Allgood Services Ltd. - Limited company accounts 18.2

REGISTERED NUMBER: 04145239 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

FOR

ALLGOOD SERVICES LTD.

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

P J Allgood

L J Allgood

SECRETARY:

D Hammond

REGISTERED OFFICE:

9 Commerce Road

Lynchwood

Peterborough

Cambridgeshire

PE2 6LR

BUSINESS ADDRESS:

Littlebury Farm

Moats Way

Hemingford Abbots

Cambridgeshire

PE28 9HH

REGISTERED NUMBER:

04145239 (England and Wales)

SENIOR STATUTORY AUDITOR:

Christopher Bond

INDEPENDENT AUDITORS:

GreenStones Limited

9 Commerce Road

Lynchwood

Peterborough

Cambridgeshire

PE2 6LR

The directors present their strategic report for the year ended 31 March 2019.

REVIEW OF BUSINESS

2019 was Allgood Services Ltd's ("ASL") 18th year trading in the construction industry. The

principle activity continues providing labour only bricklayer subcontractors to the house

builder companies such as Bovis, Lindens, and Taylor Wimpey. ASL also supplies sub

contractors to smaller independent builders building single dwellings and small extensions on

a small scale.

ASL had another successful year with strong growth which following good management and

tight commercial controls lead to good underlying margins.

Cash collection was excellent although retention back payments are still slow.

Investing in staff has been the most significant year we have ever had. We would like to

thank all our employees, clients and suppliers for all their continued support.

PRINCIPAL RISKS AND UNCERTAINTIES

Brexit and the General Election are a huge concern to ASL. We have many Eastern European

sub contractors working for us, and with the uncertainty of the government policy whether

they can stay in the UK, leaving us a labour shortage. The governments commitment for an

increase of house building supports ASL strategic plan.

KEY PERFORMANCE INDICATORS

The company implements a number of key performance indicators which are reviewed on a

regular basis.

o Monthly contracts meeting with contract managers to review progress, together with

reasons for any slippage, health and safety issues, and a review of any financial consequences

which these may have.

o Contract reviews to highlight matters which require proactive solutions and Board

involvement to mitigate risk.

A summary of the tracked key performance indicators are as follows:

2017

2018

2019

Turnover

£9.5m

£11.9m

£12.9m

Gross Profit %

20%

25%

28%

EBITDA

£1.6m

£2.4m

£3.2m

Reserves

£3.5m

£1.3m

£1.7m

FUTURE DEVELOPMENTS

Although we have a Significant order book moving into the following year, we also have many

tenders completed awaiting signature but are reluctant to move forward as mentioned above

with the uncertainty of Brexit.

ON BEHALF OF THE BOARD:

P J Allgood - Director

16 December 2019

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of Construction and

Civil Engineering.

DIVIDENDS

No interim dividend was paid during the year. The directors recommend a final dividend of £235.0774 per share.

The total distribution of dividends for the year ended 31 March 2019 will be £ 2,070,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018

to the date of this report.

P J Allgood

L J Allgood

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors

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), including Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the

directors must not approve the financial statements unless they are satisfied that they give a

true and fair view of the state of affairs of the company and of the profit or loss of the

company for that period. In preparing these financial statements, the directors are required

to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to

show and explain the company's transactions and disclose with reasonable accuracy at any

time the financial position of the company and 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section

418 of the Companies Act 2006) of which the company's auditors are unaware, and each

director has taken all the steps that he ought to have taken as a director in order to make

himself aware of any relevant audit information and to establish that the company's auditors

are aware of that information.

ON BEHALF OF THE BOARD:

P J Allgood - Director

16 December 2019

Opinion

We have audited the financial statements of Allgood Services Ltd. (the 'company') for the year

ended 31 March 2019 which comprise the Statement of Income and Retained Earnings,

Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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 2019 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 Auditors' responsibilities for the audit of the financial statements section of our report.

We are independent of the company in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs

(UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other matters

In the previous accounting period the directors of the company took advantage of audit

exemption under s477 of the Companies Act. Therefore the prior period financial statements

were not subject to audit.

Other information

The directors are responsible for the other information. The other information comprises the

information in the Strategic Report and the Report of the Directors, but does not include the

financial statements and our Report of the Auditors 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. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained

in the course of the audit, we have not identified material misstatements in the Strategic

Report or the Report of the Directors.

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 four,

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 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.

Auditors' 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 a

Report of the Auditors 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.

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 Report of the Auditors.

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 a

Report of the Auditors 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.

Christopher Bond (Senior Statutory Auditor)

for and on behalf of GreenStones Limited

9 Commerce Road

Lynchwood

Peterborough

Cambridgeshire

PE2 6LR

16 December 2019

TURNOVER

12,896,539

11,866,720

Cost of sales

9,192,253

8,855,487

GROSS PROFIT

3,704,286

3,011,233

Administrative expenses

616,061

689,212

OPERATING PROFIT

4

3,088,225

2,322,021

Income from shares in group undertakings

-

95,932

Income from fixed asset investments

3,638

3,284

Interest receivable and similar income

515

623

4,153

99,839

3,092,378

2,421,860

Gain/loss on revaluation of investments

(1,600

)

38,377

3,090,778

2,460,237

Interest payable and similar expenses

5

532

3,567

PROFIT BEFORE TAXATION

3,090,246

2,456,670

Tax on profit

6

632,389

467,852

PROFIT FOR THE FINANCIAL YEAR

2,457,857

1,988,818

Retained earnings at beginning of year

1,286,876

3,564,856

Dividends

7

(2,070,000

)

(4,266,798

)

RETAINED EARNINGS AT END OF YEAR

1,674,733

1,286,876

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

305,089

739,525

Investments

11

41,777

97,082

346,866

836,607

CURRENT ASSETS

Stocks

12

-

12,803

Debtors

13

8,299,259

4,602,537

Cash at bank

111,623

636,747

8,410,882

5,252,087

CREDITORS

Amounts falling due within one year

14

7,044,016

4,755,627

NET CURRENT ASSETS

1,366,866

496,460

TOTAL ASSETS LESS CURRENT LIABILITIES

1,713,732

1,333,067

PROVISIONS FOR LIABILITIES

15

38,899

46,091

NET ASSETS

1,674,833

1,286,976

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

1,674,733

1,286,876

SHAREHOLDERS' FUNDS

1,674,833

1,286,976

The financial statements were approved by the Board of Directors on 16 December 2019 and were signed on its behalf by:

P J Allgood - Director

Cash flows from operating activities

Cash generated from operations

1

(437,562

)

531,812

Interest paid

(532

)

(3,567

)

Tax paid

(423,172

)

(513,048

)

Net cash from operating activities

(861,266

)

15,197

Cash flows from investing activities

Purchase of tangible fixed assets

-

(22,656

)

Purchase of fixed asset investments

-

(5,000

)

Sale of tangible fixed assets

421,945

2,245

Interest received

515

623

Dividends received

3,638

99,216

Net cash from investing activities

426,098

74,428

Cash flows from financing activities

Inter-company loans

1,980,045

4,166,393

Amount introduced by directors

306,079

459,452

Amount withdrawn by directors

(306,080

)

(358,692

)

Equity dividends paid

(2,070,000

)

(4,266,798

)

Net cash from financing activities

(89,956

)

355

(Decrease)/increase in cash and cash equivalents

(525,124

)

89,980

Cash and cash equivalents at beginning of year

2

636,747

546,767

Cash and cash equivalents at end of year

2

111,623

636,747

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

as restated

(Unaudited)

£

£

Profit before taxation

3,090,246

2,456,670

Depreciation charges

16,162

27,369

Loss/(profit) on disposal of fixed assets

50,034

(1,720

)

Loss/(gain) on revaluation of fixed assets

1,600

(38,377

)

Increase in Amounts recoverable on contr

(1,009,197

)

(849,008

)

Finance costs

532

3,567

Finance income

(4,153

)

(99,839

)

2,145,224

1,498,662

Decrease in stocks

12,803

441,075

Increase in trade and other debtors

(2,687,525

)

(1,384,127

)

Increase/(decrease) in trade and other creditors

91,936

(23,798

)

Cash generated from operations

(437,562

)

531,812

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash

equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

111,623

636,747

Year ended 31 March 2018

31.3.18

1.4.17

as restated

(Unaudited)

£

£

Cash and cash equivalents

636,747

546,767

1.	STATUTORY INFORMATION

Allgood Services Ltd. is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on

the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in note 3,

the director's are required to make judgements, estimates and assumptions about the

carrying amounts of assets and liabilities that are not readily apparent from other

sources. The estimates and associated assumptions are based on historical experience

and other factors that are considered to be relevant. Actual results may differ from

these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions

to accounting estimates are recongnised in the period in which the estimate is revised if

the revision affects only that period, or in the period of the revision and future periods if

the revision effects both current and future periods.

Provisions for Amounts Recoverable on Contract

Where losses on contracts are expected, the entire loss is recognised immediately

within the statement of Comprehensive Income.

Key Sources of estimation uncertainty

The director's have considered whether there are any key assumptions concerning the

future, and other key sources of estimation uncertainty at the reporting period that may

have a significant risk of causing a material adjustment to the carrying amounts of

assets and liabilities within the next financial year. They have concluded that there are

no key assumptions relevant to the company.

Turnover

Turnover represents the invoice value of work carried out during the year, net of Value

Added Tax, adjusted for contractual work in progress as follows:

The amount by which recorded turnover is in excess of payments on account is

classified as "amounts recoverable on contracts" and separately disclosed, as

appropriate, within debtors due within one year and after more than one year.

The value of the recorded turnover has been determined by the following methods:

Part Completed Contracts:

a) Contracts in the early stages, the outcome of which cannot reasonably be assessed,

cost plus overheads less foreseeable losses.

b) Contracts sufficiently advanced for the outcome to be assessed with reasonable

certainly, cost plus ascertainable profit less any known inequalities of profitability in the

various stages of the contracts, less foreseeable losses.

Contracts Awaiting Final Certificates:

Cost plus attributable profit less foreseeable losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

12.5% on reducing balance

Plant and machinery

-

25% on reducing balance and 12.5% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due

allowance for obsolete and slow moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial

Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its

financial instruments.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially

measured at transaction price including transaction costs and are subsequently carried

at amortised cost using the effective interest method unless the arrangement

constitutes a financing transaction, where the transaction is measured at the present

value of the future cash flows discounted at a market rate of interest. Financial assets

classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of

the contractual arrangements entered into. An equity instrument is any contract that

evidences a residual interest in the assets of the company after deducting all of its

liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at

transaction price unless the arrangement constitutes a financing transaction, where the

debt instrument is measured at the present value of future cash flows discounted at a

market rate of interest. Financial liabilities classified as payable within one year are not

amortised.

Debt instruments are subsequently carried at amortised cost, using the effective

interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in

the ordinary course of business from suppliers. Amounts payable are classified as

current liabilities if the payment is due within one year or less. If not, they are

presented as non-current liabilities. Trade creditors are recognised initially at

transaction price and subsequently measured at amortised cost using the effective

interest rate method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the

Income Statement, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that

have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but

not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments

in periods different from those in which they are recognised in financial statements.

Deferred tax is measured using tax rates and laws that have been enacted or

substantively enacted by the year end and that are expected to apply to the reversal of

the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent

that it is probable that they will be recovered against the reversal of deferred tax

liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis

over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to

the company's pension scheme are charged to profit or loss in the period to which they

relate.

Employee benefit trust

Trusts have been established for the benefit of employees and certain of their

dependants. Monies held in these trusts are held by independent trustees and managed

at their discretion.

Where the company retains future economic benefit from, and has de facto control of

the assets and liabilities of the trust, they are accounted for as assets and liabilities of

the company until the earlier of the date that an allocation of trust funds to employees

in respect of past services is declared and the date that assets of the trust vest in

identified individuals.

Where monies held in a trust are determined by the company on the basis of

employees' past services to the business and the company can obtain no future

economic benefit from those monies, such monies, whether in the trust or accrued for

by the company are charged to the profit and loss account in the period to which they

relate.

3.	EMPLOYEES AND DIRECTORS

2019

2018

as restated

(Unaudited)

£

£

Wages and salaries

170,517

420,850

Social security costs

14,081

13,303

Other pension costs

8,319

7,882

192,917

442,035

The average number of employees during the year was as follows:

2019

2018

as restated

(Unaudited)

Directors

2

2

Administrative

6

9

8

11

2019

2018

as restated

(Unaudited)

£

£

Directors' remuneration

15,582

15,616

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2019

2018

as restated

(Unaudited)

£

£

Hire of plant and machinery

2,247

22,071

Depreciation - owned assets

16,162

27,369

Loss/(profit) on disposal of fixed assets

50,034

(1,720

)

Auditors' remuneration

9,700

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

as restated

(Unaudited)

£

£

Corporation tax interest

532

3,567