Company registration number 05292744 (England and Wales)
ECO-READYMIX LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
ECO-READYMIX LIMITED
COMPANY INFORMATION
Directors
Mr G Billington
Mrs P Billington
Secretary
Mrs P Billington
Company number
05292744
Registered office
Hafod Road
Ruabon
Wrexham
Nth Wales
LL14 6ET
Auditor
Mitchell Charlesworth (Audit) Limited
24 Nicholas Street
Chester
CH1 2AU
ECO-READYMIX LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
ECO-READYMIX LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

Review of the business

The directors are pleased to report on continued year-on-year growth despite a challenging marketplace towards the end of the year.

The company maintained a healthy turnover of £14,677,966 and improved profits by £1,683,916 cash flow also remained positive.

The business continues to actively increase in market areas geographically and has added some new products to enhance its revenue streams, we continue to invest in new fixed plant and mobile equipment to support and sustain the continued growth. Our sales team are maintaining and growing their portfolio of customers and are managing a healthy work bank, the production and distribution teams are maintaining elevated levels of customer service corroborated by support from both the maintenance and technical teams.

Principal risks and uncertainties

Maintaining and recruiting key staff to sustain continued growth with salary expectations high.

A backup fixed plant is imperative to sustain the current levels and growth of DSM.

Restrictive raw materials supplies and long lead times for new fixed and mobile equipment remain problematic, as well as finding and securing new land for future operating bases.

Market intelligence leads us to believe that new independent competitors are starting low key/cost operations as well as current competitors adding to their product portfolios by increasing their geographical areas along with larger multinational companies continue to be aggressive with pricing.

Development and performance

The business remains focused on improving and developing new and existing products, as well seeking eco-friendly recycled alternative materials, we are also looking to optimize current mix designs to actively reduce our carbon footprint and have a positive effect on our margin over materials.

ECO-READYMIX LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Key performance indicators

Sales Monitoring

Previous Year Turnover Vs Month on Month Year to Date

Previous Gross Profit Vs Month on Month Year to Date

Previous Cash Flow Vs Month on Month Year to Date

 

On behalf of the board

Mr G Billington
Director
23 October 2023
ECO-READYMIX LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of manufacture and supply of construction materials.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £6,000. The directors do not recommend payment of a final 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 Billington
Mrs P Billington
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 company and of the profit or loss of the company 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 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.

ECO-READYMIX LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr G Billington
Director
23 October 2023
ECO-READYMIX LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ECO-READYMIX LIMITED
- 5 -
Opinion

We have audited the financial statements of Eco-Readymix Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ECO-READYMIX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ECO-READYMIX LIMITED
- 6 -
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 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 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.

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

 

 

 

 

 

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the company's Statement of Comprehensive Income and (ii) the company's accounting policy for revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, and GDPR legislation.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection and health and safety compliance.

ECO-READYMIX LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ECO-READYMIX LIMITED
- 8 -

As a result of performing the above, we identified revenue recognition as the key audit matter related to the potential risk of fraud.

 

Our procedures to respond to risks identified included the following:

 

 

 

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Other matters which we are required to address

Comparative figures were not audited due to the fact that the company was below the audit threshold

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.

Robert Hall
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
23 October 2023
Accountants
Statutory Auditor
24 Nicholas Street
Chester
CH1 2AU
ECO-READYMIX LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
14,677,965
11,568,378
Cost of sales
(9,969,564)
(8,247,410)
Gross profit
4,708,401
3,320,968
Administrative expenses
(2,529,457)
(2,251,745)
Other operating income
-
0
44,683
Operating profit
4
2,178,944
1,113,906
Interest receivable and similar income
6
4,107
300
Interest payable and similar expenses
7
(41,754)
(41,510)
Profit before taxation
2,141,297
1,072,696
Tax on profit
8
(457,381)
17,566
Profit for the financial year
1,683,916
1,090,262

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ECO-READYMIX LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,934,591
2,998,903
Current assets
Stocks
12
259,109
195,893
Debtors
13
3,270,588
3,546,273
Cash at bank and in hand
600,543
949,240
4,130,240
4,691,406
Creditors: amounts falling due within one year
14
(2,576,156)
(2,876,151)
Net current assets
1,554,084
1,815,255
Total assets less current liabilities
7,488,675
4,814,158
Creditors: amounts falling due after more than one year
15
(1,118,237)
(666,001)
Provisions for liabilities
Deferred tax liability
18
1,023,168
478,803
(1,023,168)
(478,803)
Net assets
5,347,270
3,669,354
Capital and reserves
Called up share capital
20
115
115
Profit and loss reserves
5,347,155
3,669,239
Total equity
5,347,270
3,669,354

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 23 October 2023 and are signed on its behalf by:
Mr G  Billington
Director
Company registration number 05292744 (England and Wales)
ECO-READYMIX LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
115
2,731,977
2,732,092
Year ended 31 March 2022:
Profit and total comprehensive income
-
1,090,262
1,090,262
Dividends
9
-
(153,000)
(153,000)
Balance at 31 March 2022
115
3,669,239
3,669,354
Year ended 31 March 2023:
Profit and total comprehensive income
-
1,683,916
1,683,916
Dividends
9
-
(6,000)
(6,000)
Balance at 31 March 2023
115
5,347,155
5,347,270
ECO-READYMIX LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
2,575,727
733,273
Interest paid
(41,754)
(41,510)
Income taxes (paid)/refunded
(86,984)
166,085
Net cash inflow from operating activities
2,446,989
857,848
Investing activities
Purchase of tangible fixed assets
(3,512,515)
(880,068)
Proceeds from disposal of tangible fixed assets
147,000
118,751
Interest received
4,107
300
Net cash used in investing activities
(3,361,408)
(761,017)
Financing activities
Repayment of bank loans
(48,839)
(45,973)
Payment of finance leases obligations
620,561
112,032
Dividends paid
(6,000)
(153,000)
Net cash generated from/(used in) financing activities
565,722
(86,941)
Net (decrease)/increase in cash and cash equivalents
(348,697)
9,890
Cash and cash equivalents at beginning of year
949,240
939,350
Cash and cash equivalents at end of year
600,543
949,240
ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information

Eco-Readymix Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hafod Road, Ruabon, Wrexham, Nth Wales, LL14 6ET.

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.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
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
0-20% Straight line
Leasehold improvements
0%
Plant and equipment
0-20% Straight line
Technical quality
0-20% Straight line
Computers
0-20% Straight line
Motor vehicles
20% Straight line
Trucks and Trailers
20% Straight line

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

ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.7
Stocks

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

 

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

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

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.9
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

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 company 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 company after deducting all of its liabilities.

ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

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

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
Equity instruments

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

1.11
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
Leases

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

 

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

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

1.15
Government grants

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

 

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

ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
2
Judgements and key sources of estimation uncertainty

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

 

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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Turnover
14,677,965
11,568,378
2023
2022
£
£
Other revenue
Interest income
4,107
300
Grants received
-
44,683
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
-
24,080
Government grants
-
(44,683)
Fees payable to the company's auditor for the audit of the company's financial statements
6,995
-
0
Depreciation of owned tangible fixed assets
435,327
469,828
Impairment of owned tangible fixed assets
-
0
181,213
Profit on disposal of tangible fixed assets
(5,500)
(15,449)
Operating lease charges
292,232
184,714
5
Employees

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

2023
2022
Number
Number
Total
53
52
ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,001,525
1,694,363
Social security costs
217,815
171,465
Pension costs
77,635
112,652
2,296,975
1,978,480
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
4,107
-
0
Other interest income
-
0
300
Total income
4,107
300
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
4,107
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
9,258
9,916
Other finance costs:
Interest on finance leases and hire purchase contracts
32,496
31,594
41,754
41,510
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
86,984
Adjustments in respect of prior periods
(86,984)
(167,953)
Total current tax
(86,984)
(80,969)
ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
544,365
63,403
Total tax charge/(credit)
457,381
(17,566)

The actual charge/(credit) 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
2,141,297
1,072,696
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
406,846
203,812
Tax effect of expenses that are not deductible in determining taxable profit
14,999
3,512
Tax effect of utilisation of tax losses not previously recognised
63,070
-
0
Change in unrecognised deferred tax assets
155,427
(164,759)
Adjustments in respect of prior years
(86,984)
-
0
Effect of change in corporation tax rate
93,346
152,215
Adjustments in respect of financial assets
(192,103)
(44,394)
Other permanent differences
2,780
-
0
Deferred tax adjustments in respect of prior years
-
0
(167,952)
Taxation charge/(credit) for the year
457,381
(17,566)
9
Dividends
2023
2022
£
£
Interim paid
6,000
153,000
ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
11
-
0
181,213
Recognised in:
Administrative expenses
-
181,213
ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and equipment
Technical quality
Computers
Motor vehicles
Trucks and Trailers
Total
£
£
£
£
£
£
£
£
Cost
At 1 April 2022
98,549
-
0
2,290,866
8,633
93,533
74,455
3,085,823
5,651,859
Additions
-
0
-
0
1,958,136
-
0
79,299
77,063
1,398,017
3,512,515
Disposals
-
0
-
0
(50,000)
-
0
-
0
-
0
(335,295)
(385,295)
Transfers
(98,549)
98,549
-
0
-
0
-
0
-
0
-
0
-
0
At 31 March 2023
-
0
98,549
4,199,002
8,633
172,832
151,518
4,148,545
8,779,079
Depreciation and impairment
At 1 April 2022
40,595
-
0
811,859
863
67,210
27,281
1,705,148
2,652,956
Depreciation charged in the year
-
0
-
0
126,230
1,727
36,394
-
0
270,976
435,327
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
-
0
(243,795)
(243,795)
Transfers
(40,595)
40,595
-
0
-
0
-
0
-
0
-
0
-
0
At 31 March 2023
-
0
40,595
938,089
2,590
103,604
27,281
1,732,329
2,844,488
Carrying amount
At 31 March 2023
-
0
57,954
3,260,913
6,043
69,228
124,237
2,416,216
5,934,591
At 31 March 2022
57,954
-
0
1,479,007
7,770
26,323
47,174
1,380,675
2,998,903
ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
12
Stocks
2023
2022
£
£
Raw materials and consumables
259,109
195,893
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,130,455
2,492,447
Corporation tax recoverable
86,984
-
0
Other debtors
1,043,820
1,025,701
Prepayments and accrued income
9,329
28,125
3,270,588
3,546,273
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
51,884
48,839
Obligations under finance leases
17
406,811
290,370
Trade creditors
1,768,646
2,100,664
Corporation tax
-
0
86,984
Other taxation and social security
57,802
153,288
Other creditors
249,847
181,530
Accruals and deferred income
41,166
14,476
2,576,156
2,876,151
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
74,234
126,118
Obligations under finance leases
17
1,044,003
539,883
1,118,237
666,001
ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
16
Loans and overdrafts
2023
2022
£
£
Bank loans
126,118
174,957
Payable within one year
51,884
48,839
Payable after one year
74,234
126,118

The long-term loans are secured by fixed charges over the land & buildings owned by the company and contains a negative pledge which restricts any further security being placed on the items.

17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
406,811
290,370
In two to five years
1,044,003
539,883
1,450,814
830,253

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,023,168
478,803
2023
Movements in the year:
£
Liability at 1 April 2022
478,803
Charge to profit or loss
544,365
Liability at 31 March 2023
1,023,168
ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18
Deferred taxation
(Continued)
- 25 -

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
77,635
112,652

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of of £1 each
100
115
100
115
Ordinary A shares of of £1 each
5
-
5
-
Ordinary B shares of of £1 each
5
-
5
-
Ordinary C shares of of £1 each
5
-
5
-
115
115
115
115
21
Operating lease commitments
Lessee

All operating leases are agreed on a one month rolling contract, as such there are no outstanding lease commitments to declare.

22
Related party transactions

During the year rental costs totalling £180,346 (2022- £133,502) were paid to Vale Trading Limited, a company with the same shareholders as Eco-Readymix Limited. At the year end a balance of £933,877 (2022- £882,193) was due from Vale Trading Limited.

 

At the year end a balance of £110,666 (2022- £107,600) was due to Tatham Stables, a Partnership owned by Gary and Paula Billington. No interest has been charged and there are no fixed repayment terms.

ECO-READYMIX LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,683,916
1,090,262
Adjustments for:
Taxation charged/(credited)
457,381
(17,566)
Finance costs
41,754
41,510
Investment income
(4,107)
(300)
Gain on disposal of tangible fixed assets
(5,500)
(15,449)
Depreciation and impairment of tangible fixed assets
435,327
651,041
Movements in working capital:
Increase in stocks
(63,216)
(62,478)
Decrease/(increase) in debtors
362,669
(2,000,205)
(Decrease)/increase in creditors
(332,497)
1,046,458
Cash generated from operations
2,575,727
733,273
24
Analysis of changes in net debt
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
949,240
(348,697)
600,543
Borrowings excluding overdrafts
(174,957)
48,839
(126,118)
Obligations under finance leases
(830,253)
(620,561)
(1,450,814)
(55,970)
(920,419)
(976,389)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Mr G BillingtonMrs P BillingtonMrs P Billington1683916052927442022-04-012023-03-3105292744bus:Director12022-04-012023-03-3105292744bus:CompanySecretaryDirector12022-04-012023-03-3105292744bus:CompanySecretary12022-04-012023-03-3105292744bus:Director22022-04-012023-03-3105292744bus:RegisteredOffice2022-04-012023-03-31052927442023-03-31052927442021-04-012022-03-3105292744core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3105292744core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31052927442022-03-3105292744core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3105292744core:LeaseholdImprovements2023-03-3105292744core:PlantMachinery2023-03-3105292744core:FurnitureFittings2023-03-3105292744core:ComputerEquipment2023-03-3105292744core:MotorVehicles2023-03-3105292744core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-03-3105292744core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3105292744core:LeaseholdImprovements2022-03-3105292744core:PlantMachinery2022-03-3105292744core:FurnitureFittings2022-03-3105292744core:ComputerEquipment2022-03-3105292744core:MotorVehicles2022-03-3105292744core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-03-3105292744core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3105292744core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3105292744core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3105292744core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3105292744core:CurrentFinancialInstruments2023-03-3105292744core:CurrentFinancialInstruments2022-03-3105292744core:Non-currentFinancialInstruments2023-03-3105292744core:Non-currentFinancialInstruments2022-03-3105292744core:ShareCapital2023-03-3105292744core:ShareCapital2022-03-3105292744core:RetainedEarningsAccumulatedLosses2023-03-3105292744core:RetainedEarningsAccumulatedLosses2022-03-3105292744core:ShareCapital2021-03-3105292744core:RetainedEarningsAccumulatedLosses2021-03-3105292744core:ShareCapitalOrdinaryShares2023-03-3105292744core:ShareCapitalOrdinaryShares2022-03-310529274412022-04-012023-03-310529274412021-04-012022-03-31052927442022-03-31052927442021-03-3105292744core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3105292744core:LeaseholdImprovements2022-04-012023-03-3105292744core:PlantMachinery2022-04-012023-03-3105292744core:FurnitureFittings2022-04-012023-03-3105292744core:ComputerEquipment2022-04-012023-03-3105292744core:MotorVehicles2022-04-012023-03-3105292744core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-04-012023-03-3105292744core:UKTax2022-04-012023-03-3105292744core:UKTax2021-04-012022-03-310529274422022-04-012023-03-310529274422021-04-012022-03-3105292744core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3105292744core:LeaseholdImprovements2022-03-3105292744core:PlantMachinery2022-03-3105292744core:FurnitureFittings2022-03-3105292744core:ComputerEquipment2022-03-3105292744core:MotorVehicles2022-03-3105292744core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-03-3105292744core:WithinOneYear2023-03-3105292744core:WithinOneYear2022-03-3105292744core:BetweenTwoFiveYears2023-03-3105292744core:BetweenTwoFiveYears2022-03-3105292744bus:PrivateLimitedCompanyLtd2022-04-012023-03-3105292744bus:FRS1022022-04-012023-03-3105292744bus:Audited2022-04-012023-03-3105292744bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP