Company registration number 06029200 (England and Wales)
Ancorite Holdings Ltd
Annual report and Financial Statements
For the year ended 30 April 2023
Ancorite Holdings Ltd
Company information
Directors
Mr G W G J Doran
Mr M Nicholson
Mr A Frain
Mr A Cummings
Mr J Borkowsky
(Appointed 16 February 2023)
Mr M J Schmidt
(Appointed 16 February 2023)
Secretary
Mr M Nicholson
Company number
06029200
Registered office
Millbuck Way
Ettiley Heath
Sandbach
Cheshire
England
CW11 3AB
Auditor
DJH Mitten Clarke Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Ancorite Holdings Ltd
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
Ancorite Holdings Ltd
Strategic report
For the year ended 30 April 2023
- 1 -

The directors present the strategic report for the year ended 30 April 2023.

Fair review of the business

The Directors are pleased to report the continued successful development of the group with revenue in the year being £17.87m (2022: £15.91m) and operating profit £2.44m (2022: £2.33m) with average month-end cash £1.39m (2022: £1.19m) which is a record performance for the organisation.

The Company has two main operating divisions which have both performed well through-out the trading year and in line with expectations. The revenue analysed by division is a follows:

                                    2023                           2022

INDUSTRIAL                £7,810,525                 £9,160,350

FLOORING                   £10,063,537               £6,746,739

TOTAL                         £17,874,062              £15,907,089

Industrial - includes vessel linings, refractory, and pipework. Revenue was down 15% in the year due to delayed starts on a number of major projects. It is forecast however that these projects will start in the next financial year, and we anticipate significant new investment in the sectors in which we operate. Flooring - Revenue was up 53% due to securing three major multi-million pound contracts through the year in the UK, Ireland and Mexico respectively supported by underlining revenue which remains strong.

A well-balanced portfolio across our diverse ranges of services also provides for a blended turnover to allow smoothing peaks and troughs across each division without affecting the group’s overall performance and results.

The group also ends the year with £5m of work already secured for period-ending December 23 with a further £3m of opportunities clearly identified. Moving forward, we have a robust pipeline of work opportunities across each operating division.

Principal risks and uncertainties

After two years of significant growth across the group we anticipate this will normalise to pre-covid levels as the cost of living crisis, high energy prices, and high inflation start to impact on the industries we operate within particularly in the construction sector. Building materials inflation, a shortage of raw materials and high transport costs continue to present a risk and we are working closely with our supply chain partners to minimise any impact on the business. An aging workforce, particularly in our Industrial business remains a challenge however we are actively investing in training and development to attract new people into the business.

FINANCIAL INSTRUMENTS RISK

We operate robust systems and processes that require a stringent review of Clients including credit checks and sign-off authorisation pre-contract, detailed monthly business unit and project reviews and rigorous debt management.

Cashflow Risk The group aims to mitigate cashflow risk by managing cash generated by its operations. Cash flow forecasts are updated and reviewed on a weekly basis and authorisation limits are in place for all types of expenditure.

Foreign currency

The group’s transactions are predominately in UK Sterling, US Dollars, and Euros. The group seeks to mitigate the effect of its structural currency exposure by purchasing in the same functional currency as it sells. The group does not hedge any currency exposure.

Credit risk

The group’s objective is to reduce the risk of financial loss due to a customers’ failure to honour its obligations. All customers are subject to strict credit control procedures and each customer has an appropriate credit limit set.

Price risk

The group aims to manage its price risk by maintaining excellent working relationships with its suppliers and keeping to agreed payment terms. Authorisation limits are in place for purchases and there are constant reviews of potential price increases at appropriate levels throughout the business.

Ancorite Holdings Ltd
Strategic report (continued)
For the year ended 30 April 2023
- 2 -
Development and performance

In February 2023 we announced investment in Ancorite’s UK business with the Steuler Group acquiring 75% of Ancorite Holdings Limited (and its subsidiaries including Ancorite Surface Protection Limited) in three stages completing in 2024. Steuler Group who are headquartered in Hoehr-Grenzhausen near Frankfurt in Germany are one of the largest designers, manufacturers, and installers of anti-corrosive surface protection products globally. It employs over 2700 employees with revenue of around 440 million Euros. This investment will future proof the long term continued success of the business with synergies complementing our current service offering of specialist floor coatings, rubber and refractory linings, anti-corrosive linings and GRP pipework. It will also allow access and opportunities to new market sectors, products, and services to support the growth and future ambitions of the Group. As part of this process, in future years we intend to move our financial year-end to 31st December to align with the Steuler Group existing financial periods.

A robust 3-year strategic business plan is in operation with the key objectives to provide long term sustainable revenue and cash backed profit all delivered within a safe working environment. It includes a detailed succession plan to future proof the business moving forward. The Directors are therefore extremely confident that the year ahead will be successful especially given the level of orders already secured.

Key performance indicators

The directors monitor progress with reference to the following key performance indictors:

2023 2022

Gross Profit as a % of turnover 29% 29%

Operating Profit as a % of turnover 13% 15%

Average month-end cash £1.39m £1.19m

 

On behalf of the board

Mr M Nicholson
Director
20 September 2023
Ancorite Holdings Ltd
Directors' report
For the year ended 30 April 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2023.

Principal activities

The principal activity of the group continued to be that of anti-corrosion wall, floor and tank linings.

 

The principal activity of the company was that of a holding company.

Results and dividends

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

Ordinary dividends were paid amounting to £1,148,687. 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:

Mr G W G J Doran
Mr M Nicholson
Mr A Frain
Mr A Cummings
Mr J Borkowsky
(Appointed 16 February 2023)
Mr M J Schmidt
(Appointed 16 February 2023)
Auditor

DJH Mitten Clarke Audit Limited, has indicated its willingness to continue in office and will be proposed for re-appointment in accordance with section 485 Companies Act 2006.

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.

Ancorite Holdings Ltd
Directors' report (continued)
For the year ended 30 April 2023
- 4 -
Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

On behalf of the board
Mr M Nicholson
Mr A Cummings
Director
Director
20 September 2023
Ancorite Holdings Ltd
Independent auditor's report
To the members of Ancorite Holdings Ltd
- 5 -
Opinion

We have audited the financial statements of Ancorite Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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.

Ancorite Holdings Ltd
Independent auditor's report (continued)
To the members of Ancorite Holdings Ltd
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

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.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the parent company and group through discussions with directors and other management;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the parent company and group, including legislation such as the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations through making enquiries of management and reviewing legal and professional fee invoices.

Ancorite Holdings Ltd
Independent auditor's report (continued)
To the members of Ancorite Holdings Ltd
- 7 -

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

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries posted during the period and at the period end to identify unusual transactions;

- reviewed significant estimates an challenged directors where necessary;

- investigated the rationale behind significant or unusual transactions;

- performed walkthrough tests on major transaction cycles; and

- performed detailed testing on the significant accounting estimates used by management in evaluating long term contract progress and profitability.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing legal and professional fees incurred during the period to identify any potential indications of non-compliance with laws and regulations.

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.

Joanne Beamish ACA FCCA (Senior Statutory Auditor)
For and on behalf of DJH Mitten Clarke Audit Limited
4 October 2023
Chartered Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Ancorite Holdings Ltd
Group income statement
For the year ended 30 April 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,874,062
15,907,089
Cost of sales
(12,769,731)
(11,248,416)
Gross profit
5,104,331
4,658,673
Administrative expenses
(2,662,910)
(2,329,174)
Other operating income
-
675
Operating profit
4
2,441,421
2,330,174
Interest receivable and similar income
8
25,722
2,466
Interest payable and similar expenses
9
(752)
(2,492)
Profit before taxation
2,466,391
2,330,148
Tax on profit
10
(461,733)
(431,351)
Profit for the financial year
26
2,004,658
1,898,797
Profit for the financial year is all attributable to the owners of the parent company.
Ancorite Holdings Ltd
Group statement of comprehensive income
For the year ended 30 April 2023
- 9 -
2023
2022
£
£
Profit for the year
2,004,658
1,898,797
Other comprehensive income
-
-
Total comprehensive income for the year
2,004,658
1,898,797
Total comprehensive income for the year is all attributable to the owners of the parent company.
Ancorite Holdings Ltd
Group statement of financial position
As at 30 April 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
7,220
11,363
Tangible assets
13
311,954
331,150
319,174
342,513
Current assets
Stocks
16
53,842
60,893
Debtors
17
4,012,732
4,028,352
Cash at bank and in hand
1,525,695
1,307,785
5,592,269
5,397,030
Creditors: amounts falling due within one year
18
(2,687,120)
(3,126,898)
Net current assets
2,905,149
2,270,132
Total assets less current liabilities
3,224,323
2,612,645
Provisions for liabilities
Provisions
19
745,241
984,707
Deferred tax liability
20
7,530
12,357
(752,771)
(997,064)
Net assets
2,471,552
1,615,581
Capital and reserves
Called up share capital
22
85,142
85,142
Share premium account
23
42,000
42,000
Revaluation reserve
24
48,292
49,415
Capital redemption reserve
25
14,858
14,858
Profit and loss reserves
26
2,281,260
1,424,166
Total equity
2,471,552
1,615,581
The financial statements were approved by the board of directors and authorised for issue on 20 September 2023 and are signed on its behalf by:
20 September 2023
Mr M Nicholson
Mr A Cummings
Director
Director
Company registration number 06029200 (England and Wales)
Ancorite Holdings Ltd
Company statement of financial position
As at 30 April 2023
30 April 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
7,220
11,363
Tangible assets
13
311,954
331,150
Investments
14
475,425
475,425
794,599
817,938
Current assets
Debtors
17
240,822
168,114
Cash at bank and in hand
29,734
35,076
270,556
203,190
Creditors: amounts falling due within one year
18
(420,500)
(387,999)
Net current liabilities
(149,944)
(184,809)
Total assets less current liabilities
644,655
633,129
Provisions for liabilities
Deferred tax liability
20
7,530
12,357
(7,530)
(12,357)
Net assets
637,125
620,772
Capital and reserves
Called up share capital
22
85,142
85,142
Share premium account
23
42,000
42,000
Revaluation reserve
24
48,292
49,415
Capital redemption reserve
25
14,858
14,858
Profit and loss reserves
26
446,833
429,357
Total equity
637,125
620,772

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 £1,165,040 (2022 - £1,439,105 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Ancorite Holdings Ltd
Company statement of financial position (continued)
As at 30 April 2023
30 April 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 20 September 2023 and are signed on its behalf by:
20 September 2023
Mr M Nicholson
Mr A Cummings
Director
Director
Company registration number 06029200 (England and Wales)
Ancorite Holdings Ltd
Group statement of changes in equity
For the year ended 30 April 2023
- 13 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 May 2021
100,000
42,000
50,538
-
0
1,167,871
1,360,409
Year ended 30 April 2022:
Profit and total comprehensive income
-
-
-
-
1,898,797
1,898,797
Dividends
11
-
-
-
-
(1,272,175)
(1,272,175)
Own shares acquired
-
-
-
-
(371,450)
(371,450)
Redemption of shares
22
(14,858)
-
-
14,858
-
-
0
Transfers
-
-
-
-
1,123
1,123
Other movements
-
-
(1,123)
-
-
(1,123)
Balance at 30 April 2022
85,142
42,000
49,415
14,858
1,424,166
1,615,581
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
-
2,004,658
2,004,658
Dividends
11
-
-
-
-
(1,148,687)
(1,148,687)
Transfers
-
-
-
-
1,123
1,123
Other movements
-
-
(1,123)
-
-
(1,123)
Balance at 30 April 2023
85,142
42,000
48,292
14,858
2,281,260
2,471,552
Ancorite Holdings Ltd
Company statement of changes in equity
For the year ended 30 April 2023
- 14 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 May 2021
100,000
42,000
50,538
-
0
632,754
825,292
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
-
-
-
1,439,105
1,439,105
Dividends
11
-
-
-
-
(1,272,175)
(1,272,175)
Own shares acquired
-
-
-
-
(371,450)
(371,450)
Redemption of shares
22
(14,858)
-
-
14,858
-
-
0
Transfers
-
-
-
-
1,123
1,123
Other movements
-
-
(1,123)
-
-
(1,123)
Balance at 30 April 2022
85,142
42,000
49,415
14,858
429,357
620,772
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
-
1,165,040
1,165,040
Dividends
11
-
-
-
-
(1,148,687)
(1,148,687)
Transfers
-
-
-
-
1,123
1,123
Other movements
-
-
(1,123)
-
-
(1,123)
Balance at 30 April 2023
85,142
42,000
48,292
14,858
446,833
637,125
Ancorite Holdings Ltd
Group statement of cash flows
For the year ended 30 April 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
1,954,002
1,642,112
Interest paid
(752)
(2,492)
Income taxes paid
(576,871)
(246,703)
Net cash inflow from operating activities
1,376,379
1,392,917
Investing activities
Purchase of intangible assets
-
(3,000)
Purchase of tangible fixed assets
(35,504)
(57,814)
Proceeds from disposal of tangible fixed assets
-
17,346
Interest received
25,722
2,466
Net cash used in investing activities
(9,782)
(41,002)
Financing activities
Purchase of treasury shares
-
0
(371,450)
Dividends paid to equity shareholders
(1,148,687)
(1,272,175)
Net cash used in financing activities
(1,148,687)
(1,643,625)
Net increase/(decrease) in cash and cash equivalents
217,910
(291,710)
Cash and cash equivalents at beginning of year
1,307,785
1,599,495
Cash and cash equivalents at end of year
1,525,695
1,307,785
Ancorite Holdings Ltd
Notes to the group financial statements
For the year ended 30 April 2023
- 16 -
1
Accounting policies
Company information

Ancorite Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Millbuck Way, Ettiley Heath, Sandbach, Cheshire, England, CW11 3AB.

 

The group consists of Ancorite Holdings Ltd 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. 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
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Ancorite Holdings Ltd 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 30 April 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, after discounts and rebates. excluding value added tax and other sales taxes.

Contract Turnover

 

Amounts recoverable on construction contracts are included in debtors and are valued, inclusive of profit, at work completed at contract prices plus variations. Any work invoiced in advance of the work being completed is recorded in creditors. The value of work completed is based on surveys of work performed and management's judgement.

 

Turnover and costs on contracts are recognised as activity progresses once the outcome can be assessed with reasonable certainty. Full provision is made for anticipated future losses. Where contract payments received exceed amounts recoverable, these amounts are included in creditors.

1.5
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
25% on cost
1.6
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:

Freehold land and buildings
2% on cost
Plant and equipment
25% on cost
Computers
25% on cost
Motor vehicles
33.33% on cost

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 income statement.

Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 18 -

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

 

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

 

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.

 

Freehold land and buildings owned and occupied by the group companies are classified as property, plant and equipment and accounted for as such.

 

The freehold land and buildings is included in the financial statements at deemed cost as a result of the adoption of the FRS 102 Triennial Review 2017. Historically, land and buildings adopted the revaluation method.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.

1.8
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.

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.

Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 19 -
1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.10
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 statement of financial position 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.

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.

Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
Taxation

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

Current tax

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 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.

 

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 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.

Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 21 -
1.13
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

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.

1.17
Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised.

1.18
Foreign exchange

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 in the period are included in profit or loss.

1.19

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Strandard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 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.

Provisons

Provision is made for a legal claim made by a customer. The provision requires managements best estimate of the cost of settling this claim.

 

In addition to the above, cost provisions are recognised in the anticipation of extra works on long term contacts work that are to be incurred in order to receive final settlement.

Valuation of contracts

Management review each construction contract ongoing at the year end in order to obtain an estimated valuation of the work completed to date and subsequently the profit to recognise. Management recognise profit on contracts once the outcome can be measured with reasonable certainty.

3
Turnover and other revenue

The turnover and profit before taxation are attributable to the one principal activity of the group.

2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
14,249,546
15,014,000
Rest of World
3,624,516
893,089
17,874,062
15,907,089
2023
2022
£
£
Other revenue
Interest income
25,722
2,466
Grants received
-
675
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 23 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(146,536)
3,459
Government grants
-
(675)
Depreciation of owned tangible fixed assets
54,700
49,620
Profit on disposal of tangible fixed assets
-
(13,820)
Amortisation of intangible assets
4,143
3,485
Operating lease charges
168,989
141,564
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
16,350
16,600
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
Production
40
44
-
-
Admin
22
22
-
-
Directors
4
5
4
5
Total
66
71
4
5

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,677,270
3,567,747
461,098
342,675
Social security costs
459,222
411,471
60,184
46,950
Pension costs
145,140
207,437
44,576
110,000
4,281,632
4,186,655
565,858
499,625
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 24 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
527,009
418,737
Company pension contributions to defined contribution schemes
123,316
144,031
650,325
562,768
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
154,656
86,901
Company pension contributions to defined contribution schemes
7,337
44,011
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
25,722
2,466
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
19
Other interest
752
2,473
Total finance costs
752
2,492
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
425,045
431,027
Adjustments in respect of prior periods
41,515
-
0
Total current tax
466,560
431,027
Deferred tax
Origination and reversal of timing differences
(4,827)
324
Total tax charge
461,733
431,351
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
10
Taxation
(Continued)
- 25 -

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

2023
2022
£
£
Profit before taxation
2,466,391
2,330,148
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
468,614
442,728
Tax effect of expenses that are not deductible in determining taxable profit
27,314
6,686
Effect of change in corporation tax rate
12,163
2,966
Double tax relief
(22,839)
(20,874)
Depreciation on assets not qualifying for tax allowances
787
767
Effect of change in local deferred tax rate
1,915
-
0
Enhanced capital allowances
(1,904)
(922)
Over/under provision of tax
(24,317)
-
Taxation charge
461,733
431,351
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
1,148,687
1,272,175
12
Intangible fixed assets
Group
Software
£
Cost
At 1 May 2022
24,577
Disposals
(7,750)
At 30 April 2023
16,827
Amortisation and impairment
At 1 May 2022
13,214
Amortisation charged for the year
4,143
Disposals
(7,750)
At 30 April 2023
9,607
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
12
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 30 April 2023
7,220
At 30 April 2022
11,363
Company
Software
£
Cost
At 1 May 2022
24,577
Disposals
(7,750)
At 30 April 2023
16,827
Amortisation and impairment
At 1 May 2022
13,214
Amortisation charged for the year
4,143
Disposals
(7,750)
At 30 April 2023
9,607
Carrying amount
At 30 April 2023
7,220
At 30 April 2022
11,363
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 27 -
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2022
250,000
52,524
125,378
44,648
472,550
Additions
-
0
32,392
3,112
-
0
35,504
Disposals
-
0
-
0
(56,186)
-
0
(56,186)
At 30 April 2023
250,000
84,916
72,304
44,648
451,868
Depreciation and impairment
At 1 May 2022
23,501
25,503
89,917
2,479
141,400
Depreciation charged in the year
4,038
16,200
19,579
14,883
54,700
Eliminated in respect of disposals
-
0
-
0
(56,186)
-
0
(56,186)
At 30 April 2023
27,539
41,703
53,310
17,362
139,914
Carrying amount
At 30 April 2023
222,461
43,213
18,994
27,286
311,954
At 30 April 2022
226,499
27,021
35,461
42,169
331,150
Company
Freehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2022
250,000
52,524
125,378
44,648
472,550
Additions
-
0
32,392
3,112
-
0
35,504
Disposals
-
0
-
0
(56,186)
-
0
(56,186)
At 30 April 2023
250,000
84,916
72,304
44,648
451,868
Depreciation and impairment
At 1 May 2022
23,501
25,503
89,917
2,479
141,400
Depreciation charged in the year
4,038
16,200
19,579
14,883
54,700
Eliminated in respect of disposals
-
0
-
0
(56,186)
-
0
(56,186)
At 30 April 2023
27,539
41,703
53,310
17,362
139,914
Carrying amount
At 30 April 2023
222,461
43,213
18,994
27,286
311,954
At 30 April 2022
226,499
27,021
35,461
42,169
331,150

Included in cost or valuation of land and buildings is freehold land of £48,000 (2022 - £48,000) which is not depreciated.

Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 28 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
475,425
475,425
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022 and 30 April 2023
475,425
Carrying amount
At 30 April 2023
475,425
At 30 April 2022
475,425
15
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Ancorite Surface Protection Limited
Millbuck Way Ettiley Heath, Sandbach, Cheshire, CW11 3AB
Ordinary
100.00
Ancorite Limited
Millbuck Way Ettiley Heath, Sandbach, Cheshire, CW11 3AB
Ordinary
100.00
Ancorite Surface Protection (Ireland) Limited
Straide Road, Ballyvary, Co.Mayo, F23AE06, Republic of Ireland
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
53,842
60,893
-
0
-
0
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 29 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,986,467
3,300,272
-
0
-
0
Other debtors
88,922
38,114
88,922
38,114
Prepayments and accrued income
611,172
273,722
-
0
-
0
3,686,561
3,612,108
88,922
38,114
Amounts falling due after more than one year:
Trade debtors
174,271
286,244
-
0
-
0
Other debtors
151,900
130,000
151,900
130,000
326,171
416,244
151,900
130,000
Total debtors
4,012,732
4,028,352
240,822
168,114
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,491,882
1,248,500
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
356,487
235,035
Corporation tax payable
244,593
354,904
43,071
144,100
Other taxation and social security
288,652
722,501
12,856
8,778
Other creditors
67,213
36,191
86
86
Accruals and deferred income
594,780
764,802
8,000
-
0
2,687,120
3,126,898
420,500
387,999
19
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Customer claim provision
-
281,516
-
-
Contract cost provision
745,241
703,191
-
-
745,241
984,707
-
-
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
19
Provisions for liabilities
(Continued)
- 30 -
Movements on provisions:
Customer claim provision
Contract cost provision
Total
Group
£
£
£
At 1 May 2022
281,516
703,191
984,707
Additional provisions in the year
-
42,050
42,050
Reversal of provision
(281,516)
-
(281,516)
At 30 April 2023
-
745,241
745,241

The customer claim provision relates to a claim that has been made by a customer on a specific contract. This provision has been written off in the year as the claim is no longer expected to materialise.

 

The contract cost provision relates to estimated future contract costs to be incurred on the completion of contracts based on the expected profitability of each contract.

20
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
7,530
12,357
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
7,530
12,357
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
12,357
12,357
Credit to profit or loss
(4,827)
(4,827)
Liability at 30 April 2023
7,530
7,530
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
20
Deferred taxation
(Continued)
- 31 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
145,140
207,437

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.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
85,142
85,142
85,142
85,142

Each share carries equal voting rights. All shares are entitled to equal distributions of both capital and dividends.

23
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
42,000
42,000
42,000
42,000

Share premium was created on the shares issued on creation of the company at amounts above the nominal value of shares. This is a non-distributable reserve.

24
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
49,415
50,538
49,415
50,538
Other movements
(1,123)
(1,123)
(1,123)
(1,123)
At the end of the year
48,292
49,415
48,292
49,415

Revaluation reserve represents gains on revaluation of property owned by the company, less any revaluation losses and provisions for deferred tax on the revaluation, This is a non-distributable reserve.

Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 32 -
25
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
14,858
-
0
14,858
-
0
Transfers
-
14,858
-
14,858
At the end of the year
14,858
14,858
14,858
14,858

Capital redemption reserve was created when the company purchased shares from a former shareholder. This is a non-distributable reserve.

26
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
1,424,166
1,167,871
429,357
632,754
Profit for the year
2,004,658
1,898,797
1,165,040
1,439,105
Dividends
(1,148,687)
(1,272,175)
(1,148,687)
(1,272,175)
Transfer to reserves
1,123
1,123
1,123
1,123
Own shares acquired
-
(371,450)
-
(371,450)
At the end of the year
2,281,260
1,424,166
446,833
429,357

Retained earnings are made up of accumulated profits less accumulated losses and distributions to shareholders. This is a distributable reserve.

27
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
136,709
115,816
-
-
Between two and five years
140,032
187,920
-
-
276,741
303,736
-
-
28
Related party transactions
Ancorite Holdings Ltd
Notes to the group financial statements (continued)
For the year ended 30 April 2023
28
Related party transactions
(Continued)
- 33 -

At the year end, a balance of £181,450 (2022 : £157,410) was owed from shareholders to the group.

 

During the year, the group made purchase from an associated company of £102,666 (2022 - £Nil). The balance owed to this company at the year end is £95,751 (2022 - £Nil).

29
Controlling party

In the opinion of the directors there is no ultimate controlling party.

30
Prior Year Reclassification

During the year, a misclassification of retentions in the prior year amounting to £286,244 was identified. This was originally classified as due within one year and has now been reclassified as due after one year. There is no profit impact of this adjustment.

 

A pension reclassification was also noted, amounting to £40,000. This has been reclassified from directors remuneration to directors pension contributions. There is no profit impact of this adjustment.

31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,004,658
1,898,797
Adjustments for:
Taxation charged
461,733
431,351
Finance costs
752
2,492
Investment income
(25,722)
(2,466)
Gain on disposal of tangible fixed assets
-
(13,820)
Amortisation and impairment of intangible assets
4,143
3,485
Depreciation and impairment of tangible fixed assets
54,700
49,620
(Decrease)/increase in provisions
(239,466)
159,755
Movements in working capital:
Decrease in stocks
7,051
15,132
Decrease/(increase) in debtors
15,620
(866,105)
Decrease in creditors
(329,467)
(36,129)
Cash generated from operations
1,954,002
1,642,112
32
Analysis of changes in net funds - group
1 May 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
1,307,785
217,910
1,525,695
2023-04-302022-05-01falseCCH SoftwareCCH Accounts Production 2023.300Mr G W G J DoranMr A FrainMr A CummingsMr J BorkowskyMr M J SchmidtMr M J SchmidtMr M 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