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Registration number: 04643500

Pavestone UK Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2022

 

Pavestone UK Limited

Contents

Company Information

1

Strategic Report

2 to 5

Directors' Report

6 to 7

Statement of Directors' Responsibilities

8

Independent Auditor's Report

9 to 11

Profit and Loss Account

12

Statement of Comprehensive Income

13

Balance Sheet

14

Statement of Changes in Equity

15

Statement of Cash Flows

16

Notes to the Financial Statements

17 to 35

 

Pavestone UK Limited

Company Information

Directors

R A Allen

H L Barker

J C Layton

T C Parker

R A Rawlings

M Senders

K M Williams

Company secretary

H L Barker

Registered office

Burford Quarry
Burford Road
Brize Norton
Oxfordshire
OX18 3WN

Auditors

Wenn Townsend
Chartered Accountants and Registered Auditors
30 St Giles'
Oxford
OX1 3LE

 

Pavestone UK Limited

Strategic Report for the Year Ended 31 December 2022

The Directors present their strategic report for the year ended 31 December 2022.

Principal activity

The principal activity of the Company is the supply of natural stone and concrete products.

Fair review of the business

The principal activities of the company have remained consistent for the year under review and at the reporting date the directors do not anticipate any change in the company's activities for 2023.

2022 saw a return to more normal levels of trading post COVID. During the year the company discontinued its operations at Basingstoke Building Supplies. Turnover on continuing operations reduced to £39.3m from £47.7m and reflected the turbulence in the market caused by COVID.

The year continued to see volatility in shipping with rates initially rising in the first quarter, peaking in March 2022. There was then a downward trend finishing the year at pre-pandemic levels.

Despite a reduction in turnover the company’s EBITDA held up well at £3.31m with an increased gross profit percentage of 28.3% in 2022 from 26.3% in 2021.

Principal risks and uncertainties

The management of the company continually reviews strategy with a view to mitigate risks that arise in the business and its environment. Ongoing international events have continued to focus the company on assessing the risks in all areas of the business.This allows the company to identify new issues quickly and to take appropriate action thereby minimising the impact on the business. Principal risks and uncertainties that the company are exposed to are:

• Competitor activity - The company operates in a highly competitive market with few significant barriers to entry. By offering high-quality products, presented with a strong ‘value for money’ proposition, made possible through robust, time served, relationships with supplier partners and through our continued investment in staff and their training, we successfully mitigate against potential impact. The company continually strives to offer the best possible customer experience.

• Economic and political risk – The economic risk is based on the risk of inflation/deflation and the possible downturn in the economy resulting in a slowing down in demand for the company’s products. Continuing levels of economic and political uncertainty and volatility with international shipping rates and foreign currency have made the supply chain more challenging. The company seeks to negotiate the best prices and where appropriate to hedge currency & shipping rates. To ensure continuity of supply the company holds stock in key locations around the country.

• Global pandemics – The company recognises the potential risks to the business and to the wider economy brought about by a global pandemic. The company’s differentiated routes to market, which include both ‘digital online retail’ in addition to the traditional merchant stockists coupled with a robust balance sheet, means the company is well positioned to handle turbulent conditions.

• Key suppliers – The company has developed strong, long-term supplier relationships, most often on a sole supply basis, over many years. The company’s suppliers have abundant access to good quality raw materials, produce high quality finished products and can respond rapidly to changes in demand. The company is aware that reliance on too few or fragile suppliers might put the supply chain at risk and could have a detrimental impact on the business. The company works closely with suppliers to ensure that all materials are ethically sourced from audited, long-standing supply partners with strong financial businesses.

 

Pavestone UK Limited

Strategic Report for the Year Ended 31 December 2022

• Turnover and profitability - Following the global pandemic, 2022 saw a return to more normal trading levels. Despite a reduction in turnover, gross profit held up well and the percentage of gross profit improved. These are some of the company's key performance indicators used to benchmark progress.

• Spread of customers and products - Pavestone continually monitors its customer base and looks to increase both the range and diversity of products sold to its customers with a view to increase both turnover and margin. The company also seeks to diversify its customer base across commercial and domestic markets and the trade and retail sectors to minimise the risk of too much reliance on any individual market, customer or product sector.

• Customer service levels - Pavestone takes prides in its reputation of close customer contact facilitated through the highly experienced regional and national sales team that are able to monitor key performance indicators, such as ‘on time deliveries in full’, ensuring that customer satisfaction is maintained. Pavestone continually seeks improvement in the quality of products and services on offer through close customer/supplier contact and will introduce bespoke products in order to offer customers a unique proposition. The company endeavours to keep customers fully informed of any supply issues.

Section 172(1) statement

The directors manage the operational performance of the company in a way most likely to promote its long-term success for the benefit of its members as a whole. The smooth running of the business relies on the support and joint effort of the stakeholders.

The directors have had regard to the matters set out in section 172 (1) (a) to (f) of the Companies Act 2006 when performing their duties under S172.

Set our below are the stakeholders identified and engaged with by the directors during the year.

Employees: The company’s greatest assets are its employees, and the long-term success of the business is predicated on the commitment and delivery of the company’s employees to the company’s strategy and their consistent demonstration of company values. To maintain the company’s competitive advantage and to meet the growing demands of the environment in which it operates, it needs employees to be adaptive and constantly evolve their skills through inhouse and external training. The company believes that investment in training helps to retain employees and reduce turnover rates. The company values employees with long term practical experience as well as formal qualifications. It has strict selection standards and procedures in place to ensure a non-discriminatory employment policy. The directors continually strive to improve employee health and safety and actively encourages employees to be involved in enhancing and monitoring health and safety practices throughout the business.

Shareholders: The company obtains shareholder buy-in into its strategic objectives and how it achieves them. The directors create value for the shareholders by the generation of sustainable results that can be re-invested in the business. We seek to promote an investor base that is interested in a long-term holding in the company.

 

Pavestone UK Limited

Strategic Report for the Year Ended 31 December 2022

Lenders: A good working relationship with the business’s lenders is of vital importance to the long-term success of the business. There is an ongoing engagement with the company’s lenders to ensure that there is adequate working capital available for the company’s needs.

Customers: In a highly competitive environment success depends on meeting customer needs and requirements more effectively and efficiently than the company’s competitors. Engaging with the company’s customers is vital to ensure that both our current products and those in development meet their needs in the longer-term.

Suppliers: Suppliers are fundamental to the quality of the company’s products and to ensuring that the business meets the high standards of service that it sets itself and complies with regulatory requirements. The company relies on its suppliers to deliver products on time and to the standard it specifies. It is important to mitigate against supply chain risk to prevent interruptions to product delivery schedules which could impact on the company’s relationships with customers.

Doing business responsibly brings benefits for wider society and assists commercial success.

 

Pavestone UK Limited

Strategic Report for the Year Ended 31 December 2022

Modern Slavery Statement

Pavestone UK Limited (the company), operates businesses under the names of Pavestone, Bekstone and Paving Direct, trading in the UK and employing just over 80 employees. We are an importer, manufacturer and distributor of domestic landscaping building materials through a UK supply chain. Circa. 70% by sales value is sourced from Europe, Asia and South America, with the balance being UK products that we manufacture using domestic raw materials.

It continues to be a priority for Pavestone UK Limited to ensure that we trade ethically, source responsibly and work to prevent modern slavery and human trafficking throughout our organisation and in our supply chain. Pavestone continues to pledge to conduct its procurement, manufacturing and trading functions, with honesty and integrity and to treat all people ‘touched’ by our business with dignity and respect. We have committed to comply with all applicable international and local laws, regulations, treaties and to observe the basic human rights of all involved in our supply chain. Pavestone has a zero-tolerance approach to any form of slavery within our supply chain and audits specifically to safeguard against use of child labour, bonded or forced labour, any form of coercion, deception, abusive power control, or exploitation of any individual. Our collection of policies concerning human rights have been created from and are heavily influenced by the Ethical Trading Initiative (ETI) Base code and our ongoing work identifying where risks may lie and how we seek to negate them. They reflect and embed our commitment towards upholding all human rights. Pavestone was a founder member of the ETI Stone Group, established to share and promote best practice in tackling workers' issues within the stone sector.

Pavestone employees responsible for sourcing and managing our suppliers are tasked with ensuring that our company values and ideals are upheld. This continues to be a work in progress and we seek to strengthening our understanding and influence continually, this extends to modern slavery within our due diligence questioning and training/raising awareness communications amongst employees. Our staff and suppliers totally understand that any serious violations of the ETI Base Code that forms the basis of our supply agreements, may lead to the termination of the business relationship. To date we have not had to implement this sanction.

Controls are in place within Pavestone to ensure employees have the right to work and are protected by employment legislation. This includes checking right-to-work documents, visas and passports. Additionally, we also verify that employees have supplied a proof of address/residence in the UK.

Basic rights which we expect all employees to have access to, include:

• The right to a reasonable wage e.g. UK Living Wage (minimum)
• The right to a safe working environment
• The right to an appropriate level of holiday and cover for period of sickness
• The freedom to complain directly without fear of repercussion.

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes our slavery and human trafficking statement for the financial year ending December 31st 2022 and has been approved by the board of directors.

Approved by the Board on 20 October 2023 and signed on its behalf by:

.........................................
H L Barker
Company secretary and director

 

Pavestone UK Limited

Directors' Report for the Year Ended 31 December 2022

The Directors present their report and the financial statements for the year ended 31 December 2022.

Directors of the Company

The Directors who held office during the year were as follows:

R A Allen

H L Barker - Company secretary and director

J C Layton

T C Parker

R A Rawlings

M Senders

K M Williams

Streamlined energy and carbon reporting

The company has followed the 2019 UK Government environmental reporting guidance and has used the 2022 UK Government conversion factors.

Energy usage covered in this disclosure covers all properties and transport and is primarily electricity, gas and fuel for vehicles.

Usage of electricity has been calculated based on meter readings. Fuel used in forklifts is based on invoiced amounts and fuel for vehicles is based on receipts.

We measure carbon emissions by looking at Scopes 1,2 and 3.

Scope 1 refers to all direct emissions of carbon. This is fuel usage and includes diesel, petrol, gas oil, liquified petroleum gas (“LPG”), bio-LPG, and kerosene.
Scope 2 covers indirect emissions of carbon such as electricity purchased.
Scope 3 refers to supplier emissions including cement, aggregates, shipping and transport.

Energy Consumption derives from the following fuel types:

Year ended 31 December 2022

Year ended 31 December 2021

Consumption

CO2e

Consumption

CO2e

Fuel Type

(kwh)

(Tonnes)

(kwh)

(Tonnes)

Gas & Fuel Oil (scope 1)

21,972

208

26,109

254

Transportation (scope 1)

8,437

89

7,494

81

Electricity (scope 2)

681,183

127

664,814

141

Total

711,592

424

698,417

476

The company is committed to improvements year on year. In order to mitigate the effects of climate change, we are focusing on:

• Manufacturing efficiencies
• Green energy for forklift trucks
• Company cars to be powered by electric or green energy
• Installation of solar power and voltage optimisation

 

Pavestone UK Limited

Directors' Report for the Year Ended 31 December 2022

Disclosure of information to the auditors

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 20 October 2023 and signed on its behalf by:
 

.........................................
H L Barker
Company secretary and director

 

Pavestone UK Limited

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities 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 Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Pavestone UK Limited

Independent Auditor's Report to the Members of Pavestone UK Limited

Opinion

We have audited the financial statements of Pavestone UK Limited (the 'Company') for the year ended 31 December 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 Company's affairs as at 31 December 2022 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.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 Director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Pavestone UK Limited

Independent Auditor's Report to the Members of Pavestone UK Limited

We have nothing to report in this regard.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of Directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 8], 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 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 Company or to cease operations, or have no realistic alternative but to do so.

 

Pavestone UK Limited

Independent Auditor's Report to the Members of Pavestone UK Limited

Auditor 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud are detailed below:

• Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;
• Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
• Reviewing minutes of meetings of those charged with governance
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities 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.

......................................
Lee Baker BA FCA (Senior Statutory Auditor)
For and on behalf of Wenn Townsend, Statutory Auditor

30 St Giles'
Oxford
OX1 3LE

20 October 2023

 

Pavestone UK Limited

Profit and Loss Account for the Year Ended 31 December 2022

Note

Continuing operations
2022
£

Discontinued operations
2022
£

Total
2022
£

Continuing operations
2021
£

Discontinued operations
2021
£

Total
2021
£

Turnover

3

39,229,559

640,387

39,869,946

47,704,333

1,564,720

49,269,053

Cost of sales

 

(28,131,417)

(464,794)

(28,596,211)

(35,136,772)

(1,058,871)

(36,195,643)

Gross profit

 

11,098,142

175,593

11,273,735

12,567,561

505,849

13,073,410

Distribution costs

 

(4,077,119)

(109,919)

(4,187,038)

(5,287,973)

(255,643)

(5,543,616)

Administrative expenses

 

(4,223,704)

(50,967)

(4,274,671)

(4,219,227)

(169,983)

(4,389,210)

Other operating income

4

1,766

-

1,766

127,770

17,580

145,350

Operating profit

6

2,799,085

14,707

2,813,792

3,188,131

97,803

3,285,934

Other interest receivable and similar income

7

5,255

-

5,255

33,923

-

33,923

Interest payable and similar expenses

8

(257,398)

-

(257,398)

(235,509)

-

(235,509)

 

(252,143)

-

(252,143)

(201,586)

-

(201,586)

Profit before tax

 

2,546,942

14,707

2,561,649

2,986,545

97,803

3,084,348

Tax on profit

12

(482,792)

-

(482,792)

(707,207)

-

(707,207)

Profit for the financial year

 

2,064,150

14,707

2,078,857

2,279,338

97,803

2,377,141

The Company has no recognised gains or losses for the year other than the results above.

 

Pavestone UK Limited

Statement of Comprehensive Income for the Year Ended 31 December 2022

2022
£

2021
£

Profit for the year

2,078,857

2,377,141

Surplus on property, plant and equipment revaluation

-

2,290,350

Total comprehensive income for the year

2,078,857

4,667,491

 

Pavestone UK Limited

(Registration number: 04643500)
Balance Sheet as at 31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Intangible assets

13

18,956

44,768

Tangible assets

14

10,052,241

10,319,625

 

10,071,197

10,364,393

Current assets

 

Stocks

15

5,270,784

7,740,368

Debtors

16

2,369,608

3,629,466

Cash at bank and in hand

 

1,079,210

285,252

 

8,719,602

11,655,086

Creditors: Amounts falling due within one year

18

(4,825,993)

(9,230,282)

Net current assets

 

3,893,609

2,424,804

Total assets less current liabilities

 

13,964,806

12,789,197

Creditors: Amounts falling due after more than one year

18

(2,891,589)

(3,768,585)

Provisions for liabilities

19

(1,599,159)

(1,625,411)

Net assets

 

9,474,058

7,395,201

Capital and reserves

 

Called up share capital

21

78,234

78,234

Share premium reserve

 

37,254

37,254

Capital redemption reserve

 

145,294

145,294

Revaluation reserve

22

3,512,328

3,512,328

Profit and loss account

 

5,700,948

3,622,091

Shareholders' funds

 

9,474,058

7,395,201

Approved and authorised by the Board on 20 October 2023 and signed on its behalf by:
 

.........................................
H L Barker
Company secretary and director

 

Pavestone UK Limited

Statement of Changes in Equity for the Year Ended 31 December 2022

Share capital
£

Share premium
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2022

78,234

37,254

145,294

3,512,328

3,622,091

7,395,201

Profit for the year

-

-

-

-

2,078,857

2,078,857

At 31 December 2022

78,234

37,254

145,294

3,512,328

5,700,948

9,474,058

Share capital
£

Share premium
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 January 2021

173,234

37,254

50,294

1,221,978

5,632,050

7,114,810

Profit for the year

-

-

-

-

2,377,141

2,377,141

Other comprehensive income

-

-

-

2,290,350

-

2,290,350

Total comprehensive income

-

-

-

2,290,350

2,377,141

4,667,491

Purchase of own share capital

(95,000)

-

95,000

-

(4,387,100)

(4,387,100)

At 31 December 2021

78,234

37,254

145,294

3,512,328

3,622,091

7,395,201

 

Pavestone UK Limited

Statement of Cash Flows for the Year Ended 31 December 2022

Note

2022
£

2021
£

Cash flows from operating activities

Profit for the year

 

2,078,857

2,377,141

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

509,752

473,149

(Profit)/loss on disposal of tangible assets

5

(2,317)

36,665

Finance income

7

(5,255)

(33,923)

Finance costs

8

257,398

235,509

Income tax expense

12

482,792

707,207

Gains/losses on property revaluation

 

-

23,491

 

3,321,227

3,819,239

Working capital adjustments

 

Decrease/(increase) in stocks

15

2,469,584

(3,718,552)

Decrease in trade debtors

16

1,259,858

2,421,416

(Decrease)/increase in trade creditors

18

(4,694,857)

1,020,439

Cash generated from operations

 

2,355,812

3,542,542

Income taxes paid

 

-

(526,459)

Net cash flow from operating activities

 

2,355,812

3,016,083

Cash flows from investing activities

 

Interest received

7

5,255

33,923

Acquisitions of tangible assets

(225,130)

(270,447)

Proceeds from sale of tangible assets

 

10,891

14,079

Acquisition of intangible assets

13

-

(50,000)

Net cash flows from investing activities

 

(208,984)

(272,445)

Cash flows from financing activities

 

Interest paid

8

(257,398)

(235,509)

Payments for purchase of own shares

 

-

(4,387,100)

Repayment of bank borrowing

 

(264,041)

(247,944)

Proceeds from other borrowing draw downs

 

-

1,044,000

Repayment of other borrowing

 

(615,258)

(430,258)

Payments to finance lease creditors

 

(16,353)

(75,466)

Net cash flows from financing activities

 

(1,153,050)

(4,332,277)

Net increase/(decrease) in cash and cash equivalents

 

993,778

(1,588,639)

Cash and cash equivalents at 1 January

 

83,305

1,671,944

Cash and cash equivalents at 31 December

 

1,077,083

83,305

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

1

General information

The Company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Burford Quarry
Burford Road
Brize Norton
Oxfordshire
OX18 3WN

These financial statements were authorised for issue by the Board on 20 October 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention, modified to include the revaluation of freehold properties to include investment properties and certain financial instruments at fair value.

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

Revenue recognition

Turnover represents amounts receivable for manufactured building materials and natural stone products less sales rebates net of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Government grants

The company received government grants in respect of the Coronavirus Job Retention Scheme. These grants are recognised using the accrual model and as such are recorded in the profit and loss account in the period in which the company is entitled to such grants as a result of having furloughed staff members.

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Foreign currency transactions and balances

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised as employee benefit expense when they are due.

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. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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 income statement, 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 when the company has 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.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Intangible assets

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.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Paving Direct website

3 years straight line

Other intangible assets

2 years straight line

Tangible assets

Tangible assets are stated on the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable costs incurred in their acquisition and installation.

Depreciation

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 credited or charged to profit or loss.

Land and buildings are revalued to their fair value annually and, as such, no depreciation is charged. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

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:

Asset class

Depreciation method and rate

Fixtures, fittings, tools and equipment

33% straight line

Plant and machinery

5%-33% straight line

Motor vehicles

25% straight line

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Impairment of fixed assets

At each reporting period end date, the company 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.

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.

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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Stocks

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

Stocks held for distribution at no or nominal consideration are measured at cost, adjusted where applicable for any loss of service potential.

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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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 statement of financial position 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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Financial instruments

Classification
The company 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.

 Recognition and measurement
Financial instruments are recognised in the company's statement of financial position 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

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, including creditors and bank loans, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Debt instruments with a repayment period more than one year 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.

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

 Impairment
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.

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Judgements

In the application of the company'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.

Key sources of estimation uncertainty

Useful economic lives of tangible and intangible assets (excluding land and buildings) - Management apply judgement in estimating the useful economic lives and residual values of intangible and tangible assets. This judgement includes experience with the useful economic life of similar assets, technological changes, future investments (asset replacement) and physical condition of the asset on acquisition. The carrying amount is £3,071,198 (2021 - £3,364,393).

Stock - Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgments to be made, which includes reviewing the physical state of stock and any potential impairment due to obsolescence. The carrying amount is £5,270,784 (2021 - £7,740,368).

Freehold property valuation - The freehold property is based on a professional valuation which was completed for the year ended 31 December 2022. The valuation is therefore an estimate based on available market sources. The carrying amount is £7,000,000 (2021 - £7,000,000).

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2022
£

2021
£

Revenue from principal activity

39,869,946

49,269,053

4

Other operating income

The analysis of the Company's other operating income for the year is as follows:

2022
£

2021
£

Government grants

-

17,580

Miscellaneous other operating income

1,766

127,770

1,766

145,350

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

5

Other gains and losses

The analysis of the Company's other gains and losses for the year is as follows:

2022
£

2021
£

Gain/(loss) on disposal of tangible assets

2,317

(36,665)

Loss on property revaluation

-

(23,491)

2,317

(60,156)

6

Operating profit

Arrived at after charging/(crediting)

2022
£

2021
£

Depreciation expense

483,940

418,931

Amortisation expense

25,812

54,218

Cost of stocks recognised as an expense

27,141,714

34,700,112

Foreign exchange gains

(421,890)

(238,745)

(Profit)/loss on disposal of property, plant and equipment

(2,317)

36,665

7

Other interest receivable and similar income

2022
£

2021
£

Other finance income

5,255

33,923

8

Interest payable and similar expenses

2022
£

2021
£

Interest on bank overdrafts and borrowings

256,810

232,226

Interest on obligations under finance leases and hire purchase contracts

588

3,283

257,398

235,509

9

Auditors' remuneration

2022
£

2021
£

Audit of the financial statements

25,300

23,400


 

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

10

Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

2022
£

2021
£

Wages and salaries

3,397,896

3,404,439

Social security costs

376,603

361,208

Pension costs, defined contribution scheme

150,256

144,598

3,924,755

3,910,245

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2022
No.

2021
No.

Sales, distribution and administration

77

82

Management

4

4

81

86

11

Directors' remuneration

The Directors' remuneration for the year was as follows:

2022
£

2021
£

Remuneration

605,545

580,517

Contributions paid to money purchase schemes

39,426

38,000

644,971

618,517

During the year the number of Directors who were receiving benefits and share incentives was as follows:

2022
No.

2021
No.

Accruing benefits under money purchase pension scheme

4

4

In respect of the highest paid Director:

2022
£

2021
£

Remuneration

153,226

151,360

Company contributions to money purchase pension schemes

10,375

10,000

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

12

Taxation

Tax charged/(credited) in the profit and loss account

2022
£

2021
£

Current taxation

UK corporation tax

509,044

586,461

Deferred taxation

Arising from origination and reversal of timing differences

(26,252)

120,746

Tax expense in the income statement

482,792

707,207

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2021 - higher than the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

2022
£

2021
£

Profit before tax

2,561,649

3,084,348

Corporation tax at standard rate

486,713

586,026

Effect of expense not deductible in determining taxable profit (tax loss)

1,741

549

Deferred tax (credit)/expense relating to changes in tax rates or laws

(6,300)

121,384

Tax increase/(decrease) from effect of capital allowances and depreciation

638

(752)

Total tax charge

482,792

707,207

Deferred tax

Deferred tax assets and liabilities

2022

Liability
£

Accelerated capital allowances

484,239

Property revaluation

1,119,646

Other timing differences

(4,726)

1,599,159

2021

Liability
£

Accelerated capital allowances

507,646

Property revaluation

1,119,646

Other timing differences

(1,881)

1,625,411

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

13

Intangible assets

Goodwill
 £

Patents
 £

Other intangible assets
 £

Paving Direct website
 £

Total
£

Cost or valuation

At 1 January 2022

22,350

1

50,000

264,144

336,495

Disposals

(22,350)

-

-

-

(22,350)

At 31 December 2022

-

1

50,000

264,144

314,145

Amortisation

At 1 January 2022

22,350

-

6,250

263,127

291,727

Amortisation charge

-

-

25,000

812

25,812

Amortisation eliminated on disposals

(22,350)

-

-

-

(22,350)

At 31 December 2022

-

-

31,250

263,939

295,189

Carrying amount

At 31 December 2022

-

1

18,750

205

18,956

At 31 December 2021

-

1

43,750

1,017

44,768

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

14

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2022

7,000,000

289,902

4,453,608

187,006

11,930,516

Additions

-

4,950

150,393

69,787

225,130

Disposals

-

(124,764)

(130,065)

-

(254,829)

At 31 December 2022

7,000,000

170,088

4,473,936

256,793

11,900,817

Depreciation

At 1 January 2022

-

171,815

1,369,157

69,919

1,610,891

Charge for the year

-

91,743

365,666

26,531

483,940

Eliminated on disposal

-

(124,764)

(121,491)

-

(246,255)

At 31 December 2022

-

138,794

1,613,332

96,450

1,848,576

Carrying amount

At 31 December 2022

7,000,000

31,294

2,860,604

160,343

10,052,241

At 31 December 2021

7,000,000

118,087

3,084,451

117,087

10,319,625

Included within the net book value of land and buildings above is £7,000,000 (2021 - £7,000,000) in respect of freehold land and buildings.
 

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

Revaluation

The fair value of the Company's land and buildings was revalued during the year ended 31 December 2022 by an independent valuer.

The freehold and leasehold land and buildings were valued on a market value basis by a firm of independent Chartered Surveyors, Berrys, Cassington during the year ended 31 December 2022. The directors believe that the valuation is appropriate as it's an independent Chartered Surveyor and conforms to the International Valuation Standards.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been been as stated below.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £2,391,517 (2021 - £2,391,517).

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2022
£

2021
£

Plant and machinery

-

312,440

Motor vehicles

121,981

69,207

 

121,981

381,647

Restriction on title and pledged as security

Land and buildings with a carrying amount of £7,000,000 (2021 - £7,000,000) has been pledged as security for the borrowings of the company..

15

Stocks

2022
£

2021
£

Raw materials and consumables

167,253

347,984

Work in progress

238,907

160,343

Finished goods and goods for resale

4,864,624

7,232,041

5,270,784

7,740,368

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

16

Debtors

2022
£

2021
£

Trade debtors

1,622,229

2,935,028

Other debtors

633,782

619,793

Prepayments

113,597

74,645

2,369,608

3,629,466

The carrying amount of trade debtors pledged as security for liabilities amounted to £1,622,229 (2021 - £2,935,028).

These debtors are secured as part of the company's financing arrangements.

17

Cash and cash equivalents

2022
£

2021
£

Cash at bank

1,079,210

285,252

Bank overdrafts

(2,127)

(201,947)

Cash and cash equivalents in statement of cash flows

1,077,083

83,305

18

Creditors

Note

2022
£

2021
£

Due within one year

 

Loans and borrowings

23

919,478

1,137,954

Trade creditors

 

1,649,005

4,949,714

Social security and other taxes

 

265,371

774,308

Other payables

 

41,816

73,715

Accruals

 

656,738

1,510,050

Income tax liability

12

1,293,585

784,541

 

4,825,993

9,230,282

Due after one year

 

Loans and borrowings

23

2,891,589

3,768,585

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2022

1,625,411

1,625,411

Increase (decrease) in existing provisions

(26,252)

(26,252)

At 31 December 2022

1,599,159

1,599,159

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £150,256 (2021 - £144,598).

21

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary shares of £1 each

78,234

78,234

78,234

78,234

         

22

Reserves

Revaluation reserve

The revaluation reserve is the increase in the fair value of the freehold property held at the reporting date since its original cost. This reserve is unrealised and non-distributable.

There were no changes to the revaluation reserve in the current year. The changes resulting from items of other comprehensive income for the prior year were as follows:

Revaluation reserve
£

Total
£

Surplus/deficit on property, plant and equipment revaluation

2,290,350

2,290,350

2,290,350

2,290,350

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

23

Loans and borrowings

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

1,797,767

2,068,468

Hire purchase contracts

39,250

30,287

Other borrowings

1,054,572

1,669,830

2,891,589

3,768,585

2022
£

2021
£

Current loans and borrowings

Bank borrowings

275,039

268,379

Bank overdrafts

2,127

201,947

Hire purchase contracts

27,054

52,370

Other borrowings

615,258

615,258

919,478

1,137,954

Bank borrowings

The bank loan is secured by a fixed charge over the company's freehold property and the company's CTI 950 Automatic Precast Machine.

The bank loan of £1,678,069 (2021: £1,789,784) has a fifteen year amortisation period with interest charged at 2.50% above the base rate. Repayments are £13,403 per month expiring November 2024 at which point the loan will be renegotiated or settled. The Coronavirus Business Interruption Loan (£394,737, 2021: £547,063) has a five year amortisation period with interest charge at 2.50% above the base rate. Repayments are £13,158 per month expiring June 2025.

Bank overdrafts (debt factoring) is denominated in pounds sterling with a nominal interest rate of 2.75% above the base rate. The carrying amount at year end is £2,127 (2021: £201,947). These are secured to the same value over the trade debtors to which they relate.

At the reporting date, the company had trade loans totalling £216,704 excluding interest from Barclays Bank plc. These are not separately disclosed in these financial statements.

Other borrowings

Hire purchase contracts is denominated in pound sterling with a nominal interest rate of 3%, and the final instalment is due on 31 July 2026. The carrying amount at year end is £66,304 (2021 - £82,657).

Hire purchase contracts are secured against the assets to which the contracts relate.

Other borrowings is denominated in pound sterling with a nominal interest rate of 4.5%, and the final instalment is due on 31 July 2026. The carrying amount at year end is £1,669,830 (2021 - £2,285,088).

Other borrowings consists of two separate loans, the first of which is repayable at £32,771 per month until March 2025, the other which is repayable at £18,500 per month until July 2026.

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

24

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

27,054

52,370

Later than one year and not later than five years

39,250

30,287

66,304

82,657

Operating leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

112,810

200,149

Later than one year and not later than five years

24,928

95,879

137,738

296,028

The amount of non-cancellable operating lease payments recognised as an expense during the year was £251,297 (2021 - £263,396).

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

25

Related party transactions

Transactions with Directors

2022

At 1 January 2022
£

Advances to Director
£

Repayments by Director
£

At 31 December 2022
£

J C Layton

Director loan

14,545

20,445

(15,690)

19,300

         

R A Rawlings

Director loan

34,081

5,834

(3,150)

36,765

         

M Senders

Director loan

9,779

198

-

9,977

         

T C Parker

Director loan

16,529

11,322

(19,566)

8,285

         

2021

At 1 January 2021
£

Advances to Director
£

Repayments by Director
£

At 31 December 2021
£

J C Layton

Director loan

49,250

319

(35,024)

14,545

         
       

K A Fowler

Director loan - estate of K A Fowler

1,077,473

85,703

(1,163,176)

-

         
       

R A Rawlings

Director loan

55,073

-

(20,992)

34,081

         
       

M Senders

Director loan

9,581

198

-

9,779

         
       

T C Parker

Director loan

16,195

334

-

16,529

         
       

 

Pavestone UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2022

 

Summary of transactions with other related parties

Consilium CXXI Ltd, a company jointly controlled by Tom Parker.
 Consilium CXXI Ltd purchases goods from Pavestone UK Limited on normal commercial terms.
 

Income and receivables from related parties

2022

Other related parties
£

Sale of goods

165,900

Amounts receivable from related party

10,034

2021

Other related parties
£

Sale of goods

129,540

Amounts receivable from related party

25,890