Company registration number 04273749 (England and Wales)
W M WALSH SURFACING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
W M WALSH SURFACING LIMITED
COMPANY INFORMATION
Directors
W M Walsh
D Walsh
R D Lewis
C Sharp
Secretary
D Walsh
Company number
04273749
Registered office
3rd Floor
Chancery House
St Nicholas Way
Sutton
Surrey
SM1 1JB
Auditor
Clarkson Hyde LLP
3rd Floor
Chancery House
St Nicholas Way
Sutton
Surrey
SM1 1JB
W M WALSH SURFACING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
W M WALSH SURFACING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

The company has experienced challenging trading conditions during the year caused by:

- Price increases by suppliers, materials and fuel

- The discontinuation of red diesel in favour of white diesel

- Costs relating to the set up of new depots, such as training and IT costs.

 

The directors consider the company's solvency and liquidity to be satisfactory considering the difficulties during the year and are confident that performance will improve in the forthcoming year. The directors are not aware, at the date of this report, of any likely change in the company's activities in the future.

 

As shown in the profit and loss account, the company's sales have increased by 12% from the prior year. The company's key performance indicator is the gross margin. The company achieved a gross margin of 0.32% compared to 6.98% in the previous year. The reduction in gross margin has resulted from the company taking on projects during the year which had significantly higher costs and were therefore loss making.

 

The balance sheet shows the company's financial position at the period end including a decrease in net assets from £1,125,587 to £157,611.

Principal risks and uncertainties

The company operates in a highly competitive market, which is a continuing risk to the company and could result in losing projects to competitors. The risk is of losing contracts is minimal as the Company has contracts with Direct Network Operators and the contracts are long term.

 

Key performance indicators

The company's key performance indicators during the year were as follows:

 

The Company has retained a major contract with a Direct Network Operator and was awarded further areas.

 

The Company's reputation continues to be strong, out-performing competitors.

 

On behalf of the board

D Walsh
Director
17 November 2023
W M WALSH SURFACING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of construction activities.

Results and dividends

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

Ordinary dividends were paid amounting to £215,500. 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:

W M Walsh
D Walsh
R D Lewis
A Ison
(Resigned 22 August 2022)
C Sharp
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.

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.

W M WALSH SURFACING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
On behalf of the board
D Walsh
Director
17 November 2023
W M WALSH SURFACING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF W M WALSH SURFACING LIMITED
- 4 -

Qualified opinion on financial statements

We have audited the financial statements of W M Walsh Surfacing Limited (the 'company') for the year ended 31 December 2022 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the company until after 31 December 2022 and thus did not observe the counting of physical stock at the end of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 December 2022 which are included in the balance sheet at £126,952. Consequently, we were unable to determine whether any adjustment to this amount was necessary.

 

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

Except for the possible effects of the matters described in the basis of qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

W M WALSH SURFACING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W M WALSH SURFACING LIMITED
- 5 -
Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. 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. We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

Corresponding figures

The corresponding figures are unaudited.

W M WALSH SURFACING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF W M WALSH SURFACING LIMITED
- 6 -

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.

Andrew Seton
Senior Statutory Auditor
For and on behalf of Clarkson Hyde LLP
20 November 2023
Chartered Accountants
Statutory Auditor
3rd Floor
Chancery House
St Nicholas Way
Sutton
Surrey
SM1 1JB
W M WALSH SURFACING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Turnover
2
15,196,953
13,622,300
Cost of sales
(15,245,220)
(12,671,990)
Gross (loss)/profit
(48,267)
950,310
Distribution costs
(601)
(497)
Administrative expenses
(888,418)
(808,062)
Other operating income
1,260
8,236
Operating (loss)/profit
3
(936,026)
149,987
Interest receivable and similar income
6
5,928
5,593
Interest payable and similar expenses
7
(63,469)
(15,817)
(Loss)/profit before taxation
(993,567)
139,763
Tax on (loss)/profit
8
241,091
(29,582)
(Loss)/profit for the financial year
(752,476)
110,181

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

W M WALSH SURFACING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
420,634
420,498
Current assets
Stocks
11
126,952
129,455
Debtors
12
2,000,797
2,331,603
Cash at bank and in hand
509,740
443,292
2,637,489
2,904,350
Creditors: amounts falling due within one year
13
(2,704,595)
(1,927,581)
Net current (liabilities)/assets
(67,106)
976,769
Total assets less current liabilities
353,528
1,397,267
Creditors: amounts falling due after more than one year
14
(195,917)
(204,735)
Provisions for liabilities
Deferred tax liability
16
-
0
66,945
-
(66,945)
Net assets
157,611
1,125,587
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
157,511
1,125,487
Total equity
157,611
1,125,587

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:
W M Walsh
Director
Company registration number 04273749 (England and Wales)
W M WALSH SURFACING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2021
100
1,249,506
1,249,606
Year ended 31 December 2021:
Profit and total comprehensive income
-
110,181
110,181
Dividends
9
-
(234,200)
(234,200)
Balance at 31 December 2021
100
1,125,487
1,125,587
Year ended 31 December 2022:
Loss and total comprehensive income
-
(752,476)
(752,476)
Dividends
9
-
(215,500)
(215,500)
Balance at 31 December 2022
100
157,511
157,611
W M WALSH SURFACING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
438,442
502,074
Interest paid
(63,469)
(15,817)
Income taxes paid
(1)
(264,955)
Net cash inflow from operating activities
374,972
221,302
Investing activities
Purchase of tangible fixed assets
(18,278)
(54,472)
Proceeds from disposal of tangible fixed assets
175,878
43,702
Interest received
5,928
5,593
Net cash generated from/(used in) investing activities
163,528
(5,177)
Financing activities
Payment of finance leases obligations
(256,552)
(136,299)
Dividends paid
(215,500)
(234,200)
Net cash used in financing activities
(472,052)
(370,499)
Net increase/(decrease) in cash and cash equivalents
66,448
(154,374)
Cash and cash equivalents at beginning of year
443,292
597,666
Cash and cash equivalents at end of year
509,740
443,292
W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information

W M Walsh Surfacing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, Chancery House, St Nicholas Way, Sutton, Surrey, SM1 1JB.

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
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:

Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance
Motor vehicles
25% 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.

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.

W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -

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.

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.

W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
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.

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.

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.

1.11
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.

1.12
Retirement benefits

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

W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.13
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.

1.14
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.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Construction services
15,196,953
13,622,300
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
15,196,953
13,622,300
2022
2021
£
£
Other revenue
Interest income
5,928
5,593
Commissions received
-
0
2,654
Grants received
-
2,661
W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
3
Operating (loss)/profit
2022
2021
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(2,661)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
-
0
Depreciation of owned tangible fixed assets
140,222
140,179
Profit on disposal of intangible assets
(61,069)
(9,713)
Operating lease charges
368,305
353,200
4
Employees

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

2022
2021
Number
Number
Administrative
38
50
Operative
73
69
Finance
3
3
Directors
4
4
Total
118
126

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
4,976,738
4,887,771
Social security costs
576,594
535,326
Pension costs
98,821
83,770
5,652,153
5,506,867
5
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
230,281
268,881
Company pension contributions to defined contribution schemes
3,682
3,119
233,963
272,000
W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
5
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
78,846
97,669
6
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
63
47
Other interest income
5,865
5,546
Total income
5,928
5,593
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
5,928
5,593
7
Interest payable and similar expenses
2022
2021
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
35,244
15,817
Other interest
28,225
-
0
63,469
15,817
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(1,703)
Deferred tax
Origination and reversal of timing differences
(241,091)
31,285
Total tax (credit)/charge
(241,091)
29,582
W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
8
Taxation
(Continued)
- 17 -

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

2022
2021
£
£
(Loss)/profit before taxation
(993,567)
139,763
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(188,778)
26,555
Tax effect of expenses that are not deductible in determining taxable profit
33,617
29,651
Gains not taxable
(11,603)
(1,845)
Unutilised tax losses carried forward
186,564
-
0
Permanent capital allowances in excess of depreciation
(19,800)
(56,064)
Deferred tax movements
(241,091)
31,285
Taxation (credit)/charge for the year
(241,091)
29,582
9
Dividends
2022
2021
£
£
Interim paid
215,500
234,200
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
432,720
35,247
-
0
420,685
888,652
Additions
10,875
-
0
7,403
236,889
255,167
Disposals
-
0
-
0
-
0
(201,958)
(201,958)
At 31 December 2022
443,595
35,247
7,403
455,616
941,861
Depreciation and impairment
At 1 January 2022
274,924
29,174
-
0
164,056
468,154
Depreciation charged in the year
42,174
1,518
1,851
94,679
140,222
Eliminated in respect of disposals
-
0
-
0
-
0
(87,149)
(87,149)
At 31 December 2022
317,098
30,692
1,851
171,586
521,227
Carrying amount
At 31 December 2022
126,497
4,555
5,552
284,030
420,634
At 31 December 2021
157,796
6,073
-
0
256,629
420,498
W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Tangible fixed assets
(Continued)
- 18 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2022
2021
£
£
Plant and equipment
85,631
113,822
Motor vehicles
282,724
242,999
368,355
356,821
11
Stocks
2022
2021
£
£
Finished goods and goods for resale
126,952
129,455
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
673,076
989,238
Gross amounts owed by contract customers
903,016
1,019,107
Corporation tax recoverable
1,704
1,703
Other debtors
203,771
276,645
Prepayments and accrued income
45,084
44,910
1,826,651
2,331,603
Deferred tax asset (note 16)
174,146
-
0
2,000,797
2,331,603
13
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Obligations under finance leases
15
94,422
105,267
Trade creditors
1,573,831
1,250,323
Taxation and social security
783,357
507,614
Other creditors
139,385
11,109
Accruals and deferred income
113,600
53,268
2,704,595
1,927,581
W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
14
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Obligations under finance leases
15
195,917
204,735
15
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
94,422
105,267
In two to five years
195,917
204,735
290,339
310,002

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 4 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
Assets
Assets
2022
2021
2022
2021
Balances:
£
£
£
£
Accelerated capital allowances
-
66,945
-
-
Tax losses
-
-
174,146
-
-
66,945
174,146
-
2022
Movements in the year:
£
Liability at 1 January 2022
66,945
Credit to profit or loss
(241,091)
Asset at 31 December 2022
(174,146)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
98,821
83,770

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.

18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
19
Related party transactions

Included within other creditors falling due within one year is an amount due to Walsh Building Supplies Ltd of £15,353 (2021: £29,861 debtor), a company who W Walsh is also a director and shareholder of.

 

During the year the company made purchases of £62,272 (2021: £64,881) from Walsh Building Supplies Ltd.

 

During the year the company also made sales of £11,009 (2021: £21,076) to Walsh Building Supplies Ltd.

 

Included within trade creditors falling due within one year is an amount due to Walsh Executive Pension Scheme of £47,500 (2021: £35,625), the personal pension scheme of D Walsh and W Walsh.

 

During the year, the company made payments for rent of £47,500 (2021: £71,250) to Walsh Executive Pension Scheme.

20
Directors' transactions

Dividends totalling £215,500 (2021 - £234,200) were paid in the year in respect of shares held by the company's directors.

Included in other debtors falling due within one year is an amount due from the directors of £169,536 (2021: £215,059). Interest of £5,865 (2021: £5,456) was charged on this loan.

W M WALSH SURFACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
21
Cash generated from operations
2022
2021
£
£
(Loss)/profit for the year after tax
(752,476)
110,181
Adjustments for:
Taxation (credited)/charged
(241,091)
29,582
Finance costs
63,469
15,817
Investment income
(5,928)
(5,593)
Gain on disposal of intangible assets
(61,069)
(9,713)
Depreciation and impairment of tangible fixed assets
140,222
140,179
Movements in working capital:
Decrease/(increase) in stocks
2,503
(55,251)
Decrease/(increase) in debtors
504,953
(585,213)
Increase in creditors
787,859
875,418
Decrease in deferred income
-
(13,333)
Cash generated from operations
438,442
502,074
22
Analysis of changes in net funds
1 January 2022
Cash flows
New finance leases
31 December 2022
£
£
£
£
Cash at bank and in hand
443,292
66,448
-
509,740
Obligations under finance leases
(310,002)
256,552
(236,889)
(290,339)
133,290
323,000
(236,889)
219,401
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