TOUREEN_CONTRACTORS_LIMIT - Accounts

The directors present the strategic report for the year ended 31 July 2016.

The company had another successful year achieving profits of £2,204,778 before tax on turnover of £75.9 million as against profits of £1,242,373 before tax from turnover of £69.5 million the year before. Pricing remained challenging in a competitive market and costs continue to rise especially so in tradesmen’s wages and management salaries but nevertheless the directors are pleased to report a steady increase in turnover, profit and balance sheet strength and they consider an overall 2.9% profit margin before tax to be satisfactory.

Profit margins in the current year remain demanding but increased activity in London and the South East enables the directors to forecast a further increase in turnover. We continue to expect the strength of our company and our dedicated and experienced team and reputation in our sectors to continue to deliver a consistent, timely and quality service and to generate profitable business for the foreseeable future.

Trading since 1992, we remain a family orientated construction company, with a modern approach based on traditional values and with a proud record of projects completed on time, to the highest possible engineering standards, within budget, with safe working practices and with modern plant and machinery. We continue to strive to enhance the reputation of our company, to be the contractor of choice and to continue the long term relationships with our customer base by focusing on our core activities, our long standing team and in-house resources and capabilities, by bringing new innovations to our building methods and by working closely with our customers and suppliers.

Fixed assets

The movements in fixed assets are set out in note 11 to these financial statements.

Principal risks and uncertainties

Construction is a competitive sector and there are a number of uncertainties which could have an impact on the company's performance and could cause results to differ substantially from historical profits and future projections. The principal risks for our company include the following:

Credit risk

The company’s credit risks are mainly attributable to the amounts receivable from its customers for services carried out. The amounts presented in the balance sheet are net of allowances for doubtful receivables. Our policy remains to have a good mix of long standing and established customers and we operate a modern and efficient financial and management reporting system that monitors our customers and our debtor book on a day to day basis.

Liquidity risk

The company finances its operations through a mixture of cash reserves in the bank, trade debtors including amounts receivable from contracts, intercompany debtors less trade creditors. The company does not have any complex financial instruments or hedging products. The directors are confident that the company has sufficient liquidity and funding arrangements in place to meet its obligations as they fall due.

Interest rate risk

The company does not rely on bank borrowing and therefore significant movement in interest rates - despite affecting the economy on which business confidence depends - does not in itself present a substantial risk to our business.

Our in-house team

The success of the company is dependent on retaining skilled and experienced management, tradesmen and support staff and our employment policy is designed to attract, train and retain the best people throughout their working life.

Brexit and the economy

The state of the economy, business confidence, Brexit uncertainty and related global activity are issues on which every business sector depends and they can have a significant impact on our longer term performance and success. Our policy therefore remains to maintain adequate liquidity and to trade within our means.

Cash at bank

Cash at bank held by the company at 31st July 2016 amounted to £1,510,373 (2015: £1,478,779).

Going concern

The company has a balance sheet valued at £3.8 million. Trading in the current year is satisfactory and the company has a healthy order book from long standing customers. The directors are confident that the company can continue to trade successfully and generate profit and positive cash-flows for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the financial statements.

Further details regarding the adoption of the going concern basis can be found in note 1.3 to the financial statements.

Health and safety at work

The directors, including our dedicated health and safety manager aided by our in-house health and safety professionals continue to strive to embed best health and safety policies, practices and awareness throughout our operations. We wish that all our workers work in a safe and accident free working environment and that they go home safely at the end of every working day and the training and expenditure necessary to further enhance our excellent safety performance remains at the top of our core values.

We operate our own in-house health and safety training centre dedicated to the health and safety education of our workers. Our health and safety objectives and performance is kept under constant review. Our directors recognise that worker involvement and engagement in health and safety policies and procedures is critical in maintaining a safe place of work. All our sites have a dedicated Safety Health Environment & Quality (SHEQ) representative. Part of our health and safety at work training is to impress upon every worker that it is also their duty to take care of their own and their work colleague's safety and we have a Site Safety Suggestion Scheme (4 S's) to encourage workers to make suggestions on how site safety can be improved.

Our Health & Safety management systems are regularly audited by independent external bodies. We are accredited to ISO 18001, ISO 14001 ISO 9001, Achilles Building Confidence, Fleet Operators Recognition Scheme (FORS), Association of Specialist Underpinning Contractors (ASUC) and Considerate Contractors (CCS).

Amongst the company’s other accreditations are CHAS, SMAS, Construction Line, Rospa, APEA, Construct, the British Safety Council and the Concrete Society.

The group is proud to have received many health and safety awards from our clients throughout the year.

Our people, training and employee involvement

The company's success is attributable to our team of skilled, experienced and dedicated directors, management, tradesmen and support staff, of whom we are proud and most of whom are long term and committed Toureen Group employees. Our short chain of command keeps us in constant dialogue with our employees and keeps them abreast of company activity, performance, quality control, training, health and safety, environmental issues, planning and future prospects.

We continue to invest in the life-long training and development of our staff so that we retain the recognised skills and experience required to deliver best service to our valued customers and so that we offer the challenge, training and career development expected by the best employees throughout their working life. We continue to employ and sponsor trainees in the various disciplines in our sector.

We remain an equal opportunity employer, we continue our policy regarding the employment of disabled persons and fair consideration is given to applications for employment by disabled persons having regard to their particular aptitudes and abilities without reference to age, ethnicity or gender. We are opposed to all forms of discrimination.

We are ISO 9001 Quality Management Systems accredited; we hold Achilles Approved Contractors Scheme status as well as the many other accreditations that you would expect of a major construction company.

Environment and quality management

We recognise the significant impact the construction industry has on the environment and our management and site teams continually promote sustainable resourcing of building materials and the efficient use of energy. We continue to minimise site waste and we use and work closely with modern waste management recycling companies.

Quality management is central to our day to day operations and helps us deliver value and efficiency and meet or exceed our customer's requirements. We operate within and hold full accreditation to quality standards ISO 9001 Quality Management Systems and ISO 14001 the internationally recognised environmental standard.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 July 2016.

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

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,500,000. The directors do not recommend payment of a final dividend.

The auditors, Riordan O'Sullivan & Co, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

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; •    state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; •    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.

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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• 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.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The company has chosen in accordance with Companies Act 2006, s414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties, financial instruments and future prospects .principal risks and uncertainties, financial instruments and future prospects.

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 auditors are 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 auditors are aware of that information.

We have audited the financial statements of Toureen Contractors Limited for the year ended 31 July 2016 which comprise the Profit And Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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.

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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

In our opinion the financial statements: •    give a true and fair view of the state of the company's affairs as at 31 July 2016 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.

• give a true and fair view of the state of the company's affairs as at 31 July 2016 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.

In our opinion the information given in the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements.true

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 any material misstatements in the Director's 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 •    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.

• adequate accounting records have not been kept; 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.

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

Toureen Contractors Limited is a company limited by shares incorporated in England and Wales. The registered office is 25 Cecil Road, Harrow, Middlesex, HA3 5QY.

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.

The financial statements have been prepared under the historical cost convention and in accordance with applicable standards. The principal accounting policies adopted are set out below.

These financial statements for the year ended 31 July 2016 are the first financial statements of Toureen Contractors Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 August 2014. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

The Directors' Report and the Strategic Report sets out the company's business activities, and highlights the factors which may impact on its financial performance, market position and future prospects.

The Strategic Report also provides information in relation to the company's financial and liquidity position, details of its financial instruments, management of capital and exposure to credit and liquidity risk.

The company has a substantial order book for the twelve months from the date of approval of these financial statements and its forecasts indicate that it will continue to generate profit and positive cash flows for the foreseeable future.

As a consequence, the directors believe that the company has adequate resources to continue in operational existence and that it is well placed to continue to manage its business risks successfully. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover is recognised at the fair value of the consideration received or receivable excluding value added taxes. It represents invoiced value of goods and services supplied and the value of long term contracts work.excluding value added taxes. It represents invoiced value of goods and services supplied and the value of long term contracts work.

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

Depreciation is recognised so as to write off the cost 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.

The carrying values of tangible fixed assets are reviewed and adjusted for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

Amounts recoverable on contracts, including work-in-progress, are shown within debtors and are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Turnover and related costs are recorded as contract activity progresses. An appropriate proportion of the anticipated contract profit or loss is recognised as the contract activity progresses commensurate with performance and anticipated final outcome. Excess progress payments are included in creditors as payments received on account.

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. 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.

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.

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 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.

Financial assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date.held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

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, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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.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 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.

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

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 total turnover of the company for the year has been derived from its principal activities wholly undertaken in the UK.

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

Their aggregate remuneration comprised:

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

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. At the balance sheet date, contributions of £1,710 were due to the fund (2015: £2,941).

a) Group companies

The company has taken advantage of the exemption available in accordance with Financial Reporting Standard 102, Section 33.1A, ‘Related Party Disclosures’ not to disclose transactions entered and outstanding balances between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

b) Other related undertakings

The company is related to Soil and Water Solutions Limited by virtue of common control.

During the year the company purchased services in the sum of £3,138,704 (2015: 1,218,339) at normal commercial rates. At the balance sheet date the amount owed to Soil & Waters Solutions Limited was £447,442 (2015: £238,382).

c) Key management personnel

The remuneration of key management personnel, who are also directors, is disclosed in note 7.

There were no events since the year end which materially affected the company.

The company was under the control of Toureen Group Limited throughout the current and previous year. Toureen Group Limited is the ultimate parent undertaking holding 100% of the shares in the company. Toureen Group Limited is under the control of Denis Nolan who is the managing director and majority shareholder and who is therefore the ultimate controller of the company.

The consolidated accounts of the parent company Toureen Group Limited can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.