PP O'Connor Group Limited - Limited company accounts 22.3
PP O'Connor Group Limited - Limited company accounts 22.3
| REGISTERED NUMBER: 02545561 (England and Wales) |
| PP O'CONNOR GROUP LIMITED |
| GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 6 |
| Report of the Independent Auditors | 8 |
| Consolidated Income Statement | 11 |
| Consolidated Other Comprehensive Income | 12 |
| Consolidated Statement of Financial Position | 13 |
| Company Statement of Financial Position | 14 |
| Consolidated Statement of Changes in Equity | 15 |
| Company Statement of Changes in Equity | 16 |
| Consolidated Statement of Cash Flows | 17 |
| Notes to the Consolidated Statement of Cash Flows | 18 |
| Notes to the Consolidated Financial Statements | 20 |
| PP O'CONNOR GROUP LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| Statutory Auditors |
| The Exchange |
| 5 Bank Street |
| Bury |
| BL9 0DN |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| The directors present their strategic report of the company and the group for the year ended 31 October 2022. |
| BUSINESS OVERVIEW |
| Established in 1990 PP O'Connor Group Limited is a leading force in the construction industry specialising in civil engineering, bulk earthworks, remediation, complex deconstruction and demolition. |
| Following on from the strong financial performance achieved in the period ended 31 October 2021, the group has maintained its discipline in contract selectivity with a continued strategic focus on undertaking a larger proportion of its work as a principal contractor and in areas of core expertise complemented by contract work that enables the group to showcase growing capabilities that support further revenue growth and diversification as well as margin enhancement. In the financial year ended 31 October 2022 these strategies have been successful in increasing revenue and margin. |
| MARKETS AND TRENDS |
| Although the group's main geographic area of operation remains in the Northwest of England it has continued to operate outside of this core area when profitable opportunities have arisen. |
| The group's impressive record of delivering projects safely and on time is continuing to generate opportunities both within its core geographic area and beyond. |
| BUSINESS MODEL |
| The group continues to maintain good working relationships with both customers and suppliers. It is the intention of the directors to maintain, consolidate and build upon this position going forward by focusing on winning new profitable contracts and continuing to deliver high quality services to its customers to ensure that it continues to have a significant presence in the construction and excavation industry. The current order book indicates that a significant proportion of the revenue target for the year ending 31 October 2023 has already been won, with a record sales pipeline value comfortably indicating that the revenue target will be achieved or exceeded. |
| The group's key differentiators are its project delivery capability, its operational excellence and its investment in its people, its technology and its equipment which enable the group to remain at the forefront within the industry. |
| PEOPLE |
| The group continues to invest in its people, through both on the job training and through more formal external training programmes, to ensure staff have the appropriate skills to deliver the level of excellence to customers which the group expects. PP O'Connor is committed to providing the right experience and tools to an elevated level of excellence. |
| Headcount in the year increased by 4. |
| OBJECTIVES |
| The group's key objective for 2023 is to leverage its investments in people, technology and operational capabilities in order to continue to increase contract profitability. |
| A fundamental priority of the directors is to provide a safe working environment for all employees and subcontractors. An executive level appointment dedicated to HSEQ was made in the period, demonstrating the group's commitment to prioritising and continually enhancing the safety of the environment in which the group operates and the wellbeing of the group's employees. This commitment is perceived as a deciding factor in the growth of the business. |
| Through the management of integrated value chains, the group can combine the ability to meet increasing market demands and challenges to deliver projects effectively and efficiently in line with client requirements with the objective of delivering growth to the business. |
| RISK FACTORS |
| The group is always cognisant of the principal risks and uncertainties that are present within the industry. All financial and operational risks inherent in contracts are managed through the careful selection and appropriate due diligence when tendering for a contract. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| The group is exposed to various elements which can have an adverse effect on its operational performance, financial performance, and cash flows. Examples being fuel costs, aggregate prices, and supply of materials. PP O'Connor Group seek to manage the impact of such risks without eroding their competitive position. |
| The group seeks to minimise financial loss from credit failure. The creditworthiness of new customers is rated by the group prior to entering a contract and all customers are managed to ensure prompt payment is in line with the contract terms. In certain exceptional circumstances the group may consider insuring customers against default, but this continues to be the exception rather than the norm. |
| The nature of the industry in which the group operates requires careful cash-flow management. The business monitors and forecasts cash requirements on a regular basis, both for tactical short-term cash flow purposes but also for its medium and longer-term forecasting and reporting. The group continues to use an invoice discounting facility for its main source of funding. The nature of construction projects means they have inherent health, safety and environment risks. Any breach of laws and regulations would incur fines, penalties and costs, whilst also damaging the reputation of the group. The group ensures that they employ, either directly or by way of professional services contracts, the relevant professionals to provide the oversight to all activities and that where appropriate they carry suitable levels of insurance to indemnify the company against financial loss. |
| The other key business risks affecting the group are related to competition, regulation, customer acquisition and working capital management. The directors actively monitor trends in trading and, with the help of management, makes strategic decisions to mitigate any material threat to the long-term stability of the group. |
| PERFORMANCE |
| The group analyses its financial performance in the year by its ability to make an accounting profit, and to generate a sustainable cash flow. |
| As stated in the business overview the group revenue and profit has improved compared to the previous period. |
| The operating profit margin for the year is 3.1%. |
| The group continues to work extensively on the management of its operational performance and the management of costs and will endeavour to increase the performance from capital employed in the business thus improving its financial returns and cash flows. |
| The directors are confident that the results for the financial year ending 31 October 2023 will show controlled growth and good liquidity, as the business continues to grow in line with economic expectations. |
| In addition, the group looks to project management to enhance capability of delivering projects to cost and schedule as a key indicator and is part way through its Business Systems Transformation Roadmap, having completed the implementation of an industry-specific ERP system shortly after the balance sheet date, with a number of other value-adding and efficiency-generating system implementations substantially complete. |
| PP O'Connor Group are confident that their strategy, together with the dedication of the workforce, will allow delivery of all targets and objectives for the coming year. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| SECTION 172(1) STATEMENT |
| In accordance with section 172 of the Companies Act 2006, each of the directors acts in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. The directors have regard, amongst other matters, to the: |
| - Likely consequences of any decision in the long term |
| - Interests of the company's employees |
| - Need to foster the company's business relationships with suppliers, customers and others |
| - Impact of the company's operations on the community and the environment, and |
| - Desirability of the company maintaining a reputation for high standards of business conduct |
| The directors take into account when making decisions the views and interests of a wide set of stakeholders. By being guided by the company's purposes, values and strategic priorities, and by having processes in place for decision-making, the directors aim to balance the different perspectives of the various stakeholder groups to reach decisions that optimise the long-term success of the company. |
| The company's employees are fundamental to the success of the business, and the health, safety and wellbeing of employees is the primary consideration in all leadership decision making. A strand of the company's 'Committed to Excellence' philosophy is the 'Committed to Safety' philosophy that is championed across the business by dedicated HSEQ business partners under the leadership of a dedicated HSEQ Director appointed during the period. Employees receive regular training and development to enhance ways of working with health and safety and operational excellence at the forefront of the training programmes. Annually, the whole company stands down from working for one day to attend a company-wide health and safety day which reinforces the prominence of employee wellbeing within the company. |
| Customers are at the heart of the business and we are proud to hold a number of longstanding client relationships earned through consistent, high levels of excellence in our project delivery, as well as many new and flourishing relationships that have contributed to business growth in recent years. Recognised for being Committed to Excellence, we profoundly believe that business success is achieved through delivering projects with excellence running through all aspects of our work, from engaging with clients during the tendering and planning phases all the way through to post-completion support and ongoing engagement, with the safety of all stakeholders the most important aspect at all times throughout any project. |
| The company takes very seriously its responsibility to local communities and the environment, and actively engages with local schools, colleges, universities and prisons to create opportunities for people in those communities. Further detail regarding the company's environmental credentials is contained further below in the company's Streamlined Energy & Carbon Reporting (SECR). |
| As a well-established business that continues to achieve year-on-year growth, the company has a proven track record of effective long-term decision-making, and the Board of Directors remains highly aware of and focused on the likely long-term consequences of decisions. The directors believe that continuation of the unwavering commitment to excellence is key to maintaining the company's reputation for high standards of business conduct, and that this will continue to position the company optimally for ongoing success into the long-term. |
| As a privately-owned company, the directors do not consider the factor set out in section 172 (1) (f) (the need to act fairly between the members of the company) relevant to the proper discharge of their duty under section 172 of the Companies Act 2006. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| STREAMLINED ENERGY AND CARBON REPORTING STATEMENT |
| Provided below is the energy consumption and emissions for PP O'Connor Group Limited. The electricity energy consumption figures have been calculated using energy bills for our project sites and head office operations. |
| Energy Consumption (KWh) | 180,082 |
| Carbon dioxide emissions (tCO2e) | 45.451 |
| Intensity ratio (tCO2e/£m revenue) | 0.927 |
| As this is the first year that the company is required to prepare this report, there are no comparative figures from the prior period; however, the company is continually striving to reduce its energy usage and CO2 emissions and relevant actions taken in that regard during the period are summarised below: |
| - | The corporate headquarters building and associated yard incorporates a number of energy-saving, environmentally friendly and sustainability-promoting features which limit the company's CO2 emissions and overall impact on the environment, such as: |
| - | Installation of solar panels on the roof of the building |
| - | Motion sensor lighting and highly efficient air conditioning is used throughout all office buildings |
| - | Rain harvest |
| - | Electric car charging points are in place in the office car park to promote green travel |
| - | The building has bespoke insulation to reduce heat loss, and is equipped with a range of other features that promote energy saving such as tinted glass to reduce the intensity of the air conditioning usage |
| - | Our procurement team sources the most energy efficient products and services possible |
| - | We have engaged a green energy broker as part of a drive towards switching to a green energy supplier |
| - | An energy management plan will be put in place for 2023 |
| The company will continue to focus on energy reduction and efficiency projects in 2023 with formalised short-, medium- and long-term targets to be put in place under the stewardship of the company's recently appointed Director of HSEQ following the strategic establishment of this position to drive continued improvements in the areas of sustainability and environmental performance. |
| ON BEHALF OF THE BOARD: |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 October 2022. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of civil engineering, bulk earthworks, excavation and demolition and the selling of aggregates. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 October 2022. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 November 2021 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| AUDITORS |
| DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| PP O'CONNOR GROUP LIMITED |
| Opinion |
| We have audited the financial statements of PP O'Connor Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 October 2022 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| PP O'CONNOR GROUP LIMITED |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company 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 group's and the parent 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 group or the parent 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: |
| As part of our planning process: |
| - | We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud. |
| - | We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health and Safety At Work 1974, Employment Act 2008, Environmental Protection Act 1990 and General Data Protection Regulations (GDPR). |
| - | We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
| - | Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| PP O'CONNOR GROUP LIMITED |
| The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
| - | Identifying and testing journal entries, in particular those that were significant and unusual. |
| - | Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
| - | Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to determining the useful life and residual values of property, plant and equipment, determining the expected outcome of long term contracts, categorising leases as finance or operation leases, and assessing the recoverability of related party debt. |
| - | Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entity's ability to continue in operation. |
| - | Testing key revenue lines, in particular cut-off, for evidence of management bias. |
| - | Obtaining third-party confirmation of material bank and loan balances. |
| - | Documenting and verifying all significant related party balances and transactions, and consolidated transactions. |
| - | Reviewing correspondence for discussions of irregularities including fraud. |
| - | Testing all material consolidation adjustments. |
| Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors. |
| 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. |
| for and on behalf of |
| Chartered Accountants |
| Statutory Auditors |
| The Exchange |
| 5 Bank Street |
| Bury |
| BL9 0DN |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| CONSOLIDATED |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| REVENUE | 3 | 55,096,860 | 47,186,371 |
| Cost of sales | (47,718,141 | ) | (41,507,684 | ) |
| GROSS PROFIT | 7,378,719 | 5,678,687 |
| Administrative expenses | (5,675,693 | ) | (3,961,767 | ) |
| 1,703,026 | 1,716,920 |
| Other operating income | - | 60,200 |
| OPERATING PROFIT | 5 | 1,703,026 | 1,777,120 |
| Interest payable and similar expenses | 6 | (119,655 | ) | (141,460 | ) |
| PROFIT BEFORE TAXATION | 1,583,371 | 1,635,660 |
| Tax on profit | 7 | 484,169 | (80,814 | ) |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 2,067,540 | 1,554,846 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| CONSOLIDATED |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 2,067,540 | 1,554,846 |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,067,540 |
1,554,846 |
| Total comprehensive income attributable to: |
| Owners of the parent | 2,067,540 | 1,554,846 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
| 31 OCTOBER 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| FIXED ASSETS |
| Property, plant and equipment | 9 | 6,824,926 | 5,114,668 |
| Investments | 10 | - | - |
| 6,824,926 | 5,114,668 |
| CURRENT ASSETS |
| Inventories | 11 | 359,719 | 108,731 |
| Debtors | 12 | 25,443,088 | 15,782,688 |
| Cash at bank | 1,927,926 | 2,860,981 |
| 27,730,733 | 18,752,400 |
| CREDITORS |
| Amounts falling due within one year | 13 | (23,832,424 | ) | (15,842,462 | ) |
| NET CURRENT ASSETS | 3,898,309 | 2,909,938 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
10,723,235 |
8,024,606 |
| CREDITORS |
| Amounts falling due after more than one year |
14 |
(2,511,114 |
) |
(1,880,000 |
) |
| PROVISIONS FOR LIABILITIES | 18 | - | (25 | ) |
| NET ASSETS | 8,212,121 | 6,144,581 |
| CAPITAL AND RESERVES |
| Called up share capital | 19 | 100 | 100 |
| Retained earnings | 8,212,021 | 6,144,481 |
| SHAREHOLDERS' FUNDS | 8,212,121 | 6,144,581 |
| The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2022 and were signed on its behalf by: |
| P P O'Connor - Director |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| COMPANY STATEMENT OF FINANCIAL POSITION |
| 31 OCTOBER 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| FIXED ASSETS |
| Property, plant and equipment | 9 |
| Investments | 10 |
| CURRENT ASSETS |
| Inventories | 11 |
| Debtors | 12 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 13 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 18 | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 19 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 2,352,262 | 1,539,828 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 November 2020 | 100 | 4,589,635 | 4,589,735 |
| Changes in equity |
| Total comprehensive income | - | 1,554,846 | 1,554,846 |
| Balance at 31 October 2021 | 100 | 6,144,481 | 6,144,581 |
| Changes in equity |
| Total comprehensive income | - | 2,067,540 | 2,067,540 |
| Balance at 31 October 2022 | 100 | 8,212,021 | 8,212,121 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 November 2020 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 October 2021 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 October 2022 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | (190,418 | ) | 1,702,664 |
| Interest paid | (96,711 | ) | (141,460 | ) |
| Interest element of hire purchase payments paid |
(22,944 |
) |
- |
| Government grants | - | 60,200 |
| Tax paid | 308,277 | - |
| Net cash from operating activities | (1,796 | ) | 1,621,404 |
| Cash flows from investing activities |
| Purchase of property, plant & equipment | (262,710 | ) | (111,631 | ) |
| Sale of property, plant & equipment | 11,500 | 19,794 |
| Construction of own property | - | (1,091,907 | ) |
| Net cash from investing activities | (251,210 | ) | (1,183,744 | ) |
| Cash flows from financing activities |
| Loan repayments in year | (520,000 | ) | - |
| Capital repayments in year | (152,977 | ) | - |
| Amount introduced by directors | 4,000 | 4,801 |
| Amount withdrawn by directors | (11,072 | ) | (97,540 | ) |
| Net cash from financing activities | (680,049 | ) | (92,739 | ) |
| (Decrease)/increase in cash and cash equivalents | (933,055 | ) | 344,921 |
| Cash and cash equivalents at beginning of year |
2 |
2,860,981 |
2,516,060 |
| Cash and cash equivalents at end of year | 2 | 1,927,926 | 2,860,981 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2022 | 2021 |
| £ | £ |
| Profit before taxation | 1,583,371 | 1,635,660 |
| Depreciation charges | 348,040 | 65,209 |
| Profit on disposal of fixed assets | (3,754 | ) | (4,879 | ) |
| Government grants | - | (60,200 | ) |
| Finance costs | 119,655 | 141,460 |
| 2,047,312 | 1,777,250 |
| Increase in inventories | (250,988 | ) | (4,647 | ) |
| Increase in trade and other debtors | (9,446,493 | ) | (6,811,915 | ) |
| Increase in trade and other creditors | 7,459,751 | 6,741,976 |
| Cash generated from operations | (190,418 | ) | 1,702,664 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 October 2022 |
| 31.10.22 | 1.11.21 |
| £ | £ |
| Cash and cash equivalents | 1,927,926 | 2,860,981 |
| Year ended 31 October 2021 |
| 31.10.21 | 1.11.20 |
| £ | £ |
| Cash and cash equivalents | 2,860,981 | 2,516,060 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
| Other |
| non-cash |
| At 1.11.21 | Cash flow | changes | At 31.10.22 |
| £ | £ | £ | £ |
| Net cash |
| Cash at bank | 2,860,981 | (933,055 | ) | 1,927,926 |
| 2,860,981 | (933,055 | ) | 1,927,926 |
| Debt |
| Finance leases | - | 152,977 | - | (1,650,356 | ) |
| Debts falling due |
| within 1 year | (520,000 | ) | 40,000 | - | (480,000 | ) |
| Debts falling due |
| after 1 year | (1,880,000 | ) | 480,000 | - | (1,400,000 | ) |
| (2,400,000 | ) | 672,977 | - | (3,530,356 | ) |
| Total | 460,981 | (260,078 | ) | - | (1,602,430 | ) |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 1. | STATUTORY INFORMATION |
| PP O'Connor Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 02545561 and the registered office is located at The Exchange, 5 Bank Street, Bury, BL9 0DN. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Going concern |
| The group has reported a profit before tax of £1,583,371 for the year and has net assets of £8,212,121 (2021 - £6,144,581) at the statement of financial position date. Post year end, the group has a strong pipeline of work which will contribute to revenue in 2023 and beyond. The group |
| forecasts to be profitable post year end. |
| The group meets its day to day working capital requirements through robust financial planning and commercial terms in its contract operations and subsidiary activities. Additionally, adequate external facilities are in place to provide further working capital support if required, and the group continues to have the support of those facilities post year end. The facility providers have indicated that there are no known reasons why the facilities would not be made available for at least another 12 months. |
| After making enquires the directors have reasonable expectations that the company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis in preparing the company's financial statements. |
| Basis of consolidation |
| The consolidated financial statements incorporate the results of PP O'Connor Group Limited and its subsidiary undertaking as at 31 October 2022 using the acquisition method of accounting. The results of the subsidiary undertaking are included from the date of acquisition. |
| Revenue |
| Revenue represents the value of the sale of services provided, net of value added tax and after taking into account retentions on contracts and expected remedial works. |
| Revenue is recognised when a right to consideration has been obtained through performance under each contract. Consideration accrues as contract activity progresses by reference to the value of work performed. Revenue is not recognised where the right to receive payment is contingent on events outside the control of the group. |
| Unbilled revenue is included in debtors as 'Trade debtors and Amounts recoverable on contracts'. |
| Revenue includes income from the management of related companies, net of value added tax, during the year. Income is recognised as services are provided to those companies. |
| Revenue also includes income from the sale of aggregates, net of value added tax, during the year. Income is recognised at the point goods are collected by or despatched to customers. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Property, plant and equipment |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
| life. |
| Short leasehold | - 4% to 10% straight line |
| Plant and machinery | - Straight line over 7 years |
| Fixtures and fittings | - Straight line over 20 years and Straight line over 10 years |
| Motor vehicles | - 25% on reducing balance |
| Computer equipment | - 10% to 33.33% straight line |
| The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises. |
| Government grants |
| Grants are accounted for under the accruals model as permitted by FRS 102. |
| During the year the group has benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs. |
| Inventories |
| Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Cost represents actual purchase price. |
| Financial instruments |
| The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties. |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
| Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate. |
| Dividends |
| Equity dividends are recognised when they become legally payable and are no longer at the discretion of the company. |
| Fixed asset investments |
| Fixed asset investments are stated at cost less any permanent diminution in value. |
| Critical accounting estimates and judgements |
| In the application of the group's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates. |
| The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised. |
| The estimates and assumptions which have the most significant impact on the carrying values of assets and liabilities are outlined below. |
| 1) Determining the useful life of leasehold property. |
| 2) Determining the residual value of leasehold property. |
| 3) Determining the expected outcome of long-term contracts prior to their conclusion and calculating the attributable profit that should be recognised in a manner appropriate to the stage of completion. |
| 4) In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee. |
| 5) Assessment of recoverability of related party debt. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. 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. |
| All other leases are treated as operating leases. The annual rentals are charged to profit or loss in the period in which they become payable. |
| 3. | REVENUE |
| The revenue and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of revenue by class of business is given below: |
| 2022 | 2021 |
| £ | £ |
| Contract revenue | 46,803,634 | 40,933,688 |
| Sale of goods | 6,434,395 | 5,394,680 |
| Other services - tipping etc. | 1,858,831 | 858,003 |
| 55,096,860 | 47,186,371 |
| Contract revenue is ascertained by reference to the valuation of the work carried out to date based on submitted payment applications and previously certified work. |
| The contract stage of completion is assessed with reference to the value of completed works in comparison to the total contract price, as amended for known variations. |
| Substantially all revenue is generated in the United Kingdom. |
| 4. | EMPLOYEES AND DIRECTORS |
| 2022 | 2021 |
| £ | £ |
| Wages and salaries | 9,645,674 | 7,744,572 |
| Social security costs | 1,196,641 | 943,260 |
| Other pension costs | 130,374 | 271,061 |
| 10,972,689 | 8,958,893 |
| The average number of employees during the year was as follows: |
| 2022 | 2021 |
| Director | 7 | 4 |
| Administration and clerical | 61 | 60 |
| Direct labour | 131 | 131 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees by undertakings that were proportionately consolidated during the year was 199 (2021 - 195 ) . |
| 2022 | 2021 |
| £ | £ |
| Directors' remuneration | 485,957 | 435,346 |
| Information regarding the highest paid director is as follows: |
| 2022 | 2021 |
| £ | £ |
| Emoluments etc | 244,385 | 168,967 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2022 | 2021 |
| £ | £ |
| Depreciation - owned assets | 348,039 | 65,209 |
| Profit on disposal of fixed assets | (3,754 | ) | (4,879 | ) |
| Auditors' remuneration | 38,750 | 34,250 |
| Government grants | - | (60,200 | ) |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2022 | 2021 |
| £ | £ |
| Other funding facility charges | 96,711 | 141,460 |
| Hire purchase interest | 22,944 | - |
| 119,655 | 141,460 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 7. | TAXATION |
| Analysis of the tax (credit)/charge |
| The tax (credit)/charge on the profit for the year was as follows: |
| 2022 | 2021 |
| £ | £ |
| Current tax: |
| (Over) / under provision in prior year | (77,047 | ) | - |
| Deferred tax: |
| Accelerated capital allowances | 481,319 | 47,774 |
| Unrelieved tax losses | (885,983 | ) | (200,701 | ) |
| Other timing differences | (2,458 | ) | (4,217 | ) |
| Adjustment re prior year | - | 237,958 |
| Total deferred tax | (407,122 | ) | 80,814 |
| Tax on profit | (484,169 | ) | 80,814 |
| Reconciliation of total tax (credit)/charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2022 | 2021 |
| £ | £ |
| Profit before tax | 1,583,371 | 1,635,660 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
300,840 |
310,775 |
| Effects of: |
| Expenses not deductible for tax purposes | 22,904 | 7,997 |
| Income not taxable for tax purposes | (251,342 | ) | - |
| Adjustments to tax charge in respect of previous periods | (77,047 | ) | - |
| Adjustments arising from R&D claims | (321,046 | ) | (237,958 | ) |
| Remeasurement of deferred tax for changes in tax rates | (97,703 | ) | - |
| Prior year adjustment to deferred tax | 50,083 | - |
| Super deduction for capital allowances | (117,617 | ) | - |
| Other permanent differences | 6,759 | - |
| Total tax (credit)/charge | (484,169 | ) | 80,814 |
| The finance bill 2021 has set out measures to maintain the corporation tax rate for financial years beginning 1 April 2021 and 2022. For financial years beginning after 1 April 2023, the corporation tax rate will be increased to 25% for profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by marginal relief. The directors are not aware of any other factors that will materially affect the future tax charge. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 8. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 9. | PROPERTY, PLANT AND EQUIPMENT |
| Group |
| Fixtures |
| Short | Plant and | and |
| leasehold | machinery | fittings |
| £ | £ | £ |
| COST |
| At 1 November 2021 | 4,874,257 | 208,252 | 85,492 |
| Additions | - | 1,578,870 | 13,165 |
| Disposals | - | - | - |
| At 31 October 2022 | 4,874,257 | 1,787,122 | 98,657 |
| DEPRECIATION |
| At 1 November 2021 | 38,851 | 75,252 | 4,181 |
| Charge for year | 210,000 | 59,109 | 16,872 |
| Eliminated on disposal | - | - | - |
| At 31 October 2022 | 248,851 | 134,361 | 21,053 |
| NET BOOK VALUE |
| At 31 October 2022 | 4,625,406 | 1,652,761 | 77,604 |
| At 31 October 2021 | 4,835,406 | 133,000 | 81,311 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 November 2021 | 180,991 | 109,272 | 5,458,264 |
| Additions | 223,633 | 250,375 | 2,066,043 |
| Disposals | (42,345 | ) | - | (42,345 | ) |
| At 31 October 2022 | 362,279 | 359,647 | 7,481,962 |
| DEPRECIATION |
| At 1 November 2021 | 164,707 | 60,605 | 343,596 |
| Charge for year | 28,344 | 33,714 | 348,039 |
| Eliminated on disposal | (34,599 | ) | - | (34,599 | ) |
| At 31 October 2022 | 158,452 | 94,319 | 657,036 |
| NET BOOK VALUE |
| At 31 October 2022 | 203,827 | 265,328 | 6,824,926 |
| At 31 October 2021 | 16,284 | 48,667 | 5,114,668 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 9. | PROPERTY, PLANT AND EQUIPMENT - continued |
| Company |
| Fixtures |
| Short | Plant and | and |
| leasehold | machinery | fittings |
| £ | £ | £ |
| COST |
| At 1 November 2021 |
| Additions |
| Disposals |
| At 31 October 2022 |
| DEPRECIATION |
| At 1 November 2021 |
| Charge for year |
| Eliminated on disposal |
| At 31 October 2022 |
| NET BOOK VALUE |
| At 31 October 2022 |
| At 31 October 2021 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 November 2021 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 October 2022 |
| DEPRECIATION |
| At 1 November 2021 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 October 2022 |
| NET BOOK VALUE |
| At 31 October 2022 |
| At 31 October 2021 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 10. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 November 2021 |
| and 31 October 2022 |
| NET BOOK VALUE |
| At 31 October 2022 |
| At 31 October 2021 |
| The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: The Exchange, 5 Bank Street, Bury, BL9 0DN. |
| Nature of business: |
| % |
| Class of shares: | holding |
| 11. | INVENTORIES |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Inventories | 359,719 | 108,731 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 12. | DEBTORS |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors and amounts |
| recoverable on contracts | 8,208,288 | 9,666,207 |
| Other debtors | 15,108,894 | 5,214,746 |
| Director's current account | 185,565 | 178,493 |
| Corporation tax | - | 182,585 |
| S455 tax | 40,334 | 58,010 |
| Deferred tax asset | 407,096 | - | 261,311 | - |
| Prepayments and accrued income | 1,467,911 | 442,647 |
| 25,418,088 | 15,742,688 |
| Amounts falling due after more than one | year: |
| Other debtors | 25,000 | 40,000 |
| Aggregate amounts | 25,443,088 | 15,782,688 |
| Deferred tax asset |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Other timing differences | 2,458 | - | 2,458 | - |
| Accelerated capital allowances | (634,914 | ) | - | (634,914 | ) | - |
| Unrelieved tax losses | 1,031,768 | - | 885,983 | - |
| Other timing differences | 7,784 | - | 7,784 | - |
| 407,096 | - |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 15) | 480,000 | 520,000 |
| Hire purchase contracts (see note 16) | 539,242 | - |
| Trade creditors | 3,441,030 | 4,966,582 |
| Amounts owed to group undertakings | - | - |
| Corporation tax | 51,032 | 20,063 |
| Social security and other taxes | 929,260 | 1,292,996 |
| VAT | 66,717 | 26,044 | - | - |
| Other creditors | 14,630,760 | 5,448,308 |
| Other funding facility | 955,525 | 731,288 |
| Accruals and deferred income | 2,738,858 | 2,837,181 |
| 23,832,424 | 15,842,462 |
| 14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Bank loans (see note 15) | 1,400,000 | 1,880,000 |
| Hire purchase contracts (see note 16) | 1,111,114 | - |
| 2,511,114 | 1,880,000 |
| 15. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank loans | 480,000 | 520,000 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 480,000 | 480,000 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 920,000 | 1,400,000 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 16. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2022 | 2021 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 539,242 | - |
| Between one and five years | 1,111,114 | - |
| 1,650,356 | - |
| Company |
| Hire purchase contracts |
| 2022 | 2021 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Group |
| Non-cancellable operating | leases |
| 2022 | 2021 |
| £ | £ |
| Within one year | 5,448 | - |
| Between one and five years | 9,387 | - |
| 14,835 | - |
| 17. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Hire purchase contracts | 1,650,356 | - | 1,650,356 | - |
| Other funding facility | 955,525 | 731,288 | 955,525 | 555,558 |
| CBILS loan | 1,880,000 | 2,400,000 | 1,880,000 | 2,400,000 |
| 4,485,881 | 3,131,288 |
| The other funding facility is secured by way of a fixed and floating charge on all property or undertaking of the group. Obligations under hire purchases contracts and finance leases are secured on the assets to which they relate. The CBILS loan is secured by way of a fixed and floating charge on all assets of the group. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 18. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2022 | 2021 | 2022 | 2021 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | - | 9,878 | - | 9,878 |
| Unrelieved tax losses | - | (2,069 | ) | - | - |
| Other timing differences | - | (7,784 | ) | - | (7,784 | ) |
| - | 25 | - | 2,094 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 November 2021 | 25 |
| Movement during the year | (407,121 | ) |
| Balance at 31 October 2022 | (407,096 | ) |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 November 2021 |
| Movement during the year | (263,405 | ) |
| Adjustment re prior year |
| Balance at 31 October 2022 | ( |
) |
| 19. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2022 | 2021 |
| value: | £ | £ |
| A Ordinary | £1 | 50 | 50 |
| B Ordinary | £1 | 50 | 50 |
| 100 | 100 |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| P P O'Connor |
| Director and shareholder |
| Included within debtors falling due within one year is a director's current account balance of £102,923 (2021: £106,923) due from P P O'Connor. The maximum overdrawn balance during the year was £106,923 (2021: £108,123) and there were no material advances. |
| This advance is unsecured, interest free and repayable upon demand. |
| J P O'Connor |
| Director and shareholder |
| Included within debtors falling due within one year is a director's current account balance of £43,428 (2021: £43,428) due from J P O'Connor. The maximum overdrawn balance during the year was £43,428 (2020: £43,428) and there were no material advances. |
| This advance is unsecured, interest free and repayable upon demand. |
| Ms C M O'Connor |
| Director and shareholder |
| Included within debtors falling due within one year is a director's current account balance of £39,213 (2021: £28,142) due from Ms C M O'Connor. The maximum overdrawn balance during the year was £39,213 (2021: £28,142) and there were no material advances. |
| This advance is unsecured, interest free and repayable upon demand. |
| 21. | RELATED PARTY DISCLOSURES |
| Entities subject to common control |
| During the year, the group:- |
| i) Charged management fees totalling £1,562,467 (2021: £634,108) to related parties in respect of central overheads and management services provided. |
| ii) Sold aggregates to related parties totalling £100,418 (2021: £6,827). |
| iii) Purchased goods and services totalling £17,673,802 (2021: £21,127,846) from related parties. |
| Included within debtors falling due within one year are amounts due from related parties totalling £8,149,369 (2021: £5,029,977). These advances are unsecured, interest free and repayable upon demand. |
| Included within creditors falling due within one year are amounts due to related parties totalling £7,942,355 (2021: £5,173,341). These advances are unsecured, interest free and repayable upon demand. |
| In respect of the bank facilities afforded, there is a composite company unlimited unilateral guarantee provided for certain related entities. |
| During the year, a total of key management personnel compensation of £ 957,303 (2021 - £ 638,170 ) was paid. |
| PP O'CONNOR GROUP LIMITED (REGISTERED NUMBER: 02545561) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 OCTOBER 2022 |
| 22. | ULTIMATE CONTROLLING PARTY |
| The group is jointly controlled by the O'Connor family, comprising P P O'Connor, C M O'Connor, J P O'Connor and C H O'Connor. |