Registration number:
Classic Builders (South West) Limited
for the Year Ended 31 March 2025
Registration number:
Classic Builders (South West) Limited
for the Year Ended 31 March 2025
Classic Builders (South West) Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Statement of Comprehensive Income |
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Classic Builders (South West) Limited
Company Information
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Directors |
A Brimacombe D K Bennetton |
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Registered office |
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Auditors |
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Classic Builders (South West) Limited
Strategic Report for the Year Ended 31 March 2025
The directors present their strategic report for the year ended 31 March 2025.
Fair review of the business
Classic Builders South West Limited is well established as a construction partner of choice with Offices in Plymouth, Exeter and Redruth delivering first class services to customers across the retail, leisure, commercial, residential and education sectors.
This year was an important and challenging year for Classic Builders as we continued to make good progress against our business strategy, and we our still establishing our penetration into the housing market working with a number of established developers and housing associations across the South West which has been paramount to positioning ourselves in the South West market.
The strength of Classic Builders lies in our teams and our ability to provide customers with a depth and breadth of capabilities, positioning us as the ideal partner to work with. Our staff retention rate remains well above average at 95%. Our strategy to attract and retain the best people in the industry continues and the work we have done this year on embedding our culture ensures our people proposition is the most attractive in the sector.
We have, and continue to build award winning projects across the South West.
Our brand, being one of the most recognized and largest SME’s in our geographical region, this continues to help drive organic growth throughout our operational area.
Income
Our like-for-like sales turnover increased to £79.6m - 2024/25 against £77.2m 2023/24 a increase of 3% on the previous year. Income is up, gross profit margin has increased from 10.75% to 11.27%.
Profitability
Our EBITDA increased to £4.411m. This reflects a increase of 37% on the previous year. Profit before tax margin has increased slightly from 5.45% to 5.73%.
In addition ever-mindful of the pressure on margins through open tendering. Because of this, one of our key strategic objectives is to continue to work closely with our customers to secure negotiated and repeat business as preference.
Investment
To achieve continued growth, we chose to focus our investment in a number of key areas:
• People - strengthening our teams through employment and recruitment of the best people;
• Working environment - our two regional offices continue to reinforce our regional offering;
• Developments- working with strategic partners to get the best deals on land and property acquisition; and
• Our land bank is continues to grow with a few exciting future opportunities and Projects
• Infrastructure - investing in-IT (hardware-&-software) and processes to ensure -we are maximizing our efficiencies and the group is well placed for the future.
• We have been rolling out a new project management and safety system across the business
Forward-work
We now have a secured order book of £200m accounting for 2026/27 and beyond which in line with what we would expect and shows the focus on the forward business plan. The level of enquiries remains positive and the Directors are confident that we will exceed or equal our 2024/25 results. We continue to cement our position in the market.
Classic Builders (South West) Limited
Strategic Report for the Year Ended 31 March 2025 (continued)
Key performance indicators
In line with our strategic business plan, our key performance indicators are:
• Maintaining the highest standards of Health & Safety and maintaining our low Accident Frequency Rate (AFR);
• On-time delivery of a quality product;
• Exceed gross margin targets;
• Overhead control;
• Attract & retain the best people; and
• Customer satisfaction & feedback.
Principal risks and uncertainties
The principal risk to the business continues to be the damage of Classic Builders as a brand through failure of any of our KPI's. We are able to minimize the risk, with the appropriate measures that are already in place. We constantly work to improve our systems and processes to achieve the highest standards through a cycle of continuous improvement which is monitored throughout all aspects of our business.
We have fully-met our business objectives, exceeded our financial targets and recruited and supported strategic personnel in numerous departments of the business. As a result, we have successfully diversified our service offering and already secured a strong order book as we move into the 2025/26 financial year.
Our ability to control and mitigate risk has been vital to the stability of the business. In developing our future business strategy, we have identified the following risks and associated mitigation measure:
The economic climate, Brexit, War in Ukraine, Inflation and reduced work in the construction industry
Risk Mitigation
o We offer a high-quality, diverse service, operating under a lean but robust overhead structure;
o We as a business have already worked on a number of Zero Carbon projects and are continuing to monitor explore and develop new strategies in this area
o We have a number of Zero Carbon projects on site and continue to make strives and we are also starting to further explore and strive to reduce are Carbon Footprint
o We target and operate in sectors we know are continuing to invest in their portfolios;
o We demonstrate rigorous due diligence and a high level of competence, knowledge and experience, thereby inspiring confidence in our customers;
o Through our land-inclusive developments offering we can provide an alternative to traditional build methods; and
o Potential reduction of available labour due to Brexit will be alleviated by a long-term recruitment, apprenticeship and training programme, currently 15% of our workforce is made up of Apprentices and trainees (we are part of the 5% club).
Classic Builders (South West) Limited
Strategic Report for the Year Ended 31 March 2025 (continued)
Potential for supply chain failure
Risk Mitigation
Our procurement and site a management team our working remarking hard in achieving and managing supply chain issues which are rife in the industry currently
o We are committed to paying our supply chain in accordance with the terms specified in our trading agreement. Where necessary, we strive to resolve potential disputes amicably to avoid legal action;
o We have agreed terms with our larger suppliers under which we receive a retrospective discount based on the volume of orders placed. This is an option we continue to expand
o We are upskilling our teams to become multi-disciplined;
Business
System failure, fire damage or the outbreak of a pandemic are always among the potential threats to our business. We have a robust business continuity strategy that we periodically test to minimise this threat. In addition, we have strengthened our measures in relation to the potential for negligence among sub-contractors.
Risk Mitigation
o Our business continuity strategy and plan addresses all areas of our operations and is regularly reviewed to ensure its continued effectiveness;
o Investment and training of a new cloud-based IT system allowing projects to be driven remotely and not be wholly reliant on a local 'Server' based system;
o We maintain appropriate insurance cover to mitigate any financial or material loss;
Retention of clients and competitive pressure
Risk Mitigation
o Securing long-term frameworks and collaborative partnerships is a key objective. Over the past 12 months we have had further success in this area, forming new partnerships with, public sector clients and blue-chip private sector clients; and
o We focus on achieving high levels of customer and stakeholder satisfaction by providing a first in class service, this makes us the first choice for many clients. We maintain our reputation for high-quality work which is so vital to our continued successful growth.
Classic Builders (South West) Limited
Strategic Report for the Year Ended 31 March 2025 (continued)
Health & Safety compliance
We have in the last 24 months employed our own in House SHEQ manager who will continue to monitor and manage this whilst still partnering independent services. Operating a safe and sustainable business is our number one priority. Breaches of Health and Safety regulations are unacceptable, and our Directors and Executive team work closely with all parties to ensure that we address all potential risks and hazards from the outset of each contract. It is essential that we avoid accidents and near misses on our sites. Aside from the reputational and regulatory implications, our employees, customers and stakeholders must be protected from the physical, mental and emotional damage caused by such incidents.
Risk Mitigation
o Own in House SHEQ manager
o Strong collaboration with BSG as a key partner;
o Our Health and Safety Team and operational managers work tirelessly to ensure our employees meet the highest standards in health and safety procedures;
o We operate a ·'zero tolerance' approach to poor Health and Safety practice with a full 'Whistle-Blowing' culture;
o We operate a strict compliance process which ensures that we safeguard all individuals effectively; and
o We employ specialist external agencies to verify our health and safety procedures and performance, on site
Energy and carbon report
We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. Classic Builders (South West) Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.
Metrics and targets
In order to continue our progress to achieving Net Zero, we have adopted the following carbon reduction targets.
Emissions reduction targets include –
• Continued reduction in the use of fossil fuel and finite resources, such as –
o Petroleum powered vehicles and machinery
o Gas powered heating
o Materials containing or using fossil fuels for manufacture (such as plastics, tars, waxes, chemicals, etc.).
o Continued education on the secondary uses and presences of hydrocarbons etc.
NB – overall achievable hydrocarbon target unknown at this time due to technological advances regarding machinery and on site plant. However, total remaining carbons / hydrocarbon emissions after implemented mitigation practices will be offset to achieve Net Zero target.
Classic Builders (South West) Limited
Strategic Report for the Year Ended 31 March 2025 (continued)
Metrics and targets (continued)
Installation and adoption of renewable energy sources at administrative centres (Redruth, Plymouth and Exeter) - currently at 66.6% of a 100% target.
• Migration to renewable energy sources administrative centres (current migration levels at 66.6% of a 100% target)
• Increasing the adoption and use of EVs through progressive migration of fleet (currently at 3% of total fleet).
• Further promotion of the use of public transport
• Continuation of Scope 3 analysis and promotion to supply chain partners.
We predict that carbon emissions will decrease over the next five years to 900 tonnes of CO2e by 2027.
Emissions and energy consumption
During the year ended 31 March 2025, Classic Builders (South West) Limited recorded greenhouse gas emissions from:
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Scope 1 emissions of |
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Scope 2 emissions of |
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Scope 3 emissions of |
Total emissions of 984.2 tonnes of CO2e per year.
Future Strategy
Our Board has worked with the business to develop a comprehensive business strategy focusing on nine key performance areas which will put us in a strong position for 2025/26.
Classic Builders has successfully grown its reputation as a group that can consistently deliver. Its success in the marketplace to date has shown it is trusted by its clients and supply chain. Our underlying performance for the year was good. Having strengthened our portfolio, the Group is focused and able to pursue growth ambitions in our core markets; construction, interiors, exteriors and development. We continue to invest in the business to improve our operational efficiency, providing a robust platform on which to take advantage of the strong long-term fundamentals in these core markets. Our secured order book of £200m, provides good long-term visibility of our future work. This visibility, coupled with our healthy balance sheet, provides us with confidence in achieving our strategic targets.
Acknowledgement
Finally, we are firmly of the belief that an organization is only as good as the people who work in it and the leadership that empowers everyone to be the best they can be. The Board would like to take this opportunity to thank our dedicated team or their commitment, hard work and leadership. We are all proud of our achievements - we have delivered another year of excellent performance, and projects to be proud off. The Board would also like thank our customers, suppliers and sub-contractors for their continued support and we look forward to working together over the coming financial year.
Classic Builders (South West) Limited
Strategic Report for the Year Ended 31 March 2025 (continued)
Financial instruments
The group has procedures to identify risk and protect and manage the group and company from events that may hinder the financial performance objectives. The objectives aim to limit counter party exposure, ensure sufficient working capital exists and monitor risk and manage it. We now have the welcome addition of a management accountant to the Classic team and they have been instrumental in producing our audited accounts.
Objectives and policies
The group and company is exposed to price risk, credit risk; liquidity and cash flow risk. Appropriate policies have been developed and implemented to identify, evaluate and manage key risks and the directors review risk management strategies regularly.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk - the group and company is exposed to price risk as a result of its operations. However sales prices are constantly reviewed and agreed by management to ensure sales prices reflect any fluctuating prices within the market place.
Credit risk - before sales are made, appropriate credit checks are made on potential customers. The majority are established customers of the group and company, therefore the credit risk on an individual customer is limited.
Liquidity and cash flow risk - the group's and company's exposure to liquidity risk is managed by ensuring appropriate working credit facilities are in place and that the group has adequate net current assets.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Non-financial and sustainability information
Approved and authorised by the
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Classic Builders (South West) Limited
Directors' Report for the Year Ended 31 March 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Directors of the company
The directors who held office during the year were as follows:
Dividends
Ordinary dividends were paid amounting to £388,180 (2024 - £447,377). The directors do not recommend payment of a final dividend.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
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Classic Builders (South West) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Classic Builders (South West) Limited
Independent Auditor's Report to the Members of Classic Builders (South West) Limited
Opinion
We have audited the financial statements of Classic Builders (South West) Limited (the 'company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, 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).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 March 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Classic Builders (South West) Limited
Independent Auditor's Report to the Members of Classic Builders (South West) Limited (continued)
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 9, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
Classic Builders (South West) Limited
Independent Auditor's Report to the Members of Classic Builders (South West) Limited (continued)
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• We identified 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 discussion with the directors and other management. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit.
• The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements, including employment, anti-bribery, anti-money laundering and certain aspects of companies legislation.
• 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. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. we also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Classic Builders (South West) Limited
Independent Auditor's Report to the Members of Classic Builders (South West) 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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
3 Longbridge Road
Plymouth
Marsh Mills
Devon
PL6 8LT
Classic Builders (South West) Limited
Statement of Comprehensive Income for the Year Ended 31 March 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
4,284,282 |
4,201,955 |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
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( |
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279,193 |
8,943 |
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Profit before tax |
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|
|
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Tax on profit |
( |
( |
|
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Profit for the financial year |
4,327,486 |
3,243,186 |
The above results were derived from continuing operations.
Classic Builders (South West) Limited
Statement of Comprehensive Income for the Year Ended 31 March 2025
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2025 |
2024 |
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Profit for the year |
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Surplus on property, plant and equipment revaluation |
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Deficit on revaluation of other assets |
( |
( |
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- |
- |
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Total comprehensive income for the year |
4,327,486 |
3,243,186 |
Classic Builders (South West) Limited
(Registration number: 04806777)
Statement of Financial Position as at 31 March 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Tangible assets |
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Current assets |
|||
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
|
|
|
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Provisions for liabilities |
( |
( |
|
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Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
6 |
6 |
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Revaluation reserve |
335,329 |
344,849 |
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Profit and loss account |
15,638,602 |
11,689,776 |
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Shareholders' funds |
15,973,937 |
12,034,631 |
Approved and authorised by the
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Classic Builders (South West) Limited
Statement of Changes in Equity for the Year Ended 31 March 2025
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Share capital |
Revaluation reserve |
Profit and loss account |
Total |
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At 1 April 2023 |
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|
|
|
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Profit for the year |
- |
- |
|
|
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Other comprehensive income |
- |
( |
|
- |
|
Total comprehensive income |
- |
( |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 March 2024 |
6 |
344,849 |
11,689,776 |
12,034,631 |
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Share capital |
Revaluation reserve |
Profit and loss account |
Total |
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At 1 April 2024 |
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|
|
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Profit for the year |
- |
- |
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Other comprehensive income |
- |
( |
|
- |
|
Total comprehensive income |
- |
( |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 March 2025 |
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Classic Builders (South West) Limited
Statement of Cash Flows for the Year Ended 31 March 2025
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Note |
2025 |
2024 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
|
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Finance income |
( |
( |
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Finance costs |
( |
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Income tax expense |
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||
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Working capital adjustments |
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(Increase)/decrease in stocks |
( |
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Increase in trade debtors |
( |
( |
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Increase in trade creditors |
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Cash generated from operations |
|
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Income taxes paid |
( |
- |
|
|
Net cash flow from operating activities |
|
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Cash flows from investing activities |
|||
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Interest received |
|
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Acquisitions of tangible assets |
( |
( |
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Net cash flows from investing activities |
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Cash flows from financing activities |
|||
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Interest paid |
|
( |
|
|
Repayment of bank borrowing |
- |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase in cash and cash equivalents |
|
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
|
Cash and cash equivalents at 31 March |
15,369,988 |
11,118,685 |
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Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
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General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
Principal activity
The principal activity of the company is that of the development of building projects, the construction of commercial and domestic buildings, and other building completion and finishing.
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
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.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling which is the functional currency of the entity. Amounts are rounded to the nearest £1.
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. |
Gross amounts owed by contract customers
Industry practice is to assess the estimated final outcome of each contract and recognise the profit based upon the percentage of completion of the contract at the relevant date. The assessment of the final outcome of each contract is determined by regular review of the revenues and costs to complete that contract. Consistent contract review procedures are in place in respect of contract forecasting.
Prepayments and accruals
Amounts paid by the business in advance of the goods or services being received are recognised in the financial statements as a prepayment. Expenses that have been incurred in the year but paid after the year end date are recognised in the financial statements as an accrual. These adjustments are estimated to show a true and fair view.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplies and services rendered, net of discounts and Value Added Tax.
Revenue is recognised with the increase in the value of worked performed on construction contracts and on the value of services provided during the year.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the performance model.
Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Construction contracts
When it is probable that the contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
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 that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in the contract costs if the contract is obtained in a subsequent period.
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is no intention to settle on a net basis to realise the asset and settle the liability simultaneously.
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Amounts transferred from the revaluation reserve are not taxable.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold buildings |
2% straight line |
|
Plant and machinery |
20% straight line |
|
Motor vehicles |
20% straight line |
|
IT equipment |
33% straight line |
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the statement of comprehensive income and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Construction contract revenue from rendering of building services |
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Management charges receivable |
- |
167,000 |
|
Rent receivable |
9,000 |
21,559 |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation of plant and machinery (owned) |
20,262 |
22,231 |
|
Depreciation of plant and machinery (finance lease/hp) |
4,599 |
4,598 |
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income on bank deposits |
|
|
|
Other finance income |
|
|
|
|
|
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
- |
|
|
Interest on obligations under finance leases and hire purchase contracts |
( |
|
|
Interest expense on other finance liabilities |
( |
|
|
( |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
5,815,595 |
6,221,366 |
|
Social security costs |
662,673 |
679,869 |
|
Pension costs, defined contribution scheme |
243,223 |
247,349 |
|
6,721,491 |
7,148,584 |
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Operations |
|
|
|
Support |
|
|
|
Management |
|
|
|
|
|
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
|
Taxation compliance services |
|
|
|
All other non-audit services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the statement of comprehensive income
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
- |
|
232,921 |
967,338 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
11 |
Taxation (continued) |
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
|
Tax increase from effect of capital allowances and depreciation |
- |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax decrease arising from group relief |
( |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Liability |
|
Accelerated capital allowances |
|
|
Pension |
( |
|
Revaluation of tangible assets |
|
|
|
|
2024 |
Liability |
|
Accelerated capital allowances |
|
|
Pension |
( |
|
Revaluation of tangible assets |
|
|
|
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Tangible assets |
|
Land and buildings |
Plant and machinery |
Computer equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 April 2024 |
|
- |
|
|
|
|
Additions |
- |
|
- |
- |
|
|
At 31 March 2025 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 April 2024 |
|
- |
|
|
|
|
Charge for the year |
|
|
|
|
|
|
At 31 March 2025 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 March 2025 |
|
|
|
- |
|
|
At 31 March 2024 |
|
- |
|
|
|
Included within the net book value of land and buildings above is £683,750 (2024 - £698,750) in respect of freehold land and buildings.
Land and buildings with a cost of £274,019 was revalued on 4 November 2021 to £750,000 by Brian J Hasell FRICS FAVLP, RICS Registered Valuer of Huntley & Partners LLP, an independent external valuer.
The directors have confirmed that the brought forward fair value in the reporting period remained appropriate, and therefore no revaluation adjustment was required.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £235,658 (2024: £241,138).
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2025 |
2024 |
|
|
Motor vehicles |
- |
4,599 |
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Stocks |
|
2025 |
2024 |
|
|
Land and development stock |
|
|
|
Debtors |
|
Current |
2025 |
2024 |
|
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Gross amount due from customers for contract work |
|
|
|
|
|
Details of non-current trade and other debtors
£91,535 (2024 - £41,081) of other debtors is classified as non current.
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash at bank |
|
|
|
Short-term deposits |
|
|
|
|
|
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
- |
3,993 |
|
|
Trade creditors |
|
8,997,409 |
|
|
Amounts due to related parties |
- |
25,000 |
|
|
Social security and other taxes |
|
162,477 |
|
|
Other payables |
|
2,736,260 |
|
|
Accruals |
|
8,902,921 |
|
|
Corporation tax liability |
450,198 |
1,017,229 |
|
|
|
21,845,289 |
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
16 |
Creditors (continued) |
An unlimited debenture dated 30/12/2013 incorporating a fixed and floating charge, as well as a 1st legal charge, is placed over the Commercial Freehold property known as Classic Builders (South West) Limited, Estover Close, Plymouth, PL6 7PL dated 28/02/2014.
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 April 2024 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 March 2025 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary A shares of £ 1.00 each of £1 each |
4 |
4 |
4 |
4 |
|
Ordinary B shares of £1.00 each of £1 each |
1 |
1 |
1 |
1 |
|
Ordinary C shares of £ 1.00 each of £1 each |
1 |
1 |
1 |
1 |
|
|
|
|
|
|
All share classes included above have equal rights.
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Reserves |
Profit and loss account
This reserve records retained earnings and accumulated losses.
Revaluation reserve
This reserve records the revaluation of investment properties, this reserve is not distributable.
|
Analysis of changes in net debt |
|
At 1 April 2024 |
Cash flows |
At 31 March 2025 |
|
|
Cash and cash equivalents |
|||
|
Cash |
11,118,685 |
4,251,303 |
15,369,988 |
|
Borrowings |
|||
|
Short term borrowings |
(3,993) |
3,993 |
- |
|
|
|
|
|
|
|
|||
|
Loans and borrowings |
Current loans and borrowings
|
2025 |
2024 |
|
|
Finance lease liabilities |
- |
|
|
Obligations under leases and hire purchase contracts |
Finance leases
Finance lease payments represent rentals payable by the company for certain items of fixed assets. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
- |
|
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
23 |
Obligations under leases and hire purchase contracts (continued) |
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Commitments |
Other financial commitments
|
Related party transactions |
During the year the company sold goods and services of £1,970,007 to companies in which the directors have control or joint control. The company purchased goods and services of £3,186,091 from companies in which the directors have control or joint control.
During the year the company wrote off a balance of £269,143 owed by Quoinstone Meadows Ltd, a company under joint control.
At year end the company was owed £2,661,029 (2024 - £2,655,172) by companies in which the directors have control or joint control. At the year end the company owed £nil (2024 - £nil) to companies in which the directors have control or joint control.
Classic Builders (South West) Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
25 |
Related party transactions (continued) |
|
Transactions with directors |
During the year the directors entered into the following advances and credits with the company:
|
2025 |
At 1 April 2024 |
Advances to director |
At 31 March 2025 |
|
A Brimacombe |
|||
|
Director |
( |
|
- |
|
2024 |
At 1 April 2023 |
Advances to director |
At 31 March 2024 |
|
A Brimacombe |
|||
|
Director |
( |
- |
( |
No directors are accruing benefits under pension schemes.
|
Relationship between entity and parents |
The ultimate parent undertaking in which these financial statements are consolidated is Classic 14 Holdings Limited, incorporated in England and Wales.
The address of Classic 14 Holdings Limited from which copies of the group accounts can be obtained is:
Classic Builders,
Estover Close,
Estover,
Plymouth,
England,
PL6 7PL