Company registration number 08656491 (England and Wales)
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
COMPANY INFORMATION
Directors
D C Roberts
G C Parry
(Appointed 1 February 2023)
Company number
08656491
Registered office
1 Mortimer Street
Birkenhead
Merseyside
CH41 5EU
Auditor
Jack Ross Chartered Accountants
Barnfield House
The Approach
Manchester
M3 7BX
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

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

Review of the business and Key Performance Indicators

Dependable Concrete (North West) Limited is a family run private limited company, operating in the North West of England under the control of Mr D C Roberts and Mrs Gemma Parry both of whom are company directors. The Company’s main activity is the manufacture and supply of Ready Mix Concrete.

During the year to July 2023 the Company generated a turnover of £19,655,043 (44% increase from 2022) and an operating profit of £1,915,763 (a 39% increase) from 2022.

The increase in the above turnover and operating profit is due, in part, to the inclusion of a new supply depot in Ellesmere Port. This has further strengthened our position in the marketplace increasing sales. The increase in the price of raw materials due to inflationary pressures has made a significant difference to our selling price.

Principal risks and uncertainties

As is the nature of the industry, there is always an inherent financial risk. However, to mitigate this the company aims to minimise exposure by a good spread amongst a large database of customers, reducing reliance on any one customer. The company also implements strict credit control procedures to minimise exposure to financial risk which is further enhanced by a stringent credit insurance policy.

The majority of borrowings are at a fixed rate, meaning exposure to a rise in interest rates is minimal.

External factors include the economic environment. However, this appears to be strong with a large number of high value projects both in progress and planned for the future. This coupled with a large number of small accounts and pre-paid sales gives the Company a good mix.

On behalf of the board

D C Roberts
Director
17 November 2023
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of the manufacture and supply of ready mixed concrete.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £65,000. 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:

D C Roberts
G C Parry
(Appointed 1 February 2023)
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
D C Roberts
Director
17 November 2023
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2023
- 3 -

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.

DEPENDABLE CONCRETE (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DEPENDABLE CONCRETE (NORTH WEST) LIMITED
- 4 -

Qualified opinion on the financial statements

We have audited the financial statements of Dependable Concrete (North West) Limited (the 'company') for the year ended 31 July 2023 which comprise the profit and loss account, 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

With respect to stock having an opening carrying amount of £219,750 as at 31 July 2022, the audit evidence available to us was limited because we did not observe the counting of the physical stock as at 31 July 2022, since that date was prior to our appointment as auditor of the company. We were unable to obtain sufficient appropriate audit evidence regarding the stock quantities by using other audit procedures.

 

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.

DEPENDABLE CONCRETE (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DEPENDABLE CONCRETE (NORTH WEST) LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to tax legislation, employment legislation, health and safety legislation and other legislation specific to the industry in which the company operates. We have considered the extent to which non-compliance might have a material effect on the financial statements. We also have considered those law and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks related to management judgement of when to recognise income and expenditure and the effect this would have on profit.

 

DEPENDABLE CONCRETE (NORTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DEPENDABLE CONCRETE (NORTH WEST) LIMITED
- 6 -
Audit response to risks identified

 

- Enquiry of management and those charged with governance

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business

 

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve concealment.

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

The prior year's financial statements were not audited and therefore the opening balances and corresponding figures are not audited.

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.

Umar Memon FCA (Senior Statutory Auditor)
For and on behalf of Jack Ross Chartered Accountants
Statutory Auditor
Barnfield House
The Approach
Manchester
M3 7BX
17 November 2023
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
2023
2022
as restated
Notes
£
£
Turnover
3
19,655,043
13,637,584
Cost of sales
(12,989,945)
(8,918,197)
Gross profit
6,665,098
4,719,387
Distribution costs
(2,135,265)
(1,515,796)
Administrative expenses
(2,614,070)
(1,826,757)
Operating profit
4
1,915,763
1,376,834
Interest payable and similar expenses
7
(59,938)
(48,620)
Profit before taxation
1,855,825
1,328,214
Tax on profit
8
(393,163)
(244,642)
Profit for the financial year
1,462,662
1,083,572

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

DEPENDABLE CONCRETE (NORTH WEST) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
2023
2022
as restated
£
£
Profit for the year
1,462,662
1,083,572
Other comprehensive income
-
-
Total comprehensive income for the year
1,462,662
1,083,572
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,801,685
3,111,385
Current assets
Stocks
11
338,828
219,750
Debtors
12
3,185,818
2,928,286
Cash at bank and in hand
2,111,735
593,232
5,636,381
3,741,268
Creditors: amounts falling due within one year
13
(3,597,990)
(2,583,088)
Net current assets
2,038,391
1,158,180
Total assets less current liabilities
5,840,076
4,269,565
Creditors: amounts falling due after more than one year
14
(933,617)
(937,448)
Provisions for liabilities
Deferred tax liability
16
931,724
755,044
(931,724)
(755,044)
Net assets
3,974,735
2,577,073
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
3,974,734
2,577,072
Total equity
3,974,735
2,577,073

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 17 November 2023 and are signed on its behalf by:
D C Roberts
Director
Company registration number 08656491 (England and Wales)
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 July 2022:
Balance at 1 August 2021
1
2,278,049
2,278,050
Prior period adjustment
-
(734,549)
(734,549)
As restated
1
1,543,500
1,543,501
Year ended 31 July 2022:
Profit and total comprehensive income
-
1,083,572
1,083,572
Dividends
9
-
(50,000)
(50,000)
Balance at 31 July 2022
1
2,577,072
2,577,073
Year ended 31 July 2023:
Profit and total comprehensive income
-
1,462,662
1,462,662
Dividends
9
-
(65,000)
(65,000)
Balance at 31 July 2023
1
3,974,734
3,974,735
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,904,916
527,964
Interest paid
(59,938)
(48,620)
Net cash inflow from operating activities
2,844,978
479,344
Investing activities
Purchase of tangible fixed assets
(1,133,292)
(1,257,803)
Proceeds from disposal of tangible fixed assets
23,333
80,501
Net cash used in investing activities
(1,109,959)
(1,177,302)
Financing activities
Payment of finance leases obligations
(7,356)
752,708
Dividends paid
(65,000)
(50,000)
Net cash (used in)/generated from financing activities
(72,356)
702,708
Net increase in cash and cash equivalents
1,662,663
4,750
Cash and cash equivalents at beginning of year
449,072
444,322
Cash and cash equivalents at end of year
2,111,735
449,072
Relating to:
Cash at bank and in hand
2,111,735
593,232
Bank overdrafts included in creditors payable within one year
-
0
(144,160)
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
1
Accounting policies
Company information

Dependable Concrete (North West) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Mortimer Street, Birkenhead, Merseyside, CH41 5EU.

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.

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

1.4
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:

Leasehold improvements               as restated
5% on reducing balance with 40% residual value
Plant and equipment
10% - 20% on reducing balance
Fixtures and fittings
10% - 20% on reducing balance
Motor vehicles
10% - 20% on reducing balance

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.

1.5
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.

DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 13 -

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.

1.6
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.

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.

1.7
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.

1.8
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.

DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 14 -
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.

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.

DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 15 -
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.

1.9
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.

1.10
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.

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.

DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 16 -
1.11
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.

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
2023
2022
£
£
Turnover analysed by class of business
Supply of ready mixed concrete
19,655,043
13,637,584
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
-
0
Depreciation of owned tangible fixed assets
428,668
282,925
(Profit)/loss on disposal of tangible fixed assets
(9,009)
16,334
Operating lease charges
19,415
13,338
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 17 -
5
Employees

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

2023
2022
Number
Number
50
46

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
973,062
718,187
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
22,500
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on invoice finance arrangements
43,184
42,690
Other finance costs:
Interest on finance leases and hire purchase contracts
16,754
5,930
59,938
48,620
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
216,483
-
0
Deferred tax
Origination and reversal of timing differences
176,680
244,642
Total tax charge
393,163
244,642
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
8
Taxation
(Continued)
- 18 -

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

2023
2022
£
£
Profit before taxation
1,855,825
1,328,214
Expected tax charge based on the standard rate of corporation tax in the UK of 21.01% (2022: 19.00%)
389,909
252,361
Tax effect of expenses that are not deductible in determining taxable profit
-
0
53,708
Gains not taxable
(1,893)
-
0
Tax effect of utilisation of tax losses not previously recognised
(1,694)
-
0
Permanent capital allowances in excess of depreciation
(169,839)
(306,069)
Deferred tax charge
176,680
244,642
Taxation charge for the year
393,163
244,642
9
Dividends
2023
2022
£
£
Interim paid
65,000
50,000
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 19 -
10
Tangible fixed assets
Leasehold improvements               as restated
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2022
393,649
3,657,105
69,887
205,105
4,325,746
Additions
-
0
486,322
745
646,225
1,133,292
Disposals
-
0
-
0
-
0
(34,828)
(34,828)
Transfers
-
0
(61,500)
-
0
61,500
-
0
At 31 July 2023
393,649
4,081,927
70,632
878,002
5,424,210
Depreciation and impairment
At 1 August 2022
240,734
898,671
48,691
26,265
1,214,361
Depreciation charged in the year
9,783
302,389
4,081
112,415
428,668
Eliminated in respect of disposals
-
0
-
0
-
0
(20,504)
(20,504)
At 31 July 2023
250,517
1,201,060
52,772
118,176
1,622,525
Carrying amount
At 31 July 2023
143,132
2,880,867
17,860
759,826
3,801,685
At 31 July 2022
152,915
2,758,434
21,196
178,840
3,111,385
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
338,828
219,750
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,152,568
2,919,608
Other debtors
-
0
8,678
Prepayments and accrued income
33,250
-
0
3,185,818
2,928,286
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 20 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
-
0
144,160
Obligations under finance leases
15
527,167
530,692
Trade creditors
2,475,401
1,715,473
Corporation tax
216,483
-
0
Other taxation and social security
285,208
116,646
Other creditors
93,731
76,117
3,597,990
2,583,088
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
933,617
937,448
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
527,167
530,692
In two to five years
933,617
937,448
1,460,784
1,468,140

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. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
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
931,724
755,044
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
16
Deferred taxation
(Continued)
- 21 -
2023
Movements in the year:
£
Liability at 1 August 2022
755,044
Charge to profit or loss
176,680
Liability at 31 July 2023
931,724
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
95,650
80,000
Between two and five years
214,446
163,750
In over five years
156,667
196,667
466,763
440,417
19
Directors' transactions

Included in other creditors is £53,482 (2022: £53,262), being amounts owed by the company to the directors. This amount is provided interest free, unsecured and is payable on demand

Dividends totalling £65,000 (2022 - £50,000) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan account
-
53,262
65,000
(64,780)
53,482
53,262
65,000
(64,780)
53,482
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 22 -
20
Ultimate controlling party

The ultimate controlling party is D C Roberts.

21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,462,662
1,083,572
Adjustments for:
Taxation charged
393,163
244,642
Finance costs
59,938
48,620
(Gain)/loss on disposal of tangible fixed assets
(9,009)
16,334
Depreciation and impairment of tangible fixed assets
428,668
282,925
Movements in working capital:
(Increase)/decrease in stocks
(119,078)
54,577
Increase in debtors
(257,532)
(1,249,398)
Increase in creditors
946,104
46,692
Cash generated from operations
2,904,916
527,964
22
Analysis of changes in net funds/(debt)
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
593,232
1,518,503
2,111,735
Bank overdrafts
(144,160)
144,160
-
0
449,072
1,662,663
2,111,735
Obligations under finance leases
(1,468,140)
7,356
(1,460,784)
(1,019,068)
1,670,019
650,951
23
Prior period adjustment

The company has made a prior year adjustment to correct errors regarding deprecation not previously recognised against the Leasehold Improvements fixed asset balance, and a deferred tax liability not previously recognised . The adjustments have impacted on opening reserves, decreasing it by £995,778.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Jul 2022
£
£
£
Fixed assets
Tangible assets
3,352,119
(240,734)
3,111,385
Provisions for liabilities
Deferred tax
-
(755,044)
(755,044)
Net assets
3,572,851
(995,778)
2,577,073
DEPENDABLE CONCRETE (NORTH WEST) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
23
Prior period adjustment
As previously reported
Adjustment
As restated at 31 Jul 2022
£
£
£
(Continued)
- 23 -
Capital and reserves
Profit and loss reserves
3,572,850
(995,778)
2,577,072
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 July 2022
£
£
£
Administrative expenses
(1,810,170)
(16,587)
(1,826,757)
Taxation
-
(244,642)
(244,642)
Profit for the financial period
1,344,801
(261,229)
1,083,572
Reconciliation of changes in equity
1 August
31 July
2021
2022
£
£
Adjustments to prior year
Depreciation
(224,147)
(240,734)
Deferred Tax liability
(510,402)
(755,044)
Total adjustments
(734,549)
(995,778)
Equity as previously reported
2,278,050
3,572,851
Equity as adjusted
1,543,501
2,577,073
Analysis of the effect upon equity
Profit and loss reserves
-
(995,778)
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Depreciation
(16,587)
Deferred Tax liability
(244,642)
Total adjustments
(261,229)
Profit as previously reported
1,344,801
Profit as adjusted
1,083,572
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