WHITEHEAD_BUILDING_SERVIC - Accounts

The directors present the strategic report for the year ended 30 November 2022.

Whitehead Building Services provide the full range of mechanical, electrical, and public health services from design, installation, commissioning, and maintenance to the Main Contracting construction sector and direct end-user market. Our principal activities are provided from our office locations, strategically located along the M4 / M5 corridor. The company provides a range of services within the education, health, commercial, residential, transport, and distribution and logistics sectors.

Delays to planned activity in some of our larger long-term construction projects has resulted in a reduction in our Turnover from £34.4m in 2021 to £31m in 2022, with an increase in profit before tax. The Directors are pleased to report a healthy order book with over £100m of forward work commitments.

The business performance has been achieved by focusing on our commitment to provide an exceptional customer experience, carefully selecting projects, and utilising our proven and accredited End 2 End business process QMS ISO 9001:2015. This has led to repeat business exceeding 70% of our revenue. The company works hard to maintain mutually beneficial business relationships by focusing on our professionalism, expertise, and teamwork to deliver excellence through empowering people and embracing technology and creating a positive and lasting impact on the environment and our communities.

The Directors have continued to monitor the business performance against its high-level objectives and are pleased to report a successful outcome. Although revenue for the year has reduced and inflationary pressures remain a challenge, the Directors are pleased with the financial performance. The result demonstrates that our strategy to deliver small and short-term contracts alongside our larger long-term construction projects has mitigated the impacts of the delays. The Directors have a 5 year plan which targets sustained profitable growth and also includes continued development of our workforce via our apprenticeship programme and continued professional development, improving customer satisfaction though our tailored quality management system and providing safe operations through our “Work Safe – Home Safe” programme. As part of the Continuing Professional Development of our employees we have continued our partnership with Cardiff University Business School who are providing a leadership training course for our Senior Leadership Team. It is pleasing to note that work carried out on this programme is coming to fruition.

Whitehead operates the core business in a strong economic region and are strategically positioned to be able to offer specialist services to both public and private sectors. During the period we have increased the revenue generated from our end-user work-stream and widened our customer base through our Maintenance and Small Works provision. The rail and transport sector which is continuing to undergo significant investment in the forthcoming years remains a target opportunity for growth. Whitehead is accredited to provide specialist services to the rail sector at a time when the Cardiff Metro system is being developed and the electrification of the Valley Lines takes place. We also continue to work with the regional airports in Cardiff and Bristol.

The Board regards the key measures of operating effectiveness to be sales growth, margins and overheads as a proportion of activity. However, the performance of individual contracts is also regarded as a key indicator of performance. Each contract is assessed individually with a number of large contracts per year. The company is satisfied with the contract performance in the year with no real issues noted. The contracts largely ran to budget and on time which means that the company hit its targets and the customers were generally delighted.

The Directors assess the following Key Performance Indicators:

Turnover

Turnover for the year decreased by 9.7% to £31.0m (2021 £34.4m).

Profit before tax

Profit before tax for the year as a percentage of turnover increased to 2.07% from 1.79% in the prior year.

Other Key Performance Indicators

Repeat Business

The company assesses the value of repeat business which has been maintained at 70% of the total Turnover.

Average Staff Numbers

Average staff numbers for the year decreased by 10.6% to 185 (2021: 207) in line with the reduction in turnover.

Post-Contract Defects

The value spent on post-contract defects has decreased by 10%.

Outstanding Retention Balances

The value of overdue Retention Balances has decreased by 8%.

The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial instruments is monitored by the board of directors; the company does not use financial instruments for speculative purposes. The company's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the company.

Cash flow risk

The company has no interest-bearing assets and few interest-bearing liabilities which minimises the uncertainty of cash flows.

Credit risk

The company's principal financial assets are bank balances and cash, trade, and other receivables. The company's credit risk is primarily attributable to its trade and other receivables. The company manages credit risk in respect of trade debtors by regularly monitoring credit limits and balances outstanding and the close monitoring of customer credit reports. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers with a healthy balance of long-term and short-term contracts. The credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Liquidity risk

The company manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments.

Supply Chain Risk

We have a unique relationship with our supply chain where we work together in Partnership to ensure that our needs can be met and managed. We work with our supply chain to provide effective solutions to the most challenging projects, and we have processes for the selection of suppliers in which we assess their suitability to be part of our chain.

Skills Shortages

Our company ethos is of employment rather than transient sub-contract or agency labour, which provides us with protection against skills shortages in an upturn in market conditions. Our apprentice training programme ensures that we continue to produce well-trained staff whilst providing opportunities for young people.

Brexit

The Directors are aware of the potential risks which Brexit presents and have worked closely with our supply-chain to ensure continuity of supply of goods following the UK’s departure from the EU. The Directors will seek to mitigate any other risks to the business, whilst maximising any opportunities that may arise.

Inflation

The Directors are aware of the risk of rising inflation to the UK economy. Where possible, any inflationary risks to the costs of our products and services are identified and managed collaboratively with our clients and supply chain.

Health and Safety

The health and safety of our employees, supply chain, customers and the public remain our number one priority. The business prides itself on its excellent record and upholds its commitment of “Work Safe – Home Safe.” It is accepted by every member of our team and supply chain that safety is also their personal responsibility. Our in-house qualified Health, Safety, Environmental, and Quality team oversees and undertakes audits to ensure that our ISO standards are adhered to.

All Whitehead employees are encouraged to assist the company in its aim to reduce our environmental impact.

We encourage our workers to respect the environment in which they work and to reduce waste, share transport and reduce our environmental impact wherever possible. As engineers we endeavour to incorporate green and energy efficient products in our design and in the materials that we use. The Business has achieved accreditation with ISO14001 during 2022. The business has produced a carbon reduction plan in line with the UK Government’s procurement policy note PPNO6/21.

CSR Policy and Charitable activities

The company has a coordinated and managed approach towards its social responsibilities. The business has supported a number of local charities through sponsored events including walks, cycling and rowing. Whitehead organises two regional annual golf days and has raised a substantial amount of money for various local charities. The company is also the lead sponsor and organiser of the Whitehead Tour de Gwent cycling event which raises in excess of £50,000 per annum in aid of local charity St. David’s Hospice. The company also encourages its employees to act as volunteers at charitable events. The business has embarked on an initiative to install defibrillators in the local communities in which we work. The business regularly collects supplies and equipment to donate to homeless charities as well other initiatives such as donating easter eggs to a local childrens’ hospital. The business contributed a total of £43,665 in CSR and charitable donations during the year.

Health & Wellbeing

The company encourages its employees to lead an active life and maintain good health, and also promotes a healthy work / life balance. The business continues to operate a Mental Health Policy. This includes Mental Health Awareness Training for all employees, Mental Health First Aiders and Mental Health Champions, all as part of our strategy to raise awareness and maintain the health and wellbeing of our employees.

The forward order book is extremely healthy with over £100m of secured orders.

The Directors are happy to announce that our direct end-user and maintenance division has made significant progress and has met the targets which were set for this area of the business and is now ready for growth. This year has seen a number of longer-term agreements cemented to provide maintenance for a diverse range of clients including local authorities, Education, Rail, Care, Health, and Manufacturing.

As part of the Government’s aim to reduce the country’s carbon impact and drive towards renewable clean energy, we are ideally equipped to support these aims. In recent years we have seen many of our projects benefit from new technologies. We are pleased to have secured a place on the UK Electric Vehicle Charging Framework which we see as an area for growth in the coming years.

The company considers that its employees are its biggest asset and staff retention is very strong within the business. The company’s long trading history and its reputation coupled with its project portfolio and client base allows it to attract new talent. The working environment we have created means that our employees meet fresh exciting challenges and experience the satisfaction of a job well done. Ours is an environment that is flexible to change and open to innovation. At Whitehead Building Services every employee contributes to value added performance. The company has invested in Continuing Professional Development training for its staff throughout all areas of the business and the company places great emphasis on developing young talent and has a very good record recruiting and training apprentices.

We are proud of our long-standing apprenticeship programme which provides the business with skilled operatives who have adopted our culture and working practices. We are proud members of the “5% Club” and have achieved Gold Accreditation. We have also been awarded “Employer Commitment to Training” by JTL, the training body for electrical apprentices, for our contribution within our industry to training, the support offered to our apprentices and for our approach to mental health awareness, training, and support.

The company continually monitors its business systems and processes and strives for continual improvement. The business undertakes an annual review of its accredited Quality Management System that is certified to ISO 9001:2015. The company will continue to involve all staff in its continual improvement process concentrating on exceptional customer experience, quality, health, safety, environmental, innovation and best practice.

Research & Development

The company has invested in Research & Development in recent years to tackle technical problems in an innovative way. The nature of the construction industry constantly provides new challenges and the business has invested in people and software to enable us to innovate and meet the challenges of each new job.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 November 2022.

The principal activity of the company continued to be that of electrical and mechanical engineers and facilities and maintenance.

The results for the year are set out on page 11.

A fair review of business is set out in the Strategic Report on page 1.

Ordinary dividends were paid amounting to £330,000. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company has invested in Research & Development in recent years to tackle technical problems in an innovative way. The nature of the construction industry constantly provides new challenges and the business has invested in people and software to enable us to innovate and meet the challenges of each new job.

The future outlook is discussed in the Strategic Report on page 4.

UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible 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:

•     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.

We have audited the financial statements of Whitehead Building Services Limited (the 'company') for the year ended 30 November 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 30 November 2022 and of its profit for the year then ended;

•     have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•     have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

•     adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

•     the financial statements are not in agreement with the accounting records and returns; or

•     certain disclosures of remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006;

• we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatements, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Whitehead Building Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bradbury House, Mission Court, Newport, Gwent, NP20 2DW.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Evol (Wales) Limited. These consolidated financial statements are available from its registered office, Sunnybank Church Road, St Brides Wentlooge, Newport, Gwent, NP10 8SQ.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

Work in progress represents costs incurred on contracts prior to being invoiced to the customer.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

Financial instruments are recognised in the company's balance sheet when the company becomes 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 an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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 leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements and areas of estimation uncertainty that the directors have made in the process of applying the company's accounting policies have the most significant effect on the amounts recognised in the financial statements.

As noted in 1.3 above, revenue from contracts is recognised by reference to the stage of completion, this inevitably involves the directors making estimates about the total anticipated costs of contracts and the future costs; these estimates can have a significant effect on revenue recognition and profit.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Management regularly reviews retention balances and makes provision for balances that it believes will not be recovered. The assessment of retention recovery requires management's best estimate based on knowledge of the underlying contracts and past history of recovery.

An analysis of the company's turnover is as follows:

All turnover relates to revenue from contracts.

Grants received includes £nil (2021: £191,722 ) of furlough income from the UK Government and £19,174 (2021: £500) worth of grants relating to the employment of young people and apprentices.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 2).

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Included within trade debtors are amounts relating to retentions that are due for payment after one year of £790,264 (2021: £1,253,994). These retentions are normal commercial arrangements for this industry.

Included within trade creditors are amounts related to retentions that are due for payment after one year of £556,085 (2021: £784,411). These retentions are normal commercial arrangements for this industry.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax liability set out relates predominantly to accelerated capital allowances and this is expected to reverse over the useful economic lives of the related assets.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company has taken advantage of the exemption, under the terms of FRS 102, Section 33.1A, from disclosing related party transactions with wholly owned subsidiaries within the group.

During the year the company entered into the following transactions with related parties:

During the year the company paid rent of £83,762 (2021: £83,762) to Evol (Wales) Limited Small Self Administered Scheme, a pension scheme.

The above transactions are related as Mr I Cummings is a trustee of the Evol (Wales) Limited Small Self Administered Scheme and ultimately controls Whitehead Building Services Limited by virtue of his shareholding in the parent company; Evol (Wales) Limited.

During the year the company made sales of £77,390 (2021: £87,069 ) and purchases of £128 (2021: £nil) to Tiny Rebel Limited, an associate of Evol (Wales) Limited. At the year end £312 (2021: £30,333) was owed by Tiny Rebel Limited. This amount is included within debtors amounts falling due within on year.

The ultimate parent company of Whitehead Building Services Limited is Evol (Wales) Limited, a company incorporated in England and Wales.

Evol (Wales) Limited is the parent of the smallest and largest group of which the company is a member which prepares group accounts. It has included the company in its group accounts, copies of which are available from its registered office: Sunnybank Church Road, St Brides Wentlooge, Newport, Gwent, NP10 8SQ.

The company is ultimately controlled by Mr I Cummings and Mrs J Cummings by virtue of their shareholdings in Evol (Wales) Limited.