Company registration number 08330965 (England and Wales)
STEEL WORK CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
STEEL WORK CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
M A Davis
K Ellis
M D Clapp
A Sneddon
D R Lee
K Heaviside
(Appointed 28 May 2024)
S M Bax
(Appointed 24 February 2024)
Secretary
B J Lee
Company number
08330965
Registered office
Unit 5
Chapel Hill Industrial Estate
Longridge
Preston
PR3 3BU
Auditor
Douglass Grange
Ground Floor, Capricorn House
Capricorn Park
Blakewater Road
Blackburn
Lancashire
BB1 5QR
STEEL WORK CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
STEEL WORK CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The company reported a profit for the year ended 31 December 2024 of £3,513,992 year end 31 December 2023 £1,158,497).

Steel Work Construction Limited is a Lancashire based firm of steel erectors working throughout the UK who provide fully trained labour and necessary plant to erect steel framed structures.

Throughout 2024 the company has continued to carry out erection contracts for some of the UK's leading structural steelwork contractors, and is proud to have been part of the team that has constructed some of the largest steel structures in the UK.

Safety is the company's top priority. The workforce is fully trained and dedicated to carrying out work safely, efficiently and accurately. All erectors are CSCS, CPCS and IPAF pal+ certified. Supervisors undergo the highest level of training and hold the Crane Supervisor and CITB Site Supervisor's Safety Scheme (SSSTS) certificates.

The company's performance and systems are reviewed each month. Where necessary, a zero tolerance approach to potential breaches to health, safety and environmental practices is invoked.

Principal risks and uncertainties

Reputation

Safety is the company's highest priority. Protecting the workforce whilst carrying out erections efficiently and within budget is an essential part of the business. The company has a good reputation and prides itself on delivering high quality results. There ha ve been no instance s throughout 2024 that could be seen to have a negative impact on the reputation of the compan y.

Competition

There are numerous steel erection contractors of all different sizes throughout the UK .

The company has maintained good professional relationships with its customers throughout 2024 and continues to successfully tender for s teel erection contracts in the new fiscal year, ensuring a constant cashflow and the ability to comfortably cover the company’s financial commitments.

Development and performance

The directors monitor the performance of the company by reference to turnover growth and profitability, which has been increasing year on year for the past few years.

Key performance indicators

Revenue growth

2024 has seen turnover increasing by £4.7m (27%). The turnover increase for the next fiscal year is expected to return to previous levels. Results so far in the 2025 year show this to be the case.

Profit margin

Operating profit in 2024 increased by 209% on the previous fiscal year. The gross profit margin increased to 26.7% for 2024 compared to 13.6% in the previous year. Management is expecting the gross profit margin for 2025 to reduce slightly on the 2024 results, but not drop as low as the 2023 level.

The company has received contracts for buildings to be used for waste conversion. There is a possibility this will lead to an increase in business in 2025.

STEEL WORK CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

D R Lee
Director
4 September 2025
STEEL WORK CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of structural steelwork contractors

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,000,000. 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:

M A Davis
K Ellis
M D Clapp
A Sneddon
D R Lee
K Heaviside
(Appointed 28 May 2024)
S M Bax
(Appointed 24 February 2024)
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.

On behalf of the board
D R Lee
Director
4 September 2025
STEEL WORK CONSTRUCTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK 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.

STEEL WORK CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEEL WORK CONSTRUCTION LIMITED
- 5 -
Opinion

We have audited the financial statements of Steel Work Construction Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 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:

- the information given in the strategic report and the directors' r eport 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.

STEEL WORK CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEEL WORK CONSTRUCTION LIMITED (CONTINUED)
- 6 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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 directors' r esponsibilities s tatement, 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 our 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.

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to building regulations, health and safety, and employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as tax legislation and the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks related to revenue recognition. Audit procedures performed included:

- Discussions with management around actual and potential litigation and claims, and review of expense nominals for any evidence of such events;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006;

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;

- Auditing revenue completeness through analytical review and substantive tests.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

STEEL WORK CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEEL WORK CONSTRUCTION LIMITED (CONTINUED)
- 7 -

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

Use of our report

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

Anthea Grange (Senior Statutory Auditor)
For and on behalf of Douglass Grange
4 September 2025
Chartered Accountants
Statutory Auditor
Ground Floor, Capricorn House
Capricorn Park
Blakewater Road
Blackburn
Lancashire
BB1 5QR
STEEL WORK CONSTRUCTION LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
22,119,789
17,405,742
Cost of sales
(16,217,455)
(15,030,088)
Gross profit
5,902,334
2,375,654
Administrative expenses
(1,129,541)
(844,406)
Operating profit
4
4,772,793
1,531,248
Interest receivable and similar income
8
1,693
-
0
Interest payable and similar expenses
9
(85,500)
(15,591)
Profit before taxation
4,688,986
1,515,657
Tax on profit
10
(1,174,994)
(357,160)
Profit for the financial year
3,513,992
1,158,497
Retained earnings brought forward
4,876,413
4,717,916
Dividends
11
(1,000,000)
(1,000,000)
Retained earnings carried forward
7,390,405
4,876,413

The profit and loss account has been prepared on the basis that all operations are continuing operations.

STEEL WORK CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,120,335
946,570
Current assets
Debtors
13
3,721,100
3,421,179
Cash at bank and in hand
5,287,783
2,230,479
9,008,883
5,651,658
Creditors: amounts falling due within one year
14
(2,373,567)
(1,333,157)
Net current assets
6,635,316
4,318,501
Total assets less current liabilities
9,755,651
5,265,071
Creditors: amounts falling due after more than one year
15
(1,660,258)
(193,462)
Provisions for liabilities
Deferred tax liability
17
704,888
195,096
(704,888)
(195,096)
Net assets
7,390,505
4,876,513
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
7,390,405
4,876,413
Total equity
7,390,505
4,876,513
The financial statements were approved by the board of directors and authorised for issue on 4 September 2025 and are signed on its behalf by:
D R Lee
Director
Company registration number 08330965 (England and Wales)
STEEL WORK CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
5,786,642
1,317,072
Interest paid
(85,500)
(15,591)
Income taxes paid
(389,584)
(481,895)
Net cash inflow from operating activities
5,311,558
819,586
Investing activities
Purchase of tangible fixed assets
(728,803)
(378,340)
Proceeds from disposal of tangible fixed assets
78,475
255,478
Repayment of loans
(261,500)
10,000
Interest received
1,693
-
0
Net cash used in investing activities
(910,135)
(112,862)
Financing activities
Payment of finance leases obligations
(344,119)
(94,533)
Dividends paid
(1,000,000)
(1,000,000)
Net cash used in financing activities
(1,344,119)
(1,094,533)
Net increase/(decrease) in cash and cash equivalents
3,057,304
(387,809)
Cash and cash equivalents at beginning of year
2,230,479
2,618,288
Cash and cash equivalents at end of year
5,287,783
2,230,479
Relating to:
Cash at bank and in hand
5,287,783
2,230,479
STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information

Steel Work Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5, Chapel Hill Industrial Estate, Longridge, Preston, PR3 3BU.

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 a mounts 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.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The company recognises revenue from the following major sources:

- Construction

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Construction

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recover ed.

1.4
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% reducing balance
Motor vehicles
25% reducing balance

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.

STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

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.

STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.

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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts 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 s ubsequently 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 th r ough 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.

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.

STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.

1.11
Retirement benefits

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

1.12
Leases
As lessee

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 lease s 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.

STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

Depreciation is considered a key estimate for which management review on an annual basis to ensure that the assets are being depreciated over their estimated useful economic lives. The net book value of fixed assets at the reporting date was £946,750 after a depreciation charge of £220,924 was recognised during 2023.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Steelwork contracting
21,419,772
16,804,753
Haulage
700,017
600,989
22,119,789
17,405,742
2024
2023
£
£
Other revenue
Interest income
1,693
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
537,099
220,924
(Profit)/loss on disposal of tangible fixed assets
(8,710)
14,757
Operating lease charges
50,400
53,400
STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,750
5,250
6
Employees

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

2024
2023
Number
Number
Office and administration
4
4
Construction
74
58
Total
78
62

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,203,670
3,578,734
Social security costs
468,032
396,115
Pension costs
77,238
71,383
4,748,940
4,046,232
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
415,216
272,910
Company pension contributions to defined contribution schemes
5,489
3,944
420,705
276,854
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
122,556
110,350
Company pension contributions to defined contribution schemes
1,330
1,321
STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,693
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
78,695
14,024
Other interest
6,805
1,567
85,500
15,591
STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
665,202
332,596
Deferred tax
Origination and reversal of timing differences
509,792
24,564
Total tax charge
1,174,994
357,160

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

2024
2023
£
£
Profit before taxation
4,688,986
1,515,657
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,172,247
378,914
Tax effect of expenses that are not deductible in determining taxable profit
2,747
2,531
Effect of change in corporation tax rate
-
0
(20,920)
Super allowance
-
0
(3,365)
Taxation charge for the year
1,174,994
357,160
STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
11
Dividends
2024
2023
£
£
Interim paid
1,000,000
1,000,000
12
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2024
678,653
1,048,744
1,727,397
Additions
1,967,525
813,104
2,780,629
Disposals
(80,000)
(88,587)
(168,587)
At 31 December 2024
2,566,178
1,773,261
4,339,439
Depreciation and impairment
At 1 January 2024
337,138
443,689
780,827
Depreciation charged in the year
312,725
224,374
537,099
Eliminated in respect of disposals
(32,765)
(66,057)
(98,822)
At 31 December 2024
617,098
602,006
1,219,104
Carrying amount
At 31 December 2024
1,949,080
1,171,255
3,120,335
At 31 December 2023
341,515
605,055
946,570
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,975,982
2,756,413
Corporation tax recoverable
91,229
70,502
Amounts owed by group undertakings
1,773
390,858
Other debtors
622,131
169,499
Prepayments and accrued income
29,985
33,907
3,721,100
3,421,179
STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
315,459
74,548
Trade creditors
1,026,539
702,085
Corporation tax
296,345
-
0
Other taxation and social security
234,204
193,109
Other creditors
12,921
292,426
Accruals and deferred income
488,099
70,989
2,373,567
1,333,157

The net obligations under finance leases are secured on the assets financed

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
1,660,258
193,462

The net obligations under finance leases are secured on the assets financed

16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
450,098
89,363
In two to five years
1,545,873
219,038
In over five years
374,974
5,838
2,370,945
314,239
Less: future finance charges
(395,228)
(46,229)
1,975,717
268,010

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
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
704,888
195,096
2024
Movements in the year:
£
Liability at 1 January 2024
195,096
Charge to profit or loss
509,792
Liability at 31 December 2024
704,888

The deferred tax liability set out above is expected to reverse within 12 months as follows:

- in respect of accelerated capital allowances £163,859

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
77,238
71,383

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
100
100
100
100
20
Related party transactions
Transactions with related parties

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

STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Related party transactions
(Continued)
- 22 -

NGJ Holdings Limited

NGJ Holdings owns 60% of the issued share capital of the company.

During the year NGJ Holdings Limited charged the company for rent hire of equipment and consultancy fees totalling £1,384,000 (2023 - £1,264,300). During the year the company also acquired plant for a cost of £69,000 from NGJ Holdings Limited. An amount of £240,000 was outstanding at the year end in respect of these transactions (2023 - £nil)

At 31st December 2024 NGJ Holdings Limited owed the company an amount of £1,773 (2023 - £390,858) in respect of a loan. The loan is interest free and repayable on demand.

DRL Plant Hire Limited

DRL Plant Hire Limited owns 20% of the issued share capital of the company.

During the year, DRL Plant Hire Limited charged this company for hire of plant and equipment and subcontractor fees totalling £415,270 (2023 - £541,213) of which £71,896 (2023 - £60,431) was outstanding at the year end.

Bax Engineering Limited

o/s

Bax Engineering own 2% of share capital

S Bax director of both companies (owns 60% of bax engineering

21
Directors' transactions

Dividends totalling £180,000 (2023 - £120,000) were paid in the year in respect of shares held by the company's directors.

Loans were advanced to directors as detailed below. The loans are unsecured interest free and repayable on demand.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
K Ellis -
-
30,300
100,500
(20,000)
110,800
M D Clapp -
-
-
100,500
(10,000)
90,500
K Heaviside -
-
-
100,500
(10,000)
90,500
30,300
301,500
(40,000)
291,800
22
Ultimate controlling party

The company is a subsidiary of NGJ Holdings Limited, a company incorporated in the United Kingdom whose registered office is Ashley Head Farm, Ashley Lane, Goosnargh, Preston, PR3 2EE. NGJ Holdings Limited prepares consolidated accounts which includes the accounts of the company.

The company's ultimate controller is Mr Benjamin Lee by virtue of his majority shareholding in NGJ Holdings Limited.

STEEL WORK CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
23
Cash generated from operations
2024
2023
£
£
Profit after taxation
3,513,992
1,158,497
Adjustments for:
Taxation charged
1,174,994
357,160
Finance costs
85,500
15,591
Investment income
(1,693)
-
0
(Gain)/loss on disposal of tangible fixed assets
(8,710)
14,757
Depreciation and impairment of tangible fixed assets
537,099
220,924
Movements in working capital:
Increase in debtors
(17,694)
(197,290)
Increase/(decrease) in creditors
503,154
(252,567)
Cash generated from operations
5,786,642
1,317,072
24
Analysis of changes in net funds
1 January 2024
Cash flows
New leases
31 December 2024
£
£
£
£
Cash at bank and in hand
2,230,479
3,057,304
-
5,287,783
Lease liabilities
(268,010)
344,119
(2,051,826)
(1,975,717)
1,962,469
3,401,423
(2,051,826)
3,312,066
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