Walker Construction (U K) Limited - Limited company accounts 18.2

REGISTERED NUMBER: 00818974 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

FOR

WALKER CONSTRUCTION (U K) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

S R Walker

P A Webb

P S King

K J H Hogwood

D K Harvey

M A Watts

SECRETARY:

P S King

REGISTERED OFFICE:

1st Floor, Inca House

Trinity Road

Eureka Science Park

Ashford

Kent

TN25 4AB

REGISTERED NUMBER:

00818974 (England and Wales)

AUDITORS:

Donald Jacobs & Partners

CHARTERED ACCOUNTANTS

& STATUTORY AUDITOR

Suite 2, Fountain House

1a Elm Park

Stanmore

Middlesex

HA7 4AU

This year, Walker Construction (UK) Limited celebrates 55 years of successful business, during which time we have made a

significant contribution to the built environment across the South East.

Walker Construction (UK) Limited is a multi-disciplined construction company delivering building, civil and rail projects across a

diverse range of sectors including commercial, industrial, education, leisure, retail, healthcare, government departments, local

authorities, train operating companies and Network Rail.

We understand our clients' needs and expectations on every project we deliver, whilst using our experience and professional design

and build services with technical innovation and sustainable construction solutions.

We aim to be the preferred construction contractor of choice for our clients assured by the delivery of excellence, quality of service

and by carefully selecting new opportunities with clients aligned to our core beliefs and objectives.

REVIEW OF BUSINESS

Turnover for the year increased by 28% to £45m from £35m in 2018. However, in spite of strict budgetary controls exercised by

the directors, the gross profit ratio reduced to 13.16% from 14.73% in 2018.

The construction industry remains very competitive and the directors continue to seek new opportunities to build on existing

expertise within the company.

At 31 March 2019, borrowings by the company as a percentage of total assets reduced to 8.86%, (2018 - 17.60%), and at 31 March

2019, the company's net assets were £2,607,647, (2018 - £2.255,938).

With a strong balance sheet, a varied range of activities and clients and a loyal workforce, the directors are confident that the

company is in a strong position to achieve its vision of becoming the preferred construction contractor of choice in the diverse

market in which it operates.

PRINCIPAL RISKS AND UNCERTAINTIES

The continued success of the company depends on the ability of management to identify and manage risks which are inherent in the

type of business in which we are engaged.

The company has identified the following specific risks all of which have the potential to impact on its success.

Financial Risk

The principal financial risks are associated with the company's ability to properly estimate the costs of performing the contracts in

which we engage, the risk of properly incurring and controlling those costs, the ability to recover costs under the payment terms of

all contracts, the financial standing of our clients, subcontractors and suppliers in terms of their ability to discharge their

obligations to us.

Credit Risk

The company carries out credit checks of all new clients before entering into contracts and continuously reviews the credit risks

and performance of existing clients.

Insurance

The company holds credit insurance for all contracts undertaken in excess of £10,000.

Contractual Risk

The company is exposed to a variety of contractual risks according to the type of contract undertaken. Such risks include adverse

weather, price inflation of material costs, unknown ground conditions and completion of the contract within the tender price and to

the clients' requirements.

Health and Safety

The company recognises the importance of the health and safety of all those employed in its offices and sites as well as the general

public. During the 2018 calender year, the company won various International Safety Awards with merit from the British Safety

Council in recognition of its commitment to keeping its workers and workplaces healthy and safe.

KEY PERFORMANCE INDICATORS

The company measures its financial performance against a selected group of civil engineering companies.

The Key Performance Indicators used include the Current Ratio, Quick Assets Ratio (Acid Test), Gross Profit Ratio, Net Profit

Margin, Gearing and Net Worth.

For the year ended 31 March 2019, the Current Ratio remained virtually constant at 1.15 compared to 1.17 for the previous year,

but the Gross Profit Ratio decreased to 13.16%, (2018 - 14.73%). However, the Net Profit Margin had improved to 0.50%

compared to a loss of -1.28% for the previous year.

At 31 March 2019, the net current assets of the company were £1,956,786, (2018 - £1,672,523), an improvement of 17%.

Shareholders Funds had increased by almost 11% to £2,396,573, (2018 - £2,164,996), and gearing had improved to 8.86%

compared to 17.60% for the previous year.

Non-Financial: The company also measures its performance using non-financial indicators. These non-financial indicators

measured include:

Performance: New orders won on a monthly and cumulative basis.

Health and Safety: Accident Incidence Rate and Accident Frequency Rate.

Environment: Environmental Incidents, Co2 emissions and reduction of Carbon Footprint, Waste Production, Office Water Usage

and Recycled Aggregate Usage.

Client Satisfaction: Quality of Work, Completion on Time, Teamwork, Savings and Innovation.

HEALTH & SAFETY

The company operates an Integrated Management System which incorporates safety, quality and environmental policies. This

System is accredited to ISO 9001, ISO 14001 and OHSAS 18001 standards (carried out by National Quality Assurance Limited -

UKAS accredited). Policy review is annual or triggered by changes of legislation affecting the nature of our business, and/or if

accidents or occupancies indicate a procedural or insufficiency.

We are members of the British Safety Council. We subscribe to Croners and Envirowise and are registered with CITB. We are able

to obtain advice and assistance from these sources.

QUALITY ASSURANCE

We are continually evolving our policies and procedures ahead of expectations and legal requirements. Together with our training

commitment, we are confident that the quality of our projects, staff, systems and procedures will improve, one step ahead of our

competitors.

The reputation of Walker Construction (UK) Limited is built on the trust and confidence of those with whom we deal. The

company aims to maintain high ethical standards in the conduct of its business and will not tolerate any behaviour or practice which

compromises its integrity.

The company is Quality Assured to BS ISO 9001, Environmental Accreditation ISO 14001 and Safety Accreditation OHSAS

18001, further details regarding monitoring and review are shown in the Health & Safety section above.

Walker Construction (UK) Limited has an accepted Principal Contractor Licence sponsored through Network Rail and is an

RISQS approved contractor..

The company is committed to collaborative business relationship management within the construction industry through formal

partnering relationships, both internal and external, achieved by transparent consultation, joint collaborations and a considerate

approach to all aspects of management.

Sub-contractors require Constructionline membership to qualify for our database.

Sub-contractors require RISQS approval, formerly known as Achilles Link-up, to qualify for our Rail database.

CORPORATE SOCIAL RESPONSIBILITY

We strive to maintain a productive and open dialogue with all parties who may have an interest in our activities including

shareholders, customers, suppliers and employees. We have an established investor relations programme, work closely with our

customers, monitor supplier performance and actively encourage feedback from our employees.

We are an equal opportunities employer and aim to recruit locally at all times. All employees are provided with basic training

regarding Health & Safety and Environmental Awareness, which is refreshed and enhanced on a regular basis. Our training policy

ensures that all employees receive the correct level of skills training required for the roles, tasks and responsibilities undertaken.

Our environmental policy outlines our effort to use natural resource where ever possible and, where practical, recycle and reuse

materials and incorporate into projects. We hold a waste carriers licence and via our waste management policy ensure all waste is

disposed of correctly.

It is our desire to work collaboratively with stakeholders to ensure we fully deliver on time, within budget, safely, and meeting if

not exceeding client and end user requirements.

We support local communities via sponsorship, mentoring and visiting schools to provide an insight into the construction industry,

as a regular adopter of the Considerate Constructors Scheme.

We facilitate apprenticeships and run graduate training schemes to benefit individuals and enhance the long term potential for

communities we work with, offering professional progression and assisting local development of growth and prosperity.

We expect the same ethos to be adopted via our subcontractors and suppliers alike.

WALKER CONSTRUCTION TRUST

The Walker Construction Trust, which was formed in the previous year, funds individuals, not-for-profit organisations and

registered charities with causes close to the hearts of our employees and the communities in which we operate.

The aim of the Trust is to run a sustainable foundation committed to providing support and assistance to individuals and causes

within local communities where Walker Construction (UK) Limited operates.

ON BEHALF OF THE BOARD:

P S King - Secretary

11 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 civil engineering contractors.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2019.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

S R Walker

P A Webb

P S King

K J H Hogwood

D K Harvey

M A Watts

CHARITABLE AND POLITICAL DONATIONS

During the year ended 31 March 2019, the company made charitable donations totalling £5,378, (2018 - £7,079). No political

donations were made in either the current or previous year.

EMPLOYEES & DISABLED EMPLOYEES

Details of the number of employees and related costs can be found in note 3 to the financial statements on page 16.

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can

be adequately fulfilled by a handicapped or disabled person and it is the company's policy to provide training, career development

and promotion wherever appropriate.

The directors recognise the importance of good communications with the company's employees and informing and consulting with

them on a regular basis of the performance and objectives of the company. This is mainly through regular meetings, personal

appraisals and e-mail communications.

MODERN SLAVERY & HUMAN TRAFFICKING STATEMENT FOR 2018-19

The company's policy pursuant to s54 of the Modern Slavery Act 2015 is published on the company's website.

GOING CONCERN

The company has considerable financial resources together with long term contracts with a number of customers and suppliers over

different geographic areas and construction activities within the UK. As a consequence, the directors believe that the company is

well placed to manage its business risks successfully.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in

operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the

annual report and accounts.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen to set out information in respect of its principal risks and uncertainties, financial instruments and future

developments in its Strategic Report

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). 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 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.

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.

AUDITORS

The auditors, Donald Jacobs & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P S King - Secretary

11 December 2019

Opinion

We have audited the financial statements of Walker Construction (U K) Limited (the 'company') for the year ended 31 March 2019

which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 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 six, 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.

Colin J Taylor FCA (Senior Statutory Auditor)

for and on behalf of Donald Jacobs & Partners

CHARTERED ACCOUNTANTS

& STATUTORY AUDITOR

Suite 2, Fountain House

1a Elm Park

Stanmore

Middlesex

HA7 4AU

11 December 2019

TURNOVER

45,249,985

35,266,026

Cost of sales

39,294,446

30,069,696

GROSS PROFIT

5,955,539

5,196,330

Administrative expenses

5,758,722

6,021,313

196,817

(824,983

)

Other operating income

141,575

459,666

OPERATING PROFIT/(LOSS)

4

338,392

(365,317

)

Interest receivable and similar income

-

114

338,392

(365,203

)

Interest payable and similar expenses

5

110,768

87,235

PROFIT/(LOSS) BEFORE TAXATION

227,624

(452,438

)

Tax on profit/(loss)

6

(3,953

)

(630,324

)

PROFIT FOR THE FINANCIAL YEAR

231,577

177,886

PROFIT FOR THE YEAR

231,577

177,886

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

231,577

177,886

FIXED ASSETS

Tangible assets

7

650,861

583,414

Investments

8

-

-

650,861

583,414

CURRENT ASSETS

Work in progress

9

2,353,440

940,646

Debtors

10

12,793,990

10,707,495

Cash in hand

1,000

1,047

15,148,430

11,649,188

CREDITORS

Amounts falling due within one year

11

13,191,644

9,976,664

NET CURRENT ASSETS

1,956,786

1,672,524

TOTAL ASSETS LESS CURRENT LIABILITIES

2,607,647

2,255,938

CREDITORS

Amounts falling due after more than one year

12

211,074

90,942

NET ASSETS

2,396,573

2,164,996

CAPITAL AND RESERVES

Called up share capital

16

45,722

45,722

Retained earnings

17

2,350,851

2,119,274

SHAREHOLDERS' FUNDS

2,396,573

2,164,996

The financial statements were approved by the Board of Directors on 11 December 2019 and were signed on its behalf by:

P A Webb - Director

P S King - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

45,722

1,941,388

1,987,110

Changes in equity

Total comprehensive income

-

177,886

177,886

Balance at 31 March 2018

45,722

2,119,274

2,164,996

Changes in equity

Total comprehensive income

-

231,577

231,577

Balance at 31 March 2019

45,722

2,350,851

2,396,573

Cash flows from operating activities

Cash generated from operations

1

1,024,403

(624,666

)

Interest paid

(92,297

)

(54,918

)

Interest element of hire purchase payments paid

(18,471

)

(32,317

)

Tax paid

142,759

390,397

Net cash from operating activities

1,056,394

(321,504

)

Cash flows from investing activities

Purchase of tangible fixed assets

(434,949

)

(121,434

)

Sale of tangible fixed assets

132,400

108,284

Interest received

-

114

Net cash from investing activities

(302,549

)

(13,036

)

Cash flows from financing activities

Net HP Capital (repaid)/advanced in year

114,272

(373,342

)

Net cash from financing activities

114,272

(373,342

)

Increase/(decrease) in cash and cash equivalents

868,117

(707,882

)

Cash and cash equivalents at beginning of year

2

(1,843,522

)

(1,135,640

)

Cash and cash equivalents at end of year

2

(975,405

)

(1,843,522

)

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.19

31.3.18

£

£

Profit/(loss) before taxation

227,624

(452,438

)

Depreciation charges

350,035

585,677

Profit on disposal of fixed assets

(114,932

)

(81,935

)

Deferred tax adjustment

7,918

44,625

Finance costs

110,768

87,235

Finance income

-

(114

)

581,413

183,050

Increase in work in progress

(1,412,794

)

(113,005

)

Increase in trade and other debtors

(2,229,254

)

(252,631

)

Increase/(decrease) in trade and other creditors

4,085,038

(442,080

)

Cash generated from operations

1,024,403

(624,666

)

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

1,000

1,047

Bank overdrafts

(976,405

)

(1,844,569

)

(975,405

)

(1,843,522

)

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

1,047

1,056

Bank overdrafts

(1,844,569

)

(1,136,696

)

(1,843,522

)

(1,135,640

)

1.	STATUTORY INFORMATION

Walker Construction (U K) 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 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.

The directors have, at the time of approving the financial statements, a reasonable expectation that the company has

adequate resources to continue in operational existence for the foreseeable future. It therefore continues to adopt the going

concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

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 only affects that period, or in the period of the

revision and future periods where the revision affects both current and future periods.

Turnover

Turnover represents the invoiced value of goods and services supplied during the year, excluding Value Added Tax and

trade discounts, together with the value of contracting work executed during the year as measured by quantity surveyors in

accordance with the stage of completion.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Motor vehicles

-

Straight line over 5 years

Computer equipment

-

Straight line over 4 years

On 31 March 2019, the directors changed their estimate of the life expectancy of the company's motor vehicles from 4

years to 5 years. The charge for depreciation of motor vehicles in this years accounts has been changed accordingly.

Long term contracts

Long term contracts are those extending in excess of 12 months and any shorter duration which are material to the activity

for the period.

Amounts recoverable on contracts are valued, inclusive of profit, at work executed at contract prices plus variations to

date, less payments received on account. Profit on long-term contracts is recognised as the work is carried out, if the final

outcome can be assessed with reasonable certainty. The margin on each contract is the lower of the margin earned to date

and forecast at completion. Full provision is made for anticipated future losses and such losses are included in creditors.

Where contract payments received exceed amounts recoverable, these amounts are also included in creditors.

Taxation

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

extent 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 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

The corporation tax credit in respect of the company's R & D expenditure incurred in previous years, less any associated

cost of recovery, is only recognised in the financial statements once the amount has been received from HM Revenue &

Customs.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire

purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over

their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the

future payments is treated as a liability.

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

During the year, the company made contributions to money purchase pension schemes of 3, (2018 - 3) directors, who have

beneficial interest in the issued share capital of the company. In addition, the company also made contributions to the

money purchase pension schemes of 3 other directors plus members of staff.

The assets of all of those schemes are held separately from those of the company in independently administered funds.

Contributions payable for the year are charged in the profit and loss account.

3.	EMPLOYEES AND DIRECTORS

31.3.19

31.3.18

£

£

Wages and salaries

11,108,871

11,366,894

Social security costs

1,066,376

1,124,141

Other pension costs

201,013

118,007

12,376,260

12,609,042

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

31.3.19

31.3.18

Directors

6

6

Administration

61

58

Construction workers & site staff

159

154

226

218