Company registration number 05635308 (England and Wales)
HUGHES BROS CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
HUGHES BROS CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
Mr G D Hughes
Mr I T Pallas
Mr M McGinley
(Appointed 9 October 2024)
Company number
05635308
Registered office
Hughes Group
Plantation Cottage
Middleton St George
Darlington
DL2 1RJ
Auditor
Davies Tracey
Swan House
Westpoint Road
Teesdale Business Park
Stockton on Tees
TS17 6BP
HUGHES BROS CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
HUGHES BROS CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -

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

Review of the business

Hughes Bros Construction Ltd is a civil engineering, roads, sewers and plotwork specialist which operates throughout the Northeast and Yorkshire. Our client list is made up of multiple national plc housebuilders.

 

Revenues slightly dropped for the year to £33M (2023 £34M), this was in line with the directors’ expectations.

 

Despite this, the company achieved a profit after tax of £2.07M (2023 £0.54M). This is reflective of the wider economy and back to the levels the company expects to achieve.

 

Gross profits increased to 44.70% (2023 43.01%)

Principal risks and uncertainties

Industry

The construction industry is highly competitive and the directors and management continuously review work levels and pricing. The company maintains a strong forward order book and has a good reputation within the construction industry.

 

Market risk

Interest rates are still high which effects the affordability in the private sector. We expect the changes in affordability rules to ease the strain on the private sector but still maintain work within the social housing sector.

 

Health and safety

The company continues to invest in its health and safety department. We ensure all staff have adequate training, qualifications and are sufficiently supervised. All sites are audited monthly and reported to the directors for review.

Key performance indicators

            2024        2023

Turnover            £33.0M        £34.5M

Gross profit        44.70%        43.01%

Reporting

We run a site-by-site P&L monthly alongside our management accounts which is reviewed by the directors and commercial department.

 

Results thus far for 2025 show the company is achieving the desired profit margins and we forecast the rest of 2025 to achieve similar results.

 

On behalf of the board

Mr G D Hughes
Director
28 August 2025
HUGHES BROS CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 November 2024.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G D Hughes
Mr J Hughes
(Deceased 23 March 2025)
Mr I T Pallas
Mr M McGinley
(Appointed 9 October 2024)
Future developments

The directors' aim is continued growth, increased market share, diversifying revenue streams and maximising profit by reduction of direct and operating costs where possible, without effecting the company's high standards.

Statement of directors' responsibilities

The directors are responsible 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:

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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

HUGHES BROS CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
On behalf of the board
Mr G D Hughes
Director
28 August 2025
HUGHES BROS CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HUGHES BROS CONSTRUCTION LIMITED
- 4 -
Opinion

We have audited the financial statements of Hughes Bros Construction Limited (the 'company') for the year ended 30 November 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

HUGHES BROS CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HUGHES BROS CONSTRUCTION LIMITED (CONTINUED)
- 5 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is the extent to which an audit conducted under ISAs (UK) is capable of detecting irregularity, including fraud. Our procedures include:

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. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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

HUGHES BROS CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HUGHES BROS CONSTRUCTION LIMITED (CONTINUED)
- 6 -

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.

Craig Davies (Senior Statutory Auditor)
For and on behalf of Davies Tracey
Chartered Accountants and Statutory Auditors
Swan House
Westpoint Road
Teesdale Business Park
Stockton on Tees
TS17 6BP
28 August 2025
HUGHES BROS CONSTRUCTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
33,004,216
34,513,841
Cost of sales
(18,249,804)
(19,668,513)
Gross profit
14,754,412
14,845,328
Administrative expenses
(13,203,359)
(15,149,542)
Other operating income
83,114
297,700
Operating profit/(loss)
3
1,634,167
(6,514)
Interest receivable and similar income
6
2,550
13,529
Interest payable and similar expenses
7
(124,876)
(84,135)
Profit/(loss) before taxation
1,511,841
(77,120)
Tax on profit/(loss)
8
561,777
617,930
Profit for the financial year
2,073,618
540,810
HUGHES BROS CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,097,677
696,232
Current assets
Stocks
11
411,459
391,586
Debtors
12
9,172,857
8,175,367
Cash at bank and in hand
2,181,358
1,057,297
11,765,674
9,624,250
Creditors: amounts falling due within one year
13
(8,120,835)
(8,067,418)
Net current assets
3,644,839
1,556,832
Total assets less current liabilities
4,742,516
2,253,064
Creditors: amounts falling due after more than one year
14
(571,198)
(244,541)
Provisions for liabilities
Deferred tax liability
17
258,359
169,182
(258,359)
(169,182)
Net assets
3,912,959
1,839,341
Capital and reserves
Called up share capital
19
40
40
Profit and loss reserves
3,912,919
1,839,301
Total equity
3,912,959
1,839,341
The financial statements were approved by the board of directors and authorised for issue on 28 August 2025 and are signed on its behalf by:
Mr G D Hughes
Director
Company registration number 05635308 (England and Wales)
HUGHES BROS CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 December 2022
40
1,298,491
1,298,531
Year ended 30 November 2023:
Profit and total comprehensive income
-
540,810
540,810
Balance at 30 November 2023
40
1,839,301
1,839,341
Year ended 30 November 2024:
Profit and total comprehensive income
-
2,073,618
2,073,618
Balance at 30 November 2024
40
3,912,919
3,912,959
HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 10 -
1
Accounting policies
Company information

Hughes Bros Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hughes Group, Plantation Cottage, Middleton St George, Darlington, DL2 1RJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

 

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% on reducing balance/25% on cost
Motor vehicles
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
24,000
23,600
Depreciation of owned tangible fixed assets
93,759
71,481
Depreciation of tangible fixed assets held under finance leases
165,481
75,915
Loss/(profit) on disposal of tangible fixed assets
6,315
(47,124)
Operating lease charges
276,388
795,150
HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 15 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Direct
75
111
Indirect
30
27
Directors
3
3
Total
108
141

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
10,623,719
12,149,597
Social security costs
413,449
533,201
Pension costs
218,896
158,391
11,256,064
12,841,189
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
15,865
19,212
Company pension contributions to defined contribution schemes
73,423
32,000
89,288
51,212

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 3).

6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
37
-
0
Other interest income
2,513
13,529
Total income
2,550
13,529
HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 16 -
7
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
62,339
71,310
Interest on finance leases and hire purchase contracts
62,443
14,085
Other interest
94
(1,260)
124,876
84,135
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(225,899)
-
0
Adjustments in respect of prior periods
(425,055)
(632,535)
Total current tax
(650,954)
(632,535)
Deferred tax
Origination and reversal of timing differences
89,177
14,605
Total tax credit
(561,777)
(617,930)

The standard rate of corporation tax has changed form the previous period which reflects the increase in the main rate of corporation tax enacted by the United Kingdom Government.

The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
1,511,841
(77,120)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.00%)
377,960
(17,738)
Tax effect of expenses that are not deductible in determining taxable profit
586
6,190
Effect of change in corporation tax rate
-
0
1,168
Group relief
-
0
23,144
Permanent capital allowances in excess of depreciation
-
0
1,841
Research and development tax credit
(515,268)
-
0
Under/(over) provided in prior years
(425,055)
(632,535)
Taxation credit for the year
(561,777)
(617,930)
HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 17 -
9
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2023 and 30 November 2024
320,000
Amortisation and impairment
At 1 December 2023 and 30 November 2024
320,000
Carrying amount
At 30 November 2024
-
0
At 30 November 2023
-
0
10
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 December 2023
1,173,795
333,385
1,507,180
Additions
574,000
93,000
667,000
Disposals
(442,500)
-
0
(442,500)
At 30 November 2024
1,305,295
426,385
1,731,680
Depreciation and impairment
At 1 December 2023
666,387
144,561
810,948
Depreciation charged in the year
203,993
55,247
259,240
Eliminated in respect of disposals
(436,185)
-
0
(436,185)
At 30 November 2024
434,195
199,808
634,003
Carrying amount
At 30 November 2024
871,100
226,577
1,097,677
At 30 November 2023
507,408
188,824
696,232

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

2024
2023
£
£
Plant and equipment
792,574
376,041
Motor vehicles
155,498
158,163
948,072
534,204
HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 18 -
11
Stocks
2024
2023
£
£
Raw materials and consumables
411,459
391,586
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,417,213
6,949,796
Gross amounts owed by contract customers
116,235
116,235
Corporation tax recoverable
762,431
292,109
Amounts owed by group undertakings
-
0
268,209
Other debtors
836,832
511,867
9,132,711
8,138,216
2024
2023
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
40,146
37,151
Total debtors
9,172,857
8,175,367
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
40,708
87,093
Obligations under finance leases
16
231,024
181,859
Other borrowings
15
986,433
1,194,516
Trade creditors
5,661,045
6,112,976
Amounts owed to group undertakings
121,614
-
0
Taxation and social security
219,939
111,763
Other creditors
415,045
215,252
Accruals and deferred income
445,027
163,959
8,120,835
8,067,418

Obligations under finance leases are secured against the assets to which they relate.

HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 19 -
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
-
0
34,631
Obligations under finance leases
16
571,198
209,910
571,198
244,541

Obligations under finance leases are secured against the assets to which they relate.

15
Loans and overdrafts
2024
2023
£
£
Bank loans
40,708
121,724
Other loans
986,433
1,194,516
1,027,141
1,316,240
Payable within one year
1,027,141
1,281,609
Payable after one year
-
0
34,631

The loans are unsecured.

The bank loan is repayable in monthly instalments by April 2025 and attracts interest at 7.95% per annum.

 

Other loans are repayable on demand and attract interest at rates between Nil and 0.5% per calendar month.

16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
347,430
215,665
In two to five years
591,615
262,162
939,045
477,827
Less: future finance charges
(136,823)
(86,058)
802,222
391,769
HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
259,019
170,174
Other timing differences
(660)
(992)
258,359
169,182
2024
Movements in the year:
£
Liability at 1 December 2023
169,182
Charge to profit or loss
89,177
Liability at 30 November 2024
258,359
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
218,896
158,391

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

 

 

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
40
40
40
40
20
Financial commitments, guarantees and contingent liabilities

Grants receivable may be repayable in part or in full if certain conditions associated with the grants are not met.

 

A bank loan advanced to the company's parent undertaking, Hughes Bros Construction (Holdings) Limited, during the year is secured against certain of the company's assets. The balance outstanding on the loan as at 30 November 2024 was £382,430.

HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
21
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within 1 year
19,680
19,965
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
397,666
828,412
1,992,780
4,082,992
Interest receivable
2024
2023
£
£
Key management personnel
(2,513)
(2,444)
2024
2023
Amounts due to related parties
£
£
Key management personnel
(20,421)
(21,717)
Other related parties
(1,278,514)
(2,244,297)

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Key management personnel
123,006
114,131
Other related parties
312,918
768,046
HUGHES BROS CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
22
Related party transactions
(Continued)
- 22 -
Other information

In addition to the above:

 

During the year the company received advances of £261,002 from, and made repayments of £591,000 to, Hughes Bros Investments Unlimited, a company under common control. At 30 November 2024 the company owed Hughes Bros Investments Unlimited £558,933 (2023 : £839,516 ). Interest payable in respect of the year ended 30 November 2024 relating to this loan amounted to £49,415 (2023 : £58,387).

 

During the year the company received advances of £100,000 from, and made repayments of £100,000 to, Joseph Hughes Investments Unlimited, a company under common control. At 30 November 2024 the company owed Joseph Hughes Investments Unlimited £215,000 (2023 : £215,000). The advances were interest free.

 

During the year the company received advances of £22,500 from, and made repayments of £Nil to, Ian Pallas Investments Unlimited, a company under common control. At 30 November 2024 the company owed Joseph Hughes Investments Unlimited £22,500 (2023 : £Nil). The advances were interest free.

 

The company has given a guarantee limited to £150,000 in respect of a bank loan advanced to its parent undertaking, Hughes Bros Construction (Holdings) Limited. The guarantee is secured against the assets of the company.

23
Directors' transactions

During the year the company made advances to directors of £8,875 and £Nil was repaid by the directors (2022 : £2,210 and £Nil respectively). Interest was charged at 2% and 2.25% per annum. All amounts were repayable on demand.

24
Ultimate controlling party

The only group in which the results are consolidated is that headed by the company's immediate and ultimate parent undertaking, Hughes Bros Construction (Holdings) Limited, whose registered office is:

 

Plantation Cottage

Sadberge Road

Middleton St. George

Darlington

England

DL2 1RJ

 

Consolidated financial statements are available to the public and can be obtained from Companies House.

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