Company registration number 10263467 (England and Wales)
NOTUL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
NOTUL LIMITED
COMPANY INFORMATION
Directors
LJ Day
SA Crawford
Secretary
LJ Day
Company number
10263467
Registered office
Unit B Meadowbank Industrial Estate
Harrison Street
Rotherham
S61 1EE
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
NOTUL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
NOTUL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Fair review of the business

Turnover has reduced, year on year, to £11,448,707 (2022 £15,032,921), This reflects a conscious decision by the Board to no longer target high revenue, low margin projects but rather focus on core specialisms to deliver smaller projects with high gross profit contributions. This is in addition to the ongoing eight National Highways SDF Framework lots which have a further four years to run. The Board are pleased with the tendering activity in the year, where the focus has been to ensure even greater care is taken when working on bids to ensure strong margins are achievable from all successful tenders. The value of the order book now exceeds £35m.

The Board have, over the past year, significantly reduced the overhead cost base of the business. This has included headcount reductions and a reorganisation of management responsibilities resulting in a more efficient support function. The Board remains confident there are likely to be more savings to be made that will further improve the financial performance in the coming financial year.

The Commercial Finance function continues to make improvements in the way we plan and review our projects and has introduced new pricing tools to underpin our project performance. An overhaul of the accounting system is planned for 2024, to build on the cost capture improvements we have made, and to better reflect the reporting required on the increased National Highways Frameworks.

During the year, we have streamlined our capital asset base, disposing of under-utilised vehicles and plant. Despite this, we remain well-placed to self-deliver as much work as possible, using Group assets. We are well on our way to achieving the goal of providing all specialist work on the Strategic Road Network, from within the group. The next financial year will see a stabilisation of turnover but with the target of a further improved gross and net margin. We will continue to use Mway Services as our investment centre for assets used across all projects.

Principal risks and uncertainties

Bad and uncertain debt remains a risk on the major projects, however given these projects are now largely at an end, the risk is significantly diminished from previous years. The improvements made to the financial control environment, to increase the level of review and challenge internally, are effective in identifying material risks and making adequate provisions within the financial statements.

Key performance indicators

The company has introduced a range of safety, operational, commercial and financial indicators to manage and improve company performance.

GP 2023 19.0% (2022 11.5%)

EBITDA 2023 £978,591 (2022 £200,466)

At the time of completing this report, the group surpassed 7 years without a RIDDOR working in a high-risk environment.

Other information and explanations

The directors expect turnover to remain relatively stable during the forthcoming year, but the profit to increase. This is a result of the combination of the long-term Framework contracts, the full year impact of the cost savings already implemented and the focus on smaller, high margin projects. We will build on the work with Highways England to secure similar work across our now expanded national footprint and capitalise on the specialist capabilities we have added to complement our core business. The National Highways Framework awards have secured a strong baseline performance for the group for a number of years.

NOTUL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

SA Crawford
Director
5 October 2023
NOTUL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the group continued to be that of Highway Technology Works.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £114,000 to the shareholders of Notul Limited. No dividends were paid to the non-controlling shareholders of Neural Mind Limited, a former subsidiary of the group which was disposed of part way through the year. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

LJ Day
SA Crawford
Auditor

In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

NOTUL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
On behalf of the board
SA Crawford
Director
5 October 2023
NOTUL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NOTUL LIMITED
- 5 -
Opinion

We have audited the financial statements of Notul Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to note 1.4 in the financial statements which provides detail around management's assessment of going concern. Sensitivities within the cashflow forecasts present a risk to the group and potential breaches in bank covenants may cast doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

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.

 

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 other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

NOTUL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOTUL LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes 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:

NOTUL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NOTUL LIMITED
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Charles Ringrose (Senior Statutory Auditor)
For and on behalf of BHP LLP
5 October 2023
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
NOTUL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,448,707
15,032,921
Cost of sales
(9,276,743)
(13,300,256)
Gross profit
2,171,964
1,732,665
Administrative expenses
(1,653,812)
(1,907,794)
Other operating income
-
22,418
Operating profit/(loss)
4
518,152
(152,711)
Interest receivable and similar income
7
226
768
Interest payable and similar expenses
8
(151,004)
(99,436)
Profit on disposal of subsidiary
9
11,877
-
Profit/(loss) before taxation
379,251
(251,379)
Tax on profit/(loss)
10
(125,250)
197,250
Profit/(loss) for the financial year
254,001
(54,129)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
NOTUL LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
401,660
498,023
Other intangible assets
12
-
0
409
Total intangible assets
401,660
498,432
Tangible assets
13
943,841
1,267,866
1,345,501
1,766,298
Current assets
Stocks
16
134,727
30,000
Debtors
17
2,297,730
2,519,757
Cash at bank and in hand
233
265
2,432,690
2,550,022
Creditors: amounts falling due within one year
18
(3,915,612)
(4,468,814)
Net current liabilities
(1,482,922)
(1,918,792)
Total assets less current liabilities
(137,421)
(152,494)
Creditors: amounts falling due after more than one year
19
(1,396,292)
(1,646,470)
Provisions for liabilities
Deferred tax liability
22
(27,000)
(152,250)
27,000
152,250
Net liabilities
(1,506,713)
(1,646,714)
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
(1,506,813)
(1,588,028)
Equity attributable to owners of the parent company
(1,506,713)
(1,587,928)
Non-controlling interests
-
(58,786)
(1,506,713)
(1,646,714)
NOTUL LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 5 October 2023 and are signed on its behalf by:
05 October 2023
SA Crawford
Director
NOTUL LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
2,328,247
2,328,327
Current assets
Debtors
17
65,877
36,228
Cash at bank and in hand
-
0
5
65,877
36,233
Creditors: amounts falling due within one year
18
(1,603,342)
(1,648,468)
Net current liabilities
(1,537,465)
(1,612,235)
Total assets less current liabilities
790,782
716,092
Creditors: amounts falling due after more than one year
19
(790,304)
(715,416)
Net assets
478
676
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
378
576
Total equity
478
676

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £113,802 (2022 - £298,834 profit).

The financial statements were approved by the board of directors and authorised for issue on 5 October 2023 and are signed on its behalf by:
05 October 2023
SA Crawford
Director
Company Registration No. 10263467
NOTUL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
100
(1,233,899)
(1,233,799)
(58,786)
(1,292,585)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
(54,129)
(54,129)
-
(54,129)
Dividends
11
-
(300,000)
(300,000)
-
(300,000)
Balance at 31 March 2022
100
(1,588,028)
(1,587,928)
(58,786)
(1,646,714)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
254,001
254,001
-
254,001
Dividends
11
-
(114,000)
(114,000)
-
(114,000)
Disposal of subsidiary
9
-
(58,786)
(58,786)
58,786
-
Balance at 31 March 2023
100
(1,506,813)
(1,506,713)
-
0
(1,506,713)
NOTUL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
100
1,742
1,842
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
298,834
298,834
Dividends
11
-
(300,000)
(300,000)
Balance at 31 March 2022
100
576
676
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
113,802
113,802
Dividends
11
-
(114,000)
(114,000)
Balance at 31 March 2023
100
378
478
NOTUL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
458,829
445,419
Interest paid
(151,004)
(99,436)
Net cash inflow from operating activities
307,825
345,983
Investing activities
Purchase of tangible fixed assets
(227,096)
(263,710)
Proceeds from disposal of tangible fixed assets
198,523
265,137
Proceeds from disposal of subsidiaries, net of cash disposed
(9)
-
Repayment/(issue) of loans made
(29,649)
131,961
Interest received
226
768
Net cash (used in)/generated from investing activities
(58,005)
134,156
Financing activities
Repayment of borrowings
(117,748)
(37,962)
Payment of finance leases obligations
(206,678)
(376,243)
Dividends paid to equity shareholders
(114,000)
(300,000)
Net cash used in financing activities
(438,426)
(714,205)
Net decrease in cash and cash equivalents
(188,606)
(234,066)
Cash and cash equivalents at beginning of year
(779,445)
(545,379)
Cash and cash equivalents at end of year
(968,051)
(779,445)
Relating to:
Cash at bank and in hand
233
265
Bank overdrafts included in creditors payable within one year
(968,284)
(779,710)
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Notul Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit B Meadowbank Industrial Estate, Harrison Street, Rotherham, S61 1EE.

 

The group consists of Notul Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Notul Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Mway Services Limited and Mway Communications Limited have been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Mway Services Limited and Mway Communications Limited for the 12 month period. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

 

The group profit and loss account and statement of cash flows also include the results and cash flows of Neural Mind Limited for the 9 month period to the point of its disposal.

1.4
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future. In considering the status of the group, the directors have reviewed the balance sheet position and the monthly management accounts that are produced to assess the recent financial performance and standing. They then reviewed their current order book, being confirmed work that they are due to deliver over the next 12 months, and included an element of speculative work, although this is a small proportion of the total, to produce a forecast.

 

A Time to Pay (“TTP”) repayment schedule has been agreed with HMRC in respect of monies owed, which has now commenced. The arrangement requires the HMRC debt to be repaid in full by August 2024. The impact of the TTP proposal is reflected in the group’s forward projections, and the agreement with HMRC has brought to an end a period of uncertainty and eliminated the risk of HMRC recalling the debt for immediate repayment.

 

The level of debt in the group remains relatively high, largely as a result of deferred consideration, some of which remains outstanding from the management buyout several years ago, however inroads are being made into this and it is expected to reduce significantly over the coming year. The directors do acknowledge a material uncertainty however, in that potential breaches in bank covenants and sensitivities within the cashflow forecasts represent a degree of risk and in that respect, the group is reliant on the continued support of the bank and funders.

 

The directors' review of the management information, forecasts and orderbook has given them comfort that, although the cash position will worsen over the coming months as a result of the HMRC Time to Pay arrangement, the group will be able to meet its obligations over the coming year and into the future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

Revenue represents amounts receivable in relation to long term construction contracts and is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
20% straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over the term of the lease
Plant and equipment
20-50% straight line
Fixtures and fittings
20% straight line
Computers
33% straight line
Motor vehicles
25-33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

 

See note 2 for further information on the construction contract accounting policy.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.13
Cash and cash equivalents

Cash at bank and in hand 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.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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 recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Share capital issued by the group are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of those assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment and accounting policy note for useful economic lives for each class of assets.

Turnover from long term construction contracts

Turnover is generated from long term contracts. The company recognises contract revenue and contract costs associated with each contract using the percentage of completion method. The recognition of revenue and profit therefore rely on estimates in relation to the stage of completion and the forecast total costs of each contract.

At each month end, all contracts are valued by the internal quantity surveyor allocated to the project. The valuation is compared to the expected total turnover on the contract and this forms the basis for the stage of completion.

This method ensures that profit is recognised equally across the life of the project. The calculation of expected outturn is based on the following factors:

- Variations to overall contract value (expected turnover) which have been agreed with the client

- Costs incurred to date allocated to the project

The degree of estimation uncertainty centres around the expected costs to complete the contract which, combined with the contract turnover, are used to calculation the expected margin outturn on each project.

When contract losses are anticipated these are recognised in full at the time of identification in so far as they can be measured reliably.

Stock

Stock is reviewed for obsolescence with reference to the holding quantity, purchases in the year and volume consumed. Stock aged more than one year is provided for in full. Further to this, management review the stock on a line by line basis for those items not fully provided for that we know have become obsolete during the period – e.g. purchased for a specific scheme which has now finished and required specialist stock. Management then review for items recently purchased that may be inappropriately provided for, and for any known orders to reduce the provision accordingly.

3
Turnover and other revenue

All of the company's turnover relates to UK sales from its principal activity. Other income consists of:

 

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Other revenue
Interest income
226
768
Grants received
-
22,418
4
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Government grants
-
(22,418)
Depreciation of owned tangible fixed assets
130,492
66,848
Depreciation of tangible fixed assets held under finance leases
221,298
181,368
Loss/(profit) on disposal of tangible fixed assets
808
(13,751)
Amortisation of intangible assets
96,772
104,961
Operating lease charges
109,516
107,691
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,120
3,815
Audit of the financial statements of the company's subsidiaries
19,650
16,565
23,770
20,380
For other services
Taxation compliance services
3,450
3,200
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Admin
19
17
-
-
Trading
78
101
-
-
Total
97
118
-
0
-
0
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,488,704
4,321,306
-
0
-
0
Social security costs
409,338
488,066
-
-
Pension costs
72,861
134,761
-
0
-
0
3,970,903
4,944,133
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
226
768
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
57,216
31,722
Other interest on financial liabilities
13,951
16,868
Interest on finance leases and hire purchase contracts
37,613
26,969
Other interest
42,224
23,877
Total finance costs
151,004
99,436
9
Profit on disposal of subidiary
2023
2022
£
£
Profit on disposal of subsidiary
11,877
-

During the year, the company disposed of a partly owned subsidiary, Neural Mind Limited, which was dissolved on 20 December 2022. This resulted in a profit on disposal of £11,877, which is reflected in Profit and Loss.

 

The transaction resulted also resulted in amounts of £58,786 attributed to non-controlling interests brought forward being transferred to reserves.

10
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
125,250
(197,250)
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 25 -

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
379,251
(251,379)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
72,058
(47,762)
Tax effect of expenses that are not deductible in determining taxable profit
16,038
26,911
Change in unrecognised deferred tax assets
7,893
(144,310)
Adjustments in respect of prior years
(2,751)
9,015
Effect of change in corporation tax rate
-
(4,288)
Permanent capital allowances in excess of depreciation
3,188
(463)
Effect of change in rate of deferred tax
28,824
(36,372)
Losses carried back
-
0
19
Taxation charge/(credit)
125,250
(197,250)
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
114,000
300,000
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
996,877
53,531
1,050,408
Amortisation and impairment
At 1 April 2022
498,854
53,122
551,976
Amortisation charged for the year
96,363
409
96,772
At 31 March 2023
595,217
53,531
648,748
Carrying amount
At 31 March 2023
401,660
-
0
401,660
At 31 March 2022
498,023
409
498,432
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
202,875
268,655
33,460
103,862
1,201,657
1,810,509
Additions
-
0
37,583
-
0
1,941
187,572
227,096
Disposals
-
0
(71,764)
-
0
(566)
(204,663)
(276,993)
At 31 March 2023
202,875
234,474
33,460
105,237
1,184,566
1,760,612
Depreciation and impairment
At 1 April 2022
157,028
60,001
24,413
51,383
249,818
542,643
Depreciation charged in the year
20,124
42,744
6,411
25,246
257,265
351,790
Eliminated in respect of disposals
-
0
(10,107)
-
0
(31)
(67,524)
(77,662)
At 31 March 2023
177,152
92,638
30,824
76,598
439,559
816,771
Carrying amount
At 31 March 2023
25,723
141,836
2,636
28,639
745,007
943,841
At 31 March 2022
45,847
208,654
9,047
52,479
951,839
1,267,866
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
43,752
59,666
-
0
-
0
Motor vehicles
695,424
884,408
-
0
-
0
739,176
944,074
-
-
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
2,328,247
2,328,327
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
2,328,327
Disposals
(80)
At 31 March 2023
2,328,247
Carrying amount
At 31 March 2023
2,328,247
At 31 March 2022
2,328,327
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Mway Communications Limited
England & Wales
Ordinary
-
100.00
Mway Services Limited
England & Wales
Ordinary
100.00
-
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
134,727
30,000
-
0
-
0
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
245,081
192,481
-
0
-
0
Gross amounts owed by contract customers
1,820,480
2,126,535
-
0
-
0
Other debtors
66,096
37,304
65,877
36,228
Prepayments and accrued income
166,073
163,437
-
0
-
0
2,297,730
2,519,757
65,877
36,228
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
968,284
779,710
8
-
0
Obligations under finance leases
21
307,462
303,071
-
0
-
0
Other borrowings
20
113,997
117,748
-
0
-
0
Trade creditors
1,469,279
1,609,492
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,543,751
1,510,946
Corporation tax payable
-
0
11,886
-
0
-
0
Other taxation and social security
681,541
972,891
-
-
Other creditors
103,753
287,310
59,583
137,522
Accruals and deferred income
271,296
386,706
-
0
-
0
3,915,612
4,468,814
1,603,342
1,648,468
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
375,695
586,764
-
0
-
0
Other borrowings
20
230,293
344,290
-
0
-
0
Other creditors
790,304
715,416
790,304
715,416
1,396,292
1,646,470
790,304
715,416
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
968,284
779,710
8
-
0
Other loans
344,290
462,038
-
0
-
0
1,312,574
1,241,748
8
-
Payable within one year
1,082,281
897,458
8
-
0
Payable after one year
230,293
344,290
-
0
-
0

The bank overdraft is secured by a fixed and floating charge over the companies assets. Other borrowings (£230,293 included in creditors due > 1 year and £117,748 in creditors due < 1 year) are secured by a guarantee from the Directors.

NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
307,462
303,071
-
0
-
0
In two to five years
375,695
586,764
-
0
-
0
683,157
889,835
-
-

Finance lease payments represent rentals payable by the company or group for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
198,200
23,500
Tax losses
(219,500)
(170,000)
Short term timing differences
(5,700)
(5,750)
(27,000)
(152,250)
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 April 2022
(152,250)
-
Charge to profit or loss
125,250
-
Asset at 31 March 2023
(27,000)
-
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,861
134,761

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
44,280
92,603
-
-
Between two and five years
5,667
49,947
-
-
49,947
142,550
-
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
134,023
-
-
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
27
Related party transactions

In the year, sales of £4,529 (2022: £nil) were made between the group and Black Plant & Vehicle Hire Limited, a company which is 90% owned by S Crawford and L Day. A debtor balance remained outstanding at the year end of £4,529 (2022: £nil) which is included in trade debtors.

 

In the year, tangible fixed assets with a net book value of £138,839 (2022: £nil) were disposed of by the group to Black Plant & Vehicle Hire Limited, a company which is 90% owned by S Crawford and L Day. Proceeds on disposal were received of £133,187 (2022: £nil).

28
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors loan
2.00
36,128
76,172
226
(60,000)
52,526
36,128
76,172
226
(60,000)
52,526
29
Cash generated from group operations
2023
2022
£
£
Profit/(loss) for the year after tax
254,001
(54,129)
Adjustments for:
Taxation charged/(credited)
125,250
(197,250)
Finance costs
151,004
99,436
Investment income
(226)
(768)
Loss/(gain) on disposal of tangible fixed assets
808
(13,751)
Amortisation and impairment of intangible assets
96,772
104,961
Depreciation and impairment of tangible fixed assets
351,790
248,216
Other gains and losses
(11,877)
-
Movements in working capital:
(Increase)/decrease in stocks
(104,727)
176,852
Decrease in debtors
251,676
1,008,015
Decrease in creditors
(655,642)
(926,163)
Cash generated from operations
458,829
445,419
NOTUL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
30
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
265
(32)
233
Bank overdrafts
(779,710)
(188,574)
(968,284)
(779,445)
(188,606)
(968,051)
Borrowings excluding overdrafts
(462,038)
117,748
(344,290)
Obligations under finance leases
(889,835)
206,678
(683,157)
(2,131,318)
135,820
(1,995,498)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200SA CrawfordStephen Andrew CrawfordLJ Day25400110263467bus:Consolidated2022-04-012023-03-31102634672022-04-012023-03-3110263467bus:CompanySecretaryDirector12022-04-012023-03-3110263467bus:Director12022-04-012023-03-3110263467bus:CompanySecretary12022-04-012023-03-3110263467bus:Director22022-04-012023-03-3110263467bus:RegisteredOffice2022-04-012023-03-3110263467bus:Consolidated2023-03-31102634672023-03-3110263467bus:Consolidated2021-04-012022-03-31102634672021-04-012022-03-3110263467core:Goodwillbus:Consolidated2023-03-3110263467core:Goodwillbus:Consolidated2022-03-3110263467core:OtherResidualIntangibleAssetsbus:Consolidated2023-03-3110263467core:OtherResidualIntangibleAssetsbus:Consolidated2022-03-3110263467core:ComputerSoftwarebus:Consolidated2023-03-3110263467core:ComputerSoftwarebus:Consolidated2022-03-3110263467bus:Consolidated2022-03-3110263467core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-03-3110263467core:PlantMachinerybus:Consolidated2023-03-3110263467core:FurnitureFittingsbus:Consolidated2023-03-3110263467core:ComputerEquipmentbus:Consolidated2023-03-3110263467core:MotorVehiclesbus:Consolidated2023-03-3110263467core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-03-3110263467core:PlantMachinerybus:Consolidated2022-03-3110263467core:FurnitureFittingsbus:Consolidated2022-03-3110263467core:ComputerEquipmentbus:Consolidated2022-03-3110263467core:MotorVehiclesbus:Consolidated2022-03-3110263467core:ShareCapitalbus:Consolidated2023-03-3110263467core:ShareCapitalbus:Consolidated2022-03-3110263467core:ShareCapital2023-03-3110263467core:ShareCapital2022-03-3110263467core:RetainedEarningsAccumulatedLosses2023-03-3110263467core:ShareCapitalbus:Consolidated2021-03-3110263467core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-03-3110263467core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-03-3110263467core:Non-controllingInterestsbus:Consolidated2022-03-3110263467core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-03-3110263467core:Non-controllingInterestsbus:Consolidated2023-03-3110263467core:ShareCapital2021-03-3110263467core:RetainedEarningsAccumulatedLosses2021-03-3110263467core:RetainedEarningsAccumulatedLosses2022-03-31102634672022-03-3110263467bus:Consolidated2021-03-3110263467core:Goodwill2022-04-012023-03-3110263467core:IntangibleAssetsOtherThanGoodwill2022-04-012023-03-3110263467core:ComputerSoftware2022-04-012023-03-3110263467core:LandBuildingscore:LongLeaseholdAssets2022-04-012023-03-3110263467core:PlantMachinery2022-04-012023-03-3110263467core:FurnitureFittings2022-04-012023-03-3110263467core:ComputerEquipment2022-04-012023-03-3110263467core:MotorVehicles2022-04-012023-03-3110263467bus:Consolidated12022-04-012023-03-3110263467bus:Consolidated12021-04-012022-03-3110263467bus:Consolidated22022-04-012023-03-3110263467bus:Consolidated22021-04-012022-03-3110263467core:Goodwillbus:Consolidated2022-03-3110263467core:ComputerSoftwarebus:Consolidated2022-03-3110263467bus:Consolidated2022-03-3110263467core:Goodwillbus:Consolidated2022-04-012023-03-3110263467core:ComputerSoftwarebus:Consolidated2022-04-012023-03-3110263467core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-03-3110263467core:PlantMachinerybus:Consolidated2022-03-3110263467core:FurnitureFittingsbus:Consolidated2022-03-3110263467core:ComputerEquipmentbus:Consolidated2022-03-3110263467core:MotorVehiclesbus:Consolidated2022-03-3110263467core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-04-012023-03-3110263467core:PlantMachinerybus:Consolidated2022-04-012023-03-3110263467core:FurnitureFittingsbus:Consolidated2022-04-012023-03-3110263467core:ComputerEquipmentbus:Consolidated2022-04-012023-03-3110263467core:MotorVehiclesbus:Consolidated2022-04-012023-03-3110263467core:PlantMachinery2023-03-3110263467core:PlantMachinery2022-03-3110263467core:MotorVehicles2023-03-3110263467core:MotorVehicles2022-03-3110263467core:Subsidiary12022-04-012023-03-3110263467core:Subsidiary22022-04-012023-03-3110263467core:Subsidiary112022-04-012023-03-3110263467core:Subsidiary212022-04-012023-03-3110263467core:CurrentFinancialInstrumentsbus:Consolidated2023-03-3110263467core:CurrentFinancialInstrumentsbus:Consolidated2022-03-3110263467core:CurrentFinancialInstruments2023-03-3110263467core:CurrentFinancialInstruments2022-03-3110263467core:WithinOneYearbus:Consolidated2023-03-3110263467core:WithinOneYearbus:Consolidated2022-03-3110263467core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3110263467core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3110263467core:Non-currentFinancialInstrumentsbus:Consolidated2023-03-3110263467core:Non-currentFinancialInstrumentsbus:Consolidated2022-03-3110263467core:Non-currentFinancialInstruments2023-03-3110263467core:Non-currentFinancialInstruments2022-03-3110263467core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-03-3110263467core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-03-3110263467core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-03-3110263467core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12022-03-3110263467core:Non-currentFinancialInstrumentscore:AfterOneYear22023-03-3110263467core:Non-currentFinancialInstrumentscore:AfterOneYear22022-03-3110263467core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-03-3110263467core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-03-3110263467core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3110263467core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3110263467core:WithinOneYear2023-03-3110263467core:WithinOneYear2022-03-3110263467core:BetweenTwoFiveYearsbus:Consolidated2023-03-3110263467core:BetweenTwoFiveYearsbus:Consolidated2022-03-3110263467core:BetweenTwoFiveYears2023-03-3110263467core:BetweenTwoFiveYears2022-03-3110263467bus:PrivateLimitedCompanyLtd2022-04-012023-03-3110263467bus:FRS1022022-04-012023-03-3110263467bus:Audited2022-04-012023-03-3110263467bus:ConsolidatedGroupCompanyAccounts2022-04-012023-03-3110263467bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP