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REGISTERED NUMBER: 02577303 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

PHOENIX SURFACING LIMITED

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 14


PHOENIX SURFACING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: P E Knighton
A S Lauder
T K Greasley
P J Smith
J F McClelland



REGISTERED OFFICE: 12 Henson Close
Telford Way Industrial Estate
Kettering
Northamptonshire
NN16 8PX



REGISTERED NUMBER: 02577303 (England and Wales)



AUDITORS: DNG Dove Naish LLP, Statutory Auditor
Eagle House
28 Billing Road
Northampton
NN1 5AJ



BANKERS: HSBC Bank Plc
9 High Street
Kettering
Northamptonshire
NN16 8ST

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023


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

REVIEW OF BUSINESS
The results for the year and financial position of the company are detailed on the annexed accounts.

Total turnover on continuing operations were 17% higher than the previous year at £23,024,166. This increase was driven by a combination of fuel and material price inflation and increased activity levels.

The new Traffic Management division started to bring in additional income during the year. Although this was absorbed by the cost of setting up the teams and their equipment, the service was appreciated by many of our customers, and we expect profitable trading from this new division in the 2024 financial year.

There was a 5% increase in administrative expenses during the year driven by price inflation rather than increased activity or resource.

The net profit before tax of £1,976,949 represented a net margin of 8.6% on sales.

Current results are close to those budgeted in anticipation of a challenging period in the construction industry. Budgets reflect plans to remain steady and match the results achieved in the year to 31st March 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
Economic uncertainty and increased costs of borrowing will inevitably impact our markets. There may be a reduction in housebuilding activity and there will be a significant risk of late and defaulted customer payments. Increased credit checking and vigilant debt collection procedures have been adopted and these will be closely monitored throughout the year.

FUTURE DEVELOPMENTS
The company is conscious of its sustainability obligations and with this in mind will continue to take advantage of developing technology both in terms of its operation and management.

SIGNED BY ORDER OF THE DIRECTORS:





A S Lauder - Director


26 October 2023

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company during the year under review was that of surfacing contractors and the merchanting of bituminous products.

DIVIDENDS
The total distribution of dividends for the year ended 31 March 2023 will be £800,000, (2022 £1,000,000).

The directors recommend that no final dividend be paid.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

P E Knighton
A S Lauder
T K Greasley
P J Smith
J F McClelland

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


AUDITORS
The auditors, DNG Dove Naish LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:





A S Lauder - Director


26 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PHOENIX SURFACING LIMITED


Opinion
We have audited the financial statements of Phoenix Surfacing Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 March 2023 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 Auditors' 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PHOENIX SURFACING LIMITED


Matters on which we are required to report by exception
In the light of the 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 or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PHOENIX SURFACING LIMITED


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




Robyn Liddell (Senior Statutory Auditor)
for and on behalf of DNG Dove Naish LLP, Statutory Auditor
Eagle House
28 Billing Road
Northampton
NN1 5AJ

30 October 2023

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

TURNOVER 3 23,024,166 19,607,480

Cost of sales 17,131,435 14,754,045
GROSS PROFIT 5,892,731 4,853,435

Administrative expenses 3,914,684 3,705,437
OPERATING PROFIT 5 1,978,047 1,147,998

Interest receivable and similar income 16,906 -
1,994,953 1,147,998
Amounts written off investments 6 25 -
1,994,928 1,147,998

Interest payable and similar expenses 7 17,979 11,456
PROFIT BEFORE TAXATION 1,976,949 1,136,542

Tax on profit 8 373,271 231,269
PROFIT FOR THE FINANCIAL YEAR 1,603,678 905,273

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,603,678

905,273

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

STATEMENT OF FINANCIAL POSITION
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 2,058,572 1,906,819
Investments 11 - 50,000
2,058,572 1,956,819

CURRENT ASSETS
Stocks 12 200,606 197,878
Debtors 13 3,442,809 3,397,494
Investments 14 - 25
Cash at bank and in hand 3,018,308 2,561,819
6,661,723 6,157,216
CREDITORS
Amounts falling due within one year 15 3,666,528 3,775,551
NET CURRENT ASSETS 2,995,195 2,381,665
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,053,767

4,338,484

CREDITORS
Amounts falling due after more than one
year

16

(179,447

)

(305,728

)

PROVISIONS FOR LIABILITIES 19 (387,753 ) (349,867 )
NET ASSETS 4,486,567 3,682,889

CAPITAL AND RESERVES
Called up share capital 20 200,000 200,000
Share premium 21 220,000 220,000
Retained earnings 21 4,066,567 3,262,889
SHAREHOLDERS' FUNDS 4,486,567 3,682,889

The financial statements were approved by the Board of Directors and authorised for issue on 26 October 2023 and were signed on its behalf by:




A S Lauder - Director



P E Knighton - Director


PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 April 2021 187,500 3,357,616 155,500 3,700,616

Changes in equity
Issue of share capital 12,500 - 64,500 77,000
Dividends - (1,000,000 ) - (1,000,000 )
Total comprehensive income - 905,273 - 905,273
Balance at 31 March 2022 200,000 3,262,889 220,000 3,682,889

Changes in equity
Dividends - (800,000 ) - (800,000 )
Total comprehensive income - 1,603,678 - 1,603,678
Balance at 31 March 2023 200,000 4,066,567 220,000 4,486,567

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,165,348 2,442,273
Interest paid - (1,522 )
Interest element of hire purchase
payments paid

(17,979

)

(9,934

)
Tax paid (53,002 ) (279,583 )
Net cash from operating activities 2,094,367 2,151,234

Cash flows from investing activities
Purchase of tangible fixed assets (923,547 ) (1,591,981 )
Sale of tangible fixed assets 207,825 120,500
Diminution in value of investments 50,025 -
Loan write off (50,000 ) -
Interest received 16,906 -
Net cash from investing activities (698,791 ) (1,471,481 )

Cash flows from financing activities
New hire purchase in the year - 561,250
Capital repayments in year (139,087 ) (195,873 )
Share issue - 77,000
Equity dividends paid (800,000 ) (1,000,000 )
Net cash from financing activities (939,087 ) (557,623 )

Increase in cash and cash equivalents 456,489 122,130
Cash and cash equivalents at
beginning of year

2

2,561,819

2,439,689

Cash and cash equivalents at end of
year

2

3,018,308

2,561,819

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,976,949 1,136,542
Depreciation charges 746,555 715,265
Profit on disposal of fixed assets (182,585 ) (66,027 )
Finance costs 17,979 11,456
Finance income (16,906 ) -
2,541,992 1,797,236
(Increase)/decrease in stocks (2,728 ) 27,496
(Increase)/decrease in trade and other debtors (165,315 ) 662,468
Decrease in trade and other creditors (208,601 ) (44,927 )
Cash generated from operations 2,165,348 2,442,273

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2023
31/3/23 1/4/22
£    £   
Cash and cash equivalents 3,018,308 2,561,819
Year ended 31 March 2022
31/3/22 1/4/21
£    £   
Cash and cash equivalents 2,561,819 2,439,689


PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/22 Cash flow At 31/3/23
£    £    £   
Net cash
Cash at bank and in hand 2,561,819 456,489 3,018,308
2,561,819 456,489 3,018,308

Liquid resources
Current asset investments 25 (25 ) -
25 (25 ) -
Debt
Finance leases (444,815 ) 139,087 (305,728 )
(444,815 ) 139,087 (305,728 )
Total 2,117,029 595,551 2,712,580

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023


1. STATUTORY INFORMATION

Phoenix Surfacing Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements
The financial statements contain information about Phoenix Surfacing Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Holm Oak Estates Limited, 12 Henson Close, Telford Way Industrial Estate, Kettering, NN16 8PX.

Significant judgements and estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Turnover
Turnover is the total amount receivable by the company for goods supplied and services provided, excluding VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and benefits of ownership of the product have been transferred to the buyer.

Revenue from services provided is recognised when the company has performed its obligations and in exchange obtained the right to consideration.

In respect of incomplete contracts, and to the extent that a right to consideration arises, the amount of revenue recognised reflects the accrual of the right to this consideration by reference to the value of work performed to date. Revenue not billed to clients is included in debtors and payments received on account in excess of the relevant amount of revenue are included in creditors.

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 25% on cost
Motor vehicles - 33% on cost and 25% on cost
Office equipment - 20% on cost

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Work in progress
Work in progress is valued on the basis of direct cost. Provision is made for any foreseeable losses, where appropriate. No element of profit is included in the valuation of work in progress.

Financial instruments
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses.

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.


PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments
Fixed and current asset investments are stated at fair value.

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


3. TURNOVER

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

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Rendering of services 23,024,166 19,607,480
23,024,166 19,607,480

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,943,799 2,812,482
Social security costs 319,170 286,116
Other pension costs 117,549 116,400
3,380,518 3,214,998

The average number of employees during the year was as follows:
2023 2022

Number of staff 56 51

2023 2022
£    £   
Directors' remuneration 652,753 698,091
Directors' pension contributions to money purchase schemes 39,115 32,082

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 208,030 221,680
Pension contributions to money purchase schemes 10,557 10,557

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 976 1,004
Other operating leases 70,674 60,000
Depreciation - owned assets 614,740 624,897
Depreciation - assets on hire purchase contracts 131,814 90,368
Profit on disposal of fixed assets (182,585 ) (66,077 )
Auditors' remuneration 19,200 16,850
Accountancy and taxation fees 47,944 3,845
Foreign exchange differences 2,636 (1,735 )

6. AMOUNTS WRITTEN OFF INVESTMENTS
2023 2022
£    £   
Amounts w/o invs 50,025 -
Loan write off (50,000 ) -
25 -

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Other interest payable - 1,522
Hire purchase 17,979 9,934
17,979 11,456

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 335,386 (30,758 )

Deferred tax 37,885 262,027
Tax on profit 373,271 231,269

UK corporation tax has been charged at 19% (2022 - 19%).

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,976,949 1,136,542
Profit multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

375,620

215,943

Effects of:
Change in deferred tax rate 10,095 83,967
Expenses not deductible for tax purposes 8,922 11,959
Super deduction allowance (22,207 ) (80,935 )
Depreciation on assets where no capital allowances claimed 986 410
SBA (145 ) (75 )
Total tax charge 373,271 231,269

9. DIVIDENDS
2023 2022
£    £   
Interim 800,000 1,000,000

10. TANGIBLE FIXED ASSETS
Plant and Motor Office
machinery vehicles equipment Totals
£    £    £    £   
COST
At 1 April 2022 2,107,223 2,103,691 103,508 4,314,422
Additions 374,680 539,113 9,754 923,547
Disposals (213,425 ) (230,250 ) (675 ) (444,350 )
At 31 March 2023 2,268,478 2,412,554 112,587 4,793,619
DEPRECIATION
At 1 April 2022 1,175,823 1,175,549 56,231 2,407,603
Charge for year 378,475 352,988 15,091 746,554
Eliminated on disposal (188,416 ) (230,250 ) (444 ) (419,110 )
At 31 March 2023 1,365,882 1,298,287 70,878 2,735,047
NET BOOK VALUE
At 31 March 2023 902,596 1,114,267 41,709 2,058,572
At 31 March 2022 931,400 928,142 47,277 1,906,819

The net book value of tangible fixed assets includes £ 285,176 (2022 - £ 425,149 ) in respect of assets held under hire purchase contracts.

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


11. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 April 2022 50,000
Impairments (50,000 )
At 31 March 2023 -
NET BOOK VALUE
At 31 March 2023 -
At 31 March 2022 50,000

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Kettering Bituminous Products Limited
Registered office: 12 Henson Close, Telford Way Industrial Estate, Kettering Northants, NN16 8PX
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves - 50,000

12. STOCKS
2023 2022
£    £   
Raw materials 130,072 133,162
Work-in-progress 70,534 64,716
200,606 197,878

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,018,370 3,017,143
Amounts owed by group undertakings 228,019 191,659
Other debtors 1,758 5,603
Tax 30,758 150,758
VAT 142,634 15,982
Prepayments and accrued income 21,270 16,349
3,442,809 3,397,494

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


14. CURRENT ASSET INVESTMENTS
2023 2022
£    £   
Investments - 25

The short term investments had a fair value of £Nil at 31 March 2023 (2022 - £25).

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 17) 126,281 139,087
Trade creditors 2,301,583 2,409,810
Amounts owed to group undertakings - 50,000
Tax 162,384 -
Social security and other taxes 102,231 99,276
Other creditors 259,381 98,826
Wages control 37,440 -
Accruals and deferred income 677,228 978,552
3,666,528 3,775,551

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 17) 179,447 305,728

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 126,281 139,087
Between one and five years 179,447 305,728
305,728 444,815

Non-cancellable operating leases
2023 2022
£    £   
Within one year 60,000 60,000
Between one and five years 240,000 240,000
In more than five years - 60,000
300,000 360,000

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 305,728 444,815

Net obligations under hire purchase contracts are secured on the assets concerned.

19. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 387,753 349,867

Deferred
tax
£   
Balance at 1 April 2022 349,867
Accelerated capital allowances 37,886
Change in tax rate
Balance at 31 March 2023 387,753

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
200,000 Ordinary £1 200,000 200,000

21. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 April 2022 3,262,889 220,000 3,482,889
Profit for the year 1,603,678 1,603,678
Dividends (800,000 ) (800,000 )
At 31 March 2023 4,066,567 220,000 4,286,567

22. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements 88,893 -

23. RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £781,487 (2022: £802,201) was paid.

PHOENIX SURFACING LIMITED (REGISTERED NUMBER: 02577303)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


24. ULTIMATE CONTROLLING PARTY

The ultimate parent company is Holm Oak Estates Limited.

The largest and smallest group in which the company's results are consolidated is Holm Oak Estates Limited. A copy of the group accounts can be obtained from Holm Oak Estates Limited, whose registered office is 12 Henson Close, Telford Way Industrial Estate, Kettering, NN16 8PX.