Hampsey Limited Company accounts

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COMPANY REGISTRATION NUMBER: 06214833

Hampsey Limited

Financial Statements

31 December 2023

Hampsey Limited

Financial Statements

Period from 1 August 2022 to 31 December 2023

Contents	Pages

Officers and professional advisers	1

Strategic report	2 to 3

Directors' report	4 to 5

Independent auditor's report to the members	6 to 8

Statement of income and retained earnings	9

Statement of financial position	10

Statement of cash flows	11

Notes to the financial statements	12 to 20

Hampsey Limited

Officers and Professional Advisers

The board of directors	Mr B Hampsey
	Mr G J A Hampsey

Registered office	Dunston Innovation Centre
	Dunston Road
	Chesterfield
	Derbyshire
	S41 8NG

Auditor	MCABA Limited t/a Mitchells
	Chartered Accountants & statutory auditor
	91-97 Saltergate
	Chesterfield
	Derbyshire
	S40 1LA

Bankers	National Westminster
	42 High Street
	Sheffield
	South Yorkshire
	S1 2GE

Hampsey Limited

Strategic Report

Period from 1 August 2022 to 31 December 2023

Overview of operational principal activity The company continues to provide construction solutions to the construction and civils build sector, operating throughout Scotland and England. We continue to work directly for Tier 1 contractors whilst we also maintain continued focus on direct engagements with clients. Target sectors - Student/Residential accommodation and BTR. - Energy Infrastructure. - Civils Projects Results for period ended 31 December 2023 The directors are pleased to report a profit of 6% on turnover of £28m, with cash generation and profitability improving over the period. The Board are pleased with this result, considering the challenging markets that we have operated in, driven predominantly by construction material inflation. This resulted in many materials we use in large volumes more than doubling in price with lead times tripling, whilst labour shortages drove labour rates up to an all time high. The construction market seems to have slowed, with clients seeing schemes going back because of the economic turbulence related predominantly to inflationary pressures, the energy and cost of living crises and uncertainty with the war in Ukraine. Summary and outlook Despite a continued challenging period for the construction industry, we are happy to report the strategy we have in place highlights the drive and motivation of our people to use our passion and expertise day-in, day-out, to deliver exceptional construction services to our clients. The company has been very active tendering, and has secured new projects covering 2024, with additional projects expected to come on stream later in the year. Current secured order book is over £45m, and the company expects to generate both profit and cash. The big goals for the coming year are: Deliver exceptional results and service to our valued clients. Maintain excellent health and safety standards. Reduce external borrowing. Develop and improve business and IT systems to improve controls and generate efficiencies. Continue to invest in the development of staff. Continue ongoing programme of capital expenditure, the aim being to make the business self-sufficient. Principal risks and uncertainties The directors meet regularly to consider the risks (both financial and non-financial) that face the company and how established processes and controls are used to manage these risks. Key risks and uncertainties are outlined below: Market risk Brexit has continued to impact the supply of appropriately qualified labour. These shortages combined with increase pressure on costs, particularly energy and material prices, continue to impact the company, the supply chain and the wider construction sector. The company closely monitors supply chain issues, materials pricing and contracts. Legislative and regulatory risk The company's operations are subject to a number of regulations in the UK. Health and Safety is a key risk and the company strategy is embedded in the business and supply chain. It is reviewed on an ongoing basis. Competition The company operates in a highly competitive market. The company aims to remain competitive whilst maintaining a high quality of work. Financial risks The company is exposed to liquidity risk as sufficient funds are required to support day to day trading. Interest rate increases also impact the company. Cash flow is monitored by the management and a they maintain a mix of short and long term loans to best suit the company's needs.

This report was approved by the board of directors on 7 June 2024 and signed on behalf of the board by:

Mr G J A Hampsey

Director

Hampsey Limited

Directors' Report

Period from 1 August 2022 to 31 December 2023

The directors present their report and the financial statements of the company for the period ended 31 December 2023 .

Directors

The directors who served the company during the period were as follows:

Mr B Hampsey
Mr G J A Hampsey

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Financial instruments

Financial risk management objectives and policies

These are detailed in the strategic report.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, 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 period. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies 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 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 7 June 2024 and signed on behalf of the board by:

Mr G J A Hampsey

Director

Hampsey Limited

Independent Auditor's Report to the Members of Hampsey Limited

Period from 1 August 2022 to 31 December 2023

Opinion

We have audited the financial statements of Hampsey Limited (the 'company') for the period ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows 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 FRS 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 December 2023 and of its profit for the period then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The comparative figures were not audited.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the directors' report for the financial period 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, 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.

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 my 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 in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at https: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Auditor's responsibilities for detecting irregularities, including fraud The objectives of our audit are: to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant; the Companies Act 2006, UK corporate taxation laws, employment law, health and safety laws. - We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to relevant members of the management team. We corroborated our inquiries though our review and inquiry into legal fees incurred in the year. - We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: - Identifying the controls management has in place to prevent and detect fraud and assessing the operation of these controls - Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process - Identifying and testing journal entries, in particular any journal entries that were large or unusual in nature - Assessing the extent of compliance with the relevant laws and regulations governing the company and the sector it operates within. This included a review of any potential breaches during and since the year end; and - Challenging assumptions and judgements made by management in its significant accounting estimates. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or collusion.

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.

Andrew McDaid BFP FCA

(Senior Statutory Auditor)

For and on behalf of

MCABA Limited t/a Mitchells

Chartered Accountants & statutory auditor

91-97 Saltergate

Chesterfield

Derbyshire

S40 1LA

7 June 2024

Hampsey Limited

Statement of Income and Retained Earnings

Period from 1 August 2022 to 31 December 2023

		Period from
		1 Aug 22 to	Year to
		31 Dec 23	31 Jul 22
Note		£	£
Turnover	4	28,154,138	13,797,776

Cost of sales	24,072,312	11,783,066
	-------------	-------------
Gross Profit	4,081,826	2,014,710

Administrative expenses		2,011,410	1,052,470
Other operating income		23,772	–
		------------	------------
Operating Profit	5	2,094,188	962,240

Other interest receivable and similar income	9	1,049	978
Interest payable and similar expenses	10	278,840	65,070
		------------	------------
Profit Before Taxation		1,816,397	898,148

Tax on profit	11	412,232	247,889
		------------	---------
Profit for the Financial Period and Total Comprehensive Income		1,404,165	650,259
		------------	---------

Dividends paid and payable	12	( 748,248)	( 310,283)

Retained Earnings at the Start of the Period	1,253,217	913,241
	------------	------------
Retained Earnings at the End of the Period	1,909,134	1,253,217
	------------	------------

All the activities of the company are from continuing operations.

Hampsey Limited

Statement of Financial Position

31 December 2023

	31 Dec 23		31 Jul 22
Note	£	£	£

Fixed Assets

Tangible assets	13		2,669,498	2,119,694

Current Assets

Debtors	14	5,646,054	3,118,176
Cash at bank and in hand		1,256,152	1,116,511
		------------	------------
		6,902,206	4,234,687

Creditors: amounts falling due within one year	15	6,156,815		3,540,982
		------------		------------
Net Current Assets			745,391	693,705
			------------	------------
Total Assets Less Current Liabilities			3,414,889	2,813,399

Creditors: amounts falling due after more than one year	16		837,378	1,068,116

Provisions

Taxation including deferred tax	18	667,375	491,064
		------------	------------
Net Assets		1,910,136	1,254,219
		------------	------------

Capital and Reserves

Called up share capital	20	1,002	1,002
Profit and loss account	21	1,909,134	1,253,217
		------------	------------
Shareholders Funds		1,910,136	1,254,219
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 7 June 2024 , and are signed on behalf of the board by:

Mr G J A Hampsey

Director

Company registration number: 06214833

Hampsey Limited

Statement of Cash Flows

Period from 1 August 2022 to 31 December 2023

	31 Dec 23	31 Jul 22
	£	£

Cash Flows from Operating Activities

Profit for the financial period	1,404,165	650,259

Adjustments for:
Depreciation of tangible assets	338,752	150,925
Other interest receivable and similar income	( 1,049)	( 978)
Interest payable and similar expenses	278,840	65,070
Gains on disposal of tangible assets	( 3,570)	–
Tax on profit	412,232	247,889

Changes in:
Trade and other debtors	( 2,530,050)	( 1,583,923)
Trade and other creditors	1,746,861	413,991
	------------	------------
Cash generated from operations	1,646,181	( 56,767)

Interest paid	( 278,840)	( 65,070)
Interest received	1,049	978
Tax received/(paid)	2,172	( 188,165)
	------------	---------
Net cash from/(used in) operating activities	1,370,562	( 309,024)
	------------	---------

Cash Flows from Investing Activities

Purchase of tangible assets	( 903,000)	( 970,014)
Proceeds from sale of tangible assets	18,014	–
	------------	---------
Net cash used in investing activities	( 884,986)	( 970,014)
	------------	---------

Cash Flows from Financing Activities

Proceeds from borrowings	780,000	1,028,577
Repayments of borrowings	( 233,714)	( 514,210)
Payments of finance lease liabilities	( 363,249)	( 106,066)
Dividends paid	( 748,248)	( 310,283)
Increase/(decrease) in director's loan account	( 191,558)	163,586
New finance lease liabilities	410,834	769,389
	------------	------------
Net cash (used in)/from financing activities	( 345,935)	1,030,993
	------------	------------

Net Increase/(Decrease) in Cash and Cash Equivalents	139,641	( 248,045)
Cash and Cash Equivalents at Beginning of Period	1,116,511	1,364,556
	------------	------------
Cash and Cash Equivalents at End of Period	1,256,152	1,116,511
	------------	------------

Hampsey Limited

Notes to the Financial Statements

Period from 1 August 2022 to 31 December 2023

(continued)

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Dunston Innovation Centre, Dunston Road, Chesterfield, Derbyshire, S41 8NG.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

The results for the current period are for the 17 months ended 31 December 2023. As a result, the comparative period is not entirely comparable as it covers a a period of 12 months to 31 July 2022.

Judgements and key sources of estimation uncertainty

In the process of applying the company's accounting policies, the directors are required to make certain estimates, judgements and assumptions that they believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The estimate and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful life and residual values Tangible assets The charge in respect of depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives and residual values of the company's assets may vary depending on several factors such as, technological innovation, maintenance programmes and future market conditions. They are determined by management at the time the asset is acquired and reviewed annually for appropriateness. Recoverability of trade debtors The directors make provisions for doubtful debts based on an assessment of the recoverability of trade debtors. Provisions are applied to trade debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. This methodology is applied on an individual resident basis. Leases Determining whether leases entered into by the company as a lessee are operating or finance leases requires judgement. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee based on the evaluation of the terms and conditions of the arrangements on a lease by lease basis.

Revenue recognition

Turnover is revenue from the supply of construction contracts, exclusive of value added tax. Turnover in respect of long-term contracts is recognised by reference to the stage of completion. Construction contracts When the outcome of individual construction contracts can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion at the reporting date. Costs are recognised as incurred and do not include those relating to future activity such as for materials or prepayments. Revenue is recognised based on surveys of work performed by it quantity surveyors. Revenue in respect of variations to contracts are recognised when it is probable they will be agreed by the customer. Revenue in respect of claims is recognised when negotiations have reached an advanced stage such that it is probable that the customer will accept the claim and the amount can be measured reliably. Profit for the year includes the benefit of claims settled in the year on contracts completed in previous years. Provision is made for all known or expected losses on individual contracts once such losses are foreseen.

Income tax

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant & machinery	-	3 - 18 years straight line
Motor vehicles	-	4 years straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

4. Turnover

Turnover arises from:

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£
Construction contracts	28,154,138	13,797,776
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£
Depreciation of tangible assets	338,752	150,925
Gains on disposal of tangible assets	( 3,570)	–
Operating lease rentals	77,196	36,665
Foreign exchange differences	10,148	1,057
	---------	---------

6. Auditor's remuneration

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£
Fees payable for the audit of the financial statements	22,666	–
	--------	----

7. Staff costs

The average number of persons employed by the company during the period, including the directors, amounted to:

	31 Dec 23	31 Jul 22
	No.	No.
Management staff	7	6
	----	----

The aggregate payroll costs incurred during the period, relating to the above, were:

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£
Wages and salaries	214,007	111,416
	---------	---------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£
Remuneration	84,869	30,989
	--------	--------

9. Other interest receivable and similar income

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£
Interest on loans and receivables	–	342
Interest on cash and cash equivalents	1,049	–
Interest receivable HMRC	–	636
	-------	----
	1,049	978
	-------	----

10. Interest payable and similar expenses

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£
Interest on banks loans and overdrafts	196,405	41,740
Interest on obligations under finance leases and hire purchase contracts	82,435	23,330
	---------	--------
	278,840	65,070
	---------	--------

11. Tax on profit

Major components of tax expense

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£

Current tax:

UK current tax expense	235,921	–

Deferred tax:

Origination and reversal of timing differences	176,311	247,889
	---------	---------
Tax on profit	412,232	247,889
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the period is higher than (2022: higher than) the standard rate of corporation tax in the UK of 21.20 % (2022: 19 %).

	Period from
	1 Aug 22 to	Year to
	31 Dec 23	31 Jul 22
	£	£
Profit on ordinary activities before taxation	1,816,397	898,148
	------------	---------
Profit on ordinary activities by rate of tax	385,451	170,648
Effect of expenses not deductible for tax purposes	10,633	7,632
Effect of capital allowances and depreciation	( 130,968)	( 203,819)
Utilisation of tax losses	( 28,524)	–
Unused tax losses	–	25,539
Deferred tax charge for the period	176,311	247,889
Marginal relief	( 671)	–
	------------	---------
Tax on profit	412,232	247,889
	------------	---------

12. Dividends

Dividends paid during the period (excluding those for which a liability existed at the end of the prior period):

	31 Dec 23	31 Jul 22
	£	£
Dividends	748,248	310,283
	---------	---------

13. Tangible assets

	Plant and machinery	Motor vehicles	Total
	£	£	£
Cost
At 1 August 2022	2,602,286	231,358	2,833,644
Additions	706,315	196,685	903,000
Disposals	–	( 115,180)	( 115,180)
	------------	---------	------------
At 31 December 2023	3,308,601	312,863	3,621,464
	------------	---------	------------
Depreciation
At 1 August 2022	544,500	169,450	713,950
Charge for the period	295,676	43,076	338,752
Disposals	–	( 100,736)	( 100,736)
	------------	---------	------------
At 31 December 2023	840,176	111,790	951,966
	------------	---------	------------
Carrying amount
At 31 December 2023	2,468,425	201,073	2,669,498
	------------	---------	------------
At 31 July 2022	2,057,786	61,908	2,119,694
	------------	---------	------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 December 2023	1,007,593	190,185	1,197,778
	------------	---------	------------
At 31 July 2022	944,095	30,794	974,889
	------------	---------	------------

14. Debtors

	31 Dec 23	31 Jul 22
	£	£
Trade debtors	2,278,945	274,964
Prepayments and accrued income	57,705	90,269
Corporation tax repayable	–	2,172
Amounts recoverable on contracts	3,309,404	2,548,849
Other debtors	–	201,922
	------------	------------
	5,646,054	3,118,176
	------------	------------

15. Creditors: amounts falling due within one year

	31 Dec 23	31 Jul 22
	£	£
Other loans	1,079,873	301,830
Trade creditors	3,208,774	2,420,654
Accruals and deferred income	903,863	241,541
Corporation tax	238,659	–
Social security and other taxes	309,951	2,305
Obligations under finance leases and hire purchase contracts	311,659	265,094
Director loan accounts	103,232	294,790
Other creditors	804	14,768
	------------	------------
	6,156,815	3,540,982
	------------	------------

The obligations under finance leases and hire purchase contracts are secured on the assets thereunder.

16. Creditors: amounts falling due after more than one year

	31 Dec 23	31 Jul 22
	£	£
Other loans	257,489	489,247
Obligations under finance leases and hire purchase contracts	579,889	578,869
	---------	------------
	837,378	1,068,116
	---------	------------

The obligations under finance leases and hire purchase contracts are secured on the assets thereunder.

There are legal charges, incorporating a fixed and floating charges, over the assets owned by the company.

17. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	31 Dec 23	31 Jul 22
	£	£
Not later than 1 year	311,659	265,094
Later than 1 year and not later than 5 years	579,889	578,869
	---------	---------
	891,548	843,963
	---------	---------

18. Provisions

	Deferred tax (note 19)
	£
At 1 August 2022	491,064
Additions	176,311
	---------
At 31 December 2023	667,375
	---------

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	31 Dec 23	31 Jul 22
	£	£
Included in provisions (note 18)	667,375	491,064
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	31 Dec 23	31 Jul 22
	£	£
Accelerated capital allowances	667,375	525,673
Unused tax losses	–	( 34,609)
	---------	---------
	667,375	491,064
	---------	---------

20. Called up share capital

Issued, called up and fully paid

	31 Dec 23		31 Jul 22
	No.	£	No.	£
A Ordinary shares of £ 1 each	351	351	501	501
B Ordinary shares of £ 1 each	501	501	501	501
C Ordinary shares of £ 1 each	150	150	–	–
	-------	-------	-------	-------
	1,002	1,002	1,002	1,002
	-------	-------	-------	-------

The shares rank pari-passu and have full rights regarding voting, payment of dividends and distributions. On 3 April 2023 150 A Ordinary shares of £1 each were re-designated to 150 C Ordinary shares of £1 each.

21. Reserves

Called up share capital - This represents the nominal value of the shares that have been issued. Profit and loss account - This reserve records retained earnings and accumulated losses.

22. Analysis of changes in net debt

	At 1 Aug 2022	Cash flows	At 31 Dec 2023
	£	£	£
Cash at bank and in hand	1,116,511	139,641	1,256,152
Debt due within one year	(861,714)	(633,050)	(1,494,764)
Debt due after one year	(1,068,116)	230,738	(837,378)
	------------	---------	------------
	( 813,319)	( 262,671)	( 1,075,990)
	------------	---------	------------

23. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	31 Dec 23	31 Jul 22
	£	£
Not later than 1 year	49,822	40,833
Later than 1 year and not later than 5 years	19,496	56,368
	--------	--------
	69,318	97,201
	--------	--------