Fox (Owmby) Limited - Limited company accounts 23.2

REGISTERED NUMBER: 00804642 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2022

for

Fox (Owmby) Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

6

Consolidated Other Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

S H Fox

Mrs C Fox

R Gudgin

A S Fox

J A Gudgin

Mrs K J Durant

REGISTERED OFFICE:

Caenby Hall

Caenby Corner

Market Rasen

Lincolnshire

LN8 2BU

REGISTERED NUMBER:

00804642 (England and Wales)

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

The directors present their strategic report of the company and the group for the year ended 31 December 2022.

REVIEW OF BUSINESS

The Directors are pleased to announce the financial results for the year ended 31st December 2022 demonstrates a year of growth and strong financial performance which reflect the companies endeavours of focusing on the delivery of project certainty for the clients which has only been made possible as a result of the companies corporate governance and increasing business resilience.

FINANCIAL AND OPERATING HIGHLIGHTS

The Companies year end order book is ahead of the previous year end (2021 was a 15-month period), this largely being due to the returns on earlier investments within the industry. The Company continues to de-risk it's order books through robust selection governance and the targeting of opportunities with acceptable terms, conditions and margins.

- Annual Turnover increased 18 per cent to £34,293,193* million reflecting higher quality contract wins underpinned by tighter governance in opportunity selection and project delivery. (*against an adjusted 15month accounting period to 31st December 2021 for comparison).

- Operational profit increased to £1,937,367 representing a year on year £1,509,700 uplift on year 2021 results. This improvement being primarily attributable to lower-level exposure to exceptional costs in the period which have impacted previous years performances in years 2020 and 2021.

- Increased number of employees to 128 up from 116 as of 31st December 2021, thereby reinforcing our commitment to actively create employment opportunities, together with developing and improving skills across the business.

- Recent award of ISO 22301 - Business Continuity Certification

OUTLOOK

The Company enters the new financial year where the economic outlook remains uncertain and where the impact of the conflict in the Ukraine upon energy prices and the resulting inflationary pressures will persist.

However, despite the effects of the external pressures upon the United Kingdom our improved de-risked and diversified sales order pipelines and increasing focus in key areas of efficiency, effectiveness and control gives us confidence that the Company will continue to make progress with the aim of delivering sustainable, managed growth in a controlled manner.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors continuously monitor levels of enquiries, awards of contracts, company turnover and gross profitability, cash reserves, available labour, plant and equipment availability together with external economic and construction related forecasts all of which are key performance indicators.

The Company remains exposed to the usual business risks, all of which are constantly monitored, especially during periods of economic uncertainty. Markets and Contracts are continuously monitored to identify significant changes within sectors in order to quickly mitigate the impact of any future general risk.

The Directors hereby pay tribute to the resilience of the team right across the business for this much appreciated support and dedication in these exciting, demanding and challenging times.

SUMMARY

The Directors consider that given the upheaval and harshness of the past three years that the results presented for the financial year ending 31st December 2022 to be most satisfactory.

ON BEHALF OF THE BOARD:

A S Fox - Director

29 September 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of civil engineering and earthworks contracting.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

S H Fox

Mrs C Fox

R Gudgin

A S Fox

J A Gudgin

Other changes in directors holding office are as follows:

Mrs K J Durant was appointed as a director after 31 December 2022 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Wright Vigar Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A S Fox - Director

29 September 2023

Opinion

We have audited the financial statements of Fox (Owmby) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2022 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 three, 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 group's and the parent 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 group or the parent 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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.

-

We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

-

Substantive procedures performed in accordance with the ISAs (UK).

-

Challenging assumptions and judgments made by management in its significant accounting estimates.

-

Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.

-

Assessing the extent of compliance with the relevant laws and regulations.

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.

Neil Roberts BA FCA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

29 September 2023

TURNOVER

34,293,193

36,348,438

Cost of sales

27,908,077

30,218,663

GROSS PROFIT

6,385,116

6,129,775

Administrative expenses

4,523,847

5,823,406

1,861,269

306,369

Other operating income

76,098

121,298

OPERATING PROFIT

4

1,937,367

427,667

Interest receivable and similar income

-

826

1,937,367

428,493

Interest payable and similar expenses

5

230,178

197,337

Other finance costs

21

13,000

15,000

243,178

212,337

PROFIT BEFORE TAXATION

1,694,189

216,156

Tax on profit

6

1,016,688

(40,308

)

PROFIT FOR THE FINANCIAL YEAR

677,501

256,464

Profit attributable to:

Owners of the parent

677,501

256,464

PROFIT FOR THE YEAR

677,501

256,464

OTHER COMPREHENSIVE INCOME

Pension scheme actuarial gain/(loss)

542,000

(58,000

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

542,000

(58,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,219,501

198,464

Total comprehensive income attributable to:

Owners of the parent

1,219,501

198,464

FIXED ASSETS

Intangible assets

8

(1,457,056

)

-

Tangible assets

9

13,986,509

9,368,042

Investments

10

100

100

12,529,553

9,368,142

CURRENT ASSETS

Stocks

11

853,590

264,391

Debtors

12

10,476,506

11,924,356

Cash at bank and in hand

221,469

94,028

11,551,565

12,282,775

CREDITORS

Amounts falling due within one year

13

7,408,175

7,039,810

NET CURRENT ASSETS

4,143,390

5,242,965

TOTAL ASSETS LESS CURRENT LIABILITIES

16,672,943

14,611,107

CREDITORS

Amounts falling due after more than one year

14

(4,676,921

)

(4,268,386

)

PROVISIONS FOR LIABILITIES

18

(1,819,177

)

(682,377

)

PENSION LIABILITY

21

(97,000

)

(800,000

)

NET ASSETS

10,079,845

8,860,344

CAPITAL AND RESERVES

Called up share capital

19

18,142

18,142

Share premium

20

286,533

286,533

Revaluation reserve

20

1,410,089

1,410,089

Retained earnings

20

8,365,081

7,145,580

SHAREHOLDERS' FUNDS

10,079,845

8,860,344

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:

A S Fox - Director

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

10,793,758

9,368,042

Investments

10

400,100

100

11,193,858

9,368,142

CURRENT ASSETS

Stocks

11

820,742

264,391

Debtors

12

10,959,132

11,924,356

Cash at bank and in hand

218,378

94,028

11,998,252

12,282,775

CREDITORS

Amounts falling due within one year

13

7,175,997

7,039,810

NET CURRENT ASSETS

4,822,255

5,242,965

TOTAL ASSETS LESS CURRENT LIABILITIES

16,016,113

14,611,107

CREDITORS

Amounts falling due after more than one year

14

(4,651,970

)

(4,268,386

)

PROVISIONS FOR LIABILITIES

18

(1,157,535

)

(682,377

)

PENSION LIABILITY

21

(97,000

)

(800,000

)

NET ASSETS

10,109,608

8,860,344

CAPITAL AND RESERVES

Called up share capital

19

18,142

18,142

Share premium

20

286,533

286,533

Revaluation reserve

20

1,410,089

1,410,089

Retained earnings

20

8,394,844

7,145,580

SHAREHOLDERS' FUNDS

10,109,608

8,860,344

Company's profit for the financial year

707,264

256,464

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:

A S Fox - Director

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 October 2020

18,142

6,947,116

286,533

1,410,089

8,661,880

Changes in equity

Total comprehensive income

-

198,464

-

-

198,464

Balance at 31 December 2021

18,142

7,145,580

286,533

1,410,089

8,860,344

Changes in equity

Total comprehensive income

-

1,219,501

-

-

1,219,501

Balance at 31 December 2022

18,142

8,365,081

286,533

1,410,089

10,079,845

Called up

share

Retained

Share

Revaluation

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 October 2020

18,142

6,947,116

286,533

1,410,089

8,661,880

Changes in equity

Total comprehensive income

-

198,464

-

-

198,464

Balance at 31 December 2021

18,142

7,145,580

286,533

1,410,089

8,860,344

Changes in equity

Total comprehensive income

-

1,249,264

-

-

1,249,264

Balance at 31 December 2022

18,142

8,394,844

286,533

1,410,089

10,109,608

Cash flows from operating activities

Cash generated from operations

1

2,701,046

1,052,017

Interest paid

(99,682

)

(48,593

)

Interest element of hire purchase payments paid

(130,496

)

(148,744

)

Tax paid

120,112

246,988

Net cash from operating activities

2,590,980

1,101,668

Cash flows from investing activities

Purchase of tangible fixed assets

(2,971,264

)

(3,415,723

)

Sale of tangible fixed assets

507,470

1,029,000

Non cash acquisition of fixed assets

(613,317

)

-

Interest received

-

826

Net cash from investing activities

(3,077,111

)

(2,385,897

)

Cash flows from financing activities

New HP finance in year

2,303,063

2,849,275

Bank loan repayments in year

(1,314,334

)

(244,520

)

New bank loan in year

1,600,000

1,000,000

HP repayments in year

(1,819,675

)

(2,306,059

)

Amount withdrawn by directors

(155,482

)

(9,692

)

Net cash from financing activities

613,572

1,289,004

Increase in cash and cash equivalents

127,441

4,775

Cash and cash equivalents at beginning of year

2

94,028

89,253

Cash and cash equivalents at end of year

2

221,469

94,028

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

Period

1.10.20

Year Ended

to

31.12.22

31.12.21

£

£

Profit before taxation

1,694,189

216,156

Depreciation charges

603,397

1,604,853

Profit on disposal of fixed assets

(280,938

)

(157,104

)

Advanced pension contribution

(174,000

)

(155,000

)

Non cash adjustment on consolidation

(45,919

)

-

Finance costs

243,178

212,337

Finance income

-

(826

)

2,039,907

1,720,416

Increase in stocks

(589,199

)

(58,167

)

Decrease/(increase) in trade and other debtors

1,460,428

(1,121,830

)

(Decrease)/increase in trade and other creditors

(210,090

)

511,598

Cash generated from operations

2,701,046

1,052,017

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 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

221,469

94,028

Period ended 31 December 2021

31.12.21

1.10.20

£

£

Cash and cash equivalents

94,028

89,253

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank and in hand

94,028

127,441

221,469

94,028

127,441

221,469

Debt

Finance leases

(4,420,554

)

(483,385

)

(4,903,939

)

Debts falling due within 1 year

(192,472

)

115,240

(77,232

)

Debts falling due after 1 year

(1,116,209

)

(441,400

)

(1,557,609

)

(5,729,235

)

(809,545

)

(6,538,780

)

Total

(5,635,207

)

(682,104

)

(6,317,311

)