P. Colohan & Co. Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01149909 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2021

for

P. Colohan & Co. Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

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:

P B Colohan

Mrs M M Colohan

D W Colohan

P Caulfield

E McNulty

Mrs R Farr

REGISTERED OFFICE:

238 Station Road

Addlestone

Surrey

KT15 2PS

REGISTERED NUMBER:

01149909 (England and Wales)

AUDITORS:

CSL Partnership Limited

Chartered Certified Accountants

Statutory Auditors

238 Station Road

Addlestone

Surrey

KT15 2PS

The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS

The company has increased turnover and made a pre-tax profit in the year ended 31 December 2021. The directors are confident that the company will continue to make profits in the short term.

The year to 31 December 2021 was challenging as the company continued to meet the challenges of COVID and also felt the impact of inflationary pressures on raw materials and labour costs.

The year's results can be summarised as follows:

31.12.21

31.12.20

Turnover

15,390,778

12,979,950

Profit/(loss) on ordinary activities before tax

241,388

607,684

Tax

46,861

116,908

Retained profit/(loss)

194,527

490,776

Shareholder's funds

9,445,961

9,655,388

The directors are confident that the company will continue to win contracts that fit their business model. The only significant risks and uncertainties are the need to seek and retain quality tradesmen and to continually source new contracts and work.

There have been no events since the balance sheet date which materially affect the position of the company.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management

The company's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of finance and related finance costs. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. The company has significant cash reserves which are considered more than adequate to fund future work in progress.

Price risk

The company is exposed to supplier and labour price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change size or nature. The company has no exposure to equity securities price risk as it holds no listed equity investments.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before services are provided.

Liquidity risk

The company considers that it has sufficient liquid funds available for operations and planned expansions.

Interest rate and cashflow risk

The company has interest bearing assets but no interest bearing liabilities. The company has a policy of monitoring interest returns on its interest bearing assets to estimate future interest cashflows. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

ON BEHALF OF THE BOARD:

P B Colohan - Director

28 September 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineering and building contractor.

DIVIDENDS

An interim dividend of £4000 per share was paid on the B Ordinary £1 shares on 10 August 2021. No dividends were paid on the A Ordinary £1 shares.

The total distribution of dividends for the year ended 31 December 2021 will be £ 380,000 .

FUTURE DEVELOPMENTS

The company will continue to seek opportunities to maximise turnover and profitability. In doing so, it continues to seek suitable new premises for its operational base.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

P B Colohan

Mrs M M Colohan

D W Colohan

P Caulfield

E McNulty

Mrs R Farr

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;

-	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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, CSL Partnership Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P B Colohan - Director

28 September 2022

Opinion

We have audited the financial statements of P. Colohan & Co. Limited (the 'company') for the year ended 31 December 2021 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 December 2021 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

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 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 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 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 four, 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.

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

The objective of our audit, in respect of fraud was; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate procedures and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance of the entity and management.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are the buildings regulations and health and safety.

We understood how P Colohan & Co Ltd is complying with those frameworks by making enquiries of management and those responsible for legal and compliance matters. We also performed a review of regulatory correspondence, legal correspondence and minutes.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by considering the controls that the company has established that seek to prevent, deter or detect fraud. We also considered performance and incentive plan targets and their potential to influence management.

The Senior Statutory Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate competence and capabilities.

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.

Andrew John Lane FCCA (Senior Statutory Auditor)

for and on behalf of CSL Partnership Limited

Chartered Certified Accountants

Statutory Auditors

238 Station Road

Addlestone

Surrey

KT15 2PS

28 September 2022

REVENUE

4

15,390,778

12,979,950

Cost of sales

13,927,054

11,088,729

GROSS PROFIT

1,463,724

1,891,221

Administrative expenses

1,242,865

1,319,354

220,859

571,867

Other operating income

20,131

33,653

OPERATING PROFIT

6

240,990

605,520

Interest receivable and similar income

398

2,164

PROFIT BEFORE TAXATION

241,388

607,684

Tax on profit

7

46,861

116,908

PROFIT FOR THE FINANCIAL YEAR

194,527

490,776

PROFIT FOR THE YEAR

194,527

490,776

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

194,527

490,776

FIXED ASSETS

Property, plant and equipment

9

829,482

934,475

Investments

10

-

-

829,482

934,475

CURRENT ASSETS

Inventories

11

13,203

8,170

Debtors

12

2,821,339

2,830,199

Cash at bank and in hand

7,490,796

7,108,978

10,325,338

9,947,347

CREDITORS

Amounts falling due within one year

13

(1,649,768

)

(1,175,642

)

NET CURRENT ASSETS

8,675,570

8,771,705

TOTAL ASSETS LESS CURRENT LIABILITIES

9,505,052

9,706,180

PROVISIONS FOR LIABILITIES

15

(35,137

)

(50,792

)

NET ASSETS

9,469,915

9,655,388

CAPITAL AND RESERVES

Called up share capital

16

200

200

Retained earnings

17

9,469,715

9,655,188

SHAREHOLDERS' FUNDS

9,469,915

9,655,388

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2022 and were signed on its behalf by:

P B Colohan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2020

200

9,406,412

9,406,612

Changes in equity

Dividends

-

(242,000

)

(242,000

)

Total comprehensive income

-

490,776

490,776

Balance at 31 December 2020

200

9,655,188

9,655,388

Changes in equity

Dividends

-

(380,000

)

(380,000

)

Total comprehensive income

-

194,527

194,527

Balance at 31 December 2021

200

9,469,715

9,469,915

Cash flows from operating activities

Cash generated from operations

1

767,569

561,777

Tax paid

(92,566

)

-

Net cash from operating activities

675,003

561,777

Cash flows from investing activities

Purchase of tangible fixed assets

(79,503

)

(88,531

)

Sale of tangible fixed assets

41,480

41,541

Interest received

398

2,164

Net cash from investing activities

(37,625

)

(44,826

)

Cash flows from financing activities

Amount introduced by directors

124,440

191,047

Equity dividends paid

(380,000

)

(242,000

)

Net cash from financing activities

(255,560

)

(50,953

)

Increase in cash and cash equivalents

381,818

465,998

Cash and cash equivalents at beginning of year

2

7,108,978

6,642,980

Cash and cash equivalents at end of year

2

7,490,796

7,108,978

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.21

31.12.20

£

£

Profit before taxation

241,388

607,684

Depreciation charges

134,520

146,235

Loss/(profit) on disposal of fixed assets

8,496

(8,843

)

Finance income

(398

)

(2,164

)

384,006

742,912

(Increase)/decrease in inventories

(5,033

)

4,159

Increase in trade and other debtors

(32,125

)

(224,234

)

Increase in trade and other creditors

420,721

38,940

Cash generated from operations

767,569

561,777

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 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

7,490,796

7,108,978

Year ended 31 December 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

7,108,978

6,703,374

Bank overdrafts

-

(60,394

)

7,108,978

6,642,980

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.21

Cash flow

At 31.12.21

£

£

£

Net cash

Cash at bank and in hand

7,108,978

381,818

7,490,796

7,108,978

381,818

7,490,796

Total

7,108,978

381,818

7,490,796

1.	STATUTORY INFORMATION

P. Colohan & Co. 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about P. Colohan & Co. Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of discounts and value added tax. Where contractual obligations have been partially performed at the balance sheet date, revenue is recognised to the extent that the company has obtained the right to consideration through its performance.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery

-

10% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

33% on cost

No depreciation is charged on the freehold properties, as they are considered to have residual values not less than their cost and hence have not depreciated in value. It is the intention of the company to maintain the properties through regular repairs and maintenance to such a standard that they will not depreciate in value.

Stocks

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 taxation

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.

Pension costs and other post-retirement benefits

The costs of providing pensions for the company's employees are taken into account in arriving at the operating profit, in the year during which the company derives benefit from the employees' services.

Long term contracts

Long term contracts are assessed on a contract by contract basis and are reflected in the profit and loss account by recording turnover and related costs as contract activity progresses. Where the outcome of each long term contract can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the profit and loss account as the difference between the reported turnover and related costs for the contract.

Operating leases

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

4.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

31.12.21

31.12.20

£

£

Rendering of services

15,390,778

12,979,950

15,390,778

12,979,950

5.	EMPLOYEES AND DIRECTORS

31.12.21

31.12.20

£

£

Wages and salaries

815,829

780,887

Social security costs

103,602

100,535

Other pension costs

12,643

11,884

932,074

893,306

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

31.12.21

31.12.20

Directors

6

6

Office and administration

6

6

Construction

7

7

19

19

31.12.21

31.12.20

£

£

Directors' remuneration

447,051

436,111

Information regarding the highest paid director is as follows:

31.12.21

31.12.20

£

£

Emoluments etc

112,266

111,970

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.21

31.12.20

£

£

Depreciation - owned assets

134,520

146,235

Loss/(profit) on disposal of fixed assets

8,496

(8,843

)

Auditors' remuneration

23,158

22,753

Other non- audit services

1,500

1,500

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.21

31.12.20

£

£

Current tax:

UK corporation tax

62,516

133,549

Deferred tax

(15,655

)

(16,641

)

Tax on profit

46,861

116,908

UK corporation tax has been charged at 19% (2020 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.21

31.12.20

£

£

Profit before tax

241,388

607,684

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

45,864

115,460

Effects of:

Expenses not deductible for tax purposes

1,661

1,518

Depreciation in excess of capital allowances

15,655

16,571

Deferred tax

(15,655

)

(16,641

)

Super-deduction

(664

)

-

Total tax charge

46,861

116,908

8.

DIVIDENDS

31.12.21

31.12.20

£

£

B Ordinary shares of £1 each

Interim

380,000

242,000

9.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2021

404,020

593,947

2,034

Additions

-

10,752

1,550

Disposals

-

(90,854

)

-

At 31 December 2021

404,020

513,845

3,584

DEPRECIATION

At 1 January 2021

-

265,471

1,028

Charge for year

-

43,948

358

Eliminated on disposal

-

(48,508

)

-

At 31 December 2021

-

260,911

1,386

NET BOOK VALUE

At 31 December 2021

404,020

252,934

2,198

At 31 December 2020

404,020

328,476

1,006