Registered number:
FOR THE YEAR ENDED 31 OCTOBER 2021
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ROBERT WOODHEAD LIMITED
COMPANY INFORMATION
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ROBERT WOODHEAD LIMITED
CONTENTS
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ROBERT WOODHEAD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2021
The Business Review for this year is led once again by our experiences of what has continued to be a testing period for the sectors we operate within and the wider economy. As we wrote the Review for the last year, we were beginning to see Covid-19 restrictions easing, and we acknowledged that the recovery was likely to take some time. Following this we have continued to see challenges such as material and labour price increases, energy demand crises, fuel shortages and logistical issues, to name a few.
Despite the challenging conditions the business has continued to build back positively to a profitable position with revenue of £39.7m and net operating profit at 0.5%. We have achieved this without accessing any additional borrowing such as loans or the Government CBIL initiative, we have continued to reduce our indebtedness and we are fully up to date with all HMRC obligations without any deferments or extensions requested or taken. We continue to have a strategic focus on targeting partnering and negotiated works based on quality and added value rather than tendered opportunities driven by price. Our relationships, such as that with Bolsover Homes Partnership delivering circa 400 homes over 4 years, and the 5-year Newark and Sherwood District Council programme, continue to go from strength to strength. We have worked on several noteworthy projects during the period, including the successful delivery of the decarbonisation works at Kilton Forest Golf Club for Bassetlaw District Council. Decarbonisation will be a key growth opportunity over the coming months. Keeping with sustainability and the climate agenda, we engaged with several clients to deliver more efficient, environmentally friendly housing stock. These include modern methods of construction (MMC) works with Leicester City Council to deliver housing using structural insulated panels (SIPs). These homes, procured through the DPP3 framework, do not feature any gas, and will deliver a 75% betterment on efficiencies over traditional delivery methods. We are also taking our first Future Homes product development to site working with our partner Bolsover District Council. The “Future Home” is an innovative building solution that combines modern offsite manufacturing with a fabric first approach to create a home that meets or exceeds the 2025 building regulations, today. We have continued to develop our minor works offer, completing further phases of work in a high secure environment for a long standing Blue Light client. As well as securing and delivering a strong programme of works with the Ministry of Defence, working with client Amey. Our Social Value goals have continued to be delivered and the easing of restrictions has allowed us to work more closely with schools, colleges and the general public to deliver work experience placements, apprenticeships and other community engagement activities. As our clients’ focus shifts heavily to being able to better demonstrate the social return beyond the physical built project with ESG a key focus moving forward, we have invested in a social return on investment monitoring platform that will support those needs. As we write this Business Review, we have a positive outlook for the future with management pipeline forecast sales in 2022 of £60m and a strong order book extending into 2024 and beyond. We are delivering our 10-year Climate Action Framework benchmarking our carbon footprint and actively working on strategies to reduce this over the coming years. We are placing orders for our EV fleet of vehicles, working with partners to monitor and manage CO2 from our sites and we’ve identified three sites where we will be actively targeting zero carbon and using lessons learnt to improve delivery. We also continue to invest in our Digital Leadership agenda supporting new ways of working both in our offices and at site which further support our climate goals by reducing waste and improving visibility. As always, our cornerstone continues to be embedding and living our values that reflect our approach to continuous improvement, OWN it, ACHIEVE it, IMPROVE it. Our purpose remains as ‘creating better experiences for all’, to ensure we are delivering the best outcomes for our clients.
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ROBERT WOODHEAD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
Risk is a core focus for the board and the management team. As with many businesses our size and within our sector we continue to operate in a challenging environment. These inherent risks coupled with external issues such as Covid-19, Brexit, supply chain impact, increasing cybercrime, changes to legislation and macroeconomic conditions are reviewed regularly by the board and management team and plans are put in place to mitigate wherever possible and embed organisational resilience.
The Company’s Key Performance Indicators are turnover, gross profit, net profit, margin and working capital.
This report was approved by the board on 4 March 2022
and signed on its behalf.
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ROBERT WOODHEAD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2021
The directors present their report and the financial statements for the year ended 31 October 2021.
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 profit for the year, after taxation, amounted to £
181,307
(2020 -
loss
£
2,903,379
)
.
No dividends were paid or proposed during the year (2020 : £nil).
The directors who served during the year were:
There are no future developments that significantly affect the Company.
The Company's operations expose it to a variety of financial risks that include the effects of changes in credit risk and liquidity risk. The Company has a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of cash and any related finance costs. The Company has implemented policies that require appropriate checks before a sale is made.
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ROBERT WOODHEAD LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, PKF Smith Cooper Audit Limited 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 on
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ROBERT WOODHEAD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROBERT WOODHEAD LIMITED
We have audited the financial statements of Robert Woodhead Limited (the 'Company') for the year ended 31 October 2021, which comprise the Statement of comprehensive income, the Balance sheet, 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).
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.
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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ROBERT WOODHEAD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROBERT WOODHEAD LIMITED (CONTINUED)
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.
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.
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ROBERT WOODHEAD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROBERT WOODHEAD LIMITED (CONTINUED)
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:
Based on our understanding of the company and industry, we identified that the principal risk of fraud or non-compliance with laws and regulations related to: • management bias in respect of accounting estimates and judgements made; • management override of control; • posting of unusual journals or transactions We focused on those area that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to: • Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud; • Reviewing minutes of meetings of those charged with governance where available; • Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. In particular the recognition of long term contracts and provisions for doubtful debts. It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' report.
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ROBERT WOODHEAD LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROBERT WOODHEAD 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.
for and on behalf of
Chartered Accounts and Statutory Auditors
St Helen's House
Cathedral Quarter
King Street
DE1 3EE
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ROBERT WOODHEAD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2021
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ROBERT WOODHEAD LIMITED
REGISTERED NUMBER:
01360957
BALANCE SHEET
AS AT
31 OCTOBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 24 form part of these financial statements.
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ROBERT WOODHEAD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 OCTOBER 2021
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
Robert Woodhead Limited is a private company limited by shares and incorporated in England. The registered office is Edwinstowe House, High Street, Edwinstowe, Mansfield, Nottinghamshire, NG21 9PR. The Company registration number is 01360957. The nature of the Company's operations and principal activities is that of building contractors and developers.
2.
Accounting policies
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 Company's functional and presentational currency is GBP.
The Company has prepared it's financial statements to the nearest £.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙
the requirements of Section 7 Statement of Cash Flows;
∙
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Robert Woodhead Holdings Limited as at 31 October 2021 and these financial statements may be obtained from Companies House.
The Directors confirm their assumption that the Group is a going concern and no significant uncertainty exists in this respect. This assumption is based on short and long term pipeline forecasts, along with achieving a net profit position in 2021.
The Group has not accessed any additional borrowing and has continued to reduce indebtedness and remain fully up to date with all HMRC obligations without any deferments or extensions requested or taken
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
2.
Accounting policies (continued)
nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
2.
Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
2.
Accounting policies (continued)
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.
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty; this is usually upon practical completion. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
2.
Accounting policies (continued)
The whole of the turnover is attributable to the Company's principal business activity.
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
Page 17
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
12.
Taxation (continued)
The Company has unutilised taxable losses of approximately £1.2m.
In April 2023, the rate of corporation tax will increase to 25% from the current rate of 19%.
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
Page 20
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
20.
Deferred taxation (continued)
Profit and loss account
The Company has given an unlimited intercompany cross guarantee to secure the bank borrowings of the other group companies.
At 31 October 2021, total borrowings for the group were £
The Company operates a defined benefit contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £
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ROBERT WOODHEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
The directors consider the ultimate parent undertaking to be
The ultimate controlling party is
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