Ashcourt Construction Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 00180028 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

FOR

ASHCOURT CONSTRUCTION LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

K J Bousfield

L J Churchill

SECRETARY:

L J Churchill

REGISTERED OFFICE:

Ashcourt Group

Foster Street

Hull

East Yorkshire

HU8 8BT

REGISTERED NUMBER:

00180028 (England and Wales)

INDEPENDENT AUDITORS:

Lloyd Dowson Audit Limited

Chartered Accountants

& Statutory Auditors

Medina House

2 Station Avenue

Bridlington

East Yorkshire

YO16 4LZ

FIXED ASSETS

Property, plant and equipment

4

1,138,601

111,458

CURRENT ASSETS

Inventories

137,000

-

Debtors

5

12,762,595

6,428,756

Cash at bank

782,636

629,924

13,682,231

7,058,680

CREDITORS

Amounts falling due within one year

6

13,216,109

6,829,307

NET CURRENT ASSETS

466,122

229,373

TOTAL ASSETS LESS CURRENT LIABILITIES

1,604,723

340,831

CREDITORS

Amounts falling due after more than one year

7

(723,268

)

(49,302

)

PROVISIONS FOR LIABILITIES

9

(169,681

)

-

NET ASSETS

711,774

291,529

CAPITAL AND RESERVES

Called up share capital

10

31,413

31,413

Capital redemption reserve

28,587

28,587

Retained earnings

651,774

231,529

SHAREHOLDERS' FUNDS

711,774

291,529

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 Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 April 2023 and were signed on its behalf by:

K J Bousfield - Director

1.	STATUTORY INFORMATION

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

2.	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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

The policies adopted for the recognition of revenue are as follows:

When the outcome of a construction contract can be measured reliably, contract costs and revenue are recognised by reference to the stage of completion at the reporting date. Stage of completion is measured by reference to the contracted works.

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

Where it is probable that contract costs will exceed the total contract revenue, the expected loss is recognised as an expense immediately, by making an appropriate provision.

Property, plant & equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

10% on reducing balance

Office equipment

-

15% on reducing balance

Motor vehicles

-

15% on reducing balance

Property, plant & equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Inventories

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

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

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

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 43 (2021 - 38 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Plant and

Office

Motor

machinery

equipment

vehicles

Totals

£

£

£

£

COST

At 1 August 2021

-

2,701

134,540

137,241

Additions

3,290

15,162

1,138,283

1,156,735

Disposals

-

-

(73,851

)

(73,851

)

At 31 July 2022

3,290

17,863

1,198,972

1,220,125

DEPRECIATION

At 1 August 2021

-

498

25,285

25,783

Charge for year

41

1,160

63,896

65,097

Eliminated on disposal

-

-

(9,356

)

(9,356

)

At 31 July 2022

41

1,658

79,825

81,524

NET BOOK VALUE

At 31 July 2022

3,249

16,205

1,119,147

1,138,601

At 31 July 2021

-

2,203

109,255

111,458

The net book value of property, plant and equipment includes £ 1,093,549 (2021 - £ 105,373 ) in respect of assets held under hire purchase contracts.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.22

31.7.21

£

£

Trade debtors

3,487,776

793,612

Amounts owed by group undertakings

1,854,017

4,911,275

Amounts owed by associates

3,275,694

-

Amounts recoverable on contracts

3,229,757

336,195

Other debtors

686,034

244,208

Corporation tax

84,129

84,129

Deferred tax asset

-

4,069

Prepayments

145,188

55,268

12,762,595

6,428,756

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.7.22

31.7.21

£

£

Hire purchase contracts

270,435

25,498

Trade creditors

3,929,820

771,957

Amounts owed to group undertakings

6,117,697

4,600,009

Amounts owed to associates

331,275

-

Social security and other taxes

88,119

98,143

VAT

711,741

562,757

Other creditors

230,172

71,209

Invoice financing facility

634,387

-

Accrued expenses

902,463

699,734

13,216,109

6,829,307

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.7.22

31.7.21

£

£

Hire purchase contracts

723,268

49,302

8.	SECURED DEBTS

The following secured debts are included within creditors:

31.7.22

31.7.21

£

£

Hire purchase contracts

993,703

74,800

Invoice financing facility

634,387

-

1,628,090

74,800

Hire purchase liabilities are secured by charges over the individual assets being financed.

The invoice financing facility is secured by a debenture in favour of Bibby Financial Services Limited creating fixed and floating charges over all assets owned by the company.

9.	PROVISIONS FOR LIABILITIES

31.7.22

£

Deferred tax

169,681

Deferred

tax

£

Balance at 1 August 2021

(4,069

)

Provided during year

173,750

Balance at 31 July 2022

169,681

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.7.22

31.7.21

value:

£

£

31,413

Ordinary

£1

31,413

31,413

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Rebecca Sygrove FCCA (Senior Statutory Auditor)

for and on behalf of Lloyd Dowson Audit Limited

12.	OTHER FINANCIAL COMMITMENTS - GROUP FINANCING FACILITIES

The company is a wholly owned subsidiary of Ashcourt Group Limited (the 'Ashcourt Group'), and is a party to group-wide financing facilities.

On 7 December 2021, certain subsidiaries of Ashcourt Group Limited entered into a £10 million invoice financing facility with Bibby Financial Services Ltd, which after the financial year end increased to £12 million in October 2022. Under the terms of this facility, each company in the Ashcourt Group is jointly and severally liable for this debt under the terms of a cross company guarantee. The debt is also secured by a debenture creating fixed and floating charges over all assets owned by Ashcourt Group Limited, other than the investments in the share capital of each of Ashcourt (Pocklington) Limited and Eco Custom Homes Limited.

Also on 7 December 2021, other companies in the Ashcourt Group entered into commercial loan agreements totalling £6.8 million with A Shade Greener Finance Limited, secured by first legal charges against freehold commercial properties owned by the group.

The above facilities were utilised to repay loans from Toscafund Group Limited, in full.

After the financial year end, on 9 November 2022, the Ashcourt Group, along with other related companies not in the group but under common ownership, entered into commercial loan facilities totalling £41.3 million, repayable over a 4 year term, with ICG-Longbow Investment No.5 S.A.R.L. These funds were utilised to repay debt of £3.175 million within the Ashcourt Group (within Ashcourt (Pocklington) Limited), £27.37m outside of the Ashcourt Group, with the balance being utilised for property acquisitions and planned development costs. Security for the lending came in the form of real estate valued at £58.8 million along with charges over the shares of Ashcourt (Pocklington) Limited and other related companies not in the group but under common ownership.

Under the terms of the company and Ashcourt Group's banking arrangements, the aggregate of all group bank balances must remain in credit at any one time, no overdraft facilities are in place. However, individual group company balances may be overdrawn at any one time so long as they are covered by credit balances elsewhere in the group. The bank has a right of set-off over all group bank balances. The group was in credit overall as at 31 July 2022, and as at the date of approval of these financial statements.

Given the actual and projected financial performance of the group, the board considers that the likelihood of any liability arising for the company in respect of any of the above facilities is remote.

13.	RELATED PARTY DISCLOSURES

The company's ultimate parent company is Ashcourt Group Limited, a company incorporated in the United Kingdom. Group consolidated financial statements are available from the group and company's registered office, Foster Street, Hull, HU8 8BT.

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is K J Bousfield.