27 true false false true false false false false false false true false false false false false false No description of principal activity 2022-09-01 Sage Accounts Production Advanced 2021 - FRS102_2021 3,204,240 3,370,881 309,304 45,598 354,902 xbrli:pure xbrli:shares iso4217:GBP 07622278 2022-09-01 2023-08-31 07622278 2023-08-31 07622278 2022-08-31 07622278 2021-09-01 2022-08-31 07622278 2022-08-31 07622278 core:PlantMachinery 2022-09-01 2023-08-31 07622278 core:MotorVehicles 2022-09-01 2023-08-31 07622278 bus:RegisteredOffice 2022-09-01 2023-08-31 07622278 bus:OrdinaryShareClass1 2022-09-01 2023-08-31 07622278 bus:OrdinaryShareClass2 2022-09-01 2023-08-31 07622278 bus:OrdinaryShareClass3 2022-09-01 2023-08-31 07622278 bus:OrdinaryShareClass4 2022-09-01 2023-08-31 07622278 bus:OrdinaryShareClass5 2022-09-01 2023-08-31 07622278 bus:LeadAgentIfApplicable 2022-09-01 2023-08-31 07622278 bus:Director1 2022-09-01 2023-08-31 07622278 core:WithinOneYear 2023-08-31 07622278 core:WithinOneYear 2022-08-31 07622278 core:PlantMachinery 2022-08-31 07622278 core:MotorVehicles 2022-08-31 07622278 core:PlantMachinery 2023-08-31 07622278 core:MotorVehicles 2023-08-31 07622278 core:DeferredTaxation 2022-09-01 2023-08-31 07622278 core:ShareCapital 2021-09-01 2022-08-31 07622278 core:RetainedEarningsAccumulatedLosses 2021-09-01 2022-08-31 07622278 core:RetainedEarningsAccumulatedLosses 2022-09-01 2023-08-31 07622278 core:UKTax 2022-09-01 2023-08-31 07622278 core:UKTax 2021-09-01 2022-08-31 07622278 bus:AllOrdinaryShares 2022-09-01 2023-08-31 07622278 bus:AllOrdinaryShares 2021-09-01 2022-08-31 07622278 core:ShareCapital 2023-08-31 07622278 core:ShareCapital 2022-08-31 07622278 core:RetainedEarningsAccumulatedLosses 2023-08-31 07622278 core:RetainedEarningsAccumulatedLosses 2022-08-31 07622278 core:ShareCapital 2021-08-31 07622278 core:RetainedEarningsAccumulatedLosses 2021-08-31 07622278 core:RestatedAmount 2021-08-31 07622278 core:RestatedAmount 2022-08-31 07622278 core:AcceleratedTaxDepreciationDeferredTax 2023-08-31 07622278 core:AcceleratedTaxDepreciationDeferredTax 2022-08-31 07622278 core:PlantMachinery 2022-08-31 07622278 core:MotorVehicles 2022-08-31 07622278 core:DeferredTaxation 2022-08-31 07622278 core:DeferredTaxation 2023-08-31 07622278 bus:LeadAgentIfApplicable 2021-09-01 2022-08-31 07622278 bus:FRS102 2022-09-01 2023-08-31 07622278 bus:Audited 2022-09-01 2023-08-31 07622278 bus:FullAccounts 2022-09-01 2023-08-31 07622278 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2022-09-01 2023-08-31 07622278 bus:PrivateLimitedCompanyLtd 2022-09-01 2023-08-31 07622278 bus:OrdinaryShareClass1 2023-08-31 07622278 bus:OrdinaryShareClass1 2022-08-31 07622278 bus:OrdinaryShareClass2 2023-08-31 07622278 bus:OrdinaryShareClass2 2022-08-31 07622278 bus:OrdinaryShareClass3 2023-08-31 07622278 bus:OrdinaryShareClass3 2022-08-31 07622278 bus:OrdinaryShareClass4 2023-08-31 07622278 bus:OrdinaryShareClass4 2022-08-31 07622278 bus:OrdinaryShareClass5 2023-08-31 07622278 bus:OrdinaryShareClass5 2022-08-31 07622278 bus:AllOrdinaryShares 2023-08-31 07622278 bus:AllOrdinaryShares 2022-08-31
COMPANY REGISTRATION NUMBER: 07622278
ESTUARY OILS LIMITED
FINANCIAL STATEMENTS
31 August 2023
ESTUARY OILS LIMITED
FINANCIAL STATEMENTS
Year ended 31 August 2023
CONTENTS
PAGES
Officers and professional advisers
1
Strategic report
2
Director's report
3 to 4
Independent auditor's report to the members
5 to 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 to 21
ESTUARY OILS LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
Director
Mr A G Mould
Registered office
Estuary Oil Depot
Progress Industrial Estate
Station Road
Rogiet
NP26 3UE
Auditor
Kilsby & Williams LLP
Chartered Accountants & statutory auditor
Cedar House
Hazell Drive
Newport
NP10 8FY
ESTUARY OILS LIMITED
STRATEGIC REPORT
Year ended 31 August 2023
BUSINESS REVIEW We can confirm that both Turnover and Gross Profit have increased following another successful trading year. Turnover has increased due to business growth and the rising costs of Oil attributed to the Russia / Ukraine conflict. The Conflict is ongoing, however, supply lines of Crude Oil and imported refined products into the UK have stabilised meaning more reliable supplies and more stable pricing. Profits have increased predominately due to the hard work from our dedicated staff, effective purchasing, continued efficiency drives, increased fleet capacity, excellent customer/delivery service and the company's aggressive stance to secure local market share. The company has continued with its policy of investment in new tankers to ensure the fleet remains up to date and is able to adequately service the company's increasing customer base, minimising downtime and reducing maintenance costs. We have also invested into green energy as a way to offset the company's operational carbon footprint, in line with our environmental policy and company goals. PRINCIPAL RISKS AND UNCERTAINTIES The management team continue to monitor the economic impact of the rising cost of fuel and the credit / exposure risk this poses. The company will continue to manage this closely and minimise debt risk through policy, control and constant dialogue with our Trade Insurers. Alternative Fuels are having an impact on traditional hydrocarbon fuels, however, we are embracing this change and growth in the sector is significant. We will continue to introduce alternative fuels as part of our customer product offering.
This report was approved by the board of directors on 21 February 2024 and signed on behalf of the board by:
Mr A G Mould
Director
ESTUARY OILS LIMITED
DIRECTOR'S REPORT
Year ended 31 August 2023
The director presents his report and the financial statements of the company for the year ended 31 August 2023 .
Director
The director who served the company during the year was as follows:
Mr A G Mould
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Financial instruments
The company's principal financial instruments comprise, bank accounts, trade debtors and trade creditors. The purpose of these instruments is to raise funds and 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 is shown below.
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding.
Trade debtors are managed in respect of credit and cash flow risk by internal policies concerning the credit offered to customers and regular monitoring of amounts outstanding.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet obligations as they fall due.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments 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 director is 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. He is 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 21 February 2024 and signed on behalf of the board by:
Mr A G Mould
Director
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESTUARY OILS LIMITED
Year ended 31 August 2023
Opinion
We have audited the financial statements of Estuary Oils Limited (the 'company') for the year ended 31 August 2023 which comprise the profit and loss account, balance sheet, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report 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 director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - 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 director's 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Simon Tee
(Senior Statutory Auditor)
For and on behalf of
Kilsby & Williams LLP
Chartered Accountants & statutory auditor
Cedar House
Hazell Drive
Newport
NP10 8FY
22 February 2024
ESTUARY OILS LIMITED
PROFIT AND LOSS ACCOUNT
Year ended 31 August 2023
2023
2022
Note
£
£
TURNOVER
4
69,806,052
55,389,874
Cost of sales
( 63,220,990)
( 49,194,991)
-------------
-------------
GROSS PROFIT
6,585,062
6,194,883
Distribution costs
( 13,135)
Administrative expenses
( 2,482,778)
( 1,968,439)
------------
------------
OPERATING PROFIT
5
4,089,149
4,226,444
Income from other fixed asset investments
9
11,727
( 73,222)
------------
------------
PROFIT BEFORE TAXATION
4,100,876
4,153,222
Tax on profit
10
( 896,636)
( 782,341)
------------
------------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME
3,204,240
3,370,881
------------
------------
All the activities of the company are from continuing operations.
ESTUARY OILS LIMITED
BALANCE SHEET
31 August 2023
2023
2022
Note
£
£
FIXED ASSETS
Tangible assets
12
1,468,936
1,238,960
CURRENT ASSETS
Stocks
13
800,271
944,655
Debtors
14
7,096,924
8,942,124
Investments
15
1,169,991
670,242
Cash at bank and in hand
6,549,814
2,122,760
-------------
-------------
15,617,000
12,679,781
CREDITORS: amounts falling due within one year
16
( 7,173,290)
( 6,777,933)
-------------
-------------
NET CURRENT ASSETS
8,443,710
5,901,848
------------
------------
TOTAL ASSETS LESS CURRENT LIABILITIES
9,912,646
7,140,808
PROVISIONS
17
( 354,902)
( 309,304)
------------
------------
NET ASSETS
9,557,744
6,831,504
------------
------------
CAPITAL AND RESERVES
Called up share capital
20
10,102
10,102
Profit and loss account
21
9,547,642
6,821,402
------------
------------
SHAREHOLDERS FUNDS
9,557,744
6,831,504
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 21 February 2024 , and are signed on behalf of the board by:
Mr A G Mould
Director
Company registration number: 07622278
ESTUARY OILS LIMITED
STATEMENT OF CHANGES IN EQUITY
Year ended 31 August 2023
Called up share capital
Profit and loss account
Total
£
£
£
AT 1 SEPTEMBER 2021
10,000
3,727,521
3,737,521
Profit for the year
3,370,881
3,370,881
--------
------------
------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
3,370,881
3,370,881
Issue of shares
102
102
Dividends paid and payable
11
( 277,000)
( 277,000)
--------
------------
------------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
102
( 277,000)
( 276,898)
AT 31 AUGUST 2022
10,102
6,821,402
6,831,504
Profit for the year
3,204,240
3,204,240
--------
------------
------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
3,204,240
3,204,240
Dividends paid and payable
11
( 478,000)
( 478,000)
----
---------
---------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
( 478,000)
( 478,000)
--------
------------
------------
AT 31 AUGUST 2023
10,102
9,547,642
9,557,744
--------
------------
------------
ESTUARY OILS LIMITED
STATEMENT OF CASH FLOWS
Year ended 31 August 2023
2023
2022
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the financial year
3,204,240
3,370,881
Adjustments for:
Depreciation of tangible assets
328,050
251,879
Gains on disposal of tangible assets
( 29,355)
( 151,455)
Tax on profit
896,636
782,341
Accrued income
( 2,756)
( 4,005)
Changes in:
Stocks
144,384
( 425,200)
Trade and other debtors
1,845,200
( 4,970,537)
Trade and other creditors
1,207,289
1,631,933
------------
------------
Cash generated from operations
7,593,688
485,837
Tax (paid)/received
( 1,660,214)
124,326
------------
---------
Net cash from operating activities
5,933,474
610,163
------------
---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets
( 625,171)
( 841,270)
Proceeds from sale of tangible assets
96,500
346,924
Purchases of other investments
(499,749)
(670,242)
------------
------------
Net cash used in investing activities
( 1,028,420)
( 1,164,588)
------------
------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of ordinary shares
102
Dividends paid
( 478,000)
( 277,000)
------------
------------
Net cash used in financing activities
( 478,000)
( 276,898)
------------
------------
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
4,427,054
( 831,323)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
2,122,760
2,954,083
------------
------------
CASH AND CASH EQUIVALENTS AT END OF YEAR
6,549,814
2,122,760
------------
------------
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 August 2023
1. GENERAL INFORMATION
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Estuary Oil Depot, Progress Industrial Estate, Station Road, Rogiet, NP26 3UE.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Valuation of trade receivables - The company monitors the risk profile of debtors regularly and makes a provision for amounts that may not be recoverable on the basis of expected losses. When a trade receivable is not collectable it is written off against the bad debt provision. At 31 August 2023, the provision for bad debts was £96,470 against a total debtor book of £5,925,127.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Equipment
-
33 % reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. TURNOVER
Turnover arises from:
2023
2022
£
£
Sale of goods
69,806,052
55,389,874
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. OPERATING PROFIT
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
328,050
251,879
Gains on disposal of tangible assets
( 29,355)
( 151,455)
---------
---------
6. AUDITOR'S REMUNERATION
2023
2022
£
£
Fees payable for the audit of the financial statements
9,000
7,500
-------
-------
7. STAFF COSTS
The average number of persons employed by the company during the year, including the director, amounted to:
2023
2022
No.
No.
Production staff
27
26
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
939,487
828,174
Social security costs
96,714
79,988
Other pension costs
295,616
127,903
------------
------------
1,331,817
1,036,065
------------
------------
8. DIRECTOR'S REMUNERATION
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
9,100
9,100
-------
-------
9. INCOME FROM OTHER FIXED ASSET INVESTMENTS
2023
2022
£
£
Dividends from other fixed asset investments
6,265
3,623
Gain/(loss) on fair value adjustment to other fixed asset investments
3,168
(76,845)
Other income from other fixed asset investments
2,294
--------
--------
11,727
( 73,222)
--------
--------
10. TAX ON PROFIT
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
851,038
683,922
Deferred tax:
Origination and reversal of timing differences
45,598
98,419
---------
---------
Tax on profit
896,636
782,341
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
4,100,876
4,153,222
------------
------------
Profit on ordinary activities by rate of tax
1,025,219
789,112
Adjustment to tax charge in respect of prior periods
2,316
Effect of expenses not deductible for tax purposes
( 2,036)
( 6,771)
Effect of capital allowances and depreciation
6,503
Effect of different UK tax rates on some earnings
(135,366)
------------
------------
Tax on profit
896,636
782,341
------------
------------
11. DIVIDENDS
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
478,000
277,000
---------
---------
12. TANGIBLE ASSETS
Plant and machinery
Motor vehicles
Equipment
Total
£
£
£
£
Cost
At 1 September 2022
167,524
1,420,012
23,345
1,610,881
Additions
9,712
608,801
6,658
625,171
Disposals
( 155,550)
( 155,550)
---------
------------
--------
------------
At 31 August 2023
177,236
1,873,263
30,003
2,080,502
---------
------------
--------
------------
Depreciation
At 1 September 2022
21,835
331,738
18,348
371,921
Charge for the year
22,510
301,695
3,845
328,050
Disposals
( 88,405)
( 88,405)
---------
------------
--------
------------
At 31 August 2023
44,345
545,028
22,193
611,566
---------
------------
--------
------------
Carrying amount
At 31 August 2023
132,891
1,328,235
7,810
1,468,936
---------
------------
--------
------------
At 31 August 2022
145,689
1,088,274
4,997
1,238,960
---------
------------
--------
------------
13. STOCKS
2023
2022
£
£
Stock
800,271
944,655
---------
---------
14. DEBTORS
2023
2022
£
£
Trade debtors
5,828,657
6,181,627
Prepayments and accrued income
320,083
68,938
Director's loan account
73,248
1,973,248
Other debtors
874,936
718,311
------------
------------
7,096,924
8,942,124
------------
------------
15. INVESTMENTS
2023
2022
£
£
Other investments
1,169,991
670,242
------------
---------
Current asset investments represent an investment in a investment portfolio.
16. CREDITORS: amounts falling due within one year
2023
2022
£
£
Trade creditors
6,722,575
5,529,066
Accruals and deferred income
49
2,805
Corporation tax
405,717
1,214,893
Social security and other taxes
37,483
24,481
Other creditors
7,466
6,688
------------
------------
7,173,290
6,777,933
------------
------------
17. PROVISIONS
Deferred tax (note 18)
£
At 1 September 2022
309,304
Additions
45,598
---------
At 31 August 2023
354,902
---------
18. DEFERRED TAX
The deferred tax included in the balance sheet is as follows:
2023
2022
£
£
Included in provisions (note 17)
354,902
309,304
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
354,902
309,304
---------
---------
19. EMPLOYEE BENEFITS
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 295,616 (2022: £ 127,903 ).
20. CALLED UP SHARE CAPITAL
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
2
2
2
2
Ordinary A shares of £ 1 each
4,999
4,999
4,999
4,999
Ordinary B shares of £ 1 each
3,999
3,999
3,999
3,999
Ordinary C shares of £ 1 each
1,000
1,000
1,000
1,000
Ordinary D shares of £ 1 each
102
102
102
102
--------
--------
--------
--------
10,102
10,102
10,102
10,102
--------
--------
--------
--------
21. RESERVES
Profit and loss account - This reserve records retained earnings and accumulated losses.
22. ANALYSIS OF CHANGES IN NET DEBT
At 1 Sep 2022
Cash flows
At 31 Aug 2023
£
£
£
Cash at bank and in hand
2,122,760
4,427,054
6,549,814
Current asset investments
670,242
499,749
1,169,991
------------
------------
------------
2,793,002
4,926,803
7,719,805
------------
------------
------------
23. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES
Included within Debtors is a balance of £73,248 (2022: £1,973,248) due from the director. This balance is interest free and repayable on demand.
ESTUARY OILS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (continued)
Year ended 31 August 2023
24. RELATED PARTY TRANSACTIONS
Included within other debtors is a balance of £41,250 (2022 - £30,248) due from entities related by common control. The company purchased goods and services totalling £57,600 (2022 - £57,600) from entities related by common control. The company sold goods and services totalling £16,632 (2022 - £16,632) to entities related by common control. The transactions were carried out on an arms length basis.