REGISTERED NUMBER: |
Concrete Canvas Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 August 2023 |
DRAFT |
REGISTERED NUMBER: |
Concrete Canvas Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 August 2023 |
Concrete Canvas Limited (Registered number: 05537361) |
Contents of the Financial Statements |
for the Year Ended 31 August 2023 |
DRAFT |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
Concrete Canvas Limited |
Company Information |
for the Year Ended 31 August 2023 |
DRAFT |
Directors: |
Registered office: |
Registered number: |
Auditors: |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Concrete Canvas Limited (Registered number: 05537361) |
Strategic Report |
for the Year Ended 31 August 2023 |
DRAFT |
The directors present their strategic report for the year ended 31 August 2023. |
Concrete Canvas Ltd is one of four entities that are part of Concrete Canvas Group Ltd with the following functions: |
- | Concrete Canvas Ltd: .Established in 2005, this is the main trading arm of the group and is responsible for the manufacture and sale of the company's patented material technologies, ancillaries and associated fabricated products, namely; Concrete Canvas (CC), CCX, CC Hydro (CCH) and CC Shelters (CCS). |
- | Concrete Canvas US Inc: Established in 2021, this is the US trading arm of the group with its registered office in Houston, Texas and responsible for importation, sales and marketing of the groups manufactured products within the United States of America. |
- | Concrete Canvas Technologies Ltd: Established in 2011, this entity owns the intellectual property assets within the group including all associated patents. |
- | Concrete Canvas Properties Ltd: Established in 2013, this entity owns the property assets within the group including the main manufacturing site located in Pontyclun, occupied in 2019. |
The principal material technology (CC) was developed by the company in 2005, as a spin-out from Imperial College and the Royal College of Art. CC consists of a dry concrete powder filled fabric which hardens on hydration to form a thin, durable, water-proof concrete layer. This has recently been recognised by the international standards community as a new class of material known as GCCMs (Geosynthetic Cementitious Concrete Mats). |
GCCMs can be used for a wide range of applications in erosion control and containment within the civil engineering world. The company currently sells primarily into 3 core market sectors Civil Infrastructure, Mining and Petrochem. |
The company's headquarters are based in Pontyclun, South Wales from where we operate our production, sales, logistics and R&D functions. In addition, we have overseas offices with staff in the USA (LA, Houston, Virginia), Ireland (Dublin), Italy (Milan), Hungary (Budapest), UAE (Dubai) and Australia (Sydney). |
The majority of our sales are into international markets through a network of more than 60 sales partners with exclusive distribution contracts by geographic region. These international partners are trained, managed and supported by our regional offices. In the UK and Ireland, the company sells directly through a team of technical sales representatives based across the UK and Ireland. |
The company's over-arching strategy is to achieve growth in 3 ways: |
- | Expand sales of our existing products and applications by growing market share in existing geographic territories and by signing new sales partners in new geographic territories. |
- | Expand sales of our existing products by developing new applications with lead customers in the UK and once proven roll these out through our international sales partner network |
- | Product development of new technologies based on our core expertise to allow us to access new markets and applications and retain our technological lead. |
Concrete Canvas products have several key advantages over conventional solutions such as speed of installation, reduced plant equipment, lower carbon footprint and lower overall project costs. In addition, the business now enjoys strong brand recognition in the geosynthetics market with a reputation for quality, innovation and customer engagement. As the original creator of GCCMs the company is by far the largest manufacturer globally. Through Concrete Canvas Technologies Ltd, the group holds a strong patent portfolio, including 11 patent families with 112 patents pending or granted worldwide through 49 Territories including pending patents for the EPC, EAPO and ARIPO regional treaty areas. In addition to the CCX patent family the company holds it has recently filed a new patent family for the newly developed CCX-B product. |
Concrete Canvas Limited (Registered number: 05537361) |
Strategic Report |
for the Year Ended 31 August 2023 |
DRAFT |
Review of business |
KPIs Year ended August 2023 |
2023 | 2022 |
Turnover | £16.9Mn | £15.4Mn |
Gross Margin | 32% | 31.6% |
EBITDA | 7.1% | 9.4% |
Cash at Bank | £3Mn | £2.4Mn |
The companys continued progress is highlighted by increased turnover and profitability in 2023. The year to August 2023 Concrete Canvas generated net sales of over £16.9Mn which was an increase of 9.6% compared to prior year. In this record year for turnover, growth was achieved in seven out of ten territories. Stand out regions were Latin America, Far East Asia and Europe. |
The strong growth in turnover was mainly driven by a record year of growth in the mining sector. In the early part of 2023, the company benefitted from large scale mining projects in Panama, Democratic Republic of Congo, and Peru. |
Following the successful launch of the new product line CCX in July 2022, the company had its first full year of CCX trading activity. CCX sales contributed 27% of total turnover in 2023. The new product line will continue to be primarily focussed on lining large profile infrastructure such as canals to prevent erosion and reduce seepage losses. CCX enables canal lining infrastructure projects to be completed much faster at a lower cost and increased durability than conventional solutions. |
As with most manufacturing businesses in the UK, Concrete Canvas Group was impacted by increased utility costs, direct material, and labour costs. In 2023 the company has taken actions to mitigate the worst of these inflationary impacts on the business. Trading conditions will undoubtedly remain challenging throughout 2024 as the world continues to grapple with high energy costs and the related economic aftershocks due to high levels of inflation. |
Concrete Canvas Limited (Registered number: 05537361) |
Strategic Report |
for the Year Ended 31 August 2023 |
DRAFT |
SECR (Streamlined Energy and Carbon Reporting) |
Concrete Canvas Group is committed to driving the transition to more sustainable manufacturing with a focus on reducing lifecycle CO2e emissions, waste and pollution. The following key investments have been made over the last 2 years: |
- | Scope 1: Supporting the transition away from petrol and diesel cars with 70% of company vehicles converting to electric at the end of the financial year. We currently are in the process of introducing a company salary sacrifice scheme for electric vehicles to further improve on this. |
- | Scope 2: Installation of a 1.1 MWp solar array covering most of the available roof area of the factory. The solar panels were commissioned in June 2023 and will generate ~60% of predicted site consumption in 2024. As well as supporting the company's sustainability journey, this investment will also help to protect against energy cost volatility. |
- | Scope 3: Development of a new lower carbon formulation for our CC product line. This was launched in June 2022 as the CC 'T-series' and has now fully replaced the conventional CC product across all product variants. The new formulation reduces the embodied CO2e of the product by an average of 33%.. |
We have also invested in a carbon emission management platform in order to provide historic data for bench-marking and a means of ongoing measurement and analysis. This is being done in line with the requirements of UK Government PPN06/21 (Public Procurement Note 06/21). Results for the last 2 years are listed below. |
FY 2022/23 | FY 2021/22 |
Emissions Source | Energy | CO2e | Energy | CO2e |
Consumption | Consumption |
(kWh) | (tonnes) | (kWh) | (tonnes) |
Scope 1: Natural gas | 309,218 | 63 | 255,098 | 52 |
Scope 1: Other fuel use (LPG) | 1,494 | 0.3 | - | - |
Scope 1: Company vehicle use | - | 11 | - | 11 |
Scope 2: Electricity use | 938,102 | 194 | 818,677 | 170 |
Total (Scope 1+2) | 268 | 233 |
Area of material sold (sqm) | 977,480 | 803,139 |
Intensity Ratio: kgCO2e/sqm | 0.27 | 0.29 |
The information has been gathered using electricity and gas meter readings and by surveying those who use company vehicles. Conversions between kWh and CO2e made using government document "Greenhouse gas reporting: conversion factors 2023". |
Scope 1 and 2 emissions have increased by 15% over the period, however this was against a 22% increase in material sales. As a result, we successfully reduced our intensity ratio by 5% over the period. |
Although Scope 3 emissions are not listed, we achieved significant reductions in the use of raw materials associated with high carbon emissions through the formulation changes mentioned above. |
Concrete Canvas Limited (Registered number: 05537361) |
Strategic Report |
for the Year Ended 31 August 2023 |
DRAFT |
Principal risks and uncertainties |
The main risks to achieving the business strategy have been assessed by the Directors and can be summarised as follows; |
Risk | Potential Impact | Mitigation |
Economic outlook | As the economic situation continues to be uncertain the impact on raw material prices and global supply chains will continue to create challenges across all markets. In general, the continued uncertainty will make forecasting and planning more challenging. | The company has sufficient cash balances and as such we do not expect any liquidity problems. Further debt finance can be accessed by securing loans against the property which is 100% owned by the Group. While being mindful of the macro-economic uncertainty, the diverse customer base and ability to export to all parts of the globe provides the company with a resilient demand outlook. We will continue to monitor sales growth and market conditions to ensure the business is able to rapidly adapt to the changing situation. |
Copycat product enters market | Competitor copies technology infringing business's Intellectual Property and take market share. | Use of the extensive patent portfolio and registered Trade Marks to sue infringers and seek damages for loss of income. The business has 112 patents pending or granted worldwide through 49 Territories. CCT will seek to enforce it's IPR at a time and in a jurisdiction where it will achieve it's aim of minimising the economic impact of infringing activity on the companys sales. |
Loss of Key Supplier | The core material technology is reliant on bespoke input material components. Loss of one of these key suppliers could impact our production capacity and our ability to meet customer lead times. | The business recognises the key role suppliers play in Concrete Canvas' ability to deliver quality and timely product to our customers. Dual supplier arrangements are in place for all critical components and the business can source alternative supply from existing pre-qualified suppliers for all non-critical components at short notice. |
Production Line Breakdown | The core production machinery is bespoke and only exists within the Pontyclun facility. A large-scale line breakdown could potentially impact on our ability to meet order lead times and loss of sales. | We have invested heavily in our internal production engineering team and keep stock of spare machine parts as well as operating a preventative maintenance schedule. We also operate a stock buffer to maintain supply during short term interruptions in production capacity. |
Personnel | The business could be impacted by loss of key individuals. | The business operates an EMI option scheme targeted at retaining key personnel. We are proactively recruiting staff across most departments on a regular basis. This provides us with the capacity and resource to grow whilst also providing some additional capacity in the case of personnel loss. The business invests in staff teambuilding and engagement events and aims to create a friendly cooperative workplace and culture. |
On behalf of the board: |
Concrete Canvas Limited (Registered number: 05537361) |
Report of the Directors |
for the Year Ended 31 August 2023 |
DRAFT |
The directors present their report with the financial statements of the company for the year ended 31 August 2023. |
Dividends |
No dividends will be distributed for the year ended 31 August 2023. |
Directors |
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report. |
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, Haines Watts Wales LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Concrete Canvas Limited |
DRAFT |
Opinion |
We have audited the financial statements of Concrete Canvas Limited (the 'company') for the year ended 31 August 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, 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 31 August 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 |
Concrete Canvas Limited |
DRAFT |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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. |
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: |
Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial |
statements of the company. These are reviewed internally with the audit team including relevant industry experience |
and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation. |
Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, |
including fraud and adjust our testing accordingly. Our audit procedures include: |
- Discussing with Directors and management which areas of the business they believe to be more susceptible to |
fraud, and whether they have any knowledge or suspicion of fraudulent activities. |
- Discussing with Directors and management the legal and regulatory obligations of the business and whether they |
have any knowledge or suspicion of non-compliance. |
- Obtaining an understanding of the key controls put in place by the company to address risks identified, |
assessing the effectiveness of those and discussing how these are maintained and monitored internally. |
- Assessing the risk of management override and review and testing of journal entries made into the accounting |
system. |
- Challenging assumptions and judgements made by the company in relation to the significant accounting |
estimates employed in the preparation of the financial statements. |
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional |
misrepresentation, or the override of internal controls. |
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. |
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. |
for and on behalf of |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Concrete Canvas Limited (Registered number: 05537361) |
Statement of Comprehensive |
Income |
for the Year Ended 31 August 2023 |
2023 | 2022 |
Notes | £ | £ |
DRAFT |
Turnover | 4 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
(224,824 | ) | 190,450 |
Other operating income | 5 |
Operating profit |
Interest receivable and similar income |
352,530 | 611,115 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
Profit before taxation | 8 |
Tax on profit | 9 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
Concrete Canvas Limited (Registered number: 05537361) |
Balance Sheet |
31 August 2023 |
2023 | 2022 |
Notes | £ | £ |
DRAFT |
Fixed assets |
Intangible assets | 10 |
Tangible assets | 11 |
Current assets |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
Creditors |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
Provisions for liabilities | 18 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 19 |
Share premium |
Retained earnings |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Concrete Canvas Limited (Registered number: 05537361) |
Statement of Changes in Equity |
for the Year Ended 31 August 2023 |
DRAFT |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 September 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 August 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 August 2023 |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements |
for the Year Ended 31 August 2023 |
DRAFT |
1. | Statutory information |
Concrete Canvas Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered facilities that are in place at the date of signing the report. |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
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 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. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income. |
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. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity. |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
2. | Accounting policies - continued |
DRAFT |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
During the year the Directors reviewed the depreciation policy for Computer Equipment and have revised this from 10% to 20% on cost. They believe this gives an accurate, up to date reflection on the useful lives of these assets. Due to the change in accounting estimate, an additional depreciation charge of £19,862 has been reflected in the financial statements. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing 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. |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial InstrumentS and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated. |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
2. | Accounting policies - continued |
DRAFT |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement 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. |
Impairment of fixed assets |
At each reporting period end date, the company 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. |
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. |
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. |
3. | Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods. |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
DRAFT |
4. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
North America | 219,108 | 2,432,199 |
Rest of the world | 11,817,800 | 9,097,233 |
5. | Other operating income |
Other significant revenue | 2023 | 2022 |
£ | £ |
Grants received | 155,171 | 82,661 |
Other operating income | 29,483 | 14,002 |
184,654 | 96,664 |
6. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Employees | 54 | 56 |
Directors | 2 | 2 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
7. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Loan interest paid |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
DRAFT |
8. | Profit before taxation |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Development costs amortisation |
Auditors' remuneration |
Other non- audit services |
Foreign exchange differences | ( |
) | ( |
) |
9. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Deferred tax |
Tax on profit |
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: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Income not taxable for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Group relief | 420,836 | 207,028 |
Research and development | (238,596 | ) | (300,690 | ) |
Other deductions | (3,039 | ) | (48,263 | ) |
Deferred tax | 181,801 | 20,956 |
Total tax charge | 181,801 | 20,956 |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
DRAFT |
10. | Intangible fixed assets |
Developmen |
costs |
£ |
Cost |
At 1 September 2022 |
Additions |
At 31 August 2023 |
Amortisation |
At 1 September 2022 |
Amortisation for year |
At 31 August 2023 |
Net book value |
At 31 August 2023 |
At 31 August 2022 |
11. | Tangible fixed assets |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Cost |
At 1 September 2022 |
Additions |
Disposals |
At 31 August 2023 |
Depreciation |
At 1 September 2022 |
Charge for year |
Eliminated on disposal |
At 31 August 2023 |
Net book value |
At 31 August 2023 |
At 31 August 2022 |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
11. | Tangible fixed assets - continued |
DRAFT |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Cost |
At 1 September 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 August 2023 |
Depreciation |
At 1 September 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 August 2023 |
Net book value |
At 31 August 2023 |
At 31 August 2022 |
12. | Stocks |
2023 | 2022 |
£ | £ |
Raw materials and |
consumables |
Stocks of finished goods | 613,766 | 465,525 |
Work-in-progress |
13. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments |
14. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Trade creditors |
Social security and other taxes |
Other creditors |
Accrued expenses |
Deferred government grants |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
14. | Creditors: amounts falling due within one year - continued |
DRAFT |
Deferred income brought forward | 103,201 | 98,000 |
Amounts released to profit and loss | (13,812 | ) | (12,919 | ) |
Amounts deferred in the year | 18,120 |
Deferred income carried forward | 89,389 | 103,201 |
Income received during the financial year that is applicable to periods post year end and have been deferred in line with the funding terms. |
15. | Creditors: amounts falling due after more than one year |
2023 | 2022 |
£ | £ |
Amounts owed to group undertakings |
Deferred government grants |
16. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
17. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
The total lease payments recognised in the profit and loss during the year was £327,343 |
18. | Provisions for liabilities |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 September 2022 |
Provided during year |
Balance at 31 August 2023 |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares of 0.1p | 958 | 958 | 958 |
Concrete Canvas Limited (Registered number: 05537361) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
DRAFT |
20. | Pension commitments |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £130,358 (2022: £209,919). |
21. | Contingent liabilities |
The company has recognised a contingent liability due to a dispute with a supplier over contract terms per the signed agreement. |
As at the year end the contingent liability value is £81,262.88. |
The probability of the supplier reimbursement is less than 50%. |
22. | Ultimate controlling party |
The parent company is Concrete Canvas Group Limited. A copy of the group accounts can be found on |
Companies House. |