Company registration number 02181364 (England and Wales)
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
COMPANY INFORMATION
Directors
Mr S C Phillips
Mr M J Roberts
Mrs T Phillips
Mr J C Phillips
(Appointed 3 October 2022)
Secretary
Mrs T Phillips
Company number
02181364
Registered office
Unit 6
Progress Business Park
Orders Lane
Kirkham
Lancashire
PR4 2TZ
Auditor
Bishops
1 Croft Court
Plumpton Close
Whitehills Business Park
Blackpool
Lancashire
FY4 5PR
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
The detailed profit and loss account does not form part of the financial statements
Detailed profit and loss account
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

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

Review of the business

The directors are very pleased with the results for the year.

 

Sales have grown 24.78% to £40,231,923 in the year, an increase from £32,241,374 in the previous year. The turnover for the year included for the first time turnover from the new North East branch which came on stream from a standing start in February 2023. The company has continued to expand its customer base and capitalise on the number of home improvements that are still taking place. The business has traditionally grown by expanding on the customer base and by adding new sites in different locations.

 

The results for the year show a profit on ordinary activities before taxation of £2,787,078 (20221: £2,773,864). After tax and dividends the company retained profits so that shareholders funds have increased by £1,393,436 (2022: £1,612,748) during the year.

 

The business continued to benefit from a significant influx of sales relating to domestic work.

Principal risks and uncertainties

The directors consider that the principal risks are the lack of stability in the currency markets and the continued concerns over supply and inflation.

 

As previously stated the business has benefited in recent years from the surge in demand for new build properties which was partially fuelled by the Government's Help to Buy scheme. Although this scheme is no longer available the directors are confident sales will continue to be strong and can be generated in different areas should the housing market slow down. The government's action during the pandemic in providing stamp duty reductions helped the property market remain relatively buoyant. The directors are therefore confident that where schemes cease, other incentives may be given.

 

A slow down in the development of new build properties is a risk however the company is confident that it can gain from a reasonable market share of the improvements to homes in the community and those being carried out by the local authorities and capitalise on the increase in domestic market.

Key performance indicators

The directors monitor performance by tracking monthly sales, gross and net profits and operational cash flow. All key performance indicators provide positive results which the directors are happy with. The business will look to acquire new sites securing its presence across the region and further afield.

 

A key measure of performance is the gross profit ratio and this has been maintained at 15.3% which the directors consider to be a good result in the challenging markets in which the company operates.

On behalf of the board

Mr S C Phillips
Director
17 November 2023
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of roofing and builders supplies merchants.

Results and dividends

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

Ordinary dividends were paid amounting to £768,652. 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 S C Phillips
Mr M J Roberts
Mrs T Phillips
Mr J C Phillips
(Appointed 3 October 2022)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

The auditors , Bishops, will be proposed for re-appointment at the forthcoming Annual General Meeting.

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 S C Phillips
Director
17 November 2023
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 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.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
- 4 -
Opinion

We have audited the financial statements of Roofing Supplies Group Ltd (formerly North West Roofing Supplies Ltd) (the 'company') for the year ended 31 May 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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:

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
- 5 -
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.

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but was not limited to, the Companies Act 2006 and the UK tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements, revenue recognition, going concern and the impact of Covid-19 on the carrying value of the assets.

Our procedures to respond to risks identified included the following:

 

 

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
- 6 -

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

David Evans BA FCA
Senior Statutory Auditor
For and on behalf of Bishops
17 November 2023
Chartered Accountants
Statutory Auditor
1 Croft Court
Plumpton Close
Whitehills Business Park
Blackpool
Lancashire
FY4 5PR
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
40,231,923
32,241,374
Cost of sales
(34,084,007)
(26,940,858)
Gross profit
6,147,916
5,300,516
Distribution costs
(1,002,073)
(735,254)
Administrative expenses
(2,250,524)
(1,744,912)
Other operating income
-
0
10,000
Operating profit
4
2,895,319
2,830,350
Interest receivable and similar income
7
7
Interest payable and similar expenses
7
(108,248)
(56,493)
Profit before taxation
2,787,078
2,773,864
Tax on profit
8
(624,990)
(521,116)
Profit for the financial year
2,162,088
2,252,748

The income statement has been prepared on the basis that all operations are continuing operations.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2023
2022
£
£
Profit for the year
2,162,088
2,252,748
Other comprehensive income
-
-
Total comprehensive income for the year
2,162,088
2,252,748
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
STATEMENT OF FINANCIAL POSITION
AS AT
31 MAY 2023
31 May 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,340,276
1,450,275
Current assets
Stocks
11
5,962,311
4,801,491
Debtors
12
6,335,060
5,792,803
Cash at bank and in hand
222,136
276,427
12,519,507
10,870,721
Creditors: amounts falling due within one year
13
(7,858,845)
(6,878,049)
Net current assets
4,660,662
3,992,672
Total assets less current liabilities
7,000,938
5,442,947
Creditors: amounts falling due after more than one year
14
-
0
(18,889)
Provisions for liabilities
Deferred tax liability
17
349,498
166,054
(349,498)
(166,054)
Net assets
6,651,440
5,258,004
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
20
6,651,340
5,257,904
Total equity
6,651,440
5,258,004

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:
Mr S C Phillips
Director
Company registration number 02181364 (England and Wales)
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
100
3,645,156
3,645,256
Year ended 31 May 2022:
Profit and total comprehensive income
-
2,252,748
2,252,748
Dividends
9
-
(640,000)
(640,000)
Balance at 31 May 2022
100
5,257,904
5,258,004
Year ended 31 May 2023:
Profit and total comprehensive income
-
2,162,088
2,162,088
Dividends
9
-
(768,652)
(768,652)
Balance at 31 May 2023
100
6,651,340
6,651,440
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
1
Accounting policies
Company information

Roofing Supplies Group Ltd (formerly North West Roofing Supplies Ltd) is a private company limited by shares incorporated in England and Wales. The registered office is Unit 6, Progress Business Park, Orders Lane, Kirkham, Lancashire, PR4 2TZ.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of North West Roofing Holdings Limited. These consolidated financial statements are available from Companies House, Cardiff.

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.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 12 -
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:

Freehold land and buildings
2% on cost
Leasehold land and buildings
10% on cost
Leasehold improvements
2% on cost
Plant and equipment
10% on cost
Fixtures and fittings
15% on reducing balance
Computers
33% on cost
Motor vehicles
25% 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.

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.

 

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.

Cost is calculated using the weighted average cost method.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 13 -

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 statement of financial position 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.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 14 -
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.

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.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 income statement, 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.

1.11
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.

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 statement of financial position 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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -
1.14
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
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of stock

Management review the stock to assess for obsolete or damaged items and will make appropriate provisions to reflect the estimated realisable value. The actual realisable value may be different.

Depreciation

Tangible fixed assets are depreciated over their estimated useful lives taking into account residual values, where appropriate. The actual useful lives and residual values may be different from those assessed by the management.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Activities as a Builders Merchant
40,231,923
32,241,374
2023
2022
£
£
Other revenue
Interest income
7
7
Rental income
-
10,000
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 17 -
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
25,000
22,000
Depreciation of owned tangible fixed assets
303,654
241,109
Depreciation of tangible fixed assets held under finance leases
70,006
18,691
Loss/(profit) on disposal of tangible fixed assets
8,931
(4,074)
Operating lease charges
94,984
84,589
5
Employees

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

2023
2022
Number
Number
Administration
6
5
Sales
67
51
Total
73
56

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,450,698
1,748,475
Social security costs
258,221
184,845
Pension costs
167,706
143,224
2,876,625
2,076,544
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
233,623
115,430
Company pension contributions to defined contribution schemes
109,500
47,143
343,123
162,573

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 3).

The number of directors who are entitled to receive shares under long term incentive schemes during the year was 1 (2022 - 1).

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
149,753
96,500
Company pension contributions to defined contribution schemes
6,000
6,000
7
Interest payable and similar expenses
2023
2022
£
£
Interest on invoice finance arrangements
89,538
48,654
Other interest on financial liabilities
7,807
2,027
Interest on finance leases and hire purchase contracts
10,903
1,579
Other interest
-
0
4,233
108,248
56,493
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
441,546
504,949
Adjustments in respect of prior periods
-
0
50
Total current tax
441,546
504,999
Deferred tax
Origination and reversal of timing differences
126,166
16,117
Changes in tax rates
53,600
-
0
Adjustment in respect of prior periods
3,678
-
0
Total deferred tax
183,444
16,117
Total tax charge
624,990
521,116

The main rate of tax in the UK changed on 1 April 2023 to 25% from the previously applicable rate of 19%.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
8
Taxation
(Continued)
- 19 -

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
2,787,078
2,773,864
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
557,416
527,034
Tax effect of expenses that are not deductible in determining taxable profit
13,693
10,061
Effect of change in corporation tax rate
27,005
-
0
Depreciation on assets not qualifying for tax allowances
1,014
614
Under/(over) provided in prior years
-
0
50
Deferred tax adjustments in respect of prior years
57,278
(16,643)
Effect of 130% enhanced capital allowance
(31,416)
-
0
Taxation charge for the year
624,990
521,116
9
Dividends
2023
2022
£
£
Interim paid
768,652
640,000
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 20 -
10
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 June 2022
473,285
13,249
28,230
87,801
156,205
79,795
1,726,986
2,565,551
Additions
-
0
-
0
397,799
-
0
40,965
114,528
884,139
1,437,431
Disposals
-
0
-
0
-
0
(9,030)
-
0
-
0
(336,837)
(345,867)
At 31 May 2023
473,285
13,249
426,029
78,771
197,170
194,323
2,274,288
3,657,115
Depreciation and impairment
At 1 June 2022
24,000
13,248
10,893
43,060
79,786
75,955
868,334
1,115,276
Depreciation charged in the year
4,000
-
0
17,310
6,834
13,975
3,075
328,466
373,660
Eliminated in respect of disposals
-
0
-
0
-
0
(2,490)
-
0
-
0
(169,607)
(172,097)
At 31 May 2023
28,000
13,248
28,203
47,404
93,761
79,030
1,027,193
1,316,839
Carrying amount
At 31 May 2023
445,285
1
397,826
31,367
103,409
115,293
1,247,095
2,340,276
At 31 May 2022
449,285
1
17,337
44,741
76,419
3,840
858,652
1,450,275
Included in cost of land and buildings is freehold land of £273,285 (2022: £273,285) which is not depreciated.
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
10
Tangible fixed assets
(Continued)
- 21 -

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

2023
2022
£
£
Motor vehicles
364,721
161,551
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
5,962,311
4,801,491
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,612,624
5,019,081
Amounts owed by group undertakings
336,644
515,327
Other debtors
118,887
52,177
Prepayments and accrued income
266,905
206,218
6,335,060
5,792,803
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
178,000
125,000
Obligations under finance leases
16
136,658
71,666
Trade creditors
4,778,410
4,942,999
Corporation tax
104,249
264,949
Other taxation and social security
496,076
332,817
Other creditors
1,888,744
1,033,956
Accruals and deferred income
276,708
106,662
7,858,845
6,878,049

The following debts are secured within creditors:

 

Hire purchase agreements            £136,658    

 

Hire purchase liabilities are secured against the assets that they relate to.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
16
-
0
18,889

Hire purchase liabilities are secured against the assets that they relate to.

15
Loans and overdrafts
2023
2022
£
£
Bank loans
178,000
125,000
Payable within one year
178,000
125,000
16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
136,658
71,666
In two to five years
-
0
18,889
136,658
90,555
17
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
349,498
166,054
ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
17
Deferred taxation
(Continued)
- 23 -
2023
Movements in the year:
£
Liability at 1 June 2022
166,054
Charge to profit or loss
126,166
Effect of change in tax rate - profit or loss
53,600
Other
3,678
Liability at 31 May 2023
349,498

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

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
167,706
143,224

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.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
20
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
5,257,904
3,645,156
Profit for the year
2,162,088
2,252,748
Dividends declared and paid in the year
(768,652)
(640,000)
At the end of the year
6,651,340
5,257,904

This reserve represents cumulative profits and losses net of distributions to owners.

ROOFING SUPPLIES GROUP LTD (FORMERLY NORTH WEST ROOFING SUPPLIES LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 24 -
21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
136,782
648,100
22
Directors' transactions

The director's loan is interest free and repayable on demand.

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan
-
37,911
104,399
(37,911)
104,399
37,911
104,399
(37,911)
104,399
23
Ultimate controlling party

The company is a subsidiary of North West Roofing Holdings Limited which is the ultimate parent company incorporated in England & Wales.

North West Roofing Holdings Limited heads the only group the accounts are consolidated in. The accounts for North West Roofing Holdings Limited are available from Companies House, Cardiff.

24
Related party disclosures
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Included within debtors is £13,800 that is owed by entities owned by 1 of the company directors.

Other information

The company operates from sites which are owned by a director

2023-05-312022-06-01falseCCH SoftwareCCH Accounts Production 2023.200Mr S C PhillipsMr M J RobertsMr J C PhillipsMr Joseph Charles PhillipsMrs T Phillips2162088021813642022-06-012023-05-3102181364bus:Director12022-06-012023-05-3102181364bus:Director22022-06-012023-05-3102181364bus:CompanySecretaryDirector12022-06-012023-05-3102181364bus:Director32022-06-012023-05-3102181364bus:CompanySecretary12022-06-012023-05-3102181364bus:Director42022-06-012023-05-3102181364bus:RegisteredOffice2022-06-012023-05-31021813642023-05-31021813642021-06-012022-05-3102181364core:RetainedEarningsAccumulatedLosses2021-06-012022-05-3102181364core:RetainedEarningsAccumulatedLosses2022-06-012023-05-31021813642022-05-3102181364core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-3102181364core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-05-3102181364core:LeaseholdImprovements2023-05-3102181364core:PlantMachinery2023-05-3102181364core:FurnitureFittings2023-05-3102181364core:ComputerEquipment2023-05-3102181364core:MotorVehicles2023-05-3102181364core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-3102181364core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-05-3102181364core:LeaseholdImprovements2022-05-3102181364core:PlantMachinery2022-05-3102181364core:FurnitureFittings2022-05-3102181364core:ComputerEquipment2022-05-3102181364core:MotorVehicles2022-05-3102181364core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3102181364core:CurrentFinancialInstrumentscore:WithinOneYear2022-05-3102181364core:Non-currentFinancialInstrumentscore:AfterOneYear2023-05-3102181364core:Non-currentFinancialInstrumentscore:AfterOneYear2022-05-3102181364core:CurrentFinancialInstruments2023-05-3102181364core:CurrentFinancialInstruments2022-05-3102181364core:ShareCapital2023-05-3102181364core:ShareCapital2022-05-3102181364core:RetainedEarningsAccumulatedLosses2023-05-3102181364core:RetainedEarningsAccumulatedLosses2022-05-3102181364core:ShareCapital2021-05-3102181364core:RetainedEarningsAccumulatedLosses2021-05-3102181364core:RetainedEarningsAccumulatedLosses2022-05-3102181364core:LandBuildingscore:OwnedOrFreeholdAssets2022-06-012023-05-3102181364core:LandBuildingscore:LongLeaseholdAssets2022-06-012023-05-3102181364core:LeaseholdImprovements2022-06-012023-05-3102181364core:PlantMachinery2022-06-012023-05-3102181364core:FurnitureFittings2022-06-012023-05-3102181364core:ComputerEquipment2022-06-012023-05-3102181364core:MotorVehicles2022-06-012023-05-3102181364dpl:Item12022-06-012023-05-3102181364dpl:Item12021-06-012022-05-310218136412022-06-012023-05-310218136412021-06-012022-05-3102181364core:UKTax2022-06-012023-05-3102181364core:UKTax2021-06-012022-05-310218136422022-06-012023-05-310218136422021-06-012022-05-310218136432022-06-012023-05-310218136432021-06-012022-05-3102181364core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-3102181364core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-05-3102181364core:LeaseholdImprovements2022-05-3102181364core:PlantMachinery2022-05-3102181364core:FurnitureFittings2022-05-3102181364core:ComputerEquipment2022-05-3102181364core:MotorVehicles2022-05-31021813642022-05-3102181364core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-06-012023-05-3102181364core:Non-currentFinancialInstruments2023-05-3102181364core:Non-currentFinancialInstruments2022-05-3102181364core:WithinOneYear2023-05-3102181364core:WithinOneYear2022-05-3102181364core:BetweenTwoFiveYears2023-05-3102181364core:BetweenTwoFiveYears2022-05-3102181364bus:PrivateLimitedCompanyLtd2022-06-012023-05-3102181364bus:FRS1022022-06-012023-05-3102181364bus:Audited2022-06-012023-05-3102181364bus:FullAccounts2022-06-012023-05-31xbrli:purexbrli:sharesiso4217:GBP