on their past experience and expertise to ensure those estimates are accurate.
The useful lives and residual values of assets are reviewed on an ongoing basis by the directors.
Provisions for trade debtors are reviewed by the directors on an ongoing basis who use their specific industry knowledge and experience to ensure the correct judgements.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Management charges receivable
473,000
318,000

Government grants receivable
23,477
26,852

496,477
344,852



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
4,889
2,221

Defined contribution pension cost
70,584
66,248

Other operating lease rentals
100,000
100,000

Fee payable to the company's auditor
11,750
11,500

Page 16

 
HACS CONSTRUCTION LIMITED
 

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

7.


Auditors' remuneration

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


2024
2023
£
£



Fees payable to the company's auditor and its associates for the audit of the company's annual financial statements
11,750
11,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


8.


Employees

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


2024
2023
£
£

Wages and salaries
1,936,835
2,029,942

Social security costs
299,777
294,711

Cost of defined contribution scheme
70,584
66,248

2,307,196
2,390,901


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


        2024
        2023
            No.
            No.







Employees
70
80


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
158,319
160,683

Company contributions to defined contribution pension schemes
13,748
10,853

172,067
171,536


During the year retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.

Page 17

 
HACS CONSTRUCTION LIMITED
 

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

10.


Interest receivable

2024
2023
£
£


Other interest receivable
14,627
1,429

14,627
1,429


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
20,860
26,503

Other loan interest payable
-
164

20,860
26,667


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
129,680
-


129,680
-


Total current tax
129,680
-

Deferred tax


Origination and reversal of timing differences
(50,846)
2,200

Total deferred tax
(50,846)
2,200


Taxation on profit on ordinary activities
78,834
2,200
Page 18

 
HACS CONSTRUCTION LIMITED
 

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


Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
301,621
237,312


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
75,407
45,089

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
54,727
3,674

Adjustments to tax charge in respect of 
previous periods - deferred tax
(51,425)
-

Other timing differences leading to an increase in taxation
-
39,601

Adjustments to brought forward values
125
-

Group relief
-
(86,164)

Total tax charge for the year
78,834
2,200


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends paid
645,017
97,994

645,017
97,994

Page 19

 
HACS CONSTRUCTION LIMITED
 

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

14.


Tangible fixed assets





Plant and machinery
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2024
34,628
225
34,853


Additions
72,022
-
72,022



At 31 December 2024

106,650
225
106,875



Depreciation


At 1 January 2024
16,363
225
16,588


Charge for the year on owned assets
4,895
-
4,895



At 31 December 2024

21,258
225
21,483



Net book value



At 31 December 2024
85,392
-
85,392



At 31 December 2023
18,265
-
18,265

Page 20

 
HACS CONSTRUCTION LIMITED
 

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

15.


Debtors

2024
2023
£
£


Trade debtors
4,028,325
3,110,587

Amounts owed by associated undertakings
1,868,802
2,211,742

Other debtors
52,470
292

Prepayments and accrued income
101,606
99,791

Deferred taxation
51,068
222

6,102,271
5,422,634



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,725,209
1,102,839

2,725,209
1,102,839



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
100,000
-

Trade creditors
4,986,936
4,460,069

Corporation tax
129,388
-

Other taxation and social security
511,754
389,800

Other creditors
85,702
122,444

Accruals and deferred income
2,428,087
278,190

8,241,867
5,250,503


Page 21

 
HACS CONSTRUCTION LIMITED
 

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

18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
100,000
300,000

100,000
300,000


The following liabilities were secured:

2024
2023
£
£



Bank loan
200,000
300,000

200,000
300,000

Details of security provided:

The above bank loan is secured by a debenture granted by the company and covered by a cross guarantee granted by HACS Holdings Limited which is secured by a first legal charge over the freehold property at Station Yard, Ripley, Harrogate, HG3 3BA and a debenture. 


19.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
100,000
-


100,000
-

Amounts falling due 1-2 years

Bank loans
100,000
100,000


100,000
100,000

Amounts falling due 2-5 years

Bank loans
-
200,000


-
200,000


200,000
300,000


Page 22

 
HACS CONSTRUCTION LIMITED
 

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

20.


Deferred taxation




2024


£






At beginning of year
222


Charged to profit or loss
50,846



At 31 December 2024
51,068

The deferred tax asset is made up as follows:

2024
2023
£
£


Fixed asset timing differences
20,679
-

Short term timing differences
(71,747)
-

Other differences
-
222

51,068
222


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



36,000 (2023 - 36,000) Ordinary A shares of £1.00 each
36,000
36,000
2,000 (2023 - 2,000) Ordinary B shares of £1.00 each
2,000
2,000
2,000 (2023 - 2,000) Ordinary C shares of £1.00 each
2,000
2,000

40,000

40,000





22.


Contingent liabilities

The company has a multilateral guarantee with fellow group companies HACS Plant Hire Limited and HACS Holdings Limited to secure any borrowings. At the year end the net outstanding borrowings with National Westminster Bank PLC for the group were £200,000 (2023: £255,916).


23.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £70,584 (2023 - £66,248). Contributions totalling £22,201 (2023 - £14,697) were payable to the fund at the balance sheet date and are included in creditors.

Page 23

 
HACS CONSTRUCTION LIMITED
 

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

24.


Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the reporting date.


25.


Related party transactions

The company has an intercompany loan account with its parent company, HACS Holdings Limited and at 31 December 2024 it was owed £427,582 (2023: £828,423) by this company.  The company also has an intercompany loan account with a subsidiary of the parent company, HACS Plant Hire Limited and at 31 December 2024 it was owed £1,441,220 (2023: £1,383,319) by this company. 
The company also has intercompany loan accounts with HACS Civil Engineering LLP and HACS Environmental LLP at 31 December 2024 and it owes £43,886 (2023: owed to Construction £47,265)  and was owed £52,470 (2023: £41,584) respectively. These LLP are designated members of HACS Holdings Limited.   
The company received management re-charge income of £223,000 (2023: £318,000) and expenses of £10,000 (2023: £10,000) from the connected companies listed above. The company also incurred equipment hire expenses of £68,175 (2023: £71,370)  from HACS Environmental LLP, £724,991 (2023: £900,449) from HACS Civil Engineering LLP and £114,831 (2023: £66,595) from HACS Plant Hire Limited.  
Dividends paid to HACS Holdings Limited totalled £500,000 (2023 - £-). Divdends paid to the directors totalled £145,017 (2023 - £97,994).


26.


Controlling party

The company is a wholly owned subsidiary undertaking of HACS Holdings Limited. The consolidated financial statements of HACS Holdings Limited are available to the public and may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.

Page 24