Fair review of the business

We are pleased to report another profitable trading year. In line with our agreed strategy, we have continued our relationship with our existing clients and it is very pleasing to see the repeat business increase year on year. We are also extending our client base and this has been key to providing additional opportunities for tendering and securing work. We will maintain this strategy which we believe will be instrumental in maintaining the growth of the company.

Principle Risks and Uncertainties

Economic market

We have noticed a considerable uplift in the UK construction market over the last 12 months which has led to greater opportunities and enabled the company to grow. Our risks and uncertainties are much harder to gauge and close monitoring of price fluctuations are required to maintain our commercial edge. Tendering is still subject to highly competitive pricing but we continue to look for efficiencies to keep us ahead of competition. This is underpinned by an ethos to win repeat business and partnering with existing and new clients at every opportunity which we continue to do.

Financially insecure clients

Our client base is made up of a number of Blue Chip companies and Government bodies with excellent covenants. This minimises our financial risk in the critical period between execution of work and payment.

Control Procedures

We have a robust procurement process in place to ensure vigilance when choosing our suppliers and sub-contractors in order to maintain competitiveness and quality. We routinely monitor the financial wherewithal and quality performance of our sub-contractors and suppliers to marginalise our risk and maintain the quality and delivery expected of us by our exacting clients. This also enables us to forecast with greater accuracy and adjudicate against tenders and future contracts.

Company Governance

Risks are a constant agenda item and are formally and regularly reviewed by the Board with appropriate processes in place to monitor and mitigate them.

Key Performance Indicators

Our turnover for 2014 was £9,971,713 showing an increase over 2013 £1,569,664. We have continued this efficiency into 2015 and our aim is to produce excellent quality work first time which we anticipate will maintain our profitability.

We go into 2015, again with a strong order book, which gives us confidence that we will continue to grow and develop the business in line with targets.

Our primary strategy remains to build relationships with existing and prospective clients and secure repeat work therefore maximising profitability.

We will maintain the financial strength of the business by retaining a healthy cash position which will give us the flexibility to pursue exceptional business opportunities as they arise.

We will also actively engage in the promotion of our brand through premium service delivery and strategic advertising with a new exciting website.

With an improving market we are receiving the highest level of enquiries and look forward to the next twelve months with confidence.

The auditors, HJS Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

In accordance with s414C(11) of the Companies Act 2006, the company has prepared a strategic report for the year ended 31 October 2014. This includes a review of business and future developments of the company

We have audited the financial statements of Ark Build plc for the year ended 31 October 2014 set out on pages 6 to 17. 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).

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.

As explained more fully in the Directors' Responsibilities Statement set out on pages 2 - 3, 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.

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 Annual Report 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.

In our opinion the financial statements: give a true and fair view of the state of the company's affairs as at 31 October 2014 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. In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

give a true and fair view of the state of the company's affairs as at 31 October 2014 and of its profit for the year then ended;

have been prepared in accordance with the requirements of the Companies Act 2006.

In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

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

The financial statements are prepared under the historical cost convention.

Turnover represents net invoiced sales of services, excluding value added tax. Revenue is recognised over the project as completed based on valuations by quantity surveyors on a project by project basis. Where part of the project has been completed but not invoiced this is included in accrued income.

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

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Deferred tax is not discounted.

An analysis of turnover by geographical market is given above.

The company operates a defined contributions scheme in respect of its employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £1,806 (2013: £50,000).

The amount of pension contributions outstanding at the period end amounted to £1,202 (2013: £ - ).

During the course of the year the company has entered into guarantees with some of their customers totalling £77,604 (2013: £262,143).

The controlling party and ultimate controlling party is Mr M Finlay.

Beachview Corporation Limited

During the year under review the company has traded with Beachview Corporation Limited, a company which M J Finlay is a director and holds all of the issued share capital.

The company raised a sales invoice in the year to the value of £177,076 (2013: £nil). The company has purchased services to the value of £280,000 (2013: £250,000).

The company has purchased services to the value of £280,000 (2013: £250,000).

The balance owing at the end of the year to Beachview Corporation Limited is £240,738 (2013: £nil).

Pension scheme

During the year to 31 October 2011 a loan was made to the Ark Build Executive Pension Scheme £362,500. The loan term is ten years and interest is charged at a commercial rate. At 31 October 2014, the full amount has been repaid so £nil (2013 £288,576) was due to the company.

During the year to 31 October 2013 a further loan was made to the Ark Build Executive Pension Scheme for £500,000. The loan term is ten years and interest is charged at a commercial rate. At 31 October 2014, £417,909 (2013: £461,464) was due to the company.

Ark MEP Plc

Ark MEP Plc is a company which M J Finlay and A Stanton are directors and M J Finlay holds all of the share capital.

During the year Ark Build Plc entered into transactions with Ark MEP Plc totalling to £675,125 (2013: £nil) for subcontractor services provided by Ark MEP Plc. At the balance sheet date the amount due to Ark MEP Plc is £24,877 (2013: £nil).

During the period Ark Build Plc advanced £181,211 (2013: £nil) to Ark MEP Plc and at the year end the balance owed to Ark Build Plc is £181,211 (2013: £nil).