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REGISTERED NUMBER: 02707042 (England and Wales)















Walters U.K. Limited

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 28 February 2023






Walters U.K. Limited (Registered number: 02707042)






Contents of the Financial Statements
for the Year Ended 28 February 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


Walters U.K. Limited

Company Information
for the Year Ended 28 February 2023







DIRECTORS: S C Llewellyn
C Chambers
M E R Llewellyn
P H Richards



SECRETARY: M E R Llewellyn



REGISTERED OFFICE: Hirwaun House
13th Avenue
Hirwaun Industrial Estate
Aberdare
Rhondda Cynon Taff
CF44 9UL



REGISTERED NUMBER: 02707042 (England and Wales)



AUDITORS: Xeinadin Audit Limited
Chartered Accountants
& Statutory Auditors
Highdale House
7 Centre Court
Treforest Industrial Estate
Pontypridd
Rhondda Cynon Taff
CF37 5YR



BANKERS: Barclays Bank plc
91 Taff Street
Pontypridd
CF37 4YA



SOLICITORS: Hugh James
Two Central Square
Central Square
Cardiff
CF10 1FS

Walters U.K. Limited (Registered number: 02707042)

Strategic Report
for the Year Ended 28 February 2023

The directors present their strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS
The annexed financial statements indicate the results for the year along with the financial standing and accounting details of the company.

The company has successfully continued to secure new workload and safely and efficiently deliver this and existing contracts. With the management team showing that, as with previous years, the company's success and the wellbeing of its staff is born from continual investment in the right people and innovation.

We have continued to see the UK government continue its strategy of investment in new and improved infrastructure projects. The company has continued successfully being awarded, undertaking, and completing UK wide schemes within the infrastructure sector and within Wales and the southwest regions working for local authorities, National Resources Wales and private developers. All of these contribute to the ongoing profitability and turnover of the company.

The key market position of securing and contributing to high value "Early Contractor Involvement" projects through repeat business with Tier 1 UK contractors and National Highways continues, which gives an excellent forward projection of works over the next few years. This tied with the continual growth regionally in general civil engineering, remediation and new development works plays a major part in the company's strategy.

FINANCIAL HIGHLIGHTS
The company can again report little to no borrowings, robust reserves and continuing profits for the financial year. The financial position of the company remains strong. The company has a robust trading position that instils confidence in clients and enables the company to be attractive to trade with. The company's strength is demonstrated by the gearing ratio that follows:

2023 2022 2021 2020
£'000 £'000 £'000 £'000
Turnover 98,344 56,890 38,910 43,601
Gross profit 4,087 4,105 6,164 2,151

Profit ratio Gross profit:Turnover 4.16% 7.22% 15.84% 4.93%

GearingTotal borrowing:Total assets 0% 0% 0% 0%


PRINCIPAL RISKS AND UNCERTAINTIES
The key current risks are generally form the uncertainties born from inflationary pressures, affecting all aspects of the construction industry.

At present the UK government and regional administrations are continuing to invest in long term infrastructure projects and local improvements. The company's continued resilience planning and in-house capability and resources, together with its highly proactive approach to managing risk, puts the company in a good position to move forward in this challenging period for the country.

CORPORATE RESPONSIBILITY
The company is proud to continue its record of achievements to date but is always looking to build further and enhance its reputation as a company that takes its corporate responsibility very seriously. The continual review and updating of company initiatives have proven to show an improvement in the safety, health and wellbeing of our employees and stake holders. With an increased emphasis on environmental and carbon management coming to the fore. These initiatives will help to further enhance the company's reputation with clients, regulators, workers, and the general public.

ON BEHALF OF THE BOARD:





M E R Llewellyn - Director


17 November 2023

Walters U.K. Limited (Registered number: 02707042)

Report of the Directors
for the Year Ended 28 February 2023

The directors present their report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of civil engineering within the Wales region and greater UK.

DIVIDENDS
The total distribution of dividends for the year ended 28 February 2023 will be £ 1,029,447 .

RESEARCH AND DEVELOPMENT
The company is continuing to undertake research and development, especially in the data workplace and personnel training, to improve and develop on safety and efficiencies within the civils, earthworks and groundwork activities.

FUTURE DEVELOPMENTS
Regionally in South Wales and the Southwest of England the company successfully continues to increase its market share of civil engineering and road network improvement opportunities.

This includes works direct for local authorities, Welsh Government, National Resources Wales, local regional frameworks and regional private developers.

Nationally the company continues to successfully deliver its secured workload on the High Speed 2 works in the midlands, with this contract programmed to continue to at least 2026. With National Highways road schemes across the UK continuing to be constructed and delivered with a forward workbook through Early Contractor Involvement on numerous major infrastructure schemes.

Over the recent year the company has continued its investment heavily in innovation and technology to achieve added efficiencies in delivery and procurement which in turn improves outturn costs and margins.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

S C Llewellyn
C Chambers
M E R Llewellyn
P H Richards

Other changes in directors holding office are as follows:

K Llewellyn ceased to be a director after 28 February 2023 but prior to the date of this report.

FINANCIAL INSTRUMENTS
Company policy is to use retained profits to maintain a positive bank balance and to minimise borrowing, however, a generous bank overdraft facility is also available to the company.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

The company operates systems to monitor, review and efficiently administer trade debtors and creditors. The purpose of the systems is to ensure the company maintains a positive cash flow.

As a further instrument the company has the facility to enjoy group inter company loans. These can be used for short, medium and long term funding as and when necessary.

Such financial instruments enable the company to efficiently manage financial risk, particularly liquidity. The instruments collectively sustain company liquidity, thereby ensuring the company operates and trades in a free and unencumbered way.

DONATIONS AND EXPENDITURE
During the year the company made charitable donations totalling £13,983 (2022:£15,542)

DIRECTORS' LIABILITY INSURANCE
A liability insurance policy was in force during the financial year for the benefit of the directors of the company.


Walters U.K. Limited (Registered number: 02707042)

Report of the Directors
for the Year Ended 28 February 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M E R Llewellyn - Director


17 November 2023

Report of the Independent Auditors to the Members of
Walters U.K. Limited

Opinion
We have audited the financial statements of Walters U.K. Limited (the 'company') for the year ended 28 February 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
Walters U.K. Limited


Auditors' 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 a Report of the Auditors 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:

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

- The nature of the industry and sector, control environment and business performance;
- Results of the enquiries of management about their own identification and assessment of the risks of
irregularities;
- Any matters we have identified having obtained and reviewed the company's documentation of their
policies and procedures relating to:
-- identifying, evaluating and complying with laws and regulations and whether they were aware of any
instances of noncompliance;
-- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected
or alleged fraud;
-- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
-- the matters discussed among the audit engagement team regarding how and where fraud might occur in
the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income.. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

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

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

Audit response to risks identified
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance
with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatement due to fraud;
- reviewing correspondence with HMRC; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal
entries and other adjustments; assessing whether the judgements made in making accounting estimates are
indicative of a potential bias; and evaluating the business rationale of any significant transactions that are
unusual or outside the normal course of business.

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

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.

As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Walters U.K. Limited


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 a Report of the Auditors 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.




Lewis Van Emden (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
Chartered Accountants
& Statutory Auditors
Highdale House
7 Centre Court
Treforest Industrial Estate
Pontypridd
Rhondda Cynon Taff
CF37 5YR

20 November 2023

Walters U.K. Limited (Registered number: 02707042)

Statement of Comprehensive
Income
for the Year Ended 28 February 2023

28.2.23 28.2.22
Notes £    £   

TURNOVER 4 98,344,467 56,889,824

Cost of sales 94,257,515 52,784,515
GROSS PROFIT 4,086,952 4,105,309

Administrative expenses 2,880,595 2,575,595
1,206,357 1,529,714

Other operating income 260,545 36,471
OPERATING PROFIT 6 1,466,902 1,566,185

Interest receivable and similar income 121,486 7,629
PROFIT BEFORE TAXATION 1,588,388 1,573,814

Tax on profit 7 325,833 208,598
PROFIT FOR THE FINANCIAL YEAR 1,262,555 1,365,216

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

1,262,555

1,365,216

Walters U.K. Limited (Registered number: 02707042)

Statement of Financial Position
28 February 2023

28.2.23 28.2.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 - 2,913

CURRENT ASSETS
Debtors 10 10,189,662 11,369,078
Cash at bank 12,000,865 4,722,339
22,190,527 16,091,417
CREDITORS
Amounts falling due within one year 11 16,490,463 10,918,065
NET CURRENT ASSETS 5,700,064 5,173,352
TOTAL ASSETS LESS CURRENT LIABILITIES 5,700,064 5,176,265

CREDITORS
Amounts falling due after more than one year 12 (983,659 ) (692,968 )

PROVISIONS FOR LIABILITIES 14 (260,000 ) (260,000 )
NET ASSETS 4,456,405 4,223,297

CAPITAL AND RESERVES
Called up share capital 15 37,750 37,750
Capital redemption reserve 16 12,250 12,250
Retained earnings 16 4,406,405 4,173,297
SHAREHOLDERS' FUNDS 4,456,405 4,223,297

The financial statements were approved by the Board of Directors and authorised for issue on 17 November 2023 and were signed on its behalf by:





M E R Llewellyn - Director


Walters U.K. Limited (Registered number: 02707042)

Statement of Changes in Equity
for the Year Ended 28 February 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 March 2021 37,750 4,963,697 12,250 5,013,697

Changes in equity
Dividends - (2,155,616 ) - (2,155,616 )
Total comprehensive income - 1,365,216 - 1,365,216
Balance at 28 February 2022 37,750 4,173,297 12,250 4,223,297

Changes in equity
Dividends - (1,029,447 ) - (1,029,447 )
Total comprehensive income - 1,262,555 - 1,262,555
Balance at 28 February 2023 37,750 4,406,405 12,250 4,456,405

Walters U.K. Limited (Registered number: 02707042)

Notes to the Financial Statements
for the Year Ended 28 February 2023

1. STATUTORY INFORMATION

Walters U.K. Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

Turnover
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of discounts and rebates allowed by the company and excluding value added tax.

Long term contract retention income is only recognised as turnover if received by the date of approval of the company's financial statements for that financial year.

Contract turnover is calculated as that proportion of total contract value which revenue generated to date bears to total expected revenue for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 15% on cost
Fixtures and fittings - 15% on cost

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Taxation and deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Walters U.K. Limited (Registered number: 02707042)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

2. ACCOUNTING POLICIES - continued

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Employee benefits
Employee benefits such as paid holiday arrangements and contributions to defined contribution pension schemes are recognised as an expense in the period in which they are incurred.

Leasing commitments
Rentals paid under operating leases are charged to the profit and loss account as incurred.

Contract work in progress
Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of work carried out at the year end by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which revenue generated to date bears to total expected revenue for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first foreseen.


Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the current and future periods.

The critical judgements made by the management that have a significant effect on the amounts recognised in the financial statements are described below.

20232022
£   £   
Amounts recoverable on contracts1,855,0832,708,791
Contract accruals9,311,2763,720,012
Foreseeable losses260,000260,000

The company uses qualified and experienced Quantity Surveyors to calculate the values earned on contracts and the contract costs to the balance sheet date.

4. TURNOVER

The turnover for the year was derived from the company's principal activity. The whole of the turnover is attributable to the UK market.


Walters U.K. Limited (Registered number: 02707042)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

5. EMPLOYEES AND DIRECTORS


28.2.23 28.2.22
£ £
Wages and salaries 10,512,807 8,936,816
Social security 1,146,344 906,623
Pension costs 530,341 409,870
12,189,492 10,253,309
The average number of employees of the company during the year was:
Production staff 160 144
Administrative staff 4 4
Directors 2 2
166 150

Key management personnel's remuneration 729,161 590,155
Key management personnel's pension contributions to money purchase schemes 36,136 24,649

28.2.23 28.2.22
£    £   
Directors' remuneration 421,958 394,307
Directors' pension contributions to money purchase schemes 28,937 27,121

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
28.2.23 28.2.22
£    £   
Emoluments etc 231,730 212,094
Pension contributions to money purchase schemes 17,773 16,299

6. OPERATING PROFIT

The operating profit is stated after charging:

28.2.23 28.2.22
£    £   
Depreciation - owned assets 2,913 4,960
Auditors' remuneration 17,250 20,450
Taxation compliance services 5,050 5,050

Walters U.K. Limited (Registered number: 02707042)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
28.2.23 28.2.22
£    £   
Current tax:
UK corporation tax 325,833 309,227
Corporation tax - prior years - (100,629 )

Tax on profit 325,833 208,598

UK corporation tax has been charged at 19% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

28.2.23 28.2.22
£    £   
Profit before tax 1,588,388 1,573,814
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%) 301,794 299,025

Effects of:
Expenses not deductible for tax purposes 24,828 11,164
Capital allowances in excess of depreciation (789 ) (962 )
Adjustments to tax charge in respect of previous periods - (100,629 )
corporation tax
Total tax charge 325,833 208,598

During the year the UK corporation tax rate remain static at 19%.

8. DIVIDENDS
28.2.23 28.2.22
£    £   
Ordinary A shares of £1 each
Interim 689,730 1,444,263
Ordinary B shares of £1 each
Ordinary B shares of £1 each 339,717 711,353
1,029,447 2,155,616

Walters U.K. Limited (Registered number: 02707042)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
machinery fittings Totals
£    £    £   
COST
At 1 March 2022
and 28 February 2023 129,486 141,497 270,983
DEPRECIATION
At 1 March 2022 126,573 141,497 268,070
Charge for year 2,913 - 2,913
At 28 February 2023 129,486 141,497 270,983
NET BOOK VALUE
At 28 February 2023 - - -
At 28 February 2022 2,913 - 2,913

Tangible fixed assets are measured at cost less accumulated depreciation.

10. DEBTORS
28.2.23 28.2.22
£    £   
Amounts falling due within one year:
Trade debtors 3,794,535 4,656,778
Amounts owed by group undertakings 891,075 866,341
Other debtors 676,946 639,202
Sales ledger retentions 1,418,825 1,530,457
VAT 293,079 -
Amounts recoverable on contracts 1,855,083 2,708,791
Prepayments 276,460 274,541
9,206,003 10,676,110

Amounts falling due after more than one year:
Sales ledger retentions 983,659 692,968

Aggregate amounts 10,189,662 11,369,078

Trade debtors are shown net of a bad debt provision of £Nil (2022: £Nil).

Amounts owed by group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
£    £   
Trade creditors 4,327,747 2,852,626
Amounts owed to group undertakings 1,400,168 1,801,986
Tax 200,597 257,567
Social security and other taxes 381,607 282,890
VAT - 506,503
Other creditors 132,947 240,580
Accrued expenses 10,047,397 4,975,913
16,490,463 10,918,065

Amounts owed to group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

Walters U.K. Limited (Registered number: 02707042)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
28.2.23 28.2.22
£    £   
Sales ledger retentions 983,659 692,968

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
28.2.23 28.2.22
£    £   
Within one year 52,940 10,875
Between one and five years 1,146,235 1,233,070
1,199,175 1,243,945

14. PROVISIONS FOR LIABILITIES
28.2.23 28.2.22
£    £   
Other provisions
Provision for foreseeable losses 260,000 260,000

Foresee-
able
losses
£   
Balance at 1 March 2022 260,000
Released during year
Balance at 28 February 2023 260,000

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 28.2.23 28.2.22
value: £    £   
31,624 Ordinary A £1 31,624 31,624
6,126 Ordinary B £1 6,126 6,126
37,750 37,750

There are two classes of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

Walters U.K. Limited (Registered number: 02707042)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

16. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 March 2022 4,173,297 12,250 4,185,547
Profit for the year 1,262,555 1,262,555
Dividends (1,029,447 ) (1,029,447 )
At 28 February 2023 4,406,405 12,250 4,418,655

Called up share capital - represents the nominal value of shares that have been issued.

Capital redemption reserve - arose on the historic redemption of share capital.

Retained earnings - includes all current and prior period retained profits and losses.

17. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for certain directors and contributes to separate individual defined contribution schemes for some employees. The assets of all schemes are held separately from those of the company in independently administered funds.

The pension cost charge represents contributions payable by the company to the fund and amounted to £530,341 (2022: £409,870). There were outstanding contributions of £62,561 at 28 February 2023 (2022: £45,758).

18. ULTIMATE PARENT COMPANY

The company's ultimate parent undertaking at the balance sheet date was G Walters (Holdings) Limited, a company incorporated in
the United Kingdom. Copies of the group accounts can be obtained from the registered office of Walters UK Limited.

19. GUARANTEES

At 28th February 2023, the company and its fellow subsidiaries had active contract bonds of £1,891,201 (2022:£1,168,291). The company has a joint and several cross counter indemnity facility in respect of contract bonds. This indemnity was in relation to G Walters (Holdings) Limited, the ultimate parent undertaking, Walters UK Limited, G Walters (Leasing) Limited, Walters Resources Limited, Walters Plant Hire Limited, Walters Environmental Limited, Walters Land Limited and Headaway (Europe) Limited. It was also in relation to three companies outside the group: G Walters (Consultancy) Limited, Ffos Las Limited and Walters Land (Rogerstone) Limited.

Walters U.K. Limited (Registered number: 02707042)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

20. RELATED PARTY DISCLOSURES

During the year the company had the following transactions with its parent company: Walters Plant Hire Limited and with its fellow subsidiary and associated undertakings:-

28.2.23 28.2.22
£ £
Walters Land Limited - sales and recharges 618,949 518,058
Walters Plant Hire Limited - sales and recharges 3,402,714 272,327
Walters Environmental Limited - sales and recharges 139,041 746,591
Walters Resources Limited - sales and recharges 18,647 17,111
Pennant Walters Holdings Limited - sales and recharges 163,714 170,297
Pennant Walters Hirwaun Limited - sales and recharges 734 -
Gorrel Equipment Solutions Limited- sales and recharges 5,579 4,258
Walters Resources Limited - purchases and recharges 97,359 91,62
Walters Plant Hire Limited - purchases and recharges 25,877,430 16,507,386
Walters Environmental Limited - purchases and recharges 605,204 37,270
G Walters (Leasing) Limited - purchases and recharges 1,031,450 904,926
Gorrel Equipment Solutions Limited - purchases and recharges 6,405 13,370
Walters Land Limited - purchases and recharges 58,649 46,969
Walters Asset Management Limited- purchases and recharges 12,828,361 3,068,665

At the year end, the following amounts were due to the company:
28.2.23 28.2.23
£ £
Walters Plant Hire Limited 879,257 26,450
Pennant Walters Holdings Limited 112,270 154,533
Walters Land Limited 10,783 613,225
Walters Environmental Limited - 225,176

At the year end, the following amounts were owed by the company:
28.2.23 28.2.22
£ £
Walters Plant Hire Limited 235,855 1,056,661
Walters Resources Limited 20,343 18,957
G Walters (Leasing) Limited 210,385 178,200
Walters Land Limited - 90,178
Walters Environmental Limited 68,013 33,658
Walters Asset Management Limited 864,372 415,524

The company operates rent free from premises owned by its parent company Walters Plant Hire Limited.

The company loaned money in an earlier year to Walters Regeneration Limited, an associated company to the group. Walters Regeneration Limited owed the company £497,433 (2022: £497,433) at the year end.

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties at the year end were the trustees: Gweirydd Walters, Sarah Llewellyn, Richard Walters and Peter Hurn, of the Gweirydd Walters (Discretionary) Settlement, the major shareholder of G Walters (Holdings) Limited.