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Registered number: 08452095 (England & Wales)



 






SPINK CONSTRUCTION LIMITED


ANNUAL REPORTS
 AND FINANCIAL STATEMENTS


FOR THE YEAR ENDED 
30 APRIL 2025
































 
SPINK CONSTRUCTION LIMITED
 

CONTENTS



Page
Company Information 
 
1
Strategic Report
 
2
Director's Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Income and Retained Earnings Including Profit and Loss Account
 
9
Balance Sheet
 
10
Statement of Cash Flows
 
11
Notes to the Financial Statements
 
12 - 22



 
SPINK CONSTRUCTION LIMITED
 
 
COMPANY INFORMATION


Director
Michael Spink 




Registered number
08452095



Registered office
40 Queen Anne Street

London

W1G 9EL




Independent auditor
Lewis Golden LLP

40 Queen Anne Street

London

W1G 9EL




1 -


 
SPINK CONSTRUCTION LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2025

Introduction
 
The director presents his Strategic Report for the year ended 30 April 2025.

Business review
 
The principal activities of the company continue to be that of construction and design services for luxury properties.
 
Financial key performance indicators
 
The key performance indicators for the business are operating profit, turnover and shareholder funds. The business has had another very successful year with turnover increasing to £31,799,703 (2024 - £29,005,212). The company's results, as set out on page 9, show an operating profit of £3,418,451 (2024 - £834,941). Profits fluctuate year on year with each project being unique in its nature, client requirements, and budgeted gross margin.
The shareholders funds at 30 April 2025 totalled £12,576,067 (2024 - £9,962,863).

Principal risks and uncertainties
 
The company's activities expose it to financial risks including credit risk and liquidity risk. The company has treasury and liquidity management procedures in place appropriate to the size and complexity of the business.

The company has no significant exposure to foreign exchange risk, interest rate risk or other risks, except the risks posted by the UK financial climate in general which includes additional risks and challenges relating to the supply chain, imports and inflation. The company has not entered into any other financial instruments or derivative products. 


This report was approved by the director: 22 October 2025.



Michael Spink
Director

2 -


 
SPINK CONSTRUCTION LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2025

The director presents his report and the financial statements for the year ended 30 April 2025.

Director's Responsibilities Statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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; and

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,613,204 (2024 - £766,495).

The director does not recommend the payment of a dividend (2024 - £nil).

Director

The director who served during the year was:

Michael Spink 

Future developments

Current projects continue towards completion and further projects are being explored.

Financial instruments

Please refer to the Strategic Report for the assessment of the risks associated with the Company's business. 

The Company had not entered into any hedging or derivative products, during the current or prior year. All of the Company's financial instruments are basic - see note 2.9 to the financial statements for the Company's accounting policy for financial instruments. 

The Company has no exposure to foreign exchange risk and has not entered into any foreign currency hedging arrangements.

3 -


 
SPINK CONSTRUCTION LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025

Qualifying third party indemnity provisions

The company held third party indemnity insurance on behalf of the Director of the company during the current and prior year.

Disclosure of information to auditor

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware (as defined by section 418(3) of the Companies Act 2006), there is no relevant audit information of which the company's auditor is unaware; and

he 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.

This report was approved by the director:
 





Michael Spink
Director

Date: 22 October 2025

4 -


 
SPINK CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF SPINK CONSTRUCTION LIMITED
 
Opinion


We have audited the financial statements of Spink Construction Limited (the 'company') for the year ended 30 April 2025, which comprise the Statement of Income and Retained Earnings Including Profit and Loss Account, the Balance Sheet, the Statement of Cash Flows and the related Notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 30 April 2025 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 director 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 director is 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.


5 -


 
SPINK CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF SPINK CONSTRUCTION LIMITED (CONTINUED)
 
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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.










 





 



 
6 -


 
SPINK CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF SPINK CONSTRUCTION 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:

We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the financial statements as a whole. We used the outputs of a risk assessment, our understanding of the company, its environment, its controls and critical business processes, to consider qualitative factors in order to ensure that we obtained sufficient coverage across all financial statement line items.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. In identifying and assessing risks of material misstatement in respect of irregularities including non-compliance with laws and regulations, our procedures included but were not limited to: 

at planning stage, we gained an understanding of the legal and regulatory framework applicable to the company, the industry in which they operate, the structure of the group, and considered the risk of failing to comply with these legal and regulatory requirements; 
we discussed with management the policies and procedures in place regarding compliance with laws and regulations;   
we discussed amongst the engagement team the identified laws and regulations, and remained alert to any indications of non-compliance; and
during the audit, we focused on areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussions with management. 

We also considered those other laws and regulations that have a direct impact on the preparation of financial statements, such as the Companies Act 2006. 

Our procedures in relation to fraud included but were not limited to: 

inquiries of management whether they have knowledge of any actual, suspected or alleged fraud; 
gaining an understanding of the internal controls established to mitigate risk related to fraud;
using analytical procedures to identify any unusual or unexpected relationships;
discussion amongst the engagement team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements; and,
scrutiny review of unusual transactions and entry into sensitive nominal ledger accounts.

The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

 
7 -


 
SPINK CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF SPINK CONSTRUCTION LIMITED (CONTINUED)

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.

 
Use of our report
 

This report is made solely to the company's member 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 member 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 member for our audit work, for this report, or for the opinions we have formed.





Peta Parker (Senior Statutory Auditor)
  
for and on behalf of Lewis Golden LLP
Chartered Accountants and Statutory Auditors
 
40 Queen Anne Street
London
 W1G 9EL


Date: 27 October 2025
8 -


 
SPINK CONSTRUCTION LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS INCLUDING PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2025

2025
2024
Note
£
£

  

Turnover
 3 
31,799,703
29,005,212

Cost of sales
  
(27,870,201)
(27,755,475)

Gross profit
  
3,929,502
1,249,737

Administrative expenses
  
(511,051)
(643,281)

Exceptional item
8
-
228,485

Operating profit
 4 
3,418,451
834,941

Interest receivable and similar income
  
6,625
169,693

Profit before tax
  
3,425,076
1,004,634

Tax on profit
 7 
(811,872)
(238,139)

Profit after tax
  
2,613,204
766,495

  

Retained earnings at the beginning of the year
  
9,962,862
9,196,367

Profit for the year
  
2,613,204
766,495

Retained earnings at the end of the year
  
12,576,066
9,962,862

There were no recognised gains and losses for 2025 or 2024 other than those included in the Statement of Income and Retained Earnings including Profit and Loss Account.
The notes on pages 12 to 22 form part of these financial statements.

9 -


 
Registered number: 08452095 (England & Wales)
SPINK CONSTRUCTION LIMITED


BALANCE SHEET
AS AT 30 APRIL 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible fixed assets
 9 
98,161
14,775

Current assets
  

Stocks
 10 
406,911
198,123

Debtors
 11 
20,550,470
17,384,877

Cash at bank and in hand
  
1,853,233
1,282,927

  
22,810,614
18,865,927

Creditors: amounts falling due within one year
 12 
(10,032,708)
(8,917,839)

Net current assets
  
 
 
12,777,906
 
 
9,948,088

Total assets less current liabilities
  
12,876,067
9,962,863

Provisions for liabilities
  

Other provisions
 13 
(300,000)
-

  
 
 
(300,000)
 
 
-

Net assets
  
12,576,067
9,962,863


Capital and reserves
  

Called up share capital 
 14 
1
1

Profit and loss account
  
12,576,066
9,962,862

  
12,576,067
9,962,863


The financial statements were approved and authorised for issue by the director: 




Michael Spink
Director

Date: 22 October 2025
 
 
The notes on pages 12 to 22 form part of these financial statements.
10 -


 
SPINK CONSTRUCTION LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2025

2025
2024
£
£

Cash flows from operating activities

Profit for the financial year
2,613,204
766,495

Adjustments for:

Depreciation of tangible fixed assets
32,170
33,137

Profit on disposal of tangible fixed assets
(68,000)
-

Interest paid
-
3,851

Taxation charge
811,872
238,139

(Increase)/decrease in stocks
(208,788)
421,160

(Increase) in debtors
(3,165,593)
(7,964,702)

Increase in creditors
1,050,119
3,707,671

Increase in provisions
300,000
-

Corporation tax (paid)
(747,122)
(194,000)

Net cash generated from/(used in) operating activities

617,862
(2,988,249)


Cash flows from investing activities

Purchase of tangible fixed assets
(115,556)
-

Sale of tangible fixed assets
68,000
-

Net cash used in investing activities

(47,556)
-

Cash flows from financing activities

Finance lease payments
-
(53,496)

Interest paid
-
(3,851)

Net cash used in financing activities
-
(57,347)

Net increase/(decrease) in cash and cash equivalents
570,306
(3,045,596)

Cash and cash equivalents at beginning of year
1,282,927
4,328,523

Cash and cash equivalents at the end of year
1,853,233
1,282,927


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,853,233
1,282,927

1,853,233
1,282,927


The notes on pages 12 to 22 form part of these financial statements.

11 -


 
SPINK CONSTRUCTION LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025
1.

General information

Spink Construction Limited is a private company limited by share capital, incorporated in England and Wales, registered number 08452095. The address of the registered office is 40 Queen Anne Street, London W1G 9EL.  

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the 'Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland' ('FRS 102') and the Companies Act 2006. 
The company's functional and presentation currency is pound sterling.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

 
2.2

Going concern

The financial statements have been prepared on the going concern basis. The shareholder has provided notice that they will support the operational needs of the company for a period of at least twelve months from the date of approval of the financial statements, in order to allow the company to meet its liabilities as and when they fall due unless circumstances change in a manner such that it would or might no longer be open to them to provide such financial support.

 
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, net of discounts and value added tax.
Turnover and profit are recognised as follows:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
 
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.



 

12 -


 
SPINK CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

2.Accounting policies (continued)


2.3
Turnover (continued)

Rendering of services

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

Construction contracts

Turnover from construction contracts represents the value of the work carried out during the year, including amounts not yet invoiced.

(a) Design and build contracts - Turnover is recognised based on certification of the work performed, which is verified by qualified external surveyors. The amount of profit to be recognised is calculated based on the profit earned having regard to the expected total costs to complete the contract. Profit is not recognised until the outcome of the contract is reasonably certain and a provision is made for all known or expected losses on individual contracts as soon as such losses are identified. Turnover in respect of all variations to contracts and incentive payments is recognised when it is probable that it will be agreed by the client.

(b) Cost plus contracts - Turnover is based on costs incurred to date plus any agreed fee. Profit is recognised on a constant margin throughout the life of the contract. Provision is made for any potential loss as soon as it is identified.
 
 
2.4

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.

 
2.5

Taxation

Tax is recognised in the Statement of Income and Retained Earnings Including Profit and Loss Account, except to the extent that it is attributable to an item recognised directly in equity. In this case tax is also recognised directly in equity. 
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimate useful lives.

13 -


 
SPINK CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

Depreciation is provided on the following basis:

Motor vehicles
-
33%
per annum

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 within administrative expenses in the Statement of Income and Retained Earnings Including Profit and Loss Account.

 
2.7

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.

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 the Statement of Income and Retained Earnings Including Profit and Loss Account.

 
2.8

Cash at bank and in hand

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.
 
 
2.9

Financial instruments

(i) Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at the transaction price.
Such assets are subsequently carried at amortised cost using the effective interest method.
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 would be recognised in the Statement of Income and Retained Earnings Including Profit and Loss Account.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal would be recognised in the Statement of Income and Retained Earnings Including Profit and Loss Account.



 
14 -


 
SPINK CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

2.Accounting policies (continued)


2.9
Financial instruments (continued)

Financial assets are derecognised when:
(a) The contractual rights to the cash flows from the asset expire or are settled; or
(b) Substantially all the risks and rewards of ownership of the asset are transferred to another party; or
(c) Control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and payments on account are initially recognised at transaction price. Basic financial instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, this is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and 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.

 
2.10

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. See note 2.12 for details.
 
Increases in provisions are charged as an expense to Statement of Income and Retained Earnings Including Profit and Loss Account.

 
2.11

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in the Statement of Income and Retained Earnings Including Profit and Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

15 -


 
SPINK CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

2.Accounting policies (continued)

  
2.12

Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying value of assets and liabilities. Actual results may differ from these estimates. The judgments, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the company are discussed below.

(i) Turnover recognition and estimation of costs to complete 

In order to determine the profit and loss that the company is able to recognise on its construction contracts, the company has to assess the value of the work completed and the total costs to be incurred. This requires forecasts to be made of the outcomes of construction contracts, which require estimates and judgments to be made in respect of changes in the scope of work and changes in costs. However, management is experienced at making such estimates and ensures that they are appropriate on an individual contract basis.

(ii) Impairment of debtors

The recoverability of trade and other debtors is regularly reviewed in the light of the available economic information specific to each debtor and specific provisions are recognised for balances considered to be irrecoverable.  See note 11 for the net carrying amount of debtors.
(iii) Other provision
The company has recognised a provision in respect of works associated with projects not forseen at the time of practical completion. The amount of the  provision is based on management's best estimate of the expenditures required at the reporting date. The estimation process involves a significant degree of judgment, particularly in assessing the nature and extent of potential actions. The inherent subjectivity in this assessment means that the actual outcome may differ from that anticipated. See note 13 for the value of provisions included within the accounts. 

16 -


 
SPINK CONSTRUCTION LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

3.


Turnover

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


2025
2024
£
£

Turnover recognised from construction contracts
26,842,891
21,821,283

Turnover recognised from the rendering of services
4,929,688
4,763,376

Turnover recognised from the sale of goods
27,124
2,420,553

31,799,703
29,005,212


Analysis of turnover by geographical location:

2025
2024
£
£

United Kingdom
31,799,703
27,623,109

Rest of the world
-
1,382,103

31,799,703
29,005,212



4.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Auditor's remuneration
40,150
28,300

Depreciation
32,170
33,137

17 -


 
SPINK CONSTRUCTION LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

5.


Employees

Staff costs were as follows:


2025
2024
£
£

Wages and salaries
311,858
295,741

Social security costs
29,418
27,704

Pension costs
10,679
27,736

351,955
351,181


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


        2025
        2024
            No.
            No.







Construction staff
6
6


6.


Director's emoluments and key management remuneration

The director received no remuneration during the year (2024 - £nil).





7.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
850,688
285,000

Adjustments in respect of previous periods
(38,816)
(46,861)


Total current tax
811,872
238,139

18 -


 
SPINK CONSTRUCTION LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025
 
7.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
3,425,076
1,004,634


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
856,269
251,159

Effects of:


Other tax adjustments
(44,397)
(13,020)

Total tax charge for the year
811,872
238,139



There were no factors that may affect future tax charges.


8.


Exceptional item

During the prior year, the company recovered part of a debt that had previously been provided for. The provision for bad debt, recorded as an exceptional item, has been written back to show the settlement totalling £274,964 less costs incurred to enable settlement totalling £46,479, as shown on the Statement of Income and Retained Earnings Including Profit and Loss Account. The balance was fully recovered in the prior year.



19 -


 
SPINK CONSTRUCTION LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

9.


Tangible fixed assets





Motor vehicles

£



Cost


At 1 May 2024
143,234


Additions
115,556


Disposals
(106,877)



At 30 April 2025

151,913



Depreciation


At 1 May 2024
128,459


Charge for the year
32,170


Disposals
(106,877)



At 30 April 2025

53,752



Net book value



At 30 April 2025
98,161



At 30 April 2024
14,775

The net book value of assets held under finance leases is £nil (2024 - £nil). The depreciation charged in the period on assets held under finance leases is £nil (2024 - £1,749).


10.


Stocks

2025
2024
£
£

Finished goods and goods for resale
406,911
198,123


20 -


 
SPINK CONSTRUCTION LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

11.


Debtors


2025
2024
£
£



Trade debtors
921,337
992,193

Amounts owed by related parties
13,994,629
13,450,000

Amounts recoverable on construction contracts
2,501,738
1,159,290

Other debtors
6,258
-

Prepayments and accrued income
2,711,512
1,540,443

Taxation and social security
414,996
242,951

20,550,470
17,384,877


The amounts owed by related parties are unsecured, interest free and repayable on demand.


12.


Creditors: amounts falling due within one year

2025
2024
£
£

Trade creditors
1,614,418
1,942,099

Amounts owed to related parties
4,363,372
3,170,198

Taxation and social security
265,024
182,530

Other creditors
56,000
56,000

Accruals and deferred income
3,733,894
3,567,012

10,032,708
8,917,839


The amounts owed to related parties are unsecured, interest free and repayble on demand.


13.


Provisions





Other provision

£





Charged to the Statement of Income and Retained Earnings Including Profit and Loss Account 
300,000



At 30 April 2025
300,000

            See note 2.12 for details regarding the estimation involved in the provision.
 
21 -


 
SPINK CONSTRUCTION LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025

14.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



1 (2024 - 1) Ordinary Share of £1.00
1
1

There are no restrictions on the distribution of dividends or the repayment of capital.



15.


Related party transactions

During the year, the company made sales totalling £13,473,673 (2024 - £7,764,252), made purchases of £1,100,000 (2024 - £925,000), and have accrued income of £3,266,754 (2024 - £435,308) from entities under common control. During the year, the company settled amounts totalling £9,063 (2024 - £309,877) on behalf of entities under common control, and had £nil (2024 - £171,862) settled by entities under common control on behalf of the company. During the year, the company provided loans to entities under common control of £781,728 (2024 - £7,092,874) and received loans from entities under common control of £726,095 (2024 - £1,728,535). At the balance sheet date, the amount due to such entities was £2,747,369 (2024 - £2,027,436) and the amount due from such entities was £13,994,629 (2024 - £13,450,000). 
During the year, the company received services of £3,990,860 (2024 - £4,394,400) from an LLP in which Michael Spink is a designated member. In addition, the company settled liabilities of £1,048,753 (2024 - £723,481) on behalf of the LLP and had £17,078 (2024 - £35,292) of liabilities settled by the LLP on its behalf. At the balance sheet date, the amount due to the LLP was £1,616,003 (2024 - £1,142,762).
 

16.


Controlling party

During the current and prior year, the company was controlled by Michael Spink by virtue of his shareholding. 

22 -