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

REGISTERED NUMBER: 02799348 (England and Wales)

Financial Statements

For The Year Ended 31 August 2022

for

Dove Construction Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

E F McGurk

REGISTERED OFFICE:

Gloucester House

29 Brunswick Square

Gloucester

Gloucestershire

GL1 1UN

REGISTERED NUMBER:

02799348 (England and Wales)

AUDITORS:

Kingscott Dix Limited

Chartered Accountants

and Statutory Auditor

Goodridge Court

Goodridge Avenue

Gloucester

Gloucestershire

GL2 5EN

FIXED ASSETS

Tangible assets

4

604

1,426

CURRENT ASSETS

Stocks

-

376

Debtors

5

1,750,922

2,422,206

Cash at bank

-

97,739

1,750,922

2,520,321

CREDITORS

Amounts falling due within one year

6

2,316,915

2,113,364

NET CURRENT (LIABILITIES)/ASSETS

(565,993

)

406,957

TOTAL ASSETS LESS CURRENT LIABILITIES

(565,389

)

408,383

CAPITAL AND RESERVES

Called up share capital

8

6,100

6,100

Retained earnings

(571,489

)

402,283

SHAREHOLDERS' FUNDS

(565,389

)

408,383

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 Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 26 May 2023 and were signed by:

E F McGurk - Director

1.	STATUTORY INFORMATION

Dove 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.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and rebates.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, turnover and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

Where the outcome of a construction contract cannot be estimated reliably, contract turnover is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

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

Retentions

Retentions on contracts are recognised within turnover to the extent that they are deemed recoverable. Where it is anticipated that the company will be required to incur additional costs in order to release the retention, provision is made for those costs in arriving at attributable profit on each contract.

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

-

20% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

33% on cost

Computer equipment

-

33% on cost

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as creditors: amounts falling due within one year if payment is due within one year or less. If not, they are presented as creditors: amounts falling due after more than one year. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Research and development

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

Pension costs and other post-retirement benefits

The 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.

Going concern

The balance sheet shows net liabilities totalling £565,389 as at 31 August 2022. This indicates that the company is not able to meet its liabilities as they fall due and requires the ongoing support of its creditors, notably from its group and related undertakings to continue as a going concern.

The directors are confident that this support will continue to be forthcoming and so consider that it is appropriate to prepare the accounts on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 6 (2021 - 5 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 September 2021

and 31 August 2022

7,812

1,838

35,049

42,297

86,996

DEPRECIATION

At 1 September 2021

7,710

1,838

35,049

40,973

85,570

Charge for year

102

-

-

720

822

At 31 August 2022

7,812

1,838

35,049

41,693

86,392

NET BOOK VALUE

At 31 August 2022

-

-

-

604

604

At 31 August 2021

102

-

-

1,324

1,426

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.22

31.8.21

£

£

Trade debtors

818,998

937,323

Amounts owed by group undertakings

547,072

619,214

Amounts recoverable on contract

238,405

714,913

Other debtors

-

60,906

Tax

43,022

-

Deferred tax asset

84,076

84,076

Prepayments and accrued income

19,349

5,774

1,750,922

2,422,206

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.22

31.8.21

£

£

Bank loans and overdrafts

689,940

-

Trade creditors

837,520

1,367,038

Amounts owed to group undertakings

363,116

47,099

Social security and other taxes

155,590

18,355

VAT

76,116

-

Other creditors

85,035

680,872

Amount owed to related party

109,598

-

2,316,915

2,113,364

7.	SECURED DEBTS

The following secured debts are included within creditors:

31.8.22

31.8.21

£

£

Bank overdraft

689,940

-

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.8.22

31.8.21

value:

£

£

3,050

A Shares

1

3,050

3,050

1,525

B Shares

1

1,525

1,525

1,525

C shares

1

1,525

1,525

6,100

6,100

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

The Report of the Auditors was unqualified.

Peter Morgan (Senior Statutory Auditor)

for and on behalf of Kingscott Dix Limited

10.	CONTINGENT LIABILITIES

The company has given a composite cross guarantee in respect of loans and overdrafts for some companies in the McGurk Group Limited group. As at 31 August 2022 this amounted to £10,684,729 (2021: £11,224,155). All companies are under the control of E F McGurk.

11.	CONSOLIDATED GROUP ACCOUNTS

The company's ultimate parent company McGurk Group Limited produces consolidated accounts.

Information regarding the consolidated accounts of McGurk Group Limited can be obtained from its registered office.