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Registration number: 06663029

O.C.L. Drylining Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2023

 

O.C.L. Drylining Limited

Contents

Company Information

1

Strategic report

2 to 5

Directors' Report

6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 11

Profit and Loss Account

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15 to 19

 

O.C.L. Drylining Limited

Company Information

Directors

T J Harris

J T Harris

Registered office

Chester House
Chester Hall Lane
BASILDON
Essex
SS14 3BG

Auditors

McBrides Accountants LLP
Nexus House
2 Cray Road
Sidcup
Kent
DA14 5DA

 

O.C.L. Drylining Limited

Strategic report for the Year Ended 30 June 2023

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

Principal activity
The principal activity of the company is providing specialised screed, plastering, drylining and SFS services to the construction industry.

Fair review of the business

OCL operates predominantly across London and the Southeast of England and is headquartered at the groups head office in Essex.

The company continues to provide full internal drylining services and is a specialist business combining design, direct material procurement and site installations on a wide variety of construction projects.

OCL has a number of ongoing framework agreements with major blue-chip clients in its core sectors which comprise:

Residential
Commercial
Industrial

The company maintains its client focused approach and continues to build on its reputation for delivering projects in a proactive and efficient manner, on time and within budget. During the financial year 2022-23 the company has continued to perform strongly and in-line with expectations.

The company is dedicated to responsible business practices. We are committed to reducing our environmental impact, supporting local communities, and promoting diversity and inclusion within our workforce.

With rising interest rates and worldwide conflict the principal risks are the unpredictability of the UK economy and its effects on the UK construction sector.

An unpredictable economy leads to a highly competitive tendering environment. We recognise the dynamic nature of the construction industry and the associated risks and uncertainties that may impact our operations. As part of our commitment to resilience and sustainable growth the company has spent significant time establishing close, long term, and robust relations with both our clients and our supply chain partners. We firmly believe that these relationships form the bedrock of our success and contribute significantly to mitigating potential risks.

In addition, the company has a sound financial base which together with its reputation, experience and knowledge of the industry enables it to secure repeat business and deliver high quality work on contracts off all sizes.

 

O.C.L. Drylining Limited

Strategic report for the Year Ended 30 June 2023

In line with our commitments to financial conservatism, the company consistently and meticulously manages liquidity and cash flow using strict in-house policy and procedures in relation to final accounts and overdue payments. This proactive approach ensures that the company maintains the necessary financial resilience to meet obligations, seize opportunities, and safeguard the interests of its stakeholders.

The directors focus for the year is to consolidate on the growth experienced in the previous year and continue to grow the business in terms of increased turnover and profits during the next financial year.

The order book remains strong going into the new financial year.

Key Performance Indicators
The key financial and non-financial performance indicators used to determine the progress and performance of the company are set out below:

Turnover
The company’s turnover has increased from £4.53m to £9.42m, representing an increase of 107%, exceeding pre-pandemic and Brexit performance. This is in part due to an increased demand in housing and the company’s strategic decision to ensure that contracts are allocated and completed by the appropriate trading subsidiary of the group.

By aligning contracts with the expertise and strengths of each trading entity we ensure a thorough understanding of the costs associated with each subsidiary, facilitating more accurate financial analysis and effective risk management.

Gross Profit & Gross Profit Margin
The company’s gross profit has increased from £1.07m in 2022 to £1.67m while gross profit margin has decreased form 23.5% in 2022 to 17.8% in 2023. The reduction to the previous years margin is principally due to inflationary pressures in the national economy.

Profit Before Tax
Profit before tax has increased from £495k to £824k representing an increase of 66%.

 

O.C.L. Drylining Limited

Strategic report for the Year Ended 30 June 2023

Principal risks and uncertainties
There are a number of potential risks and uncertainties which could impact the company's performance, and these are considered by the board on a regular basis. The board of directors and the relevant management teams consider the risks of all significant business decisions in the company's operations and changes in the external environment. The key risks affecting the business are as follows:

Operating Risk
The company's reputation and continued success depends on its ability to provide services which are valued by its clients. The company regularly reviews the quality of its services both internally and through formalised client feedback and evaluation.

Market Research
The company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate and relevant service range and providing a high level of client service from professional and dedicated staff. The company manages market risk by providing added value services to its clients, having fast response times not only in supplying services but also in handling client queries. The company keeps abreast of developments in the market through maintaining strong relationships with clients.

Taxation Risk
The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT. Principal controls to mitigate this risk include regular monitoring of legislative proposals, the engagement of experienced executives and the use of experienced sector specific professional advisers to mitigate the impact of changes.

Management Risk
The company is reliant on its high calibre team of operational managers, surveyors, and the board of directors. The company recruits and develops high calibre employees, many of whom have been with the company for several years. The board have tried to ensure that the knowledge base of the operational management team is shared as much as possible throughout the company.

Financial Risk
The company is principally funded from retained profits and is reliant on converting these profits into cash. Fluctuations in material and labour prices as a result of shortages continue to be a key element of the financial risk to the company. Financial monitoring, forecasting, and planning are continuous processes and emphasis is placed on balancing maintenance or growth of profit margin against investment in resources to maintain delivery of a high-quality service to its clients.

Health and Safety
The company recognises the importance of health and safety of all those employed in its offices and sites, and operates policies to ensure that the risks associated with health and safety are properly managed and controlled.

The company continues to strive to improve its safety, health and environmental standards and performance. These are routinely reviewed throughout the year and in response to the performance reviews carried out by the company's in-house safety department, along with any changes in legislation.

The company recognises the significance of health and safety in the workplace to ensure its exposure to risk is minimised through investment in training and education in the occupational health and safety field. The company employs a dedicated team of qualified staff in this area.

The company recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by the company's activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of any product waste, recycling and reducing energy consumption.

 

O.C.L. Drylining Limited

Strategic report for the Year Ended 30 June 2023

Principal risks and uncertainties
There are a number of potential risks and uncertainties which could impact the company's performance, and these are considered by the board on a regular basis. The board of directors and the relevant management teams consider the risks of all significant business decisions in the company's operations and changes in the external environment. The key risks affecting the business are as follows:

Operating Risk
The company's reputation and continued success depends on its ability to provide services which are valued by its clients. The company regularly reviews the quality of its services both internally and through formalised client feedback and evaluation.

Market Research
The company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate and relevant service range and providing a high level of client service from professional and dedicated staff. The company manages market risk by providing added value services to its clients, having fast response times not only in supplying services but also in handling client queries. The company keeps abreast of developments in the market through maintaining strong relationships with clients.

Taxation Risk
The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT. Principal controls to mitigate this risk include regular monitoring of legislative proposals, the engagement of experienced executives and the use of experienced sector specific professional advisers to mitigate the impact of changes.

Management Risk
The company is reliant on its high calibre team of operational managers, surveyors, and the board of directors. The company recruits and develops high calibre employees, many of whom have been with the company for several years. The board have tried to ensure that the knowledge base of the operational management team is shared as much as possible throughout the company.

Financial Risk
The company is principally funded from retained profits and is reliant on converting these profits into cash. Fluctuations in material and labour prices as a result of shortages continue to be a key element of the financial risk to the company. Financial monitoring, forecasting, and planning are continuous processes and emphasis is placed on balancing maintenance or growth of profit margin against investment in resources to maintain delivery of a high-quality service to its clients.

Health and Safety
The company recognises the importance of health and safety of all those employed in its offices and sites, and operates policies to ensure that the risks associated with health and safety are properly managed and controlled.

The company continues to strive to improve its safety, health and environmental standards and performance. These are routinely reviewed throughout the year and in response to the performance reviews carried out by the company's in-house safety department, along with any changes in legislation.

The company recognises the significance of health and safety in the workplace to ensure its exposure to risk is minimised through investment in training and education in the occupational health and safety field. The company employs a dedicated team of qualified staff in this area.

The company recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by the company's activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of any product waste, recycling and reducing energy consumption.

Accreditations
The company has been assessed and has achieved the following accreditations:

Achilles
CHAS
SMAS
FIS
Constructionline
FIRAS
ISO 9001
ISO 14001
ISO 45001

The directors are of the opinion that these certifications and accreditations will ensure the continued efficiency of its internal and external processes.

People
The company believes that the stable results for the year are attributable to the quality and commitment of its employees. As a family business we know that our people are fundamental to our success and reputation. The directors therefore continue to invest time and energy into attracting employees who share its philosophy. The company has continued to make significant investment in its team throughout the year by supporting various team members in gaining additional qualifications and is committed to continuing this strategy.
 

Approved and authorised by the Board on 17 November 2023 and signed on its behalf by:
 

.........................................
T J Harris
Director

 

O.C.L. Drylining Limited

Directors' report for the Year Ended 30 June 2023

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

Director of the company

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

T J Harris

J T Harris

Disclosure of information to the auditors

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

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 17 November 2023 and signed on its behalf by:
 

.........................................
T J Harris
Director

 

O.C.L. Drylining Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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.

 

O.C.L. Drylining Limited

Independent Auditor's Report to the Members of O.C.L. Drylining Limited

Opinion

We have audited the financial statements of O.C.L. Drylining Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 Section 1A '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 30 June 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 Auditor’s 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 entity'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 included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

O.C.L. Drylining Limited

Independent Auditor's Report to the Members of O.C.L. Drylining Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

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

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

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

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

the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (set out on page 7), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

 

O.C.L. Drylining Limited

Independent Auditor's Report to the Members of O.C.L. Drylining Limited

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

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations and health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 auditor's report.

 

O.C.L. Drylining Limited

Independent Auditor's Report to the Members of O.C.L. Drylining 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 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.

......................................
Nick Paterno (Senior Statutory Auditor)
For and on behalf of McBrides Accountants LLP, Statutory Auditor

Nexus House
2 Cray Road
Sidcup
Kent
DA14 5DA

17 November 2023

 

O.C.L. Drylining Limited

Profit and Loss Account for the Year Ended 30 June 2023

2023
£

2022
£

Turnover

9,429,572

4,533,870

Cost of sales

(7,755,212)

(3,468,154)

Gross profit

1,674,360

1,065,716

Administrative expenses

(850,831)

(570,573)

Operating profit

823,529

495,143

Profit before tax

823,529

495,143

Tax on profit

(163,914)

(94,716)

Profit for the financial year

659,615

400,427

 

O.C.L. Drylining Limited

(Registration number: 06663029)
Balance Sheet as at 30 June 2023

Note

2023
 £

2022
 £

Current assets

 

Stocks

4

396,970

192,891

Debtors

5

3,242,673

1,988,217

Cash at bank and in hand

 

1,627,382

1,585,096

 

5,267,025

3,766,204

Creditors: Amounts falling due within one year

6

(3,664,515)

(1,823,309)

Net assets

 

1,602,510

1,942,895

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

1,602,410

1,942,795

Total equity

 

1,602,510

1,942,895

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 17 November 2023 and signed on its behalf by:
 

.........................................

T J Harris

Director

 

O.C.L. Drylining Limited

Statement of Changes in Equity for the Year Ended 30 June 2023

Share capital
£

Profit and loss account
£

Total
£

At 1 July 2022

100

1,942,795

1,942,895

Profit for the year

-

659,615

659,615

Total comprehensive income

-

659,615

659,615

Dividends

-

(1,000,000)

(1,000,000)

At 30 June 2023

100

1,602,410

1,602,510

Share capital
£

Profit and loss account
£

Total
£

At 1 July 2021

100

1,542,368

1,542,468

Profit for the year

-

400,427

400,427

Total comprehensive income

-

400,427

400,427

At 30 June 2022

100

1,942,795

1,942,895

 

O.C.L. Drylining Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

1

General information

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

The address of its registered office and principal place of business is:
Chester House
Chester Hall Lane
BASILDON
Essex
SS14 3BG

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Basis of preparation

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including section 1A of Financial Reporting Standard 102 - 'The Financial Reporting standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102 1A'), and with the Companies Act 2006.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Specifically, judgements and estimates are required in determining the recoverability of trade debtors and valuations on long term contracts.

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

O.C.L. Drylining Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as a contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

Tax

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

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets are classified as financial assets at fair value through profit or loss, loans and debtors, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial assets at initial recognition.

Financial liabilities are classified as financial liabilities at fair value through profit and loss, loans and borrowings, trade and other creditors, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial liabilities at initial recognition.

 Recognition and measurement
All financial instruments are recognised initially at fair value plus transaction costs. Thereafter financial instruments are stated at amortised cost using the effective interest rate method (less impairment where appropriate) unless the effect of discounting would be immaterial in which case they are stated at cost (less impairment where appropriate). The exception to this are those financial instruments where it is a requirement to continue recording them at fair value through profit and loss.

 Impairment
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the asset have been affected.

 

O.C.L. Drylining Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade and other debtors

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

Stocks

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

Trade and other creditors

Trade and other creditors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, except where the effect of discounting would be immaterial. In such cases creditors are stated at transaction price.

Share capital

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

Dividends

Dividend distributions to the company’s shareholders are recognised as liabilities in the financial statements in the reporting period in which the dividends are declared.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2022 - 2).

4

Stocks

2023
£

2022
£

Raw materials

396,970

192,891

 

O.C.L. Drylining Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

5

Debtors

2023
£

2022
£

Amounts owed by group undertakings

750,000

-

Prepayments

678

787

Other debtors

2,491,995

1,987,430

3,242,673

1,988,217

6

Creditors

Creditors: amounts falling due within one year

2023
 £

2022
 £

Due within one year

Trade creditors

823,987

882,823

Amounts owed to group undertakings

2,055,114

588,115

Other taxation and social security

77,580

15,404

Other creditors

539,044

242,251

Corporation tax

168,790

94,716

3,664,515

1,823,309

7

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

         

8

Dividends

   

2023

 

2022

   

£

 

£

Interim dividend of £10,000.00 (2022 - £Nil) per ordinary share

 

1,000,000

 

-

         
 

O.C.L. Drylining Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

9

Related party transactions

Summary of transactions with other related parties

The company has taken advantage of the exemption in FRS 102 1AC.35 "Related Party Disclosures" from disclosing transactions with other members of the group.
 

10

Parent and ultimate parent undertaking

The parent of the smallest group in which these financial statements are consolidated is O.C.L. Holdings Limited, incorporated in England.

The address of O.C.L. Holdings Limited is:
Chester House
Chester Hall Lane
Basildon
Essex
SS14 3BG