Delcon Construction Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02198767 (England and Wales)

Audited Financial Statements

for the Year Ended 31 December 2020

for

DELCON CONSTRUCTION LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

Mr M A O'Connell

Mr J Dugan

Mr C K Miles

Mr S O’Connell

Mr G O’Connell

Mr R J Williams

Registered office:

University House

11-13 Lower Grosvenor Place

London

SW1W 0EX

Registered number:

02198767 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants and Statutory Auditors

305 Regents Park Road

Finchley

London

N3 1DP

Fixed assets

Tangible assets

4

17,876

9,163

Current assets

Debtors

5

2,158,054

1,660,735

Investments

6

2,016,736

1,985,217

Cash at bank and in hand

3,353,154

2,290,069

7,527,944

5,936,021

Creditors

Amounts falling due within one year

7

6,095,219

2,885,183

Net current assets

1,432,725

3,050,838

Total assets less current liabilities

1,450,601

3,060,001

Provisions for liabilities

8

-

1,596

Net assets

1,450,601

3,058,405

Capital and reserves

Called up share capital

9

193

193

Share premium

10

12,445

12,445

Capital redemption reserve

10

12

12

Retained earnings

10

1,437,951

3,045,755

Shareholders' funds

1,450,601

3,058,405

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 11 May 2021 and were signed on its behalf by:

Mr M A O'Connell - Director

Mr C K Miles - Director

1.	Statutory information

Delcon Construction Limited is a company limited by shares incorporated in the United Kingdom operating from University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX. Company Registered number: 02198767.

2.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Key sources of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

There is estimation uncertainty in calculating work in progress. A full line by line review of projects is carried out by management regularly. Whilst every attempt is made to ensure that work in progress is as accurate as possible, there remains the risk that work in progress does not agree to the work in progress ultimately invoiced.

Turnover

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

In respect of long-term contracts and contracts for on-going services, turnover represents the total 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 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.

Plant and machinery

-

50% on cost

Fixtures and fittings

-

20% on cost

Government grants

It includes a receipt from the government in regards to a claim for wages through the coronavirus job retention scheme.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and compromise cash in hand and at bank which are an integral part of the company's cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. As equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

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

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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.

Investments

Investments are measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

3.	Employees and directors

The average number of employees during the year was 22 (2019 - NIL ) .

4.	Tangible fixed assets

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

Cost

At 1 January 2020

6,234

130,187

136,421

Additions

-

23,904

23,904

At 31 December 2020

6,234

154,091

160,325

Depreciation

At 1 January 2020

6,234

121,024

127,258

Charge for year

-

15,191

15,191

At 31 December 2020

6,234

136,215

142,449

Net book value

At 31 December 2020

-

17,876

17,876

At 31 December 2019

-

9,163

9,163

5.

Debtors

2020

2019

£

£

Amounts falling due within one year:

Trade debtors

1,502,055

1,067,266

Amounts recoverable on contract

446,269

353,836

Other debtors

96,669

187,615

Deferred tax asset

52,081

-

Prepayments and accrued income

40,580

14,193

2,137,654

1,622,910

Amounts falling due after more than one year:

Other debtors

20,400

37,825

Aggregate amounts

2,158,054

1,660,735

6.	Current asset investments

2020

2019

£

£

Other

2,016,736

1,985,217

7.

Creditors: amounts falling due within one year

2020

2019

£

£

Trade creditors

1,219,554

251,391

Amounts owed to group undertakings

1,799,993

-

Tax

103

22,914

Social security and other taxes

70,048

66,302

VAT

98,019

161,045

Other creditors

1,735,039

1,015,432

Accruals and deferred income

1,172,463

1,368,099

6,095,219

2,885,183

8.	Provisions for liabilities

2019

£

Deferred tax

1,596

Deferred tax

£

Balance at 1 January 2020

1,596

Provided during year

(53,677

)

Balance at 31 December 2020

(52,081

)

9.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

100

A Ordinary

£1

100

100

45

B Ordinary

£1

45

45

55

C Ordinary

£1

48

48

193

193

10.

Reserves

Capital

Retained

Share

redemption

earnings

premium

reserve

Totals

£

£

£

£

At 1 January 2020

3,045,755

12,445

12

3,058,212

Profit for the year

442,189

-

-

442,189

Dividends

(2,049,993

)

-

-

(2,049,993

)

At 31 December 2020

1,437,951

12,445

12

1,450,408

11.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Mr Hassan Behcet (Senior Statutory Auditor)

for and on behalf of Haines Watts

12.	Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the years ended 31 December 2020 and 31 December 2019:

2020

2019

£

£

Mr M A O'Connell and Mrs A Nevin

Balance outstanding at start of year

-

138,791

Amounts advanced

-

47,901

Amounts repaid

-

(186,692

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

-

13.	Related party disclosures

Delcon Construction Limited provided an unsecured loan of £Nil (2019: £65,000) to a company related by virtue of a common director. The amount is outstanding at the balance sheet date.

14.	Ultimate controlling party

The company is controlled by its Board of Directors by virtue of their respective shareholdings in the parent company.