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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARROWBUILD & CIVIL ENGINEERING LIMITED
COMPANY INFORMATION
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ARROWBUILD & CIVIL ENGINEERING LIMITED
CONTENTS
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ARROWBUILD & CIVIL ENGINEERING 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.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 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.
The profit for the year, before taxation, amounted to £636,813 (2023 - £585,764).
The directors who served during the year were:
We continue to target infrastructure work in the housing and commercial sectors. The company is prominent in these sectors and a major concern within the region.
The business review, principal risks and uncertainties and financial key performance indicators are included in the strategic report.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the company since the year end.
The auditors, Waltons Business Advisers Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The company activities continue in the construction sector, specialising in providing civil engineering and groundworks infrastructure to both the housing and commercial sectors. These activities include roads & sewers, attenuation, deep drainage, earthworks, site remediation and plotwork and are complimented by some above ground construction work. The majority of operations continue to be focused in the north east of England.
The directors are proud of the quality of service, attention to detail, and up-to-date knowledge of the most effective practices. It is these elements that have established the company and achieved recognition with customers to generate continued opportunities for repeat business. The management team continues to be stable and able to draw upon many years of experience to deliver services to the highest standards when handling infrastructure projects, construction, refurbishment or the upgrading of facilities.
The Directors are pleased to report the trading results for the 12 months to 31 December 2024. The business achieved a profit before tax of £637k in 2024 (£586k 2023). The result was achieved during a year of poor weather, which impacted the progress of some projects in the first quarter. However, the business managed to increase the gross profit to 8.9% in 2024 compared with 8.4% in 2023. The business achieved sales of £23,826k (£23,904k in 2023), a small decrease compared with the previous year.
Increases to the fixed cost base in 2024 were due to additional commercial expertise within the business. However, the business continues to focus towards caution with a view to running a lean organisation. Despite the increase in fixed costs the business achieved a profit before tax margin of 2.7% compared with 2.5% in 2023. The company continues to strive to achieve the best controls of contracts throughout their duration and accurate pricing of new contracts. The main focus of the company continues to be infrastructure work for the housing and commercial sectors. At the date of this report, the order book for future work continues to run in excess of £27 million, again giving visibility of work for the following months and a strong base of work for the following twenty-four months. The company is therefore in a strong position of being able to choose the most desirable work offered to it.
Despite 2024 experiencing a change in government, the house building sector remains largely predictable. Demand for new build housing remains strong and house prices reasonably stable. This is maintaining continued profitability in the sector despite upward pressure on materials. Although work patterns can time to time be impacted by clients delaying the phasing of work, the strong order book and the spread of work and customers helps to mitigate this.
Customers and contracts are chosen carefully for their match to the company capabilities. Only contracts offering sufficient profitability are undertaken. The risk of significant default by any customer continues to be mitigated by most of the work being undertaken for only those who can be fully insured. The Directors continue to keep in place opportunities for trade finance to assist when additional support is required for short term borrowings. Planning for future cash requirements remains a consideration to ensure that the order book can be fulfilled.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The board monitors company performance using a range of indicators, some of the most significant of which
are as follows:-
This report was approved by the board and signed on its behalf.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF ARROWBUILD & CIVIL ENGINEERING LIMITED
We have audited the financial statements of Arrowbuild & Civil Engineering Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF ARROWBUILD & CIVIL ENGINEERING LIMITED (CONTINUED)
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 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.
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.
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.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF ARROWBUILD & CIVIL ENGINEERING LIMITED (CONTINUED)
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 gained an understanding of the legal and regulatory framework applicable to the company and the area in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material mistatement 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. We identified that the greatest potential for fraud in the following areas: recognition and completeness of income and management override of controls (especially the posting of journals). We discussed these risks with management and designed audit procedures to test the recognition and completeness of revenue. We reviewed journals posted to key control accounts or posted around the year end, to look for potential "window dressing" as well as looking at a sample throughout the year.
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.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF ARROWBUILD & CIVIL ENGINEERING LIMITED (CONTINUED)
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Harbour Walk
The Marina
Teesside
TS24 0UX
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ARROWBUILD & CIVIL ENGINEERING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARROWBUILD & CIVIL ENGINEERING LIMITED
REGISTERED NUMBER: 07073437
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 25 form part of these financial statements.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 11
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is a private company, limited by shares, incorporated in England and Wales and its registered office is:-
White House Farm Sandy Lane West Billingham Stockton on Tees TS22 5NB The immediate and ultimate parent company is Arrowcruit Holdings Limited.
2.ACCOUNTING POLICIES
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:
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).
This information is included in the consolidated financial statements of Arrowcruit Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
The directors have prepared projected cash flow information for a period of at least twelve months from the date of their approval of the financial statements. The directors have also continued finance from their bankers and management have potential alternative sources of finance to draw upon if required. On the basis of this cash flow information, the directors consider that the company will continue to operate within the available cash funds. Therefore, the directors consider it appropriate to prepare the financial statements on a going concern basis.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
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:
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.
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 work carried out at the year end by recording turnover and related costs as a contract activity advances. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Profits can vary as a contract progresses. Full provision is made for losses on all contracts in the year in which they are first foreseen.
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, other third parties and loans to related parties.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Significant judgements The judgements and key source of estimation uncertainty that management have made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Long term contracts The directors account for long term contracts using the stage of completion method as the contract progresses. This method requirements judgement which is based on their knowledge and experience, to accurately estimate the extent of progress towards contract completion and may involve estimates of total contract costs to completion, total revenues, contract risks and other judgements. The accounting estimates and assumptions are made concerning the future and by their nature, will rarely equal the related actual outcome. Related party debtor At the reporting date there was £156,169 owed by companies that are a related party (companies under common control). These companies are in their infancy and development stage still incurring research and development costs. The directors consider this debt to be recoverable, but this is dependent upon the profitable execution of new orders now in the pipeline.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 20
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 22
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
The company contributes to a defined contribution scheme. The total pension charge during the year amounted to £7,818. Included within other creditors is an amount of £34,261 (1 January 2024: £21,367) in relation to pension contributions.
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ARROWBUILD & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company's ultimate parent company is Arrowcruit Holdings Limited (address: White House Farm, Sandy Lane West, Billingham, Stockton on Tees, TS22 5NB) a company incorporated in England and Wales.
The consolidated financial statements for the group are publicly available from Companies House, Crown Way, Maindy, Cardiff.
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