ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

CIVILS CONTRACTING LIMITED - Company Information

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Registered number: 03959213

CIVILS CONTRACTING LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

CIVILS CONTRACTING LIMITED

COMPANY INFORMATION

Directors	P Medhurst
	N Weaver
	T Meenan
	J Hilder


Company secretary	P Medhurst


Registered number	03959213


Registered office	71 New Dover Road
	Canterbury
	Kent
	CT1 3DZ


Independent auditor	MHA MacIntyre Hudson
	Maidstone
	United Kingdom

CIVILS CONTRACTING LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 8
Statement of Income and Retained Earnings	9
Balance Sheet	10 - 11
Notes to the Financial Statements	12 - 30

CIVILS CONTRACTING LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 JANUARY 2021

The function of the strategic report is to provide a balanced review of the Company’s objectives, its performance and development during the period, and its position at the year end. The review also covers the principal risks and uncertainties faced by the Company.

Business review

Civils Contracting Limited is a highly successful and accomplished British construction Company providing construction services across a wide variety of sectors. We are proud of our reputation for non-confrontational contracting, an approach which enables us to obtain the majority of our work through recommendation and negotiation with our clients.

Development and performance of the Company

The Company’s profit for the year after taxation amounted to £3,434,168 (2020 – £2,418,993). The balance sheet shows that the Company’s position at the year end, of total net assets of £3,651,085 (2020 - £6,217,017), is healthy and demonstrates that the fundamentals of the Company are strong. The directors expect continuing growth in the next year in turnover, and will continue to look at maintaining a healthy profit.

Principal risks and uncertainties

The Company’s principal risks can broadly be defined as competitive, legislative and financial.
• Competitive risks and market. The Company faces pressures from other organisations in execution of its business. This is addressed by the depth of expertise in the industry of the management team, a detailed understanding of the market and environment, and a commitment to quality.
• Regulatory and legislative risks. Any breach of regulations and applicable law may result in fines for the Company. Consequently robust compliance and legal monitoring controls minimise the Company’s exposure.
• Financial instruments risk. Apart from working capital the Company does not have any financial instruments. It is the Company’s policy that no trading in complex financial instruments shall be undertaken. The main risks arising from the Company’s financial instruments are price, credit, liquidity and cash flow risk. Risk management policies are regularly reviewed by the board.
Price risks are managed through the commercial process.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company’s policies are aimed at minimising such a risk by conducting credit checks where appropriate and by other established credit control procedures.
Liquidity risk is the risk that an entity may encounter difficulties in meeting obligations associated with financial liabilities. The Company aims to mitigate liquidity risk by robust budgeting.
Cash flow risk lies in the exposure to variability in cash flows that are attributable to a particular risk associated with a recognised asset or liability such as future interest payments. The Company manages this risk through cash flow planning, and strict management of working capital.

Page 1

CIVILS CONTRACTING LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Financial key performance indicators

The KPIs used to determine the progress and performance of the Company are set out below:
2021 2020
Turnover (£) 29,666,367 21,204,666
Average monthly staff (number) 27 26
Operating profit (£) 3,053,882 2,989,863
Staff numbers reflect the efficiency of the Company and its operations. Operating profit is a measure of the profitability of underlying operations of the business.

This report was approved by the board and signed on its behalf.

P Medhurst

Director

Date: 14 December 2021

Page 2

CIVILS CONTRACTING LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 JANUARY 2021

The directors present their report and the financial statements for the year ended 31 January 2021.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.

Principal activity

The principal activity of the Company is that of civil engineering and building contracting.

Results and dividends

The profit for the year, after taxation, amounted to £3,434,168 (2020 - £2,418,993).

During the year the Company declared and paid dividends amounting to £6,000,100 (2020: £nil).

Directors

The directors who served during the year were:

P Medhurst

N Weaver

T Meenan

J Hilder

Matters covered in the strategic report

Certain items required under Schedule 7 to be disclosed in the Directors' Report are set out in the Strategic
Report in accordance with S.414C(II) of the Companies Act 2006.

Page 3

CIVILS CONTRACTING LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2021

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

COVID-19

The directors have considered the impact of the COVID-19 pandemic on the Company, further details of which can be found in the accounting policy 2.3.
Based on their assessments and having regard to the resources available to the Company, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the accounts.

Auditor

The auditor, MHA MacIntyre Hudson, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

P Medhurst

Director

Date: 14 December 2021

Page 4

CIVILS CONTRACTING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CIVILS CONTRACTING LIMITED

Opinion

We have audited the financial statements of Civils Contracting Limited (the 'Company') for the year ended 31 January 2021, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, 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 January 2021 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 United Kingdom, including the Financial Reporting Council'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.

Page 5

CIVILS CONTRACTING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CIVILS CONTRACTING LIMITED (CONTINUED)

Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's Report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report 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 Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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.

Page 6

CIVILS CONTRACTING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CIVILS CONTRACTING LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 is 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.

Auditor's 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 an Auditor's Report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

∙Enquiry of management, those charged with governance around actual and potential litigation and claims;

∙Performing 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; and

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.

Page 7

CIVILS CONTRACTING LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CIVILS CONTRACTING LIMITED (CONTINUED)

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 an Auditor's Report 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.

Duncan Cochrane-Dyet BSc BFP FCA (Senior Statutory Auditor)

for and on behalf of

MHA MacIntyre Hudson

Statutory Auditors

Maidstone

United Kingdom

7 January 2022

Page 8

CIVILS CONTRACTING LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 JANUARY 2021

	2021	2020
Note	£	£


Turnover	4	29,666,367	21,204,666
Cost of sales		(25,221,679)	(17,149,474)
Gross profit		4,444,688	4,055,192
Administrative expenses		(1,441,941)	(1,065,329)
Other operating income	5	51,135	-
Operating profit	6	3,053,882	2,989,863
Interest receivable and similar income	10	12,250	15,239
Interest payable and similar expenses	11	(4,465)	(14,551)
Profit before tax		3,061,667	2,990,551
Tax on profit	12	372,501	(571,558)
Profit after tax		3,434,168	2,418,993



Retained earnings at the beginning of the year	6,032,017	3,613,024
Profit for the year	3,434,168	2,418,993
Dividends declared and paid	(6,000,100)	-
Retained earnings at the end of the year	3,466,085	6,032,017

There were no recognised gains and losses for 2021 or 2020 other than those included in the statement of income and retained earnings.

The notes on pages 12 to 30 form part of these financial statements.

Page 9

CIVILS CONTRACTING LIMITED

REGISTERED NUMBER: 03959213

BALANCE SHEET

AS AT 31 JANUARY 2021

		2021		2020
Note		£		£

Fixed assets
Tangible assets	14		357,347		155,447
Investments	15		1		-
			357,348		155,447
Current assets
Stocks	16	2,030,719		410,046
Debtors: amounts falling due within one year	17	7,132,788		8,107,482
Cash at bank and in hand	18	2,212,912		1,345,852
		11,376,419		9,863,380
Creditors: amounts falling due within one year	19	(7,982,697)		(3,705,712)
Net current assets			3,393,722		6,157,668
Total assets less current liabilities			3,751,070		6,313,115
Creditors: amounts falling due after more than one year	20		(11,100)		(39,843)
Provisions for liabilities
Deferred tax	22	(61,139)		(28,509)
Other provisions	23	(27,746)		(27,746)
			(88,885)		(56,255)
Net assets			3,651,085		6,217,017

Capital and reserves
Called up share capital	24	185,000	185,000
Profit and loss account	25	3,466,085	6,032,017
		3,651,085	6,217,017

Page 10

CIVILS CONTRACTING LIMITED

REGISTERED NUMBER: 03959213

BALANCE SHEET (CONTINUED)

AS AT 31 JANUARY 2021

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

P Medhurst	N Weaver
Director	Director

Date: 14 December 2021

The notes on pages 12 to 30 form part of these financial statements.

Page 11

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

1.	General information

Civils Contracting Limited is a private Company limited by shares incorporated in England and Wales within the United Kingdom. The address of the registered office is 71 New Dover Road, Canterbury, Kent CT1 3DZ.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to the nearest £1.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial reporting standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Civils Contracting Holding Company Limited as at 31 January 2021 and these financial statements may be obtained from 71 New Dover Road, Canterbury, Kent CT1 3DZ.

2.3

Going concern

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, forecast future cashflows and the impact of subsequent events in making their assessment. The COVID-19 pandemic has not had a significant impact on the Company's operations. In response to the COVID-19 pandemic, the Directors have considered the potential impact on the business and possible future scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact of COVID-19.
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the accounts.

Page 12

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2.Accounting policies (continued)

2.4

Revenue

Revenue arises from civil engineering contracts and is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The amount of revenue included reflects the accruals of the right to consideration as the contract activity progresses by reference to the value of the work performed. The following criteria must also be met before revenue is recognised:

Rendering of services on civil engineering contracts

Revenue from a contract to provide civil engineering services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract as measured by the proportion of costs incurred for work performed to date in relation to estimated total costs, when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably;

∙the costs incurred and costs to complete can be measured reliably; and

∙where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Any costs that whose recovery is not probable, are immediately recognised as an expense. When it is probable that the total contract costs will exceed total contract revenue on a construction contract, the expected loss is recognised as an expense immediately, with a corresponding provision for an onerous contract.
Revenue from the sale of properties is recognised in the accounting period in which legal title is transferred.

2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant and machinery	-	20%	reducing balance
Motor vehicles	-	25%	reducing balance
Office equipment	-	20%	straight line

Page 13

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2.Accounting policies (continued)

2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

2.7

Stocks - Long term contract balance

Stocks representing work in progress on long term contracts are valued at the lower of cost and net realisable value after making due allowance for recovery, less any amounts billed in advance.
Stock held as property to be disposed of in the short term is held at the lower of cost and net realisable value.

2.8

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

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 Statement of Income and Retained Earnings.

For financial assets measured at cost less impairment, the impairment loss is measured as the

Page 14

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2.Accounting policies (continued)

2.10

Financial instruments (continued)

difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2.11

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.12

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

2.13

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.15

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 15

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2.Accounting policies (continued)

2.16

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.17

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.18

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement and accrued at the Balance Sheet date.

2.19

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 16

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

2.Accounting policies (continued)

2.21

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

Reliable estimation of the eventual outcome of specific contracts requires reliable estimates of the stage of completion, future costs and collectibility of billings. The stage of completion of long term contracts is determined on the basis of total percentage of expected projects costs that have been incurred.
There is estimation uncertainty on the amount and timing of future costs in relation to ongoing projects. The directors are required to make an assessment with regard to the future costs the Company is likely to incur so as to fulfil its obligations under contracts, including remedial work necessary to guarantee the release of retention balances. Only specific provisions against contracts where such a provision is required or where specific remedial work is required are recognised. No general provisions are recognised.

Page 17

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

Long term contracts	26,116,277	21,204,666
Property sales	3,550,090	-
	29,666,367	21,204,666

Analysis of turnover by country of destination:

					2021	2020
					£	£

United Kingdom	29,666,367	21,204,666
	29,666,367	21,204,666

5.	Other operating income
		2021	2020
		£	£

Government grants receivable	51,135	-
	51,135	-

Government grants receivable consisted entirely of Coronavirus Job Retention Scheme income. There were no unfulfilled conditions or other contingencies.

Other operating lease rentals

45,200

40,280

Page 18

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

7.	Auditor's remuneration
		2021	2020
		£	£

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

37,200

39,950

The Company has taken advantage of the exemption not to disclose amounts paid for non audit services.

Wages and salaries	1,373,566	1,301,157
Social security costs	159,279	94,172
Cost of defined contribution scheme	51,918	88,623
	1,584,763	1,483,952

The average monthly number of employees, including the directors, during the year was as follows:

	2021	2020
	No.	No.

Management	5	5
Administration	1	1
Direct	21	20

	27	26

Page 19

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

9.	Directors' remuneration
		2021	2020
		£	£

Directors' emoluments	370,814	387,290
Company contributions to defined contribution pension schemes	2,512	3,390
	373,326	390,680

	During the year retirement benefits were accruing to 1 director (2020 - 2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £110,326 (2020 - £106,677).
	The total accrued pension provision of the highest paid director at 31 January 2021 amounted to £NIL (2020 - £NIL).
	The amount of the accrued lump sum in respect of the highest paid director at 31 January 2021 amounted to £NIL (2020 - £NIL).

10.	Interest receivable
		2021	2020
		£	£

	Other interest receivable	12,250	15,239
		12,250	15,239

11.	Interest payable and similar expenses
		2021	2020
		£	£

Finance leases and hire purchase contracts	4,465	4,501
Other interest payable	-	10,050
	4,465	14,551

Page 20

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

Corporation tax
Current tax on profits for the year	587,913	559,448
Adjustments in respect of previous periods	(993,044)	-
	(405,131)	559,448

Total current tax	(405,131)	559,448

Deferred tax
Origination and reversal of timing differences	32,630	12,110
Total deferred tax	32,630	12,110


	Taxation on (loss)/profit on ordinary activities	(372,501)	571,558

Page 21

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

12.Taxation (continued)

Profit on ordinary activities before tax

3,061,667

2,990,551

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	581,717	568,205
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	38,826	3,353
Capital allowances for year in excess of depreciation	(32,625)	(12,145)
Adjustments to tax charge in respect of prior periods	(993,044)	-
Short term timing difference leading to an increase in taxation	32,630	12,110
Other timing differences leading to an (decrease) increase in taxation	(5)	35
Total tax charge for the year	(372,501)	571,558

Factors that may affect future tax charges

Legislation has been introduced in the Finance Bill 2021 to effect an increase in the Corporation Tax main rate to 25% for the financial year beginning 1 April 2023.

13.	Dividends
		2021	2020
		£	£

	Ordinary dividends	6,000,100	-
		6,000,100	-

Page 22

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

14.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Office equipment	Total
	£	£	£	£
Cost or valuation
At 1 February 2020	292,488	158,098	86,147	536,733
Additions	136,101	115,884	10,168	262,153
At 31 January 2021	428,589	273,982	96,315	798,886
Depreciation
At 1 February 2020	202,413	102,924	75,949	381,286
Charge for the year on owned assets	24,629	29,460	6,164	60,253
At 31 January 2021	227,042	132,384	82,113	441,539
Net book value
At 31 January 2021	201,547	141,598	14,202	357,347
At 31 January 2020	90,075	55,174	10,198	155,447

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2021	2020
	£	£


Plant and machinery	54,777	68,471
Motor vehicles	22,669	3,638
	77,446	72,109

Page 23

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

15.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	Additions	1
	At 31 January 2021	1

Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Archers Park (Management Company) Limited

71 New Dover Road, Canterbury, Kent, England, CT1 3DZ

Ordinary

100%

16.	Stocks
		2021	2020
		£	£

Property held for disposal	1,987,931	379,175
Long term contract balances	42,788	30,871
	2,030,719	410,046

17.

Debtors

					2021	2020
					£	£


Trade debtors	2,220,932	1,778,301
Other debtors	379,319	925,925
Prepayments and accrued income	4,454,110	1,209,518
Amounts recoverable on long term contracts	78,427	4,193,738
	7,132,788	8,107,482

Page 24

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

18.	Cash and cash equivalents
		2021	2020
		£	£

Cash at bank and in hand	2,212,912	1,345,852
	2,212,912	1,345,852

19.	Creditors: Amounts falling due within one year
		2021	2020
		£	£

Payments received on account	4,494,990	292,550
Trade creditors	1,473,543	1,908,451
Corporation tax	41,045	848,913
Other taxation and social security	55,451	131,814
Obligations under finance lease and hire purchase contracts	29,319	58,923
Other creditors	184,203	135,384
Accruals and deferred income	1,704,146	329,677
	7,982,697	3,705,712

20.	Creditors: Amounts falling due after more than one year
		2021	2020
		£	£

Net obligations under finance leases and hire purchase contracts	11,100	39,843
	11,100	39,843

Within one year	29,437	62,633
Between 1-5 years	11,101	42,517
	40,538	105,150

Page 25

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

22.	Deferred taxation

	2021	2020
	£	£

At beginning of year	(28,509)	(16,399)
Charged to profit or loss	(32,630)	(12,110)
At end of year	(61,139)	(28,509)

The provision for deferred taxation is made up as follows:
	2021	2020
	£	£

	Accelerated capital allowances	(61,139)	(28,509)
		(61,139)	(28,509)

23.	Provisions

		Provisions relating to long term contracts
		£

	At 1 February 2020	27,746

Provisions relating to long term contracts represent the directors' assessment of the future costs (including remedial work necessary to guarantee the release of retention balances) that the Company is likely to incur so as to fulfil their obligations under contracts finished at the year end and for which no further income streams are anticipated.

24.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

185,000 (2020 - 185,000) Ordinary shares of £1.00 each	185,000	185,000

Page 26

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

25.

Reserves

Profit and loss account

Includes all current and prior period retained profits and losses.

26.	Pension commitments

The Company operates a stakeholder pension scheme and small self-administered scheme for certain directors and staff. The assets of the schemes are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to these funds and also to amounts paid to individual directors' personal pension plans.
Contributions payable by the Company to the self-administered scheme for the year amounted to £Nil (2020 - £60,000). At the respective balance sheet dates all contributions had been paid to the pensions administrators.
Contributions payable by the Company to the stakeholder pension scheme amounted to £51,918 (2020 - £28,623). Contributions totalling £368 (2020 - £182) were payable to the fund at the balance sheet date.

Not later than 1 year	68,500	68,500
Later than 1 year and not later than 5 years	150,667	190,667
Later than 5 years	66,500	95,000
	285,667	354,167

Page 27

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

28.

Related party transactions

The Company has taken advantage of the exemption not to disclose transactions with other members of the group headed by the CC Employee Ownership Trust.
Amounts owed to the Company of £1,778 by N Weaver as at January 2020 were repaid in full during the year.
Amounts owed from the Company to P Medhurst held within a directors loan account at the year end amounted to £Nil (2020 - £670).
Amounts owed to the Company from J Hilder held within a directors loan account at the year end amounted to £422 (2020 - £nil).
The following transactions occurred during the year which are classified as related party transactions:
The spouse of one of the directors is an employee of the Company and was paid £14,282 (2020: £20,045).
M & M Pension Fund (P Medhurst, a director and shareholder, is a trustee and member)
Purchases totalling:
2021: £39,972
2020: £17,100
Repayments made:
2021: £74,172
2020: £Nil
Balance due (to)/from related party:
2021: £7,840
2020: (£26,360)
CCL Pension Fund (N Weaver, T Meenan and J Hilder, directors and shareholders, are trustees and members):
Rent, rates and insurance costs paid to:
2021: £20,000
2020: £10,000
Balance due (to)/from related party:
2021: £762
2020: (£19,238)
CCL Pension Fund and M&M Pension Fund:
Property purchased from the pension funds in the year totalled £1,000,000 (2020: £379,175).

Page 28

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

28.Related party transactions (continued)

Page 29

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2021

29.	Controlling party

The smallest and largest group in which the results of the Company are consolidated is that headed by the immediate parent undertaking Civils Contracting Holding Company Limited, a Company registered in England and Wales at the registered office address of 71 New Dover Road, Canterbury, Kent, CT1 3DZ.
In the opinion of the Directors the ultimate controlling party is The CC Trust.

Page 30