Holystone Civil Engineering Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 00973168 (England and Wales)

Audited Financial Statements

for the Year Ended 31 March 2023

for

Holystone Civil Engineering Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr G Geoghegan

Mr K T Geoghegan

Mr S Geoghegan

Mr R Peddie

Mr I A Robinson

REGISTERED OFFICE:

Holystone Civil Engineering Ltd

Factory Road

Blaydon-On-Tyne

Tyne and Wear

NE21 5RU

REGISTERED NUMBER:

00973168 (England and Wales)

AUDITORS:

Haines Watts North East Audit LLP

17 Queens Lane

Newcastle upon Tyne

NE1 1RN

FIXED ASSETS

Tangible assets

5

1,818,882

254,926

Investment property

6

-

628,996

1,818,882

883,922

CURRENT ASSETS

Stocks

135,062

110,154

Debtors

7

2,402,926

2,424,528

Cash at bank and in hand

949,914

1,228,234

3,487,902

3,762,916

CREDITORS

Amounts falling due within one year

8

2,292,754

2,222,392

NET CURRENT ASSETS

1,195,148

1,540,524

TOTAL ASSETS LESS CURRENT LIABILITIES

3,014,030

2,424,446

CREDITORS

Amounts falling due after more than one year

9

(1,322,901

)

(306,017

)

PROVISIONS FOR LIABILITIES

(60,959

)

(31,334

)

NET ASSETS

1,630,170

2,087,095

CAPITAL AND RESERVES

Called up share capital

13

60,100

60,100

Profit and loss account

1,570,070

2,026,995

SHAREHOLDERS' FUNDS

1,630,170

2,087,095

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2023 and were signed on its behalf by:

Mr K T Geoghegan - Director

1.	STATUTORY INFORMATION

Holystone Civil Engineering Limited 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared on the historical cost convention, modified to include certain items at fair value. The principal accounting policies adopted are set out below.

Going concern

In accordance with current requirements the Directors have assessed the viability of the Company as a going concern. The Company operates within the UK, specialising in civil engineering. The Company has many underpinning elements which are necessary to ensure the ongoing success of the business. These include a focused management team, strong and longstanding customer relationships and a skilled workforce. The Company has a substantial order book and good visibility of a strong pipeline of future contracts. The Directors continually monitor the risks facing the Company, its business model, future performance, solvency, and liquidity. These principal risks and the mitigations available to the Company are detailed in the Group strategic report. During the period of uncertainty caused by Coronavirus and Brexit the Company has adopted a policy of harvesting and maintaining cash deposits to provide additional insurance against any unforeseen impact on the Company's business. This policy was based on the assessment undertaken by the Directors to stress test the Company's viability in the most severe but plausible scenarios but considering the strength of immediate mitigations available to the Company. The Directors have concluded that the Company will be able to continue in operation for the financial period under analysis and meets the going concern test in all aspects.

Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised at the appropriate stage of completion of the contract.

Tangible fixed assets

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:

Plant and machinery

15% reducing balance

Fixtures, fittings & equipment

25% reducing balance

Motor vehicles

25% reducing balance

Freehold Property

2% reducing balance

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.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Stocks

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.

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.

Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

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.

Basic financial instruments

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 receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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 benefits

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 39 (2022 - 36 ) .

4.	AUDITORS' REMUNERATION

2023

2022

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

10,175

9,250

5.	TANGIBLE FIXED ASSETS

Fixtures,

Freehold

Plant and

fittings

Motor

property

machinery

& equipment

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2022

-

101,536

17,421

247,907

366,864

Additions

1,415,420

114,877

4,003

224,617

1,758,917

Disposals

-

(53,000

)

-

(82,811

)

(135,811

)

At 31 March 2023

1,415,420

163,413

21,424

389,713

1,989,970

DEPRECIATION

At 1 April 2022

-

32,746

10,840

68,352

111,938

Charge for year

18,526

17,501

3,065

59,462

98,554

Eliminated on disposal

-

(18,061

)

-

(21,343

)

(39,404

)

At 31 March 2023

18,526

32,186

13,905

106,471

171,088

NET BOOK VALUE

At 31 March 2023

1,396,894

131,227

7,519

283,242

1,818,882

At 31 March 2022

-

68,790

6,581

179,555

254,926

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023

2022

£

£

Plant and machinery

41,250

41,108

Motor vehicles

326,986

156,164

368,236

197,272

Depreciation charge for the year in respect of leased assets

50,161

28,568

Assets held under finance leases are secured against the assets to which they relate.

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2022

628,996

Disposals

(628,996

)

At 31 March 2023

-

NET BOOK VALUE

At 31 March 2023

-

At 31 March 2022

628,996

7.

DEBTORS

2023

2022

£

£

Amounts falling due within one year:

Trade debtors

319,245

440,695

Amounts owed by group undertakings

70,799

258,986

Amounts recoverable on

contracts

1,285,036

1,116,882

Other debtors

522,846

495,965

2,197,926

2,312,528

Amounts falling due after more than one year:

Amounts owed by group undertakings

205,000

112,000

Aggregate amounts

2,402,926

2,424,528

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts (see note 10)

98,264

50,000

Finance leases (see note 11)

190,482

178,559

Trade creditors

1,589,094

1,658,767

Amounts owed to group undertakings

181,683

-

Taxation and social security

96,387

92,435

Other creditors

136,844

242,631

2,292,754

2,222,392

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans (see note 10)

983,496

200,000

Finance leases (see note 11)

339,405

106,017

1,322,901

306,017

10.

LOANS

An analysis of the maturity of loans is given below:

2023

2022

£

£

Amounts falling due within one year or on demand:

Bank loans

98,264

50,000

Amounts falling due between one and two years:

Bank loans - 1-2 years

983,496

200,000

Loans are secured by a fixed and floating charge over all property and undertakings of the company.

11.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases

2023

2022

£

£

Net obligations repayable:

Within one year

190,482

178,559

Between one and five years

339,405

106,017

529,887

284,576

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023

2022

£

£

Within one year

676

4,906

Between one and five years

618

2,242

1,294

7,148

12.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

1,081,760

-

The security against the bank loans includes the following:

An unlimited debenture dated 23 March 2021 from Holystone Civil Engineering Limited.

A first legal charge from Holystone Civil Engineering Limited over the freehold land and buildings at Former Owen Pugh Building, Factory Road, Blaydon, Tyne & Wear NE21 5RZ.

An omnibus guarantee and set off agreement among the Bank, Holystone Group Limited, HLS Services Limited, Holystone Civil Engineering Limited, Holystone Waste and Reclamation Solutions Limited, and Catkin Cottage Limited, together with such other security as the Bank from time to time hold in respect of the debts and liabilities of any guarantor to the Bank.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

60,100

Ordinary

£1

60,100

60,100

14.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Nicola Scarr ACA (Senior Statutory Auditor)

for and on behalf of Haines Watts North East Audit LLP

15.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022:

2023

2022

£

£

Mr K T Geoghegan

Balance outstanding at start of year

25,135

97,065

Amounts advanced

68,338

42,927

Amounts repaid

(61,474

)

(114,857

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

31,999

25,135

Mr G Geoghegan

Balance outstanding at start of year

-

433

Amounts advanced

633

116

Amounts repaid

-

(549

)

Amounts written off

(54

)

-

Amounts waived

-

-

Balance outstanding at end of year

579

-

Mr S Geoghegan

Balance outstanding at start of year

11,214

5,808

Amounts advanced

43,159

8,547

Amounts repaid

(26,220

)

(3,141

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

28,153

11,214

Mr R Peddie

Balance outstanding at start of year

5,358

6,464

Amounts advanced

6,253

5,890

Amounts repaid

(7,965

)

(6,996

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

3,646

5,358

The above loans are made interest free.

16.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

17.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Holystone Group Limited, a company registered in England and Wales.

Holystone Group Limited prepares group financial statements and copies can be obtained from the company's registered office, Holystone Civil Engineering Ltd, Factory Road, Blaydon-On-Tyne, England, NE21 5RU.