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REGISTERED NUMBER: 01900234 (England and Wales)















Walters Resources Limited

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 28 February 2023






Walters Resources Limited (Registered number: 01900234)






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 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Walters Resources Limited

Company Information
for the Year Ended 28 February 2023







DIRECTORS: P H Richards
M E R Llewellyn



SECRETARY: P H Richards



REGISTERED OFFICE: Hirwaun House,
Hirwaun Industrial Estate
Aberdare
Rhondda Cynon Taff
CF44 9UL



REGISTERED NUMBER: 01900234 (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: HSBC plc
Merthyr Tydfil Branch
127/128 High Street
Merthyr Tydfil
CF47 8DN



SOLICITORS: Hugh James
Two Central Square
Cardiff
CF10 1FS

Walters Resources Limited (Registered number: 01900234)

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 seen a significant uplift in Turnover over the last twelve months, primarily due to an increase in the demand for machine operators, particularly on large National Construction Projects.

The business continues to appraise the use of land that it currently owns, and is constantly looking for new opportunities, particularly in the sustainable and renewable energy sector.

The current year has seen the business operate successfully, despite the constant pressures such as inflation and wages rise demands, which has resulted in a lower Gross Profit Margin than the prior year.

KEY 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.

2023 2022 2021 2020
£'000 £'000 £'000 £'000

Turnover 25,705 19,071 14,023 18,336
Gross Profit 1,611 2,048 352 1,344
Profit Before Tax 2,093 2,908 892 3,701

PRINCIPAL RISKS AND UNCERTAINTIES
As stated above, the business has seen significant growth in the demand for machine operators and it is expected that this trend will continue in the short to medium term. However, as stated in this report last year, external factors such inflation, increased wage demands and a shortage of skilled machine operators continue to put pressure on the business.

We have also seen, due to a large number of infrastructure projects in the UK, increased difficulties in attracting skilled operators. However, we are now actively recruiting employees who are new to the industry and creating a pathway for them to become qualified plant operators, which is proving very successful.

Despite some obvious short and medium term challenges, due to the current strong order book, it is anticipated that the business will continue to achieve its aims and goals as it trades through the next 12 months.

The Directors look to the future with confidence as the company continues to seek out new opportunities.

ON BEHALF OF THE BOARD:





M E R Llewellyn - Director


31 October 2023

Walters Resources Limited (Registered number: 01900234)

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 the provision of labour to other group companies and development of its land holding for energy based uses.

DIVIDENDS
No dividends will be distributed for the year ended 28 February 2023.

FUTURE DEVELOPMENTS
The directors continue to review the labour requirements of its fellow group companies and in doing so, adjust the company's workforce accordingly.

The directors continue to look to develop the company's strategic land holdings and the natural resources associated with them. Future opportunities within renewable energy projects continue to be actively pursued, which the directors believe are both financially viable and sustainable in the long term.

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

P H Richards
M E R Llewellyn

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise of bank balances, trade debtors, trade creditors and group inter company loans. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.

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.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Financial support from parent and other subsidiary undertakings is provided and available to support the financing of the company's operations.

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

EMPLOYMENT POLICY
The company adopts employment policies best suited to its operations and in accordance with UK legislation.

The company continues to invest in its employees in both training and personal development of its staff. The aim is to be the destination of choice for employees looking to join the industry.

Directors and senior management are directly involved in regular management meetings and are therefore informed of the company's activities and development. As a management team they are responsible for the involvement and consultation of their relevant staff.


Walters Resources Limited (Registered number: 01900234)

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 ought to have taken as a director in order to make himself 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


31 October 2023

Report of the Independent Auditors to the Members of
Walters Resources Limited

Opinion
We have audited the financial statements of Walters Resources 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.

Report of the Independent Auditors to the Members of
Walters Resources Limited


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 Resources 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 Resources 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

1 November 2023

Walters Resources Limited (Registered number: 01900234)

Statement of Comprehensive
Income
for the Year Ended 28 February 2023

28.2.23 28.2.22
Notes £    £    £    £   

TURNOVER 3 25,704,804 19,071,459

Cost of sales 24,094,230 17,023,781
GROSS PROFIT 1,610,574 2,047,678

Administrative expenses 365,031 220,483
1,245,543 1,827,195

Other operating income 117,658 277,619
Gain on revaluation of investment property - 294,240
OPERATING PROFIT 5 1,363,201 2,399,054

Income from participating interests 601,000 500,340
Interest receivable and similar income 6 132,354 10,665
733,354 511,005
2,096,555 2,910,059

Interest payable and similar expenses 7 3,326 2,209
PROFIT BEFORE TAXATION 2,093,229 2,907,850

Tax on profit 8 283,998 402,256
PROFIT FOR THE FINANCIAL YEAR 1,809,231 2,505,594

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,809,231

2,505,594

Walters Resources Limited (Registered number: 01900234)

Statement of Financial Position
28 February 2023

28.2.23 28.2.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 - -
Investments 10 10 10
Investment property 11 1,604,342 1,604,342
1,604,352 1,604,352

CURRENT ASSETS
Stocks 12 655,045 655,045
Debtors 13 3,000,162 1,367,952
Cash at bank 8,088,531 7,553,772
11,743,738 9,576,769
CREDITORS
Amounts falling due within one year 14 1,187,316 829,578
NET CURRENT ASSETS 10,556,422 8,747,191
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,160,774

10,351,543

CAPITAL AND RESERVES
Called up share capital 15 5,100 5,100
Non distributable reserve 16 457,998 457,998
Retained earnings 16 11,697,676 9,888,445
SHAREHOLDERS' FUNDS 12,160,774 10,351,543

The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2023 and were signed on its behalf by:





M E R Llewellyn - Director


Walters Resources Limited (Registered number: 01900234)

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

Called up Non
share Retained distributable Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 March 2021 5,100 7,677,091 163,758 7,845,949

Changes in equity
Total comprehensive income - 2,211,354 294,240 2,505,594
Balance at 28 February 2022 5,100 9,888,445 457,998 10,351,543

Changes in equity
Total comprehensive income - 1,809,231 - 1,809,231
Balance at 28 February 2023 5,100 11,697,676 457,998 12,160,774

Walters Resources Limited (Registered number: 01900234)

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

1. STATUTORY INFORMATION

Walters Resources 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 as modified by the revaluation of certain assets.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepared 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 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.

Significant judgements and estimates
In the application of the company's accounting policies, the management is required to make judgements, estimates and assumptions about the carrying value 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 current and future periods.

The following judgements and estimates that the directors have made in the process of applying the company's accounting policies have the most significant effect on the amounts recognised in the financial statements:
28.02.2328.02.22
££
Land remediation accrual160,375160,375


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 value added tax.

Turnover is recognised from other labour and operator charges on the basis of the dates they were provided during the financial year and hence the amounts to which the company is entitled. Any charges made in arrears or advance are adjusted for in accrued or deferred income as appropriate.

Turnover from the sale of land stock subject to a contract of sale, is recognised on completion of that contract.

Rents receivable on investment properties are recognised on a straight-line basis in relation to the period. Incentives given to enter into an operating lease are debited to the profit and loss account on a straight-line basis over the period of the lease.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised using the effective interest rate method.

Walters Resources Limited (Registered number: 01900234)

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

2. ACCOUNTING POLICIES - continued

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 - 10 - 25% on cost
Fixtures and fittings - 10% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

Investments in associates
Investments in associate undertakings are recognised at cost.

Investment property
Investment property is included at fair value. Gains are recognised in the statement of comprehensive income. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

Inventories
Stocks of land purchased for development are stated at the lower of cost and estimated selling price less costs to complete and sell.

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.

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.

Pension costs and other post-retirement benefits
The company makes contributions to employees' personal defined contribution pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions payable for the year are charged in the profit and loss account.

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 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.

3. TURNOVER

All turnover and the profit before taxation for the year are derived from the company's principal activities, entirely within the United Kingdom.


Walters Resources Limited (Registered number: 01900234)

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

4. EMPLOYEES AND DIRECTORS
28.2.23 28.2.22
£    £   
Wages and salaries 21,549,430 14,966,477
Social security costs 2,045,083 1,433,128
Other pension costs 319,735 285,452
23,914,248 16,685,057

The average number of employees during the year was as follows:
28.2.23 28.2.22

Administration 17 16
Production 393 300
410 316

28.2.23 28.2.22
£    £   
Directors' remuneration - -

5. OPERATING PROFIT

The operating profit is stated after charging:

28.2.23 28.2.22
£    £   
Auditors' remuneration 6,800 6,800

6. INTEREST RECEIVABLE AND SIMILAR INCOME
28.2.23 28.2.22
£    £   
Other interest 459 -
Bank interest received 131,895 10,665
132,354 10,665

7. INTEREST PAYABLE AND SIMILAR EXPENSES
28.2.23 28.2.22
£    £   
Other interest 3,326 2,209

8. 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 283,998 402,256
Tax on profit 283,998 402,256

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

Walters Resources Limited (Registered number: 01900234)

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

8. TAXATION - continued

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

28.2.23 28.2.22
£    £   
Profit before tax 2,093,229 2,907,850
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 -
19%)

397,714

552,492

Effects of:
Expenses not deductible for tax purposes - 419
Income not taxable for tax purposes (113,646 ) (150,970 )
Adjustments to tax charge in respect of previous periods (419 ) -
Deferred tax not recognised 349 315

Total tax charge 283,998 402,256

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

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and
machinery fittings Totals
£    £    £   
COST
At 1 March 2022
and 28 February 2023 24,911 725 25,636
DEPRECIATION
At 1 March 2022
and 28 February 2023 24,911 725 25,636
NET BOOK VALUE
At 28 February 2023 - - -
At 28 February 2022 - - -

10. FIXED ASSET INVESTMENTS
Interest
in
associate
£   
COST
At 1 March 2022
and 28 February 2023 10
NET BOOK VALUE
At 28 February 2023 10
At 28 February 2022 10

Walters Resources Limited (Registered number: 01900234)

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

10. FIXED ASSET INVESTMENTS - continued

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Associated companies

Pennant Walters (Holdings) Limited
Registered office: England and Wales
Nature of business: Business consultancy and holding company
%
Class of shares: holding
Ordinary 33.33
31.12.22 31.12.21
£    £   
Aggregate capital and reserves 30,973,843 32,357,167
Profit for the year 419,676 1,055,992

Pennant Walters ML Limited
Registered office: England and Wales
Nature of business: Development of onshore wind farm
%
Class of shares: holding
Ordinary 30.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves (79,854 ) (44,397 )
Loss for the year (35,457 ) (38,004 )

Pennant Walters MCYC Limited
Registered office: England and Wales
Nature of business: Development of onshore wind farm
%
Class of shares: holding
Ordinary 30.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves (99,260 ) (55,045 )
Loss for the year (44,215 ) (55,046 )

Pennant Walters MM Limited
Registered office: England and Wales
Nature of business: Development of onshore wind farm
%
Class of shares: holding
Ordinary 30.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves (17,329 ) (13,329 )
Loss for the year (4,000 ) (13,330 )

Walters Resources Limited (Registered number: 01900234)

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

10. FIXED ASSET INVESTMENTS - continued

Enersyst Limited
Registered office: England and Wales
Nature of business: Development and operation of energy projects
%
Class of shares: holding
Ordinary 33.33
28.2.23 28.2.22
£    £   
Aggregate capital and reserves 928,039 (118,372 )
Profit for the year 1,046,412 716,192

Pennant Walters MYG Limited
Registered office: England and Wales
Nature of business: Development and operation of energy projects
%
Class of shares: holding
Ordinary 30.00
31.12.22
£   
Aggregate capital and reserves (69,276 )
Loss for the year (69,277 )

Pennant Walters MYG Limited was incorporated on 30 November 2021.

11. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 March 2022
and 28 February 2023 1,604,342
NET BOOK VALUE
At 28 February 2023 1,604,342
At 28 February 2022 1,604,342

Fair value at 28 February 2023 is represented by:
£   
Valuation in 2020 1,310,102
Valuation in 2022 294,240
1,604,342

If investment land had not been revalued it would have been included at the following historical cost:

28.2.23 28.2.22
£    £   
Cost 1,146,344 1,146,344

Investment land was valued on an open market basis on 28 February 2022 by Jones Battye, Chartered Surveyors. .

All investment property is included at fair value. The majority of which has been valued by an independent valuer in February 2022 except one area of land which is included at £27,341.The directors believe this is true reflection of the value of this land at 28 February 2023.

Walters Resources Limited (Registered number: 01900234)

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

12. STOCKS
28.2.23 28.2.22
£    £   
Stock of development land 655,045 655,045

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
£    £   
Trade debtors 79,014 529,490
Amounts owed by group undertakings 2,803,788 731,002
Other debtors 17 84
Accrued income 65,000 67,485
Prepayments 52,343 39,891
3,000,162 1,367,952

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.

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
£    £   
Trade creditors 2,800 3,600
Amounts owed to group undertakings 500,000 -
Tax 70,715 203,606
Social security and other taxes 343,037 273,252
VAT 12,714 107,748
Other creditors 32,149 23,363
Accrued expenses and deferred
income 225,901 218,009
1,187,316 829,578

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

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 28.2.23 28.2.22
value: £    £   
5,100 Ordinary £1 5,100 5,100

The issued ordinary shares in the company have equal rights in terms of voting, rights to dividends and rights to any distribution of capital. The shares are not redeemable.

Walters Resources Limited (Registered number: 01900234)

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

16. RESERVES
Non
Retained distributable
earnings reserve Totals
£    £    £   

At 1 March 2022 9,888,445 457,998 10,346,443
Profit for the year 1,809,231 1,809,231
At 28 February 2023 11,697,676 457,998 12,155,674

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

Non distributable reserve - arose on the revaluation to fair value of the investment property.

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

During the year £Nil (2022: £294,240) was transferred to the non distributable reserve from the retained earning account in relation to the revaluation of investment properties.

17. PENSION COMMITMENTS

The company 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 funds and amounted to £319,735(2022: £285,452). Contributions outstanding at the year end were £24,665(2022: £20,762).

18. ULTIMATE PARENT COMPANY

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

19. GUARANTEES

At 28 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 parent undertaking, Walters Resources Limited and its fellow subsidiary undertakings, Walters UK Limited, Walters Plant Hire Limited , Walters Environmental Limited, G Walters (Leasing) 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 Resources Limited (Registered number: 01900234)

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, and with its fellow subsidiary and associated undertakings:-

28.2.23 28.2.22
£    £   
Gorrel Equipment Solutions Limited - sales and recharges 24,260 22,842
Walters U.K. Limited - sales and recharges 97,359 91,602
Walters Plant Hire Limited - sales and recharges 23,688,110 18,045,660
Walters Environmental Limited - sales 7,121 -
Pennant Walters Holdings Limited - sales 64,437 33,806
Pennant Walters (Maesgwyn) Limited - sales 51,735 56,460
Pennant Walters (Hirwaun) Limited - sales 48,174 53,476
Walters U.K. Limited - purchases 18,678 17,111
Walters Plant Hire Limited - purchases and recharges 125,697 112,638
Walters Environmental Limited - Purchases 1,249 24,832

At the year end, the following amounts were due to the company:
28.2.23 28.2.22
£ £
Gorrel Equipment Solutions Limited 6,926 6,587
Walters U.K. Limited 20,343 18,957
Walters Plant Hire Limited 2,754,397 691,767
Walters Environmental Limited 22,121 13,690

At the year end, the following amounts were owed by the company:
28.2.23 28.2.22
£ £
G Walters (Holdings) Limited 500,000 -

During the year G Walters (Holdings) Limited loaned the company £500,000.

In addition, during the year the company received £601,000 (2022: £500,340) of dividends from Pennant Walters (Holdings) Limited.

During the year a G. Walters (Consultancy) Limited a company under common control provided services to Walters Resources Limited totalling £100,000 (2022: £100,000). The amount outstanding at the year end was £Nil (2022: £Nil).

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.