Stephenson_Construction_( - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

Stephenson Construction (North) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Provender Mill, Mill Bay Lane, Horsham, West Sussex, RH12 1SS.

These financial statements have been prepared in accordance with Section 1A of 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 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 pound.

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

Atruet the time of approving the financial statements, the directors are confident that the company has adequate resources to successfully continue to operate for at least the next 12 months from the date of approval of the financial statements and for the foreseeable future beyond. The directors have considered the impact of the COVID-19 pandemic, and the measures taken to contain it, on the company. Most of the construction projects have been affected - projects in Scotland were temporarily suspended through Government policy, three student schemes have been deferred from restarting until the end of this calendar year. Those that have continued have had to adapt to new protocols in procedures to maintain operational distancing of workers. Whilst the ultimate impact on margins cannot currently be quantified, the directors have introduced more controls in monitoring outputs and taken all reasonable steps to limit outgoings. Companies within the group have been successful in utilising various government support schemes in order to strengthen the cashflow position as much as possible. The company has maintained its strong relationships in the industry and while the directors recognise the uncertain timescale for any recovery due to the impact of COVID - 19 they believe the company is well placed to restart projects and continue to win new contracts from the regular client base. Consequently, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents net invoiced amounts from construction projects, by reference to the value of work carried out in the year excluding any VAT.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of work performed to date compared to the estimated total contract value.

Cash at bank and in hand 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 only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as 'other' or financial instruments measured at fair value.

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.

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.

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 average monthly number of persons employed by the company during the year was: nil (2018: nil).

As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The company has provided security under a multilateral cross guarantee for a bank pooling facility covering a number of companies under the control of M R Stephenson. The facility allows there to be overdrawn bank accounts across the companies involved up to a total of £15,000,000, providing there are also positive bank balances across the companies that match or exceed the overdrawn accounts. There was no overdraft facility during the year.

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

The company has taken the exemption, in accordance with FRS 102 - Section 33 "Related Party Disclosures", from disclosing related party transactions entered into between members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

During the year the company made purchases of £3,965,202 (2018: £4,305,516) from S C Contractors Limited, a company under the control of M R Stephenson. At the year end £346,061 (2018: £583,888) was outstanding and is included within trade creditors. At the year end £285,790 (2018: nil) is included within other creditors.

During the year the company made purchases of £5,091,915 (2018: £3,512,314) from SSC Contractors Limited, a company under the control of M R Stephenson. At the year end £588,761 (2018: £623,741) was outstanding and is included within trade creditors.

During the year the company incurred management charges of £403,235 (2018: £325,906) from M R Stephenson Group Limited, a company under the control of M R Stephenson. Management charges of £403,235 (2018: £325,906) are included within other creditors at year end.

The immediate and ultimate parent undertaking is M R Stephenson Limited, a company incorporated in England & Wales.

The company is ultimately controlled by M R Stephenson who owns 100% of the issued share capital of M R Stephenson Limited.

Group financial statements have been prepared for M R Stephenson Limited and are publicly available from Provender Mill, Mill Bay Lane, Horsham, West Sussex, RH12 1SS.