ACCOUNTS - Final Accounts

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

CIVILS CONTRACTING LIMITED - Company Information

Caseware UK (AP4) 2022.0.179 2022.0.179 2023-01-312023-01-31falsetruetruetrue2022-02-01truefalse2628 03959213 2022-02-01 2023-01-31 03959213 2021-02-01 2022-01-31 03959213 2023-01-31 03959213 2022-01-31 03959213 2021-02-01 03959213 1 2022-02-01 2023-01-31 03959213 1 2021-02-01 2022-01-31 03959213 d:CompanySecretary1 2022-02-01 2023-01-31 03959213 d:Director1 2022-02-01 2023-01-31 03959213 d:Director2 2022-02-01 2023-01-31 03959213 d:Director3 2022-02-01 2023-01-31 03959213 d:Director4 2022-02-01 2023-01-31 03959213 d:Director5 2022-02-01 2023-01-31 03959213 d:Director5 2023-01-31 03959213 d:RegisteredOffice 2022-02-01 2023-01-31 03959213 e:PlantMachinery 2022-02-01 2023-01-31 03959213 e:PlantMachinery 2023-01-31 03959213 e:PlantMachinery 2022-01-31 03959213 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 03959213 e:MotorVehicles 2022-02-01 2023-01-31 03959213 e:MotorVehicles 2023-01-31 03959213 e:MotorVehicles 2022-01-31 03959213 e:MotorVehicles e:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 03959213 e:OfficeEquipment 2022-02-01 2023-01-31 03959213 e:OfficeEquipment 2023-01-31 03959213 e:OfficeEquipment 2022-01-31 03959213 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 03959213 e:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 03959213 e:CurrentFinancialInstruments 2023-01-31 03959213 e:CurrentFinancialInstruments 2022-01-31 03959213 e:Non-currentFinancialInstruments 2023-01-31 03959213 e:Non-currentFinancialInstruments 2022-01-31 03959213 e:CurrentFinancialInstruments e:WithinOneYear 2023-01-31 03959213 e:CurrentFinancialInstruments e:WithinOneYear 2022-01-31 03959213 e:Non-currentFinancialInstruments e:AfterOneYear 2023-01-31 03959213 e:Non-currentFinancialInstruments e:AfterOneYear 2022-01-31 03959213 e:ReportableOperatingSegment1 2022-02-01 2023-01-31 03959213 e:ReportableOperatingSegment1 2021-02-01 2022-01-31 03959213 e:ReportableOperatingSegment2 2022-02-01 2023-01-31 03959213 e:ReportableOperatingSegment2 2021-02-01 2022-01-31 03959213 e:UKTax 2022-02-01 2023-01-31 03959213 e:UKTax 2021-02-01 2022-01-31 03959213 e:ShareCapital 2023-01-31 03959213 e:ShareCapital 2022-01-31 03959213 e:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 03959213 e:RetainedEarningsAccumulatedLosses 2023-01-31 03959213 e:RetainedEarningsAccumulatedLosses 2021-02-01 2022-01-31 03959213 e:RetainedEarningsAccumulatedLosses 2022-01-31 03959213 e:RetainedEarningsAccumulatedLosses 2021-02-01 03959213 e:AcceleratedTaxDepreciationDeferredTax 2023-01-31 03959213 e:AcceleratedTaxDepreciationDeferredTax 2022-01-31 03959213 e:RetirementBenefitObligationsDeferredTax 2023-01-31 03959213 e:RetirementBenefitObligationsDeferredTax 2022-01-31 03959213 d:OrdinaryShareClass1 2022-02-01 2023-01-31 03959213 d:OrdinaryShareClass1 2023-01-31 03959213 d:OrdinaryShareClass1 2022-01-31 03959213 d:FRS102 2022-02-01 2023-01-31 03959213 d:Audited 2022-02-01 2023-01-31 03959213 d:FullAccounts 2022-02-01 2023-01-31 03959213 d:PrivateLimitedCompanyLtd 2022-02-01 2023-01-31 03959213 e:Subsidiary1 2022-02-01 2023-01-31 03959213 e:Subsidiary1 1 2022-02-01 2023-01-31 03959213 e:WithinOneYear 2023-01-31 03959213 e:WithinOneYear 2022-01-31 03959213 e:BetweenOneFiveYears 2023-01-31 03959213 e:BetweenOneFiveYears 2022-01-31 03959213 e:MoreThanFiveYears 2023-01-31 03959213 e:MoreThanFiveYears 2022-01-31 03959213 e:HirePurchaseContracts e:WithinOneYear 2023-01-31 03959213 e:HirePurchaseContracts e:WithinOneYear 2022-01-31 03959213 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-01-31 03959213 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-01-31 03959213 2 2022-02-01 2023-01-31 03959213 6 2022-02-01 2023-01-31 03959213 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-01-31 03959213 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2022-01-31 03959213 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-01-31 03959213 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2022-01-31 03959213 e:LeasedAssetsHeldAsLessee 2023-01-31 03959213 e:LeasedAssetsHeldAsLessee 2022-01-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 03959213

CIVILS CONTRACTING LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

CIVILS CONTRACTING LIMITED

COMPANY INFORMATION

Directors	P Medhurst
	N Weaver
	T Meenan
	J Hilder
	D Toone (appointed 11 August 2023)


Company secretary	P Medhurst


Registered number	03959213


Registered office	3 Archers Park
	Branbridges Road
	East Peckham
	Kent
	TN12 5HP


Independent auditor	MHA
	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
Notes to the Financial Statements	11 - 28

CIVILS CONTRACTING LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 JANUARY 2023

Introduction

The function of the strategic report is to provide a balanced review of the Company’s objectives, its performance and development during the year, and its position at the year end

Business review

Civils 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 £3,951,232 (2022 – £5,185,217). The performance of the business has continued to be very good in 2022/2023, with increases in inflation, supply chain and resourcing being overcome by a very good staff work ethic and the property market remaining strong especially in the industrial sector.
The major contracts being undertaken in the industrial development and commercial sectors have formed the foundation for the business throughout the year and this continues to be the case in 2023/2024. Looking forward to 2024/2025 we expect to see continuing volumes of work in the industrial sector however hardening margins will likely dent the overall performance and we expect to see the turnover ease back.

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 2023

Financial key performance indicators

The KPIs used to determine the progress and performance of the Company are set out below:

	2023	2022
Turnover (£)	24,655,160	29,031,030
Average monthly staff (number)	28	26
Operating Profit	4,348,850	6,455,363

During the year the Company performed well due to existing and new contracts, as well as cost efficiencies made on some projects. The Business has seen high demand for its services. Although total revenue has decreased compared to last year, this is due to a fall in the revenue generated from long term contracts, owing to the stage of completion of a number of projects at the year end. This has also caused an overall decrease in operating profit.
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: 31 October 2023

Page 2

CIVILS CONTRACTING LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 JANUARY 2023

The directors present their report and the financial statements for the year ended 31 January 2023.

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 £3,951,232 (2022 - £5,185,217).

During the year the Company declared and paid dividends amounting to £3,000,000 (2022: £3,000,000).

Directors

The directors who served during the year were:

P Medhurst

N Weaver

T Meenan

J Hilder

Future developments

There have been no future developments affecting the Company since the year end other than those referred to in the strategic report.

Page 3

CIVILS CONTRACTING LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JANUARY 2023

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; these being an analysis of the Company's principle risks and uncertainties.

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.

Auditor

The auditor, MHA, 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: 31 October 2023

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 2023, 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 2023 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 other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

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.

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.

Page 6

CIVILS CONTRACTING LIMITED

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

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 around actual and potential litigation and claims;

∙Enquiry of management to identify any instances of non-compliance with laws and regulations; and

∙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.

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.

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.

Page 7

CIVILS CONTRACTING LIMITED

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

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

for and on behalf of

MHA

Statutory Auditor

Maidstone

United Kingdom

31 October 2023
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

Page 8

CIVILS CONTRACTING LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 JANUARY 2023

	2023	2022
Note	£	£


Turnover	4	24,655,160	29,031,030
Cost of sales		(18,921,441)	(20,988,735)
Gross profit		5,733,719	8,042,295
Administrative expenses		(1,384,869)	(1,586,992)
Other operating income	5	-	60
Operating profit	6	4,348,850	6,455,363
Interest receivable and similar income	10	196	1,112
Interest payable and similar expenses	11	(33,314)	(3,672)
Profit before tax		4,315,732	6,452,803
Tax on profit	12	(364,500)	(1,267,586)
Profit after tax		3,951,232	5,185,217



Retained earnings at the beginning of the year		5,651,302	3,466,085
Profit for the year		3,951,232	5,185,217
Dividends declared and paid	13	(3,000,000)	(3,000,000)
Retained earnings at the end of the year		6,602,534	5,651,302

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 11 to 28 form part of these financial statements.

Page 9

CIVILS CONTRACTING LIMITED

REGISTERED NUMBER: 03959213

BALANCE SHEET

AS AT 31 JANUARY 2023

		2023		2022
Note		£		£

Fixed assets
Tangible assets	14		560,709		497,297
Investments	15		1		1
			560,710		497,298
Current assets
Stocks	16	792,385		1,955,110
Debtors: amounts falling due within one year	17	8,634,445		4,571,742
Cash at bank and in hand	18	8,407,242		2,829,542
		17,834,072		9,356,394
Creditors: amounts falling due within one year	19	(11,413,863)		(3,793,003)
Net current assets			6,420,209		5,563,391
Total assets less current liabilities			6,980,919		6,060,689
Creditors: amounts falling due after more than one year	20		(98,095)		(115,235)
Provisions for liabilities
Deferred tax	22	(95,290)		(109,152)
			(95,290)		(109,152)
Net assets			6,787,534		5,836,302

Capital and reserves
Called up share capital	23	185,000	185,000
Profit and loss account		6,602,534	5,651,302
		6,787,534	5,836,302

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: 31 October 2023

The notes on pages 11 to 28 form part of these financial statements.

Page 10

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

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 3 Archers Park, Branbridges Road, East Peckham, Kent, England, TN12 5HP.
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 2023 and these financial statements may be obtained from 3 Archers Park, Branbridges Road, East Peckham, Kent, England, TN12 5HP.

2.3

Going concern

The directors have assessed that there is no material uncertainty in the Company's ability to continue as a going concern. As a result, the financial statements have been prepared on a going concern basis.

Page 11

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

2.4

Revenue

Revenue 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 following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract 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; and

∙the costs incurred and the costs to complete the contract 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

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.

2.6

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.

Page 12

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

2.7

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.

2.8

Interest income

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

2.9

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.

2.10

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.

Page 13

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

2.11

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.

2.12

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

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 14

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

2.14

Stocks

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.

2.15

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.

2.16

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.

2.17

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.

2.18

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 15

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

2.19

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.

2.20

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.

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 based on the total percentage of expected project costs that have been incurred.
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 16

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

Long term contracts	23,455,160	29,031,030
Property sales	1,200,000	-
	24,655,160	29,031,030

All turnover arose within the United Kingdom.

5.	Other operating income
		2023	2022
		£	£

Government grants receivable	-	60
	-	60

Government grants in 2022 consisted wholly of CITB income.

Other operating lease rentals

50,320

37,597

Fees payable to the Company's auditor for the audit of the Company's financial statements

44,135

40,905

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated financial statements of the parent Company.

Page 17

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

Wages and salaries	1,827,968	1,605,091
Social security costs	228,995	188,159
Cost of defined contribution scheme	67,725	35,033
	2,124,688	1,828,283

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

	2023	2022
	No.	No.

Management	5	5
Administration	1	1
Direct	22	20

	28	26

9.	Directors' remuneration
		2023	2022
		£	£

Directors' emoluments	450,047	427,351
Company contributions to defined contribution pension schemes	2,512	3,173
	452,559	430,524

	During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £141,917 (2022 - £134,726).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £110).

Page 18

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

10.	Interest receivable
		2023	2022
		£	£

	Other interest receivable	196	1,112
		196	1,112

11.	Interest payable and similar expenses
		2023	2022
		£	£

Finance leases and hire purchase contracts	6,795	3,672
Other interest payable	26,519	-
	33,314	3,672

Corporation tax
Current tax on profits for the year	827,912	1,201,259
Adjustments in respect of previous periods	(449,550)	18,314
	378,362	1,219,573

Total current tax	378,362	1,219,573

Deferred tax
Origination and reversal of timing differences	(13,862)	48,013
Total deferred tax	(13,862)	48,013


	Taxation on profit on ordinary activities	364,500	1,267,586

Page 19

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

12.Taxation (continued)

Profit on ordinary activities before tax

4,315,732

6,452,803

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)	819,989	1,226,033
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	2,055	10,156
Fixed asset differences	6,345	(35,439)
Adjustments to tax charge in respect of prior periods	105,450	18,314
Short-term timing difference leading to an increase (decrease) in taxation	(477)	498
Other timing differences leading to an increase (decrease) in taxation	(13,862)	48,024
Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge	(555,000)	-
Total tax charge for the year	364,500	1,267,586

Factors that may affect future tax charges

From 1 April 2023, the corporation tax main rate increased from 19% to 25%.

13.	Dividends
		2023	2022
		£	£

	Ordinary dividends	3,000,000	3,000,000
		3,000,000	3,000,000

Page 20

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

14.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Office equipment	Total
	£	£	£	£
Cost or valuation
At 1 February 2022	618,638	316,101	101,209	1,035,948
Additions	83,545	171,979	16,309	271,833
Disposals	(1,357)	(125,991)	(679)	(128,027)
At 31 January 2023	700,826	362,089	116,839	1,179,754
Depreciation
At 1 February 2022	288,003	162,720	87,928	538,651
Charge for the year on owned assets	81,264	45,274	7,198	133,736
Disposals	(1,072)	(51,591)	(679)	(53,342)
At 31 January 2023	368,195	156,403	94,447	619,045
Net book value
At 31 January 2023	332,631	205,686	22,392	560,709
At 31 January 2022	330,635	153,381	13,281	497,297

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2023	2022
	£	£


Plant and machinery	167,387	209,234
Motor vehicles	76,976	32,760
	244,363	241,994

Page 21

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

15.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 February 2022	1
	At 31 January 2023	1

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

Archers Park (Management Company) Limited

Victoria Court, 17-21 Ashford Road, Maidstone, Kent, ME14 5DA

Ordinary

100%

	The aggregate of the share capital and reserves as at 31 January 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
	Name	Aggregate of share capital and reserves	Profit/(Loss)

Archers Park (Management Company) Limited

16.	Stocks
		2023	2022
		£	£

Property held for sale	726,256	1,919,192
Long-term contract balances	66,129	35,918
	792,385	1,955,110

Page 22

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

17.

Debtors

					2023	2022
					£	£


Trade debtors	1,916,663	2,234,870
Other debtors	24,051	307,041
Prepayments and accrued income	5,650,071	1,353,481
Amounts recoverable on long-term contracts	1,043,660	676,350
	8,634,445	4,571,742

18.	Cash and cash equivalents
		2023	2022
		£	£

Cash at bank and in hand	8,407,242	2,829,542
	8,407,242	2,829,542

19.	Creditors: Amounts falling due within one year
		2023	2022
		£	£

Payments received on account	6,637,923	103,145
Trade creditors	2,447,189	837,403
Amounts owed to group undertakings	300	300
Corporation tax	1,603,888	1,285,737
Other taxation and social security	228,385	58,940
Obligations under finance lease and hire purchase contracts	66,744	60,335
Other creditors	84,256	136,341
Accruals and deferred income	345,178	1,310,802
	11,413,863	3,793,003

Page 23

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

20.	Creditors: Amounts falling due after more than one year
		2023	2022
		£	£

Net obligations under finance leases and hire purchase contracts	98,095	115,235
	98,095	115,235

Within one year	73,391	65,706
Between 1-5 years	107,998	126,136
	181,389	191,842

22.	Deferred taxation

	2023	2022
	£	£

At beginning of year	(109,152)	(61,139)
Charged to profit or loss	13,862	(48,013)
At end of year	(95,290)	(109,152)

The provision for deferred taxation is made up as follows:
	2023	2022
	£	£

Accelerated capital allowances	(95,357)	(109,846)
Pension surplus	67	694
	(95,290)	(109,152)

Page 24

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

23.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

185,000 (2022 - 185,000) Ordinary shares of £1.00 each	185,000	185,000

There are no restrictions attached to the Ordinary shares.

24.	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 stakeholder pension scheme amounted to £67,725 (2022 - £35,033). Contributions totalling £269 (2022 - £4,774) were payable to the fund at the balance sheet date.
No amounts were payable by the Company to the self-administered scheme during the current or prior year.

Not later than 1 year	28,500	76,667
Later than 1 year and not later than 5 years	114,000	160,000
Later than 5 years	9,500	53,333
	152,000	290,000

26.Other financial commitments

The company is party to a cross corporate guarantee and set-off agreement with YEP Property Ltd, whereby any party to this arrangement could be liable to settle liabilities outstanding with Lloyds Bank PLC. YEP Property Ltd is a related party as disclosed in note 27.
A debenture agreement is in place between the Group (headed by Civils Contracting Holding Company Limited, in which the company is a subsidiary) and Bank of Scotland PLC, which contains fixed and floating charges over the assets of the Group. The assets could be discharged in the event of default of payment for current or future liabilities owed by the Group to the bank.

Page 25

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

27.	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 Trust. The following transactions occurred during the year which are classified as related party transactions: Movement on directors' current account balances during the year were as follows:

		Opening Balance	Amounts received	Amounts repaid	Closing balance
		£	£	£	£

P Medhurst	-	14,417	(14,417)	-
J Hilder	550	10,150	(10,700)	-
T Meenan	-	570	570	-
	550	25,137	(24,547)	-

M & M Pension Fund (P Medhurst, a director and shareholder, is a trustee and member)
Purchases totalling:
2023: £21,386
2022: £53,751
Repayments made:
2023: £21,386
2022: £53,751
Balance due (to)/from related party:
2023: £7,840
2022: £7,840
CCL Pension Fund (N Weaver, T Meenan and J Hilder, directors and shareholders, are trustees and
members):
Rent, rates and insurance costs paid to:
2023: £20,000
2022: £Nil
Balance due (to)/from related party:
2023: £762
2022: £762
YEP Property Ltd (P Medhurst, a director, was also a director and shareholder of YEP Property Ltd during
the year):
Unbilled revenue on long term contracts:
2023: £782,915
2022: £304,736

Page 26

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

27.Related party transactions (continued)

Page 27

CIVILS CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

28.	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 3 Archers Park, Branbridges Road, East Peckham, Kent, England, TN12 5HP.
In the opinion of the directors, the ultimate controlling party is The CC Trust.

Page 28