Registration number:
R.J Heathman (Contractors) Limited
for the Year Ended 31 March 2026
Registration number:
R.J Heathman (Contractors) Limited
for the Year Ended 31 March 2026
R.J Heathman (Contractors) 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 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 |
R.J Heathman (Contractors) Limited
Company Information
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Directors |
R J Heathman I N Cook M K Heathman K J Lee |
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Registered office |
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Auditors |
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R.J Heathman (Contractors) Limited
Strategic Report for the Year Ended 31 March 2026
The directors present their strategic report for the year ended 31 March 2026.
Fair review of the business
Since its formation in 1976 the company has grown steadily over the years under its trading name of County Contractors, building upon its reputation of giving an excellent and reliable service to its many clients, and delivering its contracts on time. The company is now one of the leading refurbishment specialists to hotels, retail, hospitality, and commercial outlets.
County Contractors prides itself on its continuity of service to its clientele, with Boots the Chemist being a prime example. The company has worked continuously since its formation in 1976 to be one of their leading contractors, refurbishing their stores on a national coverage.
The hotel refurbishment sector of the company has shown its largest increase in turnover in the last ten years, and the company is now a leading player in this specialist field, where quality and reliability are of prime importance to clients. Contracts ranging from £0.5m to £40 million plus in value have been successfully completed to a large number of hotel chains and independent boutique brands across various parts of the country, with a major involvement in London.
The Retail and Maintenance and Minor Works divisions have grown in recent years and this year has been no exception. With increased capacity in both divisions, they are well placed to continue on their current organic growth trajectory.
The company is pleased to present its results for the year which show an improvement in underlying profit from the previous year. Each division has performed well with turnover and net margin in line with expectations and in many cases up on the previous year. Turnover is down slightly from the previous year which is mainly down to the timing of the Hotel divisions major projects. This is to be expected given the nature and the timing of the contracted work.
The directors would like to record their thanks and appreciation to all staff on their endeavours during the last 12 months.
Key performance indicators
The directors measure the performance of the business through the following KPIs; cash flow and margin. Whilst turnover is an important metric, as mentioned above, the natural fluctuations in turnover mean it is not a reliable performance measure in and of itself:
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Cash flow - During the course of the year, the company maintained sufficient cash flows to effectively operate the business and did not require any additional working capital support over and above the facilities it has in place. |
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Margin - The directors are satisfied with this metric given the improvement in net margin across the business compared to the previous year. |
R.J Heathman (Contractors) Limited
Strategic Report for the Year Ended 31 March 2026 (continued)
Principal risks and uncertainties
The company faces risks in the following categories:
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• |
Financial strength and liquidity - this relates to the increasing credit terms imposed by our clients and the tightening of credit facilities offered by the supply chain. This risk has increased slightly. |
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• |
Health and Safety - The work on our sites can often be complex and hazardous and we continuously strive to manage this risk down to a minimum level. This risk is unchanged. |
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Winning and executing work - In a tendered environment, the timing of work is always a risk. However, the company manages this risk by having complementing business models for each of its sectors. The company is also careful not to undertake work it is not familiar with to minimise the risk of failures or delays. This risk is unchanged. |
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• |
Inflation - UK inflation has returned and maintained a more sustainable level during the last period and this period. Whilst there are global threats to UK inflation, the directors consider this risk to be unchanged. |
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• |
Government - the change of government following the 2024 General Election has resulted in a change of approach to fiscal policy. We have already seen an increase in business taxes, notably around Employers National Insurance, which have the potential to impact margins. With a likely change of leadership and therefore potential direction, it is unclear what future changes may be coming. The directors consider this risk to be increasing. |
Future developments
The directors anticipate that, in light of the risk factors above, the business environment will remain somewhat uncertain. However, they believe that the current workload and forward pipeline will sustain the company now and into the future.
Financial instruments
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are mostly conducted in sterling. The company does not enter any hedging transaction.
Stakeholder engagement
As the Board at County Contractors, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company’s success for the benefit of its employees as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board undertake this responsibility.
Promoting the company’s success for its employees
County Contractors was founded in 1976 and continues to be controlled and run as a privately owned family business. We are proud of the ways in which, over nearly 50 years, the company has provided employment, training and financial reward for its owners and employees.
We aim to continue our success in the markets in which we operate by serving our numerous existing clients, branching out to new clients and developing our skills base. In doing so, our twin aims are to maximise the company’s ability to grow profits and market share whilst returning the highest possible value to the shareholders.
As a company we recognise that the tendering business does not always follow a smooth cycle and there may be gaps between large contracts. As such we maintain a very conservative profit retention policy to allow us to weather these gaps and reinvest in working capital as required.
R.J Heathman (Contractors) Limited
Strategic Report for the Year Ended 31 March 2026 (continued)
Engaging with stakeholders
Our key stakeholders, and the ways in which we engage with them, are as follows:
Engagement with employees and tradespeople
Our projects are bespoke and varied and therefore we rely on a skilled team including contracts managers, site managers and skilled and unskilled operatives.
Recruitment and retention of staff and operatives is therefore a critical business activity. We help to engage with team members by:
• setting effective pay and remuneration packages with additional benefits for employed members of staff;
• providing training and career development support;
• providing, where possible, continuous work for our trusted self-employed operatives within stable teams
Engagement with suppliers, customers and other relationships
We have structured our business in such a way that allows us to offer a complete turnkey service to our client base whilst maintaining a flexible and personal feel.
We deal very fairly with our trusted suppliers and as a result we enjoy a consistently high level of service, which in turn allows us to meet the exacting demands of our clients.
Engagement with our community
We are a family-run company with its roots in Weston-super-Mare and have often invested in our community through our charity and community donations.
We have supported local school initiatives, church fundraising events and community sports associations.
Engagement with our planet
Our industry inevitably contributes to the increase in greenhouse gasses principally through transportation and site activities such as waste removal, and we are working hard to minimise this impact. The vast majority of site waste is recycled and transportation emissions are kept to a minimum by replacing the van fleet at regular intervals.
Our office lighting has been upgraded to LED to minimise electricity and company car drivers are encouraged to drive efficient, low polluting vehicles.
Approved and authorised by the
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R.J Heathman (Contractors) Limited
Directors' Report for the Year Ended 31 March 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
Directors of the company
The directors who held office during the year were as follows:
Dividends
Particulars of recommended dividends are detailed in note 22 to the financial statements.
Non-financial and sustainability information
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. R.J Heathman (Contractors) Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.
R.J Heathman (Contractors) Limited
Directors' Report for the Year Ended 31 March 2026 (continued)
Emissions and energy consumption
This report considers the UK energy used by R.J Heathman (Contractors) Limited for the financial year 1 April 2025 to 31 March 2026 split by the following energy types:
Natural Gas
This is gas purchased by the company for use in its office boilers.
Diesel
This is the consumption of diesel fuel for the purposes of transport within company vans or cars as well as private cars used for company business.
Petrol
This is the consumption of petrol fuel for the purposes of transport within company vans or cars as well as private cars used for company business.
Electricity
This is the electricity purchased directly by the company for use within its offices. This does not include electricity used by the company paid for by a third party, for example electricity used on sites.
Where possible actual data has been used. This includes kWh of gas and electricity directly purchased and litres of diesel fuel purchased with fuel cards.
Between 2025 and 2026, the company maintained its use of diesel fuel as levels of business activity predominantly in the divisions supported by the LGV fleet remained constant. Petrol use increased slightly as a small number of diesel cars were replaced with plug in hybrid petrol cars. Gas use has continued to fall due to continued improvements in heating management within its offices. Electricity increased slightly which follows the general increase in the use of electric vehicle (EV) charging points. The company expects to reduce its reliance on fossil fuels in cars further as it continues to electrify the fleet where possible. This will inevitably increase the reliance on electricity to charge the EV fleet.
Where actual data is not known, estimates have been used. For example, litres of fuel used in company cars without fuel cards. This data has been derived from data that is known, in this case the miles driven and applying an average miles per gallon rate.
A conversion factor (as published by the Department for Business, Energy & Industrial Strategy) has then been applied to the actual or derived data to calculate the GHG emissions figure in kg CO₂e
Summary of greenhouse gas emissions and energy consumption for the year ended 31 March 2026:
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Name and |
Unit of |
2026 |
2025 |
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Scope 1 - Natural gas |
kWh |
32,582.00 |
38,592.00 |
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Scope 1 - Diesel (average biofuel blend) |
Litres |
127,592.00 |
140,757.00 |
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Scope 1 - Petrol (average biofuel blend) |
Litres |
37,018.00 |
27,866.00 |
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Scope 2 - Electricity |
kWh |
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260,218.00 |
267,890.00 |
R.J Heathman (Contractors) Limited
Directors' Report for the Year Ended 31 March 2026 (continued)
Summary of scope 1 (direct) greenhouse gas emissions for the year ended 31 March 2026:
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Name and |
Tonnes CO2e |
Tonnes CO2e |
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Scope 1 - Natural gas |
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Scope 1 - Diesel (average biofuel blend) |
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Scope 1 - Petrol (average biofuel blend) |
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Intensity metric: g CO2 per mile driven |
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Summary of scope 2 (indirect) greenhouse gas emissions for the year ended 31 March 2026:
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Name and |
Tonnes CO2e |
Tonnes CO2e |
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Scope 2 - Electricity |
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Intensity ratio
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Intensity measurement |
2026
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2025
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Energy efficiency action taken
The company takes its responsibility to minimise the impact its activities have on the environment very seriously. That is why it is constantly looking at ways to improve energy efficiency and reduce energy use.
Measures taken to date include:
• Upgrading the van fleet to ensure all large vans have the most efficient Euro 6 engines
• Upgrading IT hardware to low power options where possible
• Upgrading of office lighting to LED lights
• Monitoring and enacting behavioural change in company van drivers through tracking devices
• Promoting the use of electric or hybrid vehicles within the car fleet (82% cars are either fully electric, hybrid or PHEV (82% 2025))
Going concern
The directors have considered the company’s ability to continue to operate as a going concern for the foreseeable future and at least the next 12 months. The directors have prepared forecasts and budgets. As part of the normal part of trading, the directors expect variation in the company’s income and fluctuations in its capital requirements as the business is required to fund working capital and ongoing projects in advance of receiving customer payment. The directors believe that the current working capital arrangements are sufficient to support its investment in future projects.
R.J Heathman (Contractors) Limited
Directors' Report for the Year Ended 31 March 2026 (continued)
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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R.J Heathman (Contractors) 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.
R.J Heathman (Contractors) Limited
Independent Auditor's Report to the Members of R.J Heathman (Contractors) Limited
Opinion
We have audited the financial statements of R.J Heathman (Contractors) Limited (the 'company') for the year ended 31 March 2026, which comprise the 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 2026 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.
R.J Heathman (Contractors) Limited
Independent Auditor's Report to the Members of R.J Heathman (Contractors) 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.
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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. |
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The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, health and safety laws and regulations, employment, anti-bribery, anti-money laundering and other companies legislation. |
R.J Heathman (Contractors) Limited
Independent Auditor's Report to the Members of R.J Heathman (Contractors) Limited (continued)
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To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to: |
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identifying 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 management and directors; and |
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communicating identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit; and |
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assessing the extent of compliance through making enquiries of management and inspecting legal, regulatory, and HMRC correspondence, if any. |
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obtaining and reviewing health and safety reports completed by third parties on company sites. |
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We evaluated the incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance and via judgements made in the preparation of the accounts. Our audit procedures in relation to fraud included but were not limited to: |
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making enquiries of management and directors on whether they had knowledge of any actual, suspected or alleged fraud; |
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• |
gaining an understanding of the internal controls established to mitigate risks related to fraud; |
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• |
discussing amongst the engagement team the risks of fraud; |
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• |
addressing the risks of fraud through management override of controls by performing risk-based target testing of journal entries; and |
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evaluating management’s judgements used in the preparation of the financial statements, and assessing whether there was any evidence of fraud or management bias. |
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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. |
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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.
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R.J Heathman (Contractors) Limited
Independent Auditor's Report to the Members of R.J Heathman (Contractors) 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
38 Walliscote Road
Weston-super-Mare
Somerset
BS23 1LP
R.J Heathman (Contractors) Limited
Statement of Comprehensive Income for the Year Ended 31 March 2026
|
Note |
2026 |
2025 |
|
|
Turnover |
|
|
|
|
Other operating income |
|
|
|
|
Raw materials and consumables used |
( |
( |
|
|
Employee benefits expense |
( |
( |
|
|
Depreciation and amortisation expense |
( |
( |
|
|
Other external charges |
(35,465,056) |
(38,281,278) |
|
|
Other operating expenses |
( |
( |
|
|
Other (losses)/gains |
( |
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
24,173 |
(64,061) |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
R.J Heathman (Contractors) Limited
(Registration number: 01249197)
Statement of Financial Position as at 31 March 2026
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Note |
2026 |
2025 |
|
|
Fixed assets |
|||
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Tangible assets |
|
|
|
|
Investment property |
|
|
|
|
|
|
||
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Current assets |
|||
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
32 |
41 |
|
|
Capital redemption reserve |
76 |
67 |
|
|
Profit and loss account |
13,098,514 |
15,982,288 |
|
|
Shareholders' funds |
13,098,622 |
15,982,396 |
Approved and authorised by the
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R.J Heathman (Contractors) Limited
Statement of Changes in Equity for the Year Ended 31 March 2026
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
|
At 1 April 2025 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
Purchase of own share capital |
(9) |
- |
(4,301,893) |
(4,301,902) |
|
Other capital redemption reserve movements |
- |
9 |
- |
9 |
|
At 31 March 2026 |
|
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
|
At 1 April 2024 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 March 2025 |
41 |
67 |
15,982,288 |
15,982,396 |
R.J Heathman (Contractors) Limited
Statement of Cash Flows for the Year Ended 31 March 2026
|
Note |
2026 |
2025 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
Accrued expenses |
(3,416,541) |
879,581 |
|
|
Tax paid |
(1,138,204) |
(897,468) |
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in debtors |
( |
|
|
|
Increase/(decrease) in creditors |
|
( |
|
|
(Decrease)/increase in deferred income |
( |
|
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Payments for purchase of own shares |
( |
- |
|
|
Bank borrowing repayments |
( |
( |
|
|
Bank borrowing advance |
2,000,000 |
- |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
|
Cash and cash equivalents at 31 March |
2,796,762 |
6,325,049 |
|
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Principal activity
The principal activity of the company is a refurbishment specialist to hotels, hospitals, education establishments and commercial outlets.
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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 on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through the profit and loss account.
The financial statements are prepared in sterling which is the functional currency of the entity and are presented to the nearest £.
Going concern
The directors have considered the company’s ability to continue to operate as a going concern for the foreseeable future and at least the next 12 months. The directors have prepared forecasts and budgets. As part of the normal part of trading, the directors expect variation in the company’s income and fluctuations in its capital requirements as the business is required to fund working capital and ongoing projects in advance of receiving customer payment. The directors believe that with the company’s strong track record and the support of its bankers that it should be able to access funding as required to support its investment in its projects.
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (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. |
Significant judgements |
The judgements (apart from those involving estimates) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Bad debt provision |
The bad debt provision is assessed by management by reviewing the age of the debt and the circumstances surrounding the unpaid debt. After consideration of these factors a provision is made where considered necessary. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:.
Construction contracts
Construction contracts are reviewed against sales to date, total expected sales, costs to date and expected costs to complete to give an expected profit margin. Stage of completion is considered based on costs to date plus costs expected to complete, and unbilled sales calculated accordingly. Contract accruals are also recognised where costs to date are understated, by reference to the expected margin..
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion determined with regards to the costs to date plus expected costs to complete.
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
2 |
Accounting policies (continued) |
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Any gains or losses arising are taken the the profit and loss account.
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.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
2 |
Accounting policies (continued) |
Depreciation
Depreciation is charged so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows;
|
Asset class |
Depreciation method and rate |
|
Freehold property |
2% straight line |
|
Fixtures and fittings |
15% reducing balance, 4 or 6 years straight line |
|
Motor vehicles |
commercial 2,4 or 6 years straight line, cars 25% reducing balance |
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.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Investment property
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
This is in accordance with FRS102, which unlike the Companies Act 2006, does not require depreciation of investment properties. Investment properties are held for their investment potential and not for use by the company and so their current value is of prime importance. The departure from the provisions of the ACT is required in order to give a true and fair view.
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
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
2 |
Accounting policies (continued) |
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
Lease payments are recognised as an expense over the lease on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight line basis.
Lease income is recognised in profit and loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.
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.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
2 |
Accounting policies (continued) |
Financial instruments
Recognition and measurement
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
Construction contracts
Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised.
Where the collectability of an amount already recognised as contract revenue is no longer probable, the uncollectible amount is expensed rather than recognised as an adjustment to the amount of contract revenue.
The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2026 |
2025 |
|
|
Rendering of services |
|
|
The amount of contract revenue recognised as turnover in the year was £
The whole of 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:
|
2026 |
2025 |
|
|
Miscellaneous other operating income |
|
|
Miscellaneous other operating income relates to rental income.
|
Operating profit |
Arrived at after charging/(crediting)
|
2026 |
2025 |
|
|
Depreciation expense |
|
|
|
Foreign exchange losses |
- |
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
|
Other interest receivable and similar income |
|
2026 |
2025 |
|
|
Interest income on bank deposits |
|
|
|
Interest on overpaid tax |
|
- |
|
|
|
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
Interest payable and similar expenses |
|
2026 |
2025 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on underpaid tax |
|
- |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2026 |
2025 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
As at the year end there were unpaid pension contributions of £357,308 (2025 - £233,540), relating entirely to bonus payments opted to be taken as pension.
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2026 |
2025 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2026 |
2025 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
1,404,097 |
1,069,308 |
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
9 |
Directors' remuneration (continued) |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2026 |
2025 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2026 |
2025 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
- |
|
Auditors' remuneration |
|
2026 |
2025 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other non-audit services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the statement of comprehensive income
|
2026 |
2025 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
- |
|
Arising from write-down or reversal of write-down of deferred tax asset |
- |
( |
|
Total deferred taxation |
( |
( |
|
Tax expense in the income statement |
|
|
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
11 |
Taxation (continued) |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2025 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2026 |
2025 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax increase from other short-term timing differences |
|
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities consist of the tax effect of timing difference in respect of:
|
2026 |
Asset |
|
Accelerated capital allowances |
( |
|
Unpaid employer pension contributions |
|
|
Fair value adjustment of investment property |
( |
|
|
The deferred tax asset has been included in Debtors at the year-end.
|
2025 |
Asset |
|
Accelerated capital allowances |
( |
|
Unpaid employer pension contributions |
|
|
Fair value adjustment of investment property |
( |
|
|
The deferred tax asset has been included within Debtors at the prior year-end.
Deferred tax of £113,152 (2025: £82,606) is expected to reverse in the next year as unpaid employer contributions reduce.
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
Tangible assets |
|
Land and buildings |
Fixtures and fittings |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 April 2025 |
|
|
|
|
|
Additions |
- |
|
|
|
|
Disposals |
- |
( |
( |
( |
|
Transfers to/from investment property |
|
- |
- |
|
|
At 31 March 2026 |
|
|
|
|
|
Depreciation |
||||
|
At 1 April 2025 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
|
At 31 March 2026 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 March 2026 |
|
|
|
|
|
At 31 March 2025 |
|
|
|
|
|
Investment properties |
|
2026 |
|
|
At 1 April |
|
|
Transfers to and from owner-occupied property |
(75,000) |
|
At 31 March |
|
The investment properties have been revalued at the year-end by the directors based on their knowledge and professional experience of the local property market. Their valuation is in line with that of Bruton Knowles, a qualified independent valuer, who in November 2025 reported on the property's valuation. This is included in the Statement of Financial Position at a year-end value of £405,000.
Tangible assets held at valuation
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount would have been recognised if the asset had been carried under the historical cost model are as follows:
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
13 |
Investment properties (continued) |
|
Investment property |
|
|
At 31 March 2026 |
|
|
Aggregate cost |
166,837 |
|
Aggregate depreciation |
(56,248) |
|
Carrying value |
110,589 |
|
At 31 March 2025 |
|
|
Aggregate cost |
242,089 |
|
Aggregate depreciation |
(74,090) |
|
Carrying value |
167,999 |
|
Debtors |
|
Current |
Note |
2026 |
2025 |
|
Trade debtors |
|
|
|
|
Prepayments |
|
|
|
|
Gross amount due from customers for contract work |
|
|
|
|
Deferred tax assets |
|
|
|
|
|
|
The uncertainty of the amounts due by customers on construction work has been disclosed in Note 2, within Key Sources of Estimation Uncertainty.
The financial assets above are included at amortised cost.
|
Cash and cash equivalents |
|
2026 |
2025 |
|
|
Cash at bank |
|
|
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
Creditors |
|
Note |
2026 |
2025 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
- |
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
Deferred income |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
- |
The HSBC bank loan was taken out in November 2025 for £2,000,000 for 3 years, this was done to facilitate the share repurchase completed in the year. The loan was secured by a legal charge over the freehold property of the company and a fixed and floating charge over all assets of the company.
The interest on the loan was 1.8% per annum over the Bank of England base rate.
Accruals include £1,586,937 (2025 - £4,829,002) of contract accruals.
The financial liabilities above are included at amortised cost.
|
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 £
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
Share capital |
Allotted, called up and fully paid shares
|
2026 |
2025 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
9 |
|
9 |
|
|
|
14 |
|
14 |
|
|
|
5 |
|
14 |
|
|
|
5 |
|
5 |
|
|
|
|
|
|
The A, B, C and D ordinary shares at this year end carry one vote each at all general meetings of the company, and rank equally in its entitlement to dividends, proceeds or winding up or other return of capital of the company.
During the year, the company purchased and cancelled 18 of its £0.50 Ordinary C shares.
|
Reserves |
Profit and loss account
This reserve records retained earnings and accumulated losses.
Capital redemption reserve
This reserve records the nominal value of shares repurchased by the company.
Within the profit and loss account reserve is an element of undistributable reserves relating to the revaluation of the investment property and total £204,673.
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
Loans and borrowings |
Non-current loans and borrowings
|
2026 |
2025 |
|
|
Bank borrowings |
|
- |
Current loans and borrowings
|
2026 |
2025 |
|
|
Bank borrowings |
|
- |
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2026 |
2025 |
|
|
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 £
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
Dividends |
Final dividends paid
|
2026 |
2025 |
|||
|
Final dividend of £ |
|
|
||
|
Final dividend of £ |
|
|
||
|
Final dividend of £ |
|
|
||
|
Final dividend of £ |
|
- |
||
|
|
|
Interim dividends paid
|
2026 |
2025 |
|||
|
Interim dividend of £ |
|
- |
||
|
Interim dividend of £Nil per each |
- |
- |
||
|
Interim dividend of £Nil per each |
- |
- |
||
|
Interim dividend of £Nil per each |
- |
- |
||
|
|
- |
R.J Heathman (Contractors) Limited
Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)
|
Analysis of changes in net debt |
|
At 1 April 2025 |
Financing cash flows |
At 31 March 2026 |
|
|
Cash and cash equivalents |
|||
|
Cash |
6,325,049 |
(3,528,287) |
2,796,762 |
|
Borrowings |
|||
|
Long term borrowings |
- |
(1,192,740) |
(1,192,740) |
|
Short term borrowings |
- |
(600,000) |
(600,000) |
|
- |
(1,792,740) |
(1,792,740) |
|
|
|
( |
|
|
|
|
|||
|
Related party transactions |
In the year £55,881 (2025: £33,650) of gross wages relates to wages for family members of directors.