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Company registration number: 01302042
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ANNUAL REPORT AND FINANCIAL STATEMENTS
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FOR THE YEAR ENDED
30 APRIL 2023
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DUFFY CONSTRUCTION LIMITED
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DUFFY CONSTRUCTION LIMITED
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COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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DUFFY CONSTRUCTION LIMITED
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CONTENTS
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Independent auditors' report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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DUFFY CONSTRUCTION LIMITED
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STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
The directors are pleased to present their strategic report for the year ended 30 April 2023.
The purpose of the Strategic Report is to inform shareholders to help them to assess how the directors have performed their duties to promote the success of the Company. The report, together with additional information in the Directors’ Report, provides a fair and balanced review of the Company’s business including:
i) The development and performance of the business during the year;
ii) The position of the Company at the year-end; and
iii) A description of the principal risks and uncertainties facing the Company.
Principal Activities and Business Review
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The Company’s main activities are groundworks, reinforced concrete frames, external works and structural alterations within the construction industry.
The business has continued with its reputation of providing safe, quality work, customer service and transparent tendering to consistently win contracts.
The Company’s overall objective is to deliver shareholder value, through profitable contract work whilst managing risk carefully. The Company’s policy is to be selective when tendering to enable risk to be mitigated on projects however in the year under review our margin fell below expectation mainly due to abnormal increases in material and subcontractors costs within the wider context of economic upheaval during the period.
The Company has maintained a strong market position by continuing to invest in strong relationships in its supply chain maintaining a team ethos with all subcontractors and professionals engaged on projects.
Duffy Construction Limited operates in a competitive market. We are not dependent on a narrow product and work is carried out for a diverse range of clients. No supplier, customer or technical developments will render any product obsolete.
The Company is not experiencing any fundamental market or technology changes to which it may be unable to adapt. Neither is it subject normally to any externally forced reduction in operations as a consequence of law or regulation, albeit health & safety, quality and environmental issues provide a continuing challenge.
The Company’s results are set out on page 11. In the year to 30 April 2023, the Company recorded a loss before tax for the financial year of £734,553 (2022 - £1,046,060) due in the main to the reasons set out above.
The main KPI’s used are Turnover and Gross Profit.
Turnover was £18.3 million for the year ended 30 April 2023 compared to £15.2 million in 2022. Gross Profit was £2.1 million (11.6%) compared to £0.78 million (5%) in 2022.
Since the date of the balance sheet, there has been an increase in the bank balance to an amount in excess of £1.7 million as at 31 January 2024 due to the receipt of cash from ongoing construction activities which will be utilised to sustain the continued growth of the business.
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DUFFY CONSTRUCTION LIMITED
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
In the aftermath of Brexit, the Covid-19 pandemic, and the ongoing war in Ukraine, the recovery of the construction industry is anticipated to progress at a slower pace throughout 2024.
The company operates in several markets which has helped to spread our risk with property units out performing trading businesses in the current financial year.
The company has undertaken a comprehensive review of its operations in the light of the Covid 19 pandemic to ensure that the going concern assumption is valid and that there are no material uncertainties in this regard.
This involved cash flow forecasts for the period through to April 2025. The directors considered a number of operational, market, economic and financial factors in their assessment.
The Company order book in the year to April 2024 continues to develop and shows a continuing recovery with an even wider client base than in recent years.
The directors are pleased that the Company is in a strong position going forward together with its high quality customer base, staff and valued suppliers.
Safety, health, environmental and accreditations
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Our Accident Frequency Rate underlines the Company's commitment to providing safe places and safe systems of work for employees and contractors and the high quality of our health and safety training. The directors consider Health & Safety to be of the utmost importance, and the business has continued to invest in this area.
The Company continues to strive to improve its safety, health and environmental standards and performance. Achieving a zero RIDDOR is our reward for this investment.
These are monitored regularly throughout the year and reviewed in response to performance, changes in legislation and evolving industry best practice.
The Company recognises the importance of managing and promoting health and safety in the workplace to ensure robust controls are in place to control risk, instruction and training are provided to all staff and leadership and commitment are shown at senior management level.
The Company has achieved accreditations from or is a member of the following:
• Acclaim SSIP accreditation
• Constructionline – Gold Member
• Members of CONSTRUCT – The Concrete Structures Group
• The Concrete Society - members
• Premium member of the Builders Profile
• Members of ROSPA
• Goods vehicle operator's licence (standard national)
• Certificate of registration under the waste regulations 2011 - upper tier waste carrier/dealer
• ISO9001:2015
• Member of the Supply Chain Sustainability School
• Member of the Considerate Constructors Scheme
• Member of fleet operators recognition scheme (FORS)
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DUFFY CONSTRUCTION LIMITED
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
Principal risks and uncertainties
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The process of risk acceptance and risk management is addressed through a framework of policies, procedures, and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a priority for the Company.
Tenders are reviewed prior to acceptance to identify risk and ensure it is at an acceptable level or can be managed to an acceptable level.
We have built up solid relationships with our existing clients. The Company looks to spread its risks by actively engaging with new and existing clients together with the entire supply chain and indeed new suppliers.
Risk Management
Market Risk
Market risk emanates from economic downturns. The Board adheres to a policy that emphasizes the meticulous selection and management of projects we undertake through the implementation of robust financial and operational controls.
Safety, Health, Environmental and Quality (SHEQ)
SHEQ is at the forefront of our thinking in running the businesses, both on site and in the office. Our SHEQ team keep risks in this area under constant review and ongoing investment in this area has helped to ensure that risks are minimised and controlled.
Management and Employees
The Company employs high calibre staff across all levels of our operation. Many of our staff have been with the business for ten plus years. The risk is managed by ensuring all our knowledge base is shared throughout the Company. All staff are provided with the opportunity for internal and external training. As staff have joined, appropriate inductions, training and reviews ensure the same professionalism is maintained.
Financial Risk Management, Objectives and Policies
The Company's operations expose it to various financial risks including credit risk, liquidity risk and interest rate risk.
Credit risk
New credit customers are assessed and approved as part of the tender process. Existing customers are monitored for signs of potential credit risk.
Liquidity risk
The liquidity risk is managed by maintaining a balance between continuity of funding and flexibility through agreed payment policy. Strict payment terms are negotiated with our clients along with appropriate short term facilities. As most of our clients are blue chip companies, we do not tend to have an issue with bad debt.
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DUFFY CONSTRUCTION LIMITED
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
Interest rate cash flow risk
The Company’s hire purchase facilities are at a fixed rate helping to ensure that the Company’s performance is not significantly impacted by interest rate rises.
This report was approved by the board and signed on its behalf.
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J B Duffy
Director
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DUFFY CONSTRUCTION LIMITED
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DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
The directors present their report and the financial statements for the year ended 30 April 2023.
Directors' responsibilities statement
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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 judgments 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.
The loss for the year, after taxation, amounted to £739,523 (2022 -loss £1,056,849).
The directors who served during the year were:
Matters covered in the Strategic report
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The Company has chosen in accordance with the Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Company's Strategic Report Information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review, principal risks and uncertainties and future developments sections.
Disclosure of information to auditors
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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 auditors are 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 auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
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DUFFY CONSTRUCTION LIMITED
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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J B Duffy
Director
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DUFFY CONSTRUCTION LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUFFY CONSTRUCTION LIMITED
We have audited the financial statements of Duffy Construction Limited (the 'Company') for the year ended 30 April 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity 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 30 April 2023 and of its loss 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.
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 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
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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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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DUFFY CONSTRUCTION LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUFFY CONSTRUCTION LIMITED (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
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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
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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
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As explained more fully in the Directors' responsibilities statement set out on page 5, 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.
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DUFFY CONSTRUCTION LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUFFY CONSTRUCTION LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' 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:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, CITB levy compliance, employment law and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Companys financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions;
°Estimations used in calculating amounts recoverable on long term contracts;
°Risks relating to subcontractor transactions; and,
°Risk of fictitious employees.
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 is available on the Financial Reporting Council’s website at:
https://www.frc.org.uk /Our-Work/Audit/Audit -and-assurance/Standards -and-guidance /Standards-and-guidance -forauditors/
Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx.
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DUFFY CONSTRUCTION LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUFFY CONSTRUCTION LIMITED (CONTINUED)
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 Auditors' 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.
Andrew Cook FCA (Senior statutory auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Statutory Auditor
Magna House
18-32 London Road
Staines-Upon-Thames
TW18 4BP
5 February 2024
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DUFFY CONSTRUCTION LIMITED
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
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Interest payable and similar expenses
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Loss for the financial year
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There was no other comprehensive income for 2023 (2022:£NIL).
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The notes on pages 14 to 23 form part of these financial statements.
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DUFFY CONSTRUCTION LIMITED
REGISTERED NUMBER:01302042
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STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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J B Duffy
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The notes on pages 14 to 23 form part of these financial statements.
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DUFFY CONSTRUCTION LIMITED
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
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Comprehensive income for the year
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The notes on pages 14 to 23 form part of these financial statements.
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
Duffy Construction Limited is a private company limited by shares incorporated and domiciled in England and Wales. The address of its registered office and principal place of business is provided on the company information page.
2.Accounting policies
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Basis of preparation of financial statements
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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 judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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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 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.
This information is included in the consolidated financial statements of Duffy Group Holdings Limited as at 30 April 2023 and these financial statements may be obtained from Companies House.
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.
Long-term contracts are assessed on a contract-by-contract basis and are reflected in the profit and loss account by recording turnover and related costs as the contract activity progresses. Revenue is ascertained in a manner appropriate to the stage of completion of the contract.
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
Finance costs are charged to the Statement of Comprehensive Income 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.
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Current and deferred taxation
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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 reporting 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 reporting 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 reporting date.
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, using the straight-line method.
Depreciation is provided on the following basis:
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.
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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Provisions for liabilities
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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 reporting 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 Statement of financial position.
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.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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When preparing the financial statements, management is required to make estimates and assumptions which affect income, expenses, assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
Long term contracts valuation and stage of completion
The stage of completion and the valuation of the long term contracts are estimated by professional surveyors. WIP as described in the long-term contracts accounting policy could results in a material adjustment to the carrying amount disclosed in debtors. At the year end the balance of WIP included as amounts recoverable on contracts was £4,483,430 (2022: £4,864,747).
The performance of ongoing construction contracts are reviewed regularly by the directors and appropriate provisions made where contracts are identified as likely to be loss making in accordance with UK GAAP. At the year end no provision was made in this respect (2022 - £330,000).
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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The operating loss is stated after charging:
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Depreciation of tangible fixed assets held under finance leases
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Depreciation on owned assets
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Auditor's remuneration is paid by Duffy Group Limited, the Company's immediate parent company.
The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the ultimate parent Company, Duffy Group Holdings Limited.
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Staff costs were as follows:
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The average monthly number of employees, including the directors, during the year was as follows:
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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The directors of the company are remunerated through the parent company, Duffy Group Limited. Their remuneration is disclosed in the consolidated financial statements of the ultimate parent company, Duffy Group Holdings Limited.
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Interest payable and similar expenses
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Finance leases and hire purchase contracts
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
10.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2022 -the same as) the standard rate of corporation tax in the UK of 19.5% (2022 -19%). The differences are explained below:
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Loss on ordinary activities before tax
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Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.5% (2022 -19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Losses carried forward not recognised
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Total tax charge for the year
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Charge for the year on owned assets
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
11.Tangible fixed assets (continued)
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts recoverable on long-term contracts
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Obligations under finance lease and hire purchase contracts are secured by the assets purchased under these contracts.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Obligations under finance lease and hire purchase contracts are secured by the assets purchased under these contracts.
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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The Company has not recognised a deferred tax asset of £170,042 (2022 - £nil) in respect of tax losses due to the uncertainty of future profitability. These losses will be available to utilise against future profits should they arise.
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The onerous contract provision related to estimated losses on construction projects in progress at the year ended 30 April 2022.
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Allotted, called up and fully paid
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150,000 (2022 - 150,000) Ordinary shares of £1.00 each
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The Company has one class of ordinary shares which carry no right to fixed income.
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DUFFY CONSTRUCTION LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
Profit and loss account
This reserve records retained earnings and accumulated losses.
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Related party transactions
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The company has taken advantage of the exemptions conferred by FRS 102 from the requirement to make disclosures regarding transactions with other group companies.
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Parent company and controlling party
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The immediate controlling party is Duffy Group Limited. Copies of their accounts can be obtained from their registered office at Duffy House, 1 Mount Road, Feltham, Middlesex, TW13 6AR or from Companies House. The ultimate controlling party is J B Duffy, shareholder of Duffy Group Holdings Limited, the ultimate parent.
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