REGISTERED NUMBER: 08693188 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 May 2023 |
for |
Realtime Civil Engineering London |
Limited |
REGISTERED NUMBER: 08693188 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 May 2023 |
for |
Realtime Civil Engineering London |
Limited |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
Realtime Civil Engineering London |
Limited |
Company Information |
for the Year Ended 31 May 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Congress House |
14 Lyon Road |
Harrow |
Middlesex |
HA1 2EN |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Group Strategic Report |
for the Year Ended 31 May 2023 |
The directors present their strategic report of the company and the group for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
Following the recovery from the Covid 19 restrictions imposed upon the market in which the company operates, the income levels earned by the group have stabilised. |
The group continues to make a profit and the gross margin has improved slightly, and as a result, the net asset value of the company has grown by just over 10% |
The directors maintain good relations with the group's existing clients which has enabled it to achieve success in tendering for new contract work. Further new contracts are expected to be awarded to the company in the near future as the market stabilises. |
Some key financial highlights are shown below: |
2023 | 2022 | 2021 |
Turnover | £13.6 million | £13.8 million | £7.1 million |
Turnover movement | (£0.2 million | ) | £6.7 million | (£8.2 million | ) |
Gross profit margin | 26.5% | 25.7% | 38% |
Profit before tax | 6.7% | 7.9% | 4.7% |
Net assets | £7.5 million | £6.8 million | £6.1 million |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Group Strategic Report |
for the Year Ended 31 May 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks that the group faces continue to be as a result of Brexit, the war in Ukraine and the general economic situation that the country finds itself in. |
Management believes that the most important asset that the group has is the staff that it employs. Therefore, the group strives to retain and recruit good quality staff who in turn satisfy the group's customers. To ensure that the best staff are attracted to and want to remain working for the group, investment in training and Health and Safety is maintained. |
The group will not compromise on the safety and well-being of its staff and endorses the United Declaration on Human Rights. It has developed a number of standards and procedures supporting diversity, non-discrimination and equal opportunities. Management aim to foster working conditions that are safe and considerate towards its staff and the wider community in which the business works. |
With the nature of the work in which the group operates, there is a risk that there could be an adverse impact on the environment. Management has formalised an Environmental Policy which seeks to limit any negative effect on the environment and endeavours to achieve sustainable development by setting standards in environmental care. |
The management of the group maintain their commitment to conducting its business to highly ethical, professional and legal standards, showing consideration to the communities in which it operates. Management believe that a responsible approach to developing relationships with the communities that it serves, both nationally and locally is an important factor in delivering business success. The directors are mindful of the way the group operates in the industry and bear this in mind in adopting its operational policies. |
There are strong risk-based procedures in place which management adopt when tendering for new contracts. These procedures enable the group to adapt to any unexpected changes which may arise as a contract progresses while not compromising on the quality of service to customers or the safety of its staff. |
The changes to the law regarding IR35 could have a major impact on the margins on which the group operates. In order to reduce the risk of non-compliance, a review has been carried out of the contracts which the group has with its contractors, to ensure compliance with government legislation. |
The directors maintain a healthy balance of liquid funds which will enable the group to take advantage of investment opportunities as they arise. They believe that the group can continue to tender for contracts at a competitive rate and trade within its means in the long term without the need for additional financial support from outside the group. The group has been able to increase its cash reserves during the period under review by over half a million pounds after paying a similar dividend to 2022. |
ON BEHALF OF THE BOARD: |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Report of the Directors |
for the Year Ended 31 May 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of groundwork construction and engineering. |
DIVIDENDS |
Dividends totalling £270,000 were paid during the period as follows: |
Share type | £ per share |
A Ordinary shares | 12 |
B Ordinary shares | 12 |
C Ordinary shares | 30 |
D Ordinary shares | - |
RESEARCH AND DEVELOPMENT |
The group was engaged in several projects which were separately identified as containing research and development activities. Where technical issues were encountered during a construction project beyond the existing knowledge or capability within the industry, the group allocated specific staff resources to design, develop and test and advancement to that build process. |
The research and development costs are recognised in the income statement within cost of sales. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
CHARITABLE DONATIONS AND EXPENDITURE |
The group made charitable donations during the year as follows: |
Name | £ |
Paralympics GB | 2,250 |
Story of Christmas Appeal | 1,200 |
Maggie's | 1,000 |
Save The Children | 1,050 |
Helping Homeless Veterans UK | 250 |
Construction Industry Trust For Youth | 115 |
Cancer Research UK | 1,000 |
Tommy's | 100 |
6,965 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Report of the Directors |
for the Year Ended 31 May 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Evolve Accountancy and Tax Solutions Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Realtime Civil Engineering London |
Limited |
Opinion |
We have audited the financial statements of Realtime Civil Engineering London Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 group's and of the parent company affairs as at 31 May 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
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 Group 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 |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Realtime Civil Engineering London |
Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page five, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Realtime Civil Engineering London |
Limited |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
the laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of the building sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to consider instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. |
Report of the Independent Auditors to the Members of |
Realtime Civil Engineering London |
Limited |
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 Report of the Auditors. |
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 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. |
for and on behalf of |
Congress House |
14 Lyon Road |
Harrow |
Middlesex |
HA1 2EN |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Consolidated Income Statement |
for the Year Ended 31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ |
TURNOVER | 13,591,443 | 13,821,239 |
Cost of sales | 9,993,551 | 10,268,839 |
GROSS PROFIT | 3,597,892 | 3,552,400 |
Administrative expenses | 2,704,082 | 2,445,307 |
OPERATING PROFIT | 4 | 893,810 | 1,107,093 |
Interest receivable and similar income | 37,777 | 1,257 |
931,587 | 1,108,350 |
Interest payable and similar expenses | 5 | 15,405 | 11,302 |
PROFIT BEFORE TAXATION | 916,182 | 1,097,048 |
Tax on profit | 6 | (45,550 | ) | 178,999 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 961,732 | 918,049 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 961,732 | 918,049 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
961,732 |
918,049 |
Total comprehensive income attributable to: |
Owners of the parent | 961,732 | 918,049 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Consolidated Balance Sheet |
31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 492,007 | 368,893 |
Investments | 10 | - | - |
492,007 | 368,893 |
CURRENT ASSETS |
Debtors | 11 | 1,229,235 | 1,727,567 |
Cash at bank and in hand | 6,826,367 | 6,293,550 |
8,055,602 | 8,021,117 |
CREDITORS |
Amounts falling due within one year | 12 | 808,714 | 1,409,273 |
NET CURRENT ASSETS | 7,246,888 | 6,611,844 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,738,895 |
6,980,737 |
CREDITORS |
Amounts falling due after more than one year |
13 |
(128,422 |
) |
(109,730 |
) |
PROVISIONS FOR LIABILITIES | 16 | (107,896 | ) | (60,162 | ) |
NET ASSETS | 7,502,577 | 6,810,845 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 17,000 | 17,000 |
Capital redemption reserve | 18 | 10,000 | 10,000 |
Other reserves | 18 | 134,000 | 134,000 |
Retained earnings | 18 | 7,341,577 | 6,649,845 |
SHAREHOLDERS' FUNDS | 7,502,577 | 6,810,845 |
The financial statements were approved by the Board of Directors and authorised for issue on 21 September 2023 and were signed on its behalf by: |
D Gallagher - Director |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Company Balance Sheet |
31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 295,554 | 799,035 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 May 2023 |
Called up | Capital |
share | Retained | redemption | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2021 | 17,000 | 6,009,796 | 10,000 | 134,000 | 6,170,796 |
Changes in equity |
Dividends | - | (278,000 | ) | - | - | (278,000 | ) |
Total comprehensive income | - | 918,049 | - | - | 918,049 |
Balance at 31 May 2022 | 17,000 | 6,649,845 | 10,000 | 134,000 | 6,810,845 |
Changes in equity |
Dividends | - | (270,000 | ) | - | - | (270,000 | ) |
Total comprehensive income | - | 961,732 | - | - | 961,732 |
Balance at 31 May 2023 | 17,000 | 7,341,577 | 10,000 | 134,000 | 7,502,577 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Company Statement of Changes in Equity |
for the Year Ended 31 May 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Consolidated Cash Flow Statement |
for the Year Ended 31 May 2023 |
31.5.23 | 31.5.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 741,017 | 2,086,198 |
Interest paid | - | (10 | ) |
Interest element of hire purchase payments paid |
(15,405 |
) |
(11,292 |
) |
Tax paid | 137,999 | (10,001 | ) |
Net cash from operating activities | 863,611 | 2,064,895 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (335,598 | ) | (238,751 | ) |
Sale of tangible fixed assets | 174,186 | 34,472 |
Interest received | 37,777 | 1,257 |
Net cash from investing activities | (123,635 | ) | (203,022 | ) |
Cash flows from financing activities |
Capital repayments in year | 62,841 | 34,893 |
Equity dividends paid | (270,000 | ) | (278,000 | ) |
Net cash from financing activities | (207,159 | ) | (243,107 | ) |
Increase in cash and cash equivalents | 532,817 | 1,618,766 |
Cash and cash equivalents at beginning of year |
2 |
6,293,550 |
4,674,784 |
Cash and cash equivalents at end of year | 2 | 6,826,367 | 6,293,550 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 May 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.5.23 | 31.5.22 |
£ | £ |
Profit before taxation | 916,182 | 1,097,048 |
Depreciation charges | 200,917 | 204,799 |
Profit on disposal of fixed assets | (162,619 | ) | (4,835 | ) |
Amounts recoverable on contracts change | 206,683 | 551,047 |
Finance costs | 15,405 | 11,302 |
Finance income | (37,777 | ) | (1,257 | ) |
1,138,791 | 1,858,104 |
Decrease/(increase) in trade and other debtors | 291,650 | (5,055 | ) |
(Decrease)/increase in trade and other creditors | (689,424 | ) | 233,149 |
Cash generated from operations | 741,017 | 2,086,198 |
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 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 6,826,367 | 6,293,550 |
Year ended 31 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 6,293,550 | 4,674,784 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.22 | Cash flow | At 31.5.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,293,550 | 532,817 | 6,826,367 |
6,293,550 | 532,817 | 6,826,367 |
Debt |
Finance leases | (203,367 | ) | (62,841 | ) | (266,208 | ) |
(203,367 | ) | (62,841 | ) | (266,208 | ) |
Total | 6,090,183 | 469,976 | 6,560,159 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 May 2023 |
1. | STATUTORY INFORMATION |
Realtime Civil Engineering London Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 31 May 2020 as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of the business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical evidence and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results may differ from those estimates. |
In preparing these financial statements, the directors have had to make the following judgements: |
- Determine whether there are indicators of impairment to the group's tangible assets. Factors taken into consideration in reaching such a decision include economic viability and expected future financial performance of the asset. |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and that such revenue can be reliably measured. Revenue is measured at 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 al 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. |
Tangible fixed assets |
Plant and machinery | 25% straight line |
Motor vehicles | 25% straight line |
Fixtures and fittings | 25% straight line |
The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the sales proceeds with the carrying amount and are recognised in the income statement. |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction cost. Financial assets classified as receivable within one year are not amortised. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Classification of financial liabilities |
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 company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors and loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are initially recognised at transaction price. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
3. | EMPLOYEES AND DIRECTORS |
31.5.23 | 31.5.22 |
£ | £ |
Wages and salaries | 1,147,136 | 992,598 |
Social security costs | 28,664 | 15,469 |
Other pension costs | 289,640 | 135,303 |
1,465,440 | 1,143,370 |
The average number of employees during the year was as follows: |
31.5.23 | 31.5.22 |
Administration | 3 | 3 |
Development | 3 | 3 |
Logistics and procurement | 10 | 9 |
Marketing and sales | 3 | 3 |
31.5.23 | 31.5.22 |
£ | £ |
Directors' remuneration | 241,667 | 150,000 |
Information regarding the highest paid director for the year ended 31 May 2023 is as follows: |
31.5.23 |
£ |
Emoluments etc | 101,667 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.5.23 | 31.5.22 |
£ | £ |
Other operating leases | 26,707 | 11,128 |
Depreciation - owned assets | 129,309 | 82,265 |
Depreciation - assets on hire purchase contracts | 71,608 | 122,534 |
Profit on disposal of fixed assets | (162,619 | ) | (4,835 | ) |
Auditors' remuneration | 22,000 | 22,000 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.5.23 | 31.5.22 |
£ | £ |
Bank interest | - | 10 |
Hire purchase | 15,405 | 11,292 |
15,405 | 11,302 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
31.5.23 | 31.5.22 |
£ | £ |
Current tax: |
UK corporation tax | 161,725 | 213,350 |
Corporation tax misprovided in previous years | 1,341 | - |
Tax credit re R&D claim | (256,349 | ) | - |
Total current tax | (93,283 | ) | 213,350 |
Deferred tax | 47,733 | (34,351 | ) |
Tax on profit | (45,550 | ) | 178,999 |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.5.23 | 31.5.22 |
£ | £ |
Profit before tax | 916,182 | 1,097,048 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
229,046 |
208,439 |
Effects of: |
Expenses not deductible for tax purposes | 14,727 | 15,575 |
Income not taxable for tax purposes | (40,655 | ) | (919 | ) |
Capital allowances in excess of depreciation | - | (8,587 | ) |
Depreciation in excess of capital allowances | 6 | - |
Utilisation of tax losses | - | (1,158 | ) |
Adjustments to tax charge in respect of previous periods | 1,341 | - |
Movement on deferred taxation | 47,733 | (34,351 | ) |
Effect of marginal relief on change in tax rate | (41,399 | ) | - |
Tax credit re R&D claim | (256,349 | ) | - |
Total tax (credit)/charge | (45,550 | ) | 178,999 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
8. | DIVIDENDS |
31.5.23 | 31.5.22 |
£ | £ |
Ordinary A shares of £1 each |
Final | 60,000 | 81,765 |
Ordinary B shares of £1 each |
Final | 60,000 | 81,765 |
Ordinary C shares of £1 each |
Final | 150,000 | 81,765 |
Ordinary D shares of £1 each |
Final | - | 32,705 |
270,000 | 278,000 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 June 2022 | 1,762,871 | 10,056 | 1,772,927 |
Additions | 335,598 | - | 335,598 |
Disposals | (286,189 | ) | - | (286,189 | ) |
At 31 May 2023 | 1,812,280 | 10,056 | 1,822,336 |
DEPRECIATION |
At 1 June 2022 | 1,394,225 | 9,809 | 1,404,034 |
Charge for year | 200,709 | 208 | 200,917 |
Eliminated on disposal | (274,622 | ) | - | (274,622 | ) |
At 31 May 2023 | 1,320,312 | 10,017 | 1,330,329 |
NET BOOK VALUE |
At 31 May 2023 | 491,968 | 39 | 492,007 |
At 31 May 2022 | 368,646 | 247 | 368,893 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 June 2022 | 415,635 |
Additions | 182,952 |
Disposals | (48,454 | ) |
At 31 May 2023 | 550,133 |
DEPRECIATION |
At 1 June 2022 | 194,382 |
Charge for year | 71,608 |
Eliminated on disposal | (36,902 | ) |
At 31 May 2023 | 229,088 |
NET BOOK VALUE |
At 31 May 2023 | 321,045 |
At 31 May 2022 | 221,253 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2022 |
and 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Swanley Bar Lane, Potters Bar, Hertfordshire EN6 1NU |
Nature of business: |
% |
Class of shares: | holding |
31.5.23 | 31.5.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Swanley Bar Lane, Potters Bar, Hertfordshire EN6 1NU |
Nature of business: |
% |
Class of shares: | holding |
31.5.23 | 31.5.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.5.23 | 31.5.22 | 31.5.23 | 31.5.22 |
£ | £ | £ | £ |
Trade debtors | 557,015 | 937,362 |
Amounts recoverable on contract | 493,034 | 699,716 |
Other debtors | 2,000 | 58,737 |
Tax | - | - |
VAT | 162,104 | - |
Prepayments and accrued income | 15,082 | 31,752 |
1,229,235 | 1,727,567 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.5.23 | 31.5.22 | 31.5.23 | 31.5.22 |
£ | £ | £ | £ |
Hire purchase contracts (see note 14) | 137,786 | 93,637 |
Trade creditors | 241,336 | 674,203 |
Amounts owed to group undertakings | - | - |
Tax | 161,430 | 116,714 |
Social security and other taxes | 115,525 | 313,135 |
Other creditors | 120,637 | 174,084 |
Accrued expenses | 32,000 | 37,500 |
808,714 | 1,409,273 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.5.23 | 31.5.22 |
£ | £ |
Hire purchase contracts (see note 14) | 128,422 | 109,730 |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.5.23 | 31.5.22 |
£ | £ |
Net obligations repayable: |
Within one year | 137,786 | 93,637 |
Between one and five years | 128,422 | 109,730 |
266,208 | 203,367 |
Group |
Non-cancellable operating | leases |
31.5.23 | 31.5.22 |
£ | £ |
Between one and five years | 45,065 | 69,644 |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.5.23 | 31.5.22 |
£ | £ |
Hire purchase contracts | 266,208 | 203,367 |
Hire purchase liabilities are secured on the assets that they finance. |
16. | PROVISIONS FOR LIABILITIES |
Group |
31.5.23 | 31.5.22 |
£ | £ |
Deferred tax | 107,896 | 60,162 |
Group |
Deferred |
tax |
£ |
Balance at 1 June 2022 | 60,162 |
Provided during year | 47,734 |
Balance at 31 May 2023 | 107,896 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
2023 |
2022 |
Number: |
Class: |
Nominal value: |
£ |
£ |
5,000 | A Ordinary | £1 | 5,000 | 5,000 |
5,000 | B Ordinary | £1 | 5,000 | 5,000 |
5,000 | C Ordinary | £1 | 5,000 | 5,000 |
2,000 | D Ordinary | £1 | 2,000 | 2,000 |
17,000 | 17,000 |
The holders of the A Ordinary shares rank equally in relation to voting rights, dividends and other distributions (including on winding up) and may be redeemed at the option of the company or shareholder on such terms as the company may determine. |
The holders of the B Ordinary shares rank pari passu, save in relation to dividend entitlement. |
The holders of the C Ordinary shares rank equally in relation to voting rights, dividends from profits post 1 June 2016 and other distributions (including on winding up) and may be redeemed at the option of the company or shareholder on such terms as the company may determine. |
The holders of the D Ordinary shares carry no rights to dividends, apart from entitlement to a dividend at the discretion of the holders of the A B and C Ordinary shares. |
Realtime Civil Engineering London |
Limited (Registered number: 08693188) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 May 2023 |
18. | RESERVES |
Group |
Capital |
Retained | redemption | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 June 2022 | 6,649,845 | 10,000 | 134,000 | 6,793,845 |
Profit for the year | 961,732 | 961,732 |
Dividends | (270,000 | ) | (270,000 | ) |
At 31 May 2023 | 7,341,577 | 10,000 | 134,000 | 7,485,577 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 June 2022 | 4,488,351 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 May 2023 | 4,513,905 |
19. | RELATED PARTY DISCLOSURES |
During the year the group paid rent to a pension scheme of which 1 of the directors is a beneficiary. Rent was charged on an arm's length basis. |
20. | ULTIMATE CONTROLLING PARTY |
In the opinion of the directors there is no overall controlling party. |