Company registration number 06701566 (England and Wales)
NORTH WEST ROOFING HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
NORTH WEST ROOFING HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr S C Phillips
Secretary
Mrs T Phillips
Company number
06701566
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
NORTH WEST ROOFING HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
NORTH WEST ROOFING HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The director presents the strategic report for the year ended 31 May 2023.

Review of the business

The director is very pleased with the results for the year considering the uncertainty in the global markets from the continuing war in Ukraine and high interest rates. The business continues to grow both organically and through acquisition meaning the business is in a strong position to meet the challenges of the current economic environment.

Principal risks and uncertainties

During the year the principal risks faced by the group were the continuing impact on the price of materials purchased arising from the volatility of exchange rates. The group remained well aware of the various risks posed including the potential for a slow down in business as consumers may cease to invest in home improvements or there is reduced demand from the housing market.

Development and performance

Group turnover now stands at £40,315,178 compared with £32,241,374 in the prior period. This represents an increase of 25.04% compared with the previous period. 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 business continues to experience strong demand from the domestic sector with homeowners still investing in their homes. The property markets has remained buoyant assisted by the requirements for new home building.

 

Profit for the year after tax amounted to £2,180,746 (202:£2,244,366) and the director recommended payment of interim dividends of £320,000 (2022: £640,000).

Key performance indicators

As the group has grown the director has continued to monitor the performance of the group on a more formal basis. However, the current main indicators reviewed on a regular basis by the director are individual branch performance, cash flow, debtor days and stock turnover.

 

Branch performance has performed well during the year.

 

The Gross Profit ratio of 15.41% represents a satisfactory outcome in challenging times..

On behalf of the board

Mr S C Phillips
Director
17 November 2023
NORTH WEST ROOFING HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 2 -

The director presents his 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 a holding company while the group as a whole continued to be that of builders merchants.

Results and dividends

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

Ordinary dividends were paid amounting to £320,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr S C Phillips
Qualifying third party indemnity provisions

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

Future developments

Following the opening of a new site in the North East, the group is well placed to continue its growth in the coming year.

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 auditor of the company 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 auditor of the company 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
NORTH WEST ROOFING HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 3 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NORTH WEST ROOFING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NORTH WEST ROOFING HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of North West Roofing Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's 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 group's and parent 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 director 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 director is 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:

NORTH WEST ROOFING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTH WEST ROOFING HOLDINGS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has 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:

 

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.

NORTH WEST ROOFING HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTH WEST ROOFING HOLDINGS LIMITED
- 6 -

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
NORTH WEST ROOFING HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
40,315,178
32,241,374
Cost of sales
(34,101,672)
(26,940,858)
Gross profit
6,213,506
5,300,516
Distribution costs
(1,028,766)
(735,254)
Administrative expenses
(2,282,661)
(1,753,294)
Other operating income
-
10,000
Operating profit
4
2,902,079
2,821,968
Interest receivable and similar income
8
30
7
Interest payable and similar expenses
9
(108,248)
(56,493)
Profit before taxation
2,793,861
2,765,482
Tax on profit
10
(613,115)
(521,116)
Profit for the financial year
27
2,180,746
2,244,366
Profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 14 to 32 form part of these financial statements.

NORTH WEST ROOFING HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2023
2022
£
£
Profit for the year
2,180,746
2,244,366
Other comprehensive income
-
-
Total comprehensive income for the year
2,180,746
2,244,366
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 14 to 32 form part of these financial statements.

NORTH WEST ROOFING HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,047,928
1,049,717
Tangible assets
14
2,341,863
1,453,330
Investment property
15
-
0
45,000
3,389,791
2,548,047
Current assets
Stocks
18
6,213,814
4,968,126
Debtors
19
6,279,893
5,360,486
Cash at bank and in hand
247,298
300,350
12,741,005
10,628,962
Creditors: amounts falling due within one year
20
(8,060,736)
(7,132,067)
Net current assets
4,680,269
3,496,895
Total assets less current liabilities
8,070,060
6,044,942
Creditors: amounts falling due after more than one year
21
-
(18,889)
Provisions for liabilities
Deferred tax liability
24
349,895
166,634
(349,895)
(166,634)
Net assets
7,720,165
5,859,419
Capital and reserves
Called up share capital
26
50
50
Profit and loss reserves
27
7,720,115
5,859,369
Total equity
7,720,165
5,859,419

The notes on pages 14 to 32 form part of these financial statements.

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

The financial statements were approved and signed by the director and authorised for issue on 17 November 2023
17 November 2023
Mr S C Phillips
Director
Company registration number 06701566 (England and Wales)
NORTH WEST ROOFING HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
16
1,104,473
1,145,216
Current assets
Cash at bank and in hand
157
157
Creditors: amounts falling due within one year
20
(3,285)
(571,192)
Net current liabilities
(3,128)
(571,035)
Net assets
1,101,345
574,181
Capital and reserves
Called up share capital
26
50
50
Profit and loss reserves
27
1,101,295
574,131
Total equity
1,101,345
574,181

The notes on pages 14 to 32 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £847,164 (2022 - £631,608 profit).

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

The financial statements were approved and signed by the director and authorised for issue on 17 November 2023
17 November 2023
Mr S C Phillips
Director
Company registration number 06701566 (England and Wales)
NORTH WEST ROOFING HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
50
4,255,003
4,255,053
Year ended 31 May 2022:
Profit and total comprehensive income
-
2,244,366
2,244,366
Dividends
11
-
(640,000)
(640,000)
Balance at 31 May 2022
50
5,859,369
5,859,419
Year ended 31 May 2023:
Profit and total comprehensive income
-
2,180,746
2,180,746
Dividends
11
-
(320,000)
(320,000)
Balance at 31 May 2023
50
7,720,115
7,720,165

The notes on pages 14 to 32 form part of these financial statements.

NORTH WEST ROOFING HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
50
582,523
582,573
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
631,608
631,608
Dividends
11
-
(640,000)
(640,000)
Balance at 31 May 2022
50
574,131
574,181
Year ended 31 May 2023:
Profit and total comprehensive income
-
847,164
847,164
Dividends
11
-
(320,000)
(320,000)
Balance at 31 May 2023
50
1,101,295
1,101,345

The notes on pages 14 to 32 form part of these financial statements.

NORTH WEST ROOFING HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
2,169,957
2,100,766
Interest paid
(108,248)
(56,493)
Income taxes paid
(601,139)
(688,187)
Net cash inflow from operating activities
1,460,570
1,356,086
Investing activities
Purchase of business
-
(334,078)
Purchase of tangible fixed assets
(1,099,671)
(276,230)
Proceeds from disposal of tangible fixed assets
167,894
18,961
Proceeds from disposal of investment property
45,000
-
Repayment of loans
(66,488)
(37,911)
Interest received
30
7
Net cash used in investing activities
(953,235)
(629,251)
Financing activities
Proceeds from new bank loans
178,000
150,000
Repayment of bank loans
(125,000)
(89,091)
Payment of finance leases obligations
(293,387)
(36,112)
Dividends paid to equity shareholders
(320,000)
(640,000)
Net cash used in financing activities
(560,387)
(615,203)
Net (decrease)/increase in cash and cash equivalents
(53,052)
111,632
Cash and cash equivalents at beginning of year
300,350
188,718
Cash and cash equivalents at end of year
247,298
300,350

The notes on pages 14 to 32 form part of these financial statements.

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
1
Accounting policies
Company information

North West Roofing Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 6, Progress Business Park, Orders Lane, Kirkham, Lancashire, PR4 2TZ.

 

The group consists of North West Roofing Holdings Limited and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company North West Roofing Holdings Ltd together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 May 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have an infinite useful life and is therefore not amortised.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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.

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -

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
15% on reducing balance or 2% on cost
Leasehold land and buildings
10% on cost
Leasehold improvements
2% on cost
Plant and equipment
15% on reducing balance or 10% on cost
Fixtures and fittings
15% on reducing balance or 10% on cost
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 recognised in the profit and loss account.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -

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.

1.11
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.

1.12
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.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 18 -
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 group 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 group 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.

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

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

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -
1.18
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 leased 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.

1.19
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 group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Activities as a Builders Merchant
40,315,178
32,241,374
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
40,315,178
32,241,374
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Other revenue
Interest income
30
7
Rental income
-
10,000
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
303,797
241,612
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)
Investment property impairment/(reversal)
-
0
7,847
Operating lease charges
94,984
84,589
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
5,000
Audit of the financial statements of the company's subsidiaries
25,000
22,000
30,000
27,000
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
6
5
2
2
Sales
68
51
-
-
Total
74
56
2
2
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,488,830
1,748,475
-
0
-
0
Social security costs
260,695
184,845
-
-
Pension costs
169,783
143,224
-
0
-
0
2,919,308
2,076,544
-
0
-
0
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
12,393
9,465
Company pension contributions to defined contribution schemes
50,000
13,544
62,393
23,009
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
30
7
9
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
-
4,233
Total finance costs
108,248
56,493
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
443,334
504,949
Adjustments in respect of prior periods
(13,480)
50
Total current tax
429,854
504,999
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
10
Taxation
2023
2022
£
£
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
125,983
16,117
Changes in tax rates
53,600
-
0
Adjustment in respect of prior periods
3,678
-
0
Total deferred tax
183,261
16,117
Total tax charge
613,115
521,116

The main rate of corporation tax in the UK changed on 1 April 2023 to 25% from the previous rate of 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
2,793,861
2,765,482
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
558,772
525,442
Tax effect of expenses that are not deductible in determining taxable profit
13,693
10,162
Effect of change in corporation tax rate
27,080
-
Depreciation on assets not qualifying for tax allowances
1,014
614
Amortisation on assets not qualifying for tax allowances
-
0
1,491
Other permanent differences
85
-
0
Under/(over) provided in prior years
(13,480)
50
Deferred tax adjustments in respect of prior years
57,278
(16,643)
Other timing difference
164
-
0
Effect of superdeduction
(31,491)
-
0
Taxation charge
613,115
521,116
11
Dividends
2023
2022
2023
2022
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
6,400.00
12,800.00
320,000
640,000
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 24 -
12
Impairments

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

2023
2022
Notes
£
£
In respect of:
Investment property
15
7,847
Recognised in:
Administrative expenses
-
7,847

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 June 2022
1,049,717
Other changes
(1,789)
At 31 May 2023
1,047,928
Amortisation and impairment
At 1 June 2022 and 31 May 2023
-
0
Carrying amount
At 31 May 2023
1,047,928
At 31 May 2022
1,049,717
The company had no intangible fixed assets at 31 May 2023 or 31 May 2022.

More information on impairment movements in the year is given in note 12.

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 25 -
14
Tangible fixed assets
Group
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
124,492
176,787
84,644
1,745,986
2,646,673
Additions
-
0
-
0
397,799
-
0
40,965
116,258
884,139
1,439,161
Disposals
-
0
-
0
-
0
(9,030)
-
0
-
0
(355,837)
(364,867)
At 31 May 2023
473,285
13,249
426,029
115,462
217,752
200,902
2,274,288
3,720,967
Depreciation and impairment
At 1 June 2022
24,000
13,248
10,893
79,751
100,368
80,804
884,279
1,193,343
Depreciation charged in the year
4,000
-
0
17,310
6,834
13,975
3,218
328,466
373,803
Eliminated in respect of disposals
-
0
-
0
-
0
(2,490)
-
0
-
0
(185,552)
(188,042)
At 31 May 2023
28,000
13,248
28,203
84,095
114,343
84,022
1,027,193
1,379,104
Carrying amount
At 31 May 2023
445,285
1
397,826
31,367
103,409
116,880
1,247,095
2,341,863
At 31 May 2022
449,285
1
17,337
44,741
76,419
3,840
861,707
1,453,330
The company had no tangible fixed assets at 31 May 2023 or 31 May 2022.
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
14
Tangible fixed assets
(Continued)
- 26 -

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
364,721
161,551
-
0
-
0

Freehold land and buildings with a carrying amount of £273,385 (2022 - £273,385) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

 

Freehold land with a carrying value of £273,385 (2022 - £273,385) is not depreciated.

15
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 June 2022 and 31 May 2023
45,000
-
Disposals
(45,000)
-
At 31 May 2023
-
-

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
-
45,000
-
-
16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
1,104,473
1,145,216
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
16
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2022
1,689,872
Additions
400
Valuation changes
(1,789)
At 31 May 2023
1,688,483
Impairment
At 1 June 2022
544,656
Impairment losses
39,354
At 31 May 2023
584,010
Carrying amount
At 31 May 2023
1,104,473
At 31 May 2022
1,145,216
17
Subsidiaries

Details of the company's subsidiaries at 31 May 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Roofing Supplies Group Limited
Unit 6, Progress Business park, Orders Lane, Kirkham, Lancashire PR4 2ZT
Sale of building materials
Odinary
100.00
Solway Slate & Tile Co Limited
Unit 10a, Brunel Way, Durranhill Industrial Estate, Carlisle, Cumbria CA1 3NQ
Now dormant
Ordinary
100.00
B & M Henderson Limited
Unit 6, Progress Business Park, Orders Lane, Kirkham, Lancashire PR4 2ZT
Now dormant
Ordinary
100.00
RSG Timber Limited
Unit 6, Progress Business Park, Orders Lane, Kirkham, Lancashire PR4 2ZT
Sale of building materials
Ordinary
100.00
North West Roofing Supplies Limited
Unit 6, Progress Business Park, Orders Lane, Kirkham, Lancashire PR4 2ZT
Dormant company
Ordinary
100.00
North East Roofing Supplies Limited
Unit 6, Progress Business Park, Orders Lane, Kirkham, Lancashire PR4 2ZT
Dormant company
Ordinary
100.00

Solway Slate & Tile Co. Ltd and B & M Henderson Limited are exempt from audit under Section 479A of the Companies Act 2006 because the Company has given a guarantee under Section 479C in respect of the year ended 31 May 2023.

NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
6,213,814
4,968,126
-
0
-
0
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,761,880
5,089,669
-
0
-
0
Corporation tax recoverable
1,740
-
0
-
0
-
0
Other debtors
121,106
52,565
-
0
-
0
Prepayments and accrued income
395,167
218,252
-
0
-
0
6,279,893
5,360,486
-
-
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
178,000
125,000
-
0
-
0
Obligations under finance leases
23
136,658
71,666
-
0
-
0
Other borrowings
22
-
0
-
0
2,885
515,330
Trade creditors
4,954,736
5,098,052
-
0
-
0
Corporation tax payable
107,777
277,322
-
0
-
0
Other taxation and social security
512,065
343,584
-
-
Other creditors
1,889,235
1,103,662
400
55,862
Accruals and deferred income
282,265
112,781
-
0
-
0
8,060,736
7,132,067
3,285
571,192

The following debts are secured within creditors:

 

 

Hire purchase agreements            £136,658

 

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

 

21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
23
-
0
18,889
-
0
-
0
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
178,000
125,000
-
0
-
0
Loans from group undertakings
-
0
-
0
2,885
515,330
178,000
125,000
2,885
515,330
Payable within one year
178,000
125,000
2,885
515,330
23
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
136,658
71,666
-
0
-
0
In two to five years
-
0
18,889
-
0
-
0
136,658
90,555
-
-

Finance lease payments represent rentals payable by the company or group 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 1 year. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

24
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
349,895
166,634
The company has no deferred tax assets or liabilities.
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
24
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 June 2022
166,634
-
Charge to profit or loss
125,983
-
Effect of change in tax rate - profit or loss
53,600
-
Other
3,678
-
Liability at 31 May 2023
349,895
-

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.

25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
169,783
143,224

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50
50
50
50
27
Reserves
Profit and loss reserves

This represents accumulated profits and losses net of distributions to owners.

28
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
136,782
648,100
-
-
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 31 -
29
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
13,800
13,800
Other information

Some of the sites from which the group operates are owned by a director.

30
Directors' transactions

Dividends totalling £160,000 (2022 - £320,000) were paid in the year in respect of shares held by the company's director.

Sums advanced to the director are interest free and repayable on demand.

31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,180,746
2,244,366
Adjustments for:
Taxation charged
613,115
521,116
Finance costs
108,248
56,493
Investment income
(30)
(7)
Loss/(gain) on disposal of tangible fixed assets
8,931
(4,074)
Depreciation and impairment of tangible fixed assets
373,803
268,150
Movements in working capital:
Increase in stocks
(1,245,688)
(1,057,156)
Increase in debtors
(851,179)
(1,106,570)
Increase in creditors
982,011
1,178,448
Cash generated from operations
2,169,957
2,100,766
NORTH WEST ROOFING HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 32 -
32
Analysis of changes in net funds/(debt) - group
1 June 2022
Cash flows
New finance leases
31 May 2023
£
£
£
£
Cash at bank and in hand
300,350
(53,052)
-
247,298
Borrowings excluding overdrafts
(125,000)
(53,000)
-
(178,000)
Obligations under finance leases
(90,555)
293,387
(339,490)
(136,658)
84,795
187,335
(339,490)
(67,360)
2023-05-312022-06-01falseCCH SoftwareCCH Accounts Production 2023.200Mr S C PhillipsMrs T 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