Pavehall Public Limited Company - Limited company accounts 20.1

REGISTERED NUMBER: 01384760 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

PAVEHALL PUBLIC LIMITED COMPANY

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Mr P A Ludlam

Mr M K Duffy (Managing)

Mr K R Hicks

SECRETARY:

Mrs B M Kindlon

REGISTERED OFFICE:

2 Westmoreland House

Cumberland Park

London

NW10 6RE

REGISTERED NUMBER:

01384760 (England and Wales)

AUDITORS:

Fortus Audit LLP

1 Rushmills

Bedford Road

Northampton

Northamptonshire

NN4 7YB

The directors present their strategic report for the year ended 31 December 2020.

REVIEW OF BUSINESS

As with the majority of businesses throughout the UK, Covid-19 had a significant affect upon operations during 2020. The company closed for a period to protect staff. A variety of contracts that were due to commence, were deferred by customers until there was more certainty in the economy. Consequently turnover contracted substantially by 50%. Existing sites required maintaining at all times, even when construction work wasn't progressing. This has had a further negative impact upon gross profit margins which were less than 1% (2020 - 8%).

Although Covid-19 severely impacted the annual results, measures put in place in prior and current years have served to maintain strong liquidity and ensure the business is in an excellent position for subsequent years. Operating cashflow has been maintained at pre Covid levels.

Since the year end sales have gradually returned to pre-pandemic levels and a strong confirmed order book indicates turnover for 2022 will exceed results achieved before Covid.

Pavehall has continued to invest significantly in research and development, particularly green and space saving technologies. It is thought there will be an ever increasing demand for such specialism in the London area where space is at a premium and the market demands the most up to date building techniques. Although Covid has created an uncertain environment, this is not envisaged to affect Pavehall's future ambitions and further controlled growth is expected.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors recognise the relative volatility of the construction industry. London has proved more robust at withstanding peaks and troughs experienced by other areas of the UK. However to protect against any potential future slowing of the economy the directors have developed a highly skilled workforce capable of undertaking a very broad spectrum of projects including those of a complex technical nature.

The company's financial risk management objectives and policies centre around maintaining healthy cash flow and minimising credit risk. Cash flow risk is controlled by the directors monitoring bank levels on a regular basis. They keep minimum cash reserves of approximately £650,000, ensuring that there are always sufficient funds available to meet working capital requirements.

Credit risk is controlled by routinely carrying out credit checks on new customers and ensuring applications for payment are made on a timely basis.

SECTION 172(1) STATEMENT

The board appreciate the necessity for cohesive decision making, through regular meetings, aligned with entrepreneurial ambition to promote the long-term success of the Company for the benefit of its shareholders.The directors offer an eclectic mix of skills, derived from many years experience and vast knowledge of their industry. This brings reassurance, that the decision making from top downwards will successfully navigate the business through both prosperous and more challenging economic climates ensuring enduring prosperity of the Company.

Staff engagement has historically been a priority of the company. The engendering of a positive culture and opportunities for development has been achieved through structured training programmes including support to attain professional qualifications such as Chartered Institute of Building (CIOB) and Royal Institution of Chartered Surveyors (RICS), health and safety conferences and internal promotion. Managers have the opportunity to reach associate director level with applicable training and benefit from investing in shares of the company.

Site workers are required to follow strict health and safety protocol and a full induction program, for the necessary procedures given, to ensure staff are protected at all times.

The board operates a long-established policy of sharing a proportion of company profits by means of structured staff bonuses.

Customer engagement is a priority of the Company as it is viewed key to longer term success through customer loyalty, by meeting and exceeding their needs and expectations. From the commencement of each project, continued dialogue with clients ensures a full understanding of requirements and thus enabling innovative, award winning solutions to be formulated. Dialogue continues throughout each contract and after completion to ensure customer satisfaction.

Shareholders are all directors and therefore fully engaged in all decision making.

Suppliers are recognised by the Company as being essential to ensuring contracts are undertaken both efficiently and profitably. With continued monitoring and support of subcontractors, this secures the quality of their delivery and expectations of all parties are met or exceeded. Ongoing commercial dialogue fosters a more effective working relationship and the promotion of long-term partnerships. Regular supplier audits assists with maintaining the high calibre of service.

The company operates a policy of ensuring suppliers are treated fairly and commercial guidelines of the industry such as those set out by RICS are followed.

Community initiatives have been very prevalent in recent contracts carried out by the company. Urban regeneration projects, revitalising urban spaces, maximising limited space for the benefit of local neighbourhoods. The company's management have worked with clients together with local community groups to ensure all interested parties have benefited.

Significant investment has been undertaken in developing green and eco friendly technology to incorporate within offerings to customers. The directors consider this will be an ever growing requirement for future developments.

Governments have looked upon the construction industry as a cornerstone of the UK economy. The company has provided steady employment, with a significant proportion of employees being with Pavehall for many years. They have operated in a sustainable manner, promoting green technologies and meeting their fiscal responsibilities in a timely manner.

KEY PERFORMANCE INDICATORS

The company's key performance indicators are turnover, gross margin and liquidity. Covid has meant results between years are incomparable. There was a reduction in turnover to £8,245,856 (2019 £16,526,433). Gross profit margin has declined to less than 1% (2019: 8%). In the previous four years the gross profit margin averaged 9%.

Liquidity has averaged over the past four years 125%. It has reduced slightly in 2020, due to Covid, to 121%. Cash reserves have remained strong.

To assess business performance the directors monitor non financial measurements such as customer service, compliance with health and safety procedures and staff turnover. They are satisfied that targets set have been achieved.

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

The company has taken exemption from making disclosures under the SECR regulations as its annual consumption falls below the threshold of 40,000 MWh per year.

The company has systems and procedures in place to ensure the environmental impact of ways of working and decisions are acknowledged.

Machinery and equipment are regularly tested for emissions and safety, to ensure compliance.

All waste is disposed of in a controlled manner using recognised organisations.

ON BEHALF OF THE BOARD:

Mr P A Ludlam - Director

20 December 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of building works, refurbishing properties and good quality decorations.

DIVIDENDS

Interim dividends of £44,450 were paid on ordinary A shares and £81,000 on the ordinary B shares. The directors recommend that no final dividend be paid.

RESULTS FOR THE YEAR

The loss for the year, after taxation, amounted to £644,480. (2019: £208,992).

RESEARCH AND DEVELOPMENT

The company has invested significantly in research and development, particularly green and space saving technologies. It is thought there will be an ever increasing demand for such specialism in the London area where space is at a premium and the market demands the most up to date building techniques.

FUTURE DEVELOPMENTS

The company is expected to achieve sustained controlled growth for the short to medium term. The Covid pandemic has caused abnormal results for the 2020 year. Contracts that were delayed have since commenced and the company has a full order book for the foreseeable future.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

Mr P A Ludlam

Mr M K Duffy (Managing)

Mr K R Hicks

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by Paragraph 1A of schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report instead. These matters relate to Business review, Principal risks and uncertainties and Key performance indicators.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Fortus Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr P A Ludlam - Director

20 December 2021

Opinion

We have audited the financial statements of Pavehall Public Limited Company (the 'company') for the year ended 31 December 2020 which comprise the Statement of 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 2020 and of its loss 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 five, 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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assess the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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.

Emma Jones FCCA (Senior Statutory Auditor)

for and on behalf of Fortus Audit LLP

1 Rushmills

Bedford Road

Northampton

Northamptonshire

NN4 7YB

21 December 2021

TURNOVER

3

8,245,856

16,526,433

Cost of sales

8,232,678

15,281,646

GROSS PROFIT

13,178

1,244,787

Administrative expenses

1,138,445

1,342,310

(1,125,267

)

(97,523

)

Other operating income

203,713

-

(921,554

)

(97,523

)

Interest receivable and similar income

5

252

1,542

LOSS BEFORE TAXATION

6

(921,302

)

(95,981

)

Tax on loss

7

(276,822

)

(304,973

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(644,480

)

208,992

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

-

209,000

Purchase of own shares

(5,000

)

-

Transfer revaluation reserve

2,090

-

Income tax relating to components of other comprehensive income

-

(38,000

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(2,910

)

171,000

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(647,390

)

379,992

FIXED ASSETS

Tangible assets

9

1,309,767

1,383,444

Investments

10

1

1

1,309,768

1,383,445

CURRENT ASSETS

Debtors

11

2,113,322

2,884,348

Cash at bank

715,118

686,872

2,828,440

3,571,220

CREDITORS

Amounts falling due within one year

12

2,346,433

2,590,166

NET CURRENT ASSETS

482,007

981,054

TOTAL ASSETS LESS CURRENT LIABILITIES

1,791,775

2,364,499

CREDITORS

Amounts falling due after more than one year

13

(202,206

)

-

PROVISIONS FOR LIABILITIES

15

(102,721

)

(104,811

)

NET ASSETS

1,486,848

2,259,688

CAPITAL AND RESERVES

Called up share capital

16

217,800

217,800

Revaluation reserve

17

803,912

809,579

Capital redemption reserve

17

33,459

33,459

Retained earnings

17

431,677

1,198,850

SHAREHOLDERS' FUNDS

1,486,848

2,259,688

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2021 and were signed on its behalf by:

Mr P A Ludlam - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2019

217,800

1,131,776

644,336

33,459

2,027,371

Changes in equity

Dividends

-

(147,675

)

-

-

(147,675

)

Total comprehensive income

-

214,749

165,243

-

379,992

Balance at 31 December 2019

217,800

1,198,850

809,579

33,459

2,259,688

Changes in equity

Dividends

-

(125,450

)

-

-

(125,450

)

Total comprehensive income

-

(641,723

)

(5,667

)

-

(647,390

)

Balance at 31 December 2020

217,800

431,677

803,912

33,459

1,486,848

Cash flows from operating activities

Cash generated from operations

1

(351,151

)

(716,080

)

Tax paid

276,822

489,830

Net cash from operating activities

(74,329

)

(226,250

)

Cash flows from investing activities

Purchase of tangible fixed assets

(18,309

)

(39,953

)

Sale of tangible fixed assets

1,082

23,125

Interest received

252

1,542

Net cash from investing activities

(16,975

)

(15,286

)

Cash flows from financing activities

New loans in year

250,000

-

Share buyback cash paid

(5,000

)

-

Equity dividends paid

(125,450

)

(147,675

)

Net cash from financing activities

119,550

(147,675

)

Increase/(decrease) in cash and cash equivalents

28,246

(389,211

)

Cash and cash equivalents at beginning of year

2

686,872

1,076,083

Cash and cash equivalents at end of year

2

715,118

686,872

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

2020

2019

£

£

Loss before taxation

(921,302

)

(95,981

)

Depreciation charges

80,632

96,323

Loss on disposal of fixed assets

10,272

410

Finance income

(252

)

(1,542

)

(830,650

)

(790

)

Decrease in trade and other debtors

771,026

875,892

Decrease in trade and other creditors

(291,527

)

(1,591,182

)

Cash generated from operations

(351,151

)

(716,080

)

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 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

715,118

686,872

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

686,872

1,076,083

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank

686,872

28,246

715,118

686,872

28,246

715,118

Debt

Debts falling due within 1 year

-

(47,794

)

(47,794

)

Debts falling due after 1 year

-

(202,206

)

(202,206

)

-

(250,000

)

(250,000

)

Total

686,872

(221,754

)

465,118

1.	STATUTORY INFORMATION

Pavehall Public Limited Company is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

There were no material departures from that standard.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Amounts recoverable on contracts

The company's revenue is generated by entering into contractual relationships with its customers. The company has a valuation policy that the directors consider to be appropriate and that is applied to its contracts which produces the company's best estimate of the contractual position at that particular time. However, the ultimate outcome of any settlement is inherently uncertain and could therefore have an impact on the future results of the company.

Turnover

Turnover represents the total invoice value, excluding value added tax, of sales made during the year.

Retention income is recognised when received. Amounts are recognised in trade debtors and accrued expenses until received.

In respect of long-term contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Tangible fixed assets

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

Freehold property

-

Straight line over 50 years

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Government grants

Government grants relating to the Coronavirus Job Retention Scheme are recognised in income in the period in which it becomes receivable under the performance model.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Taxation

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

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Deferred tax on revalued tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Long term contracts

When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to work certified.

Amounts recoverable on long term contracts, which are included in debtors are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments received on account.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

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

Going concern

The directors have considered the impact of COVID-19 in relation to their assessment of going concern and in their opinion have taken all reasonable steps to mitigate these factors. As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that given the currently rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

4.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

1,472,446

1,988,800

Social security costs

169,466

248,299

Other pension costs

61,697

97,839

1,703,609

2,334,938

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

2020

2019

Production staff & surveyors

24

29

Administration staff

5

6

29

35

2020

2019

£

£

Directors' remuneration

305,670

416,725

Directors' pension contributions to money purchase schemes

12,340

29,246

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

2020

2019

£

£

Emoluments etc

144,708

190,895

Pension contributions to money purchase schemes

6,437

8,634

5.

INTEREST RECEIVABLE AND SIMILAR INCOME

2020

2019

£

£

Deposit account interest

252

1,463

Interest received corporation

tax

-

79

252

1,542

6.	LOSS BEFORE TAXATION

The loss is stated after charging:

2020

2019

£

£

Hire of plant and machinery

109,618

152,155

Depreciation - owned assets

80,632

96,324

Loss on disposal of fixed assets

10,272

410

Auditors' remuneration

9,500

7,500

7.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2020

2019

£

£

Current tax:

Corporation tax adjustment prior year

(276,822

)

(299,127

)

Deferred tax

-

(5,846

)

Tax on loss

(276,822

)

(304,973

)

UK corporation tax has been charged at 19% (2019 - 19%).