GWKS Ltd - Limited company accounts 17.3

REGISTERED NUMBER: 05704709 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

For The Year Ended 31 March 2017

for

GWKS Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

D R Hutchinson

P W Roberts

REGISTERED OFFICE:

Goodridge Court

Goodridge Avenue

Gloucester

Gloucestershire

GL2 5EN

REGISTERED NUMBER:

05704709 (England and Wales)

AUDITORS:

Kingscott Dix Limited

Chartered Accountants

and Statutory Auditor

Goodridge Court

Goodridge Avenue

Gloucester

Gloucestershire

GL2 5EN

The directors present their strategic report for the year ended 31 March 2017.

In the opinion of the directors, the general performance and development of the company during the year

ended 31 March 2017 and its financial position as at that date were satisfactory.

The directors look forward to ensuring the continued stability of the company by developing and reinforcing its

position in its chosen business sector.

There have been no important events affecting the company since the balance sheet date.

REVIEW OF BUSINESS

The key financial highlights were as follows:-

2017

2016

2015

2014

2013

Turnover

£19,539K

£13,075K

£9,903K

£14,149K

£14,656K

Gross profit

£1,573K

£1,138K

£920K

£1,065K

£1,085K

Profit/ (Loss) before tax

£453K

£260K

£119K

£146K

£331K

Turnover for the year has been increased with an improvement in monetary gross profit.

The company continues to monitor costs and the directors are confident that the current structure will enable

the company to maintain its profitability in the future. Trading post year end has been challenging but the

company maintains a positive outlook for 2018 results.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is principally focused on site preparation and groundworks. It has increased its level of turnover

and continues to include many blue chip construction firms as clients.

The company also aims to ensure continuity with its employees and suppliers subject to market conditions

and continues to improve its responsibilities towards Health & Safety, working conditions, and the

environment as well as the training of its employees.

The company is involved in a highly competitive market and margins continue to be tight. The directors are

cognisant of the current economic climate and the limitations it places on the availability of new monies for

investment in new projects.

The directors are therefore aware that all plans for the future may be subject to unforeseen future events

outside their control.

ON BEHALF OF THE BOARD:

D R Hutchinson - Director

18 December 2017

The directors present their report with the financial statements of the company for the year ended 31 March 2017.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2017 will be £92,477.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2016 to the date of this

report.

D R Hutchinson

P W Roberts

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company

law the directors must not approve the financial statements unless they are satisfied that they give a true and

fair view of the state of affairs of the company and 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 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps

that he ought to have taken as a director in order to make himself aware of any relevant audit information and

to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Kingscott Dix Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

D R Hutchinson - Director

18 December 2017

We have audited the financial statements of GWKS Ltd for the year ended 31 March 2017 on pages six to

nineteen. The financial reporting framework that has been applied in their preparation is 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'.

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in a Report of the Auditors and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company's members as a body, for our audit work, for this report, or for the opinions we

have formed.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient

to give reasonable assurance that the financial statements are free from material misstatement, whether

caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to

the company's circumstances and have been consistently applied and adequately disclosed; the

reasonableness of significant accounting estimates made by the directors; and the overall presentation of the

financial statements. In addition, we read all the financial and non-financial information in the Strategic Report

and the Report of the Directors to identify material inconsistencies with the audited financial statements and to

identify any information that is apparently materially incorrect based on, or materially inconsistent with, the

knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2017 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the Strategic

Report and the Report of the Directors for the financial year for which the financial statements are prepared is

consistent with the financial statements, and has been prepared in accordance with applicable legal

requirements. In the light of the knowledge and understanding of the company and its environment, we have

not identified any material misstatements in the Strategic Report or the Report of the Directors.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept, 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.

Peter Morgan (Senior Statutory Auditor)

for and on behalf of Kingscott Dix Limited

Chartered Accountants

and Statutory Auditor

Goodridge Court

Goodridge Avenue

Gloucester

Gloucestershire

GL2 5EN

19 December 2017

TURNOVER

19,539,292

13,074,536

Cost of sales

17,966,621

11,936,890

GROSS PROFIT

1,572,671

1,137,646

Administrative expenses

1,191,886

1,020,902

380,785

116,744

Other operating income

77,720

146,959

OPERATING PROFIT

4

458,505

263,703

Interest receivable and similar income

-

2

458,505

263,705

Interest payable and similar expenses

5

5,425

3,826

PROFIT BEFORE TAXATION

453,080

259,879

Tax on profit

6

91,931

70,732

PROFIT FOR THE FINANCIAL YEAR

361,149

189,147

PROFIT FOR THE YEAR

361,149

189,147

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

361,149

189,147

FIXED ASSETS

Tangible assets

8

133,254

114,114

CURRENT ASSETS

Stocks

9

3,000

3,000

Debtors

10

4,573,690

2,834,436

Cash at bank and in hand

211,801

33,872

4,788,491

2,871,308

CREDITORS

Amounts falling due within one year

11

4,161,861

2,493,431

NET CURRENT ASSETS

626,630

377,877

TOTAL ASSETS LESS CURRENT LIABILITIES

759,884

491,991

CREDITORS

Amounts falling due after more than one year

12

(33,217

)

(37,889

)

PROVISIONS FOR LIABILITIES

14

(26,351

)

(22,458

)

NET ASSETS

700,316

431,644

CAPITAL AND RESERVES

Called up share capital

15

220

220

Retained earnings

16

700,096

431,424

SHAREHOLDERS' FUNDS

700,316

431,644

The financial statements were approved by the Board of Directors on 18 December 2017 and were signed on its behalf by:

D R Hutchinson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2015

220

339,554

339,774

Changes in equity

Dividends

-

(97,277

)

(97,277

)

Total comprehensive income

-

189,147

189,147

Balance at 31 March 2016

220

431,424

431,644

Changes in equity

Dividends

-

(92,477

)

(92,477

)

Total comprehensive income

-

361,149

361,149

Balance at 31 March 2017

220

700,096

700,316

Cash flows from operating activities

Cash generated from operations

1

380,256

192,530

Interest element of hire purchase payments paid

(5,425

)

(3,826

)

Tax paid

(55,662

)

(18,897

)

Net cash from operating activities

319,169

169,807

Cash flows from investing activities

Purchase of tangible fixed assets

(46,370

)

(68,279

)

Sale of tangible fixed assets

-

41,667

Interest received

-

2

Net cash from investing activities

(46,370

)

(26,610

)

Cash flows from financing activities

Capital repayments in year

(2,393

)

33,304

Amount withdrawn by directors

-

(4,282

)

Equity dividends paid

(92,477

)

(97,277

)

Net cash from financing activities

(94,870

)

(68,255

)

Increase in cash and cash equivalents

177,929

74,942

Cash and cash equivalents at beginning of year

2

33,872

(41,070

)

Cash and cash equivalents at end of year

2

211,801

33,872

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

31.3.17

31.3.16

£

£

Profit before taxation

453,080

259,879

Depreciation charges

27,230

24,411

Profit on disposal of fixed assets

-

(473

)

Finance costs

5,425

3,826

Finance income

-

(2

)

485,735

287,641

(Increase)/decrease in trade and other debtors

(1,739,254

)

493,904

Increase/(decrease) in trade and other creditors

1,633,775

(589,015

)

Cash generated from operations

380,256

192,530

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in

respect of these Balance Sheet amounts:

Year ended 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

211,801

33,872

Year ended 31 March 2016

31.3.16

1.4.15

£

£

Cash and cash equivalents

33,872

664

Bank overdrafts

-

(41,734

)

33,872

(41,070

)

1.	STATUTORY INFORMATION

GWKS Ltd is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents attributable income received and receivable on long-term contracts undertaken

during the year exclusive of value added tax.

Turnover is measured at the fair value of the consideration received or receivable, net of value added

tax. Turnover on long-term contracts is descibed below.

The company recognises revenue when:

- the amount of revenue can be reliably measured;

- it is probable that future economic benefits will flow to to the entity;

- and specific criteria have been met for each of the company activities.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

15% on reducing balance

Office equipment, fixtures and fittings

-

33% on cost and 15% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement,

except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those

held under finance leases are depreciated over their estimated useful lives or the lease term,

whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the

period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Long-term contracts

Revenue is recognised in accordance with FRS 102 section 23. Turnover arises from increases in

valuations on long-term contracts.Where the outcome of a construction contract can be estimated

reliably and it is probable that the contract will be profitable, turnover and costs are recognised by

reference to the stage of completion of the contract activity at the balance sheet date. Stage of

completion is assessed by reference to the proportion of contract costs incurred for the work

performed to date relative to the estimated total costs, except where this would not be representative of

the stage of completion.

When it is probable that total contract costs will exceed contract turnover, the expected loss is

recognised as an expense immediately.

Variations and claims are included where it is probable that the amount, which can be measured

reliably, will be recovered from the customer. When the outcome of a construction contract cannot be

estimated reliably, contract turnover is recognised to the extent of contract costs incurred where it is

probable those costs will be recoverable.

Contact costs are recognised as expenses in the period in which they are incurred.

Financial instruments

Financial assets and liabilities

All financial instruments and liabilities are initially measured at transaction price (including transaction

costs), except for those financial assets classified as at fair value through profit or loss, which are

initially measured at fair value (which is normally the transaction price excluding transaction costs),

unless the arrangement constitutes a financing transaction, where the transaction is measured at the

present value of future receipts discounted at a market rate of interest.

3.	EMPLOYEES AND DIRECTORS

31.03.17

31.03.16

£

£

Wages and salaries

3,839,125

3,132,124

Social security costs

403,055

317,564

Other pension costs

43,811

31,433

4,285,991

3,481,121

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

31.03.17

31.03.16

Total

118

100

31.3.17

31.3.16

£

£

Directors' remuneration

77,743

52,611

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.3.17

31.3.16

£

£

Hire of plant and machinery and fuel costs

2,674,138

1,724,690

Other operating leases

29,065

26,827

Depreciation - owned assets

7,139

11,885

Depreciation - assets on hire purchase contracts

20,091

12,527

Profit on disposal of fixed assets

-

(473

)

Auditors' remuneration

8,200

8,200

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.17

31.3.16

£

£

Hire purchase

5,425

3,826

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.3.17

31.3.16

£

£

Current tax:

UK corporation tax

88,038

55,662

Under/(Over) provision in respect of previous period

-

7,418

Total current tax

88,038

63,080

Deferred tax

3,893

7,652

Tax on profit

91,931

70,732

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The

difference is explained below:

31.3.17

31.3.16

£

£

Profit before tax

453,080

259,879

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20%)

90,616

51,976

Effects of:

Expenses not deductible for tax purposes

1,315

4,257

Capital allowances in excess of depreciation

(3,893

)

(571

)

(Over)/under provision in respect of previous year

-

7,418

Deferred tax

3,893

7,652

Total tax charge

91,931

70,732

7.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2017 will be £92,477.

8.	TANGIBLE FIXED ASSETS

Office

equipment,

fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2016

14,553

43,427

153,532

211,512

Additions

13,575

8,262

24,533

46,370

At 31 March 2017

28,128

51,689

178,065

257,882

DEPRECIATION

At 1 April 2016

9,309

25,133

62,956

97,398

Charge for year

2,288

4,851

20,091

27,230

At 31 March 2017

11,597

29,984

83,047

124,628

NET BOOK VALUE

At 31 March 2017

16,531

21,705

95,018

133,254

At 31 March 2016

5,244

18,294

90,576

114,114

The above includes fixed assets held under finance leases or hire purchase with a net book value of

£72,495 (2016: £90,576).

9.

STOCKS

31.3.17

31.3.16

£

£

Stocks

3,000

3,000

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Trade debtors

4,516,312

2,816,329

Other debtors

53,609

13,102

Corporation tax recoverable

3,615

3,615

Called up share capital not paid

154

154

Prepayments and accrued income

-

1,236

4,573,690

2,834,436

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Hire purchase contracts (see note 13)

55,655

53,376

Trade creditors

3,473,226

1,848,233

Corporation tax

88,038

55,662

Social security and other taxes

196,016

375,255

Other creditors

118,555

71,353

Factoring loan

200,000

-

Accruals and deferred income

30,371

89,552

4,161,861

2,493,431