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Registered number: 00326209










R.C. CUTTING & CO. LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
R.C. CUTTING & CO. LIMITED
 
 
COMPANY INFORMATION


Directors
Mr J D Jolly 
Mr P Cripps 
Mr M Clarke 
Mr K A Fox 
Mr S Jolly (appointed 22 July 2024)




Registered number
00326209



Registered office
10-12 Arcadia Avenue

London

N3 2JU




Independent auditor
MHA
Statutory Auditor

London

United Kingdom





 
R.C. CUTTING & CO. LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 9
Statement of comprehensive income
 
10
Balance sheet
 
11 - 12
Statement of changes in equity
 
13
Notes to the financial statements
 
14 - 29


 
R.C. CUTTING & CO. LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Business overview
 
The company operates within the construction and facilities management sectors, providing specialist Lightning Protection and Earthing building services. Our mission is to deliver high-quality construction solutions while maintaining safety, sustainability, and client satisfaction.

Strategy and objectives

Our strategic priorities include:
Expanding project portfolio across key regions.
Strengthening sustainability practices in materials and processes.
Investing in workforce training and safety.
Leveraging modern construction technology (BIM, modular construction).

Business model

We operate primarily on a contract-based model, generating revenue through public and private construction projects. Our value proposition is built on quality, timely delivery, compliance, and cost-effective construction management.

Principal risks and uncertainties
 
Key risks include:
Market volatility due to inflation and materials cost.
Delays in regulatory approvals and permitting.
Health and safety incidents on sites.
Labour shortages and subcontractor dependencies.

Financial key performance indicators
 
KPI    2024   2023   Change
Revenue    £8,510,195   £8,232,512  +3.3%
Operating Profit   £1,224,598  £1,218,424  +0.5%
Project Completion Rate  95%   92%   +3.0%
Safety Incident Rate (AFR) 0.16   0.18   -0.02

Future outlook
 
The company anticipates continued growth in infrastructure and residential projects. Priorities for 2025 include digitizing site operations, increasing ESG compliance, and securing long-term framework agreements.

Page 1

 
R.C. CUTTING & CO. LIMITED
 

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


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



Mr J D Jolly
Director

Date: 24 September 2025

Page 2

 
R.C. CUTTING & CO. LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

Principal activity

The provision of lightning protection and earthing services.

Results and dividends

The profit for the year, after taxation, amounted to £1,019,596 (2023 - £992,565).

Dividends of £279,000 (2023 - £439,000) have been paid.

Directors

The directors who served during the year were:

Mr J D Jolly 
Mr P Cripps 
Mr M Clarke 
Mr K A Fox 
Mr S Jolly (appointed 22 July 2024)

Future developments

The company anticipates continued growth in infrastructure and residential projects. Priorities for 2025 include digitizing site operations, increasing ESG compliance, and securing long-term framework agreements.

Page 3

 
R.C. CUTTING & CO. LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Employees

The company values its workforce and prioritizes training, diversity, and safety. Ongoing apprenticeship and site safety programs are in place.

Political and charitable contributions

The company made charitable donations totalling £15,000 during the year. No political donations were made.

Going concern

The directors consider that the company has adequate resources to continue operations for the foreseeable future. The financial statements have been prepared on a going concern basis.

Disclosure of information to auditor

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

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

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

During the year the company appointed MHA as the independent auditor. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting. 

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



................................................
Mr J D Jolly
Director

Date: 24 September 2025

Page 4

 
R.C. CUTTING & CO. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF R.C. CUTTING & CO. LIMITED
 

Opinion


We have audited the financial statements of R.C. Cutting & Co. 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 policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 qualified opinion


The directors took advantage of the audit exemption available under the Companies Act 2006 for the year ended 31 December 2023.
We were not appointed as auditor of the company until after 31 December 2023 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2023 by using other audit procedures.
Consequently we were unable to determine whether any adjustment to this amount at 31 December 2023 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2024.
We were able to complete audit procedures to obtain comfort over the closing position as at 31 December 2024.


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 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.


Page 5

 
R.C. CUTTING & CO. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF R.C. CUTTING & CO. LIMITED (CONTINUED)


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Page 6

 
R.C. CUTTING & CO. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF R.C. CUTTING & CO. LIMITED (CONTINUED)


Matters on which we are required to report by exception
 

Except for the matter described in the basis for qualified opinion section of our report, 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.
Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records have been kept.


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:


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


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 7

 
R.C. CUTTING & CO. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF R.C. CUTTING & CO. LIMITED (CONTINUED)


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 detailed below:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.


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


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


Other matters 
 

The financial statements for R.C. Cutting & Co. Limited for the year ended 31 December 2023 were unaudited.


Page 8

 
R.C. CUTTING & CO. LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF R.C. CUTTING & CO. LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.





Georgette Alicia Crisp BSc (Hons) FCA (Senior statutory auditor)
for and on behalf of
MHA
Statutory Auditor
London
United Kingdom

29 September 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
Page 9

 
R.C. CUTTING & CO. LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
Restated (Unaudited) 2023
£
£

  

Turnover
 4 
8,510,195
8,232,512

Cost of sales
  
(4,077,581)
(3,836,068)

Gross profit
  
4,432,614
4,396,444

Administrative expenses
  
(3,208,016)
(3,019,025)

Exceptional administrative expenses
 10 
-
(158,995)

Operating profit
 5 
1,224,598
1,218,424

Interest receivable and similar income
  
37,060
11,272

Interest payable and similar expenses
  
(7,360)
(1,755)

Profit before tax
  
1,254,298
1,227,941

Tax on profit
 8 
(234,702)
(235,376)

Profit for the financial year
  
1,019,596
992,565

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

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

The notes on pages 14 to 29 form part of these financial statements.

Page 10

 
R.C. CUTTING & CO. LIMITED
REGISTERED NUMBER: 00326209

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
Restated (Unaudited) 2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
503,207
625,194

Investments
 12 
205,208
205,208

  
708,415
830,402

Current assets
  

Stocks
 13 
595,686
694,327

Debtors: amounts falling due after more than one year
 14 
133,650
168,550

Debtors: amounts falling due within one year
 14 
2,772,949
3,127,250

Cash at bank and in hand
 15 
2,377,128
932,896

  
5,879,413
4,923,023

Creditors: amounts falling due within one year
 16 
(1,327,232)
(1,205,964)

Net current assets
  
 
 
4,552,181
 
 
3,717,059

Total assets less current liabilities
  
5,260,596
4,547,461

Provisions for liabilities
  

Deferred tax
 17 
(23,224)
(50,685)

  
 
 
(23,224)
 
 
(50,685)

Net assets
  
5,237,372
4,496,776


Capital and reserves
  

Called up share capital 
  
4,920
4,920

Share premium account
  
75
75

Capital redemption reserve
  
4,980
4,980

Profit and loss account
  
5,227,397
4,486,801

  
5,237,372
4,496,776


Page 11

 
R.C. CUTTING & CO. LIMITED
REGISTERED NUMBER: 00326209
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024

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




Mr J D Jolly
Director

Date: 24 September 2025

The notes on pages 14 to 29 form part of these financial statements.

Page 12

 
R.C. CUTTING & CO. LIMITED
 

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


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2023
4,920
75
4,980
3,933,236
3,943,211



Profit for the year
-
-
-
992,565
992,565

Dividends: Equity capital
-
-
-
(439,000)
(439,000)



At 1 January 2024 (as previously stated)
4,920
75
4,980
4,238,520
4,248,495

Prior year adjustment
-
-
-
248,281
248,281


At 1 January 2024 (as restated)
4,920
75
4,980
4,486,801
4,496,776



Profit for the year
-
-
-
1,019,596
1,019,596

Dividends: Equity capital
-
-
-
(279,000)
(279,000)


At 31 December 2024
4,920
75
4,980
5,227,397
5,237,372


The notes on pages 14 to 29 form part of these financial statements.

Page 13

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

R.C. Cutting & Co. Limited is a company incorporated in the United Kingdom under the Companies Act 2006.
The company is a private company limited by shares and is registered in England and Wales. The address of the registered office is 10-12 Arcadia Avenue, London, N3 2JU.
The principal activity is the provision of lightning protection and earthing services.
The financial statements are presented in sterling (£) rounded to the nearest £1. Sterling is the functional currency of the company.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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

This information is included in the consolidated financial statements of Cutting Group Limited as at 31 December 2024 and these financial statements may be obtained from 10-12 Arcadia Avenue, London, United Kingdom, N3 2JU.

Page 14

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Revenue

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year. 

  
2.4

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date, bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. Contract retentions are treated as deferred income until released by the client.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

 
2.5

Leases

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

 
2.6

Interest income

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

 
2.7

Employee benefits

The company operates two defined pension contribution schemes. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are included as either accruals or prepayments in the balance sheet.

Page 15

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

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

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

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

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


 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.10

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment.  Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset over its expected useful life.

Depreciation is provided on the following basis:

Freehold property
-
2% on written down value
Plant and machinery
-
20% on cost
Motor vehicles
-
25% on cost
Office furniture & equipment
-
20% on cost
Computer equipment
-
33% on cost (included within office furniture & equipment)

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Page 16

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

  
2.11

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

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

 
2.15

Cash and cash equivalents

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

 
2.16

Creditors

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

Page 17

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

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

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.



 
Page 18

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

 
2.19

Dividends

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

  
2.20

Prior year adjustments

The financial statements include a prior year adjustment in respect of the figures at 31 December 2023. The figures for 31 December 2023 have therefore been restated.
Please see note 18 for further detail.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Provisions
Determine where accruals, provisions or contingent liabilities exist for any remedial works required to completed contracts. The directors and senior management assess all construction contracts on a regular basis alongside the group's surveyors, customer communications and industry developments, and consider if any liability exists. Where a liability is identified, the directors and senior management consider if a probable outflow and reliable estimate exist and record an accrual, provision or contingent liability accordingly.

Page 19

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
Restated (Unaudited) 2023
£
£

Lightning protection and earthing service
5,873,339
5,816,365

Small works service
1,190,148
1,102,537

Testing service
1,386,453
1,258,828

Supplies service
60,255
54,782

8,510,195
8,232,512


All turnover arose within the United Kingdom.

xxxxxxxxxxt


5.


Operating profit

The operating profit is stated after charging:

2024
(Unaudited) 2023
£
£

Depreciation
76,026
36,198

Fees payable to the Company's auditors for the audit of the Company's financial statements
25,000
-

Other operating lease rentals
89,861
81,817

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

Page 20

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Employees

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


2024
(Unaudited) 2023
£
£

Wages and salaries
3,706,118
4,038,042

Social security costs
405,234
374,432

Cost of defined contribution scheme
84,101
140,753

4,195,453
4,553,227


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


        2024
  (Unaudited) 2023
            No.
            No.







Employees
85
86


7.


Directors' remuneration

2024
(Unaudited) 2023
£
£

Directors' emoluments
355,262
350,325

Company contributions to defined contribution pension schemes
12,000
68,000

367,262
418,325


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

The highest paid director received remuneration of £122,325 (2023 - £119,250).

Page 21

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Taxation


2024
Restated (Unaudited) 2023
£
£

Corporation tax


Current tax on profits for the year
354,414
245,022

Adjustments in respect of previous periods
(92,251)
-


262,163
245,022


Total current tax
262,163
245,022

Deferred tax


Origination and reversal of timing differences
(27,461)
(9,646)

Total deferred tax
(27,461)
(9,646)


234,702
235,376
Page 22

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
Restated (Unaudited) 2023
£
£


Profit on ordinary activities before tax
1,254,298
1,227,941


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
313,575
288,812

Effects of:


Expenses not deductible for tax purposes
71,500
32,386

Capital allowances for year in excess of depreciation
(30,661)
(30,523)

Adjustments to tax charge in respect of prior periods
(92,251)
-

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(45,653)

Changes in provisions leading to an increase (decrease) in the tax charge
(27,461)
(9,646)

Total tax charge for the year
234,702
235,376


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


9.


Dividends

2024
(Unaudited) 2023
£
£


Dividends analysis
279,000
439,000

Page 23

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Exceptional items

2024
(Unaudited) 2023
£
£


Impairment of investment
-
158,995


11.


Tangible fixed assets





Freehold property
Plant and equipment and lease improvements
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
455,920
35,366
646,395
235,625
1,373,306


Additions
-
7,200
105,516
8,025
120,741


Disposals
-
-
(61,835)
-
(61,835)



At 31 December 2024

455,920
42,566
690,076
243,650
1,432,212



Depreciation


At 1 January 2024
186,082
29,339
361,317
171,374
748,112


Charge for the year
5,397
2,821
163,411
58,558
230,187


Disposals
-
-
(49,294)
-
(49,294)



At 31 December 2024

191,479
32,160
475,434
229,932
929,005



Net book value



At 31 December 2024
264,441
10,406
214,642
13,718
503,207



At 31 December 2023
269,838
6,027
285,078
64,251
625,194

Page 24

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024 (as previously stated)
177,075


Prior Year Adjustment

205,208


At 1 January 2024 (as restated)
382,283



At 31 December 2024

382,283



Impairment


At 1 January 2024
177,075



At 31 December 2024

177,075



Net book value



At 31 December 2024
205,208



At 31 December 2023 (as restated)
205,208


Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Cuttings South Limited
10-12 Arcadia Avenue, London, England, N3 2JU
Ordinary
100%


13.


Stocks

2024
(Unaudited) 2023
£
£

Raw materials and consumables
595,686
694,327


Page 25

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Debtors

2024
Restated (Unaudited) 2023
£
£

Due after more than one year

Trade debtors
133,650
168,550

133,650
168,550


2024
Restated (Unaudited) 2023
£
£

Trade debtors
1,825,275
2,141,645

Amounts owed by group undertakings
525,000
525,000

Other debtors
139,169
192,090

Prepayments and accrued income
283,505
268,515

2,772,949
3,127,250



15.


Cash and cash equivalents

2024
(Unaudited) 2023
£
£

Cash at bank and in hand
2,377,128
932,896


Page 26

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Creditors: Amounts falling due within one year

2024
Restated (Unaudited) 2023
£
£

Payments received on account
77,235
103,804

Trade creditors
423,455
413,788

Deferred consideration
-
9,565

Amounts owed to group undertakings
205,208
205,208

Corporation tax
430,771
278,058

Other taxation and social security
108,050
107,623

Other creditors
21,216
15,689

Accruals and deferred income
61,297
72,229

1,327,232
1,205,964


Page 27

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Deferred taxation




2024
(Unaudited) 2023


£

£






At beginning of year
50,685
57,333


Charged to profit or loss
(27,461)
(6,648)



At end of year
23,224
50,685

The provision for deferred taxation is made up as follows:

2024
(Unaudited) 2023
£
£


Accelerated capital allowances
29,012
57,333

Tax losses carried forward
(5,788)
(6,648)

23,224
50,685


18.


Prior year adjustment

A review of the accounting records during the year highlighted that the prior year financial statements included material misstatements relating to the incorrect recording of intercompany movement, impacting the figures included in the value of investment in subsidiary companies, and other creditors.
The review also indicated that the prior year financial statements included material misstatements relating to the timing of transactions reflected in the creditor balances. Turnover and the related taxation have been corrected in the prior year adjustment to reflect the correct application of the accounting policy on the recognition of revenue. Certain retentions were not appropriately classified between debtors due within one year and those due after more than one year. A reclassification has been made to correctly present debtors due after more than one year.
 
A summary of the above adjustments can be seen below.


Income and retained earnings adjustment
 
2023 Original
Adjustment
2023 Restated

Operating profit
893,786
324,638
1,218,424

Tax on profit
159,019
76,357
235,376


Page 28

 
R.C. CUTTING & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

 
 
 
Balance sheet adjustment
 
2023 Original
Adjustment
2023 Restated

Fixed asset investments
-
205,208
205,208

Creditors due within 1 year
(1,249,037)
43,073
(1,205,964)

Retained earnings
(4,238,520)
(248,281)
(4,486,801)


19.


Pension commitments

The company makes payments to two defined contribution pension schemes for the benefit of the employees. The assets of the schemes are administered by trustees in funds independent from those of the company. The pension charge represents contributions due from the company and amounted to £47,070 (2023: £140,753). At the balance sheet date the company owed £13,338 (2023: £6,300) in pension contributions.


20.


Parent entity

The company is under the control of Cutting Group Limited by virtue of its 100% ownership of the issued share capital.
The company has not produced consolidated financial statement as it has taken the exemption under S.400 of the Companies Act 2006. The company (and its subsidiaries) are included in the consolidated financial statements of Cutting Group Limited; a company incorporated in England and Wales. Copies of the consolidated financial statements can be requested from 10-12 Arcadia Avenue, London, United Kingdom, N3 2JU.

 
Page 29