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COMPANY REGISTRATION NUMBER: 01838488
ABS Brymar Floors Limited
Financial Statements
31 July 2023
ABS Brymar Floors Limited
Financial Statements
Year ended 31 July 2023
Contents
Page
Strategic report
1
Director's report
3
Independent auditor's report to the member
5
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12
ABS Brymar Floors Limited
Strategic Report
Year ended 31 July 2023
PRINCIPAL ACTIVITY The principal activity of the company during the year was that of the installation of high-specification concrete floors . REVIEW OF BUSINESS The results and position of the company, as set out on pages 9 to 13 of these financial statements, which management find extremely encouraging. Turnover within the company has increased substantially due to a number of factors, amongst them being the increased cost of raw materials and an increase in demand for larger warehouse space. Management efficiencies and more effective systems and procedures have helped maintain and improve profit margins. Looking towards the future, management find the results extremely encouraging and the company is confident that market share can be maintained. PRINCIPAL RISKS AND UNCERTAINTIES Global political instability and the level of liquidity and activity in the general economy continues to be uncertain. One of the principal risks remain company failures and a reduction of workload in this sector. The availability of skilled labour within the industry was also considered to be a principal risk, however, historically, the company have had an excellent relationship with their employees and staff turnover is very low when compared to the national average. DEVELOPMENT AND PERFORMANCE The company is confident that their reputation continues to grow nationally. Future developments will come from a focus on margins and efficient operations. The company are continually active in the research & development of new products, new methods and new procedures and continue to invest substantially in this field. The company continues to enhance its reputation because of its focus on providing an excellent product and service. The director believes that this will continue to sustain the success of the company in years to come. FINANCIAL KEY PERFORMANCE INDICATORS The director is obliged to report financial key performance indicators and considers the following to be the most relevant and appropriate: - 2023 2022 Sales £40,523,330 £28,934,389 Operating profit £427,622 £482,232 Operating margins 1.1% 1.7% Profit on ordinary activities before tax £426,733 £436,791 EBITDA £436,535 £486,461 ROCE 18.4% 24.9% Gearing 4.9 3.9 Current ratio 1.2 1.3
This report was approved by the board of directors on 11 December 2023 and signed on behalf of the board by:
Mr N J Cable
Director
Trading address:
Unit 40
Drumhead Road
Chorley North Industrial Park
Chorley
Lancashire
PR6 7BX
ABS Brymar Floors Limited
Director's Report
Year ended 31 July 2023
The director presents his report and the financial statements of the company for the year ended 31 July 2023 .
Director
The director who served the company during the year was as follows:
Mr N J Cable
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Disclosure of information in the strategic report
The Strategic Report for the company is shown on page 2 of the financial statements.
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.
This report was approved by the board of directors on 11 December 2023 and signed on behalf of the board by:
Mr N J Cable
Director
Trading address:
Unit 40
Drumhead Road
Chorley North Industrial Park
Chorley
Lancashire
PR6 7BX
ABS Brymar Floors Limited
Independent Auditor's Report to the Member of ABS Brymar Floors Limited
Year ended 31 July 2023
Opinion
We have audited the financial statements of ABS Brymar Floors Limited (the 'company') for the year ended 31 July 2023 which comprise the statement of income and retained earnings, statement of financial position, 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 July 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 the director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in in 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: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; and - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; and - enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures describe above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of auditor's report. Use of our report
This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
Mrs Emma Woods FCA
(Senior Statutory Auditor)
For and on behalf of
Barlow Andrews
Chartered accountants & statutory auditor
Carlyle House
78 Chorley New Road
Bolton
Lancashire
11 December 2023
ABS Brymar Floors Limited
Statement of Income and Retained Earnings
Year ended 31 July 2023
2023
2022
Note
£
£
Turnover
4
40,523,330
28,934,389
Cost of sales
30,320,521
23,829,902
------------
------------
Gross profit
10,202,809
5,104,487
Administrative expenses
9,775,187
4,666,642
Other operating income
44,387
------------
-----------
Operating profit
5
427,622
482,232
Interest payable and similar expenses
9
889
45,442
------------
-----------
Profit before taxation
426,733
436,790
Tax on profit
10
58,003
52,416
---------
---------
Profit for the financial year and total comprehensive income
368,730
384,374
---------
---------
Dividends paid and payable
11
( 200,000)
Retained earnings at the start of the year
1,904,366
1,719,992
-----------
-----------
Retained earnings at the end of the year
2,273,096
1,904,366
-----------
-----------
All the activities of the company are from continuing operations.
ABS Brymar Floors Limited
Statement of Financial Position
31 July 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
12
105,506
4,416
Current assets
Stocks
13
202,574
192,944
Debtors
14
12,181,628
8,558,115
Cash at bank and in hand
860,108
557,594
------------
-----------
13,244,310
9,308,653
Creditors: amounts falling due within one year
15
11,031,250
7,373,674
------------
-----------
Net current assets
2,213,060
1,934,979
-----------
-----------
Total assets less current liabilities
2,318,566
1,939,395
Creditors: amounts falling due after more than one year
16
24,014
34,029
Provisions
Taxation including deferred tax
17
20,456
-----------
-----------
Net assets
2,274,096
1,905,366
-----------
-----------
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss account
21
2,273,096
1,904,366
-----------
-----------
Shareholder funds
2,274,096
1,905,366
-----------
-----------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 11 December 2023 , and are signed on behalf of the board by:
Mr N J Cable
Director
Company registration number: 01838488
ABS Brymar Floors Limited
Statement of Cash Flows
Year ended 31 July 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
368,730
384,374
Adjustments for:
Depreciation of tangible assets
8,913
4,229
Interest payable and similar expenses
889
45,442
Tax on profit
58,003
52,416
Accrued expenses
9,799
25,335
Changes in:
Stocks
( 9,630)
22,925
Trade and other debtors
( 3,623,513)
( 2,358,307)
Trade and other creditors
1,221,988
451,489
-----------
-----------
Cash generated from operations
( 1,964,821)
( 1,372,097)
Interest paid
( 889)
( 45,442)
Tax paid
( 53,258)
( 4,711)
-----------
-----------
Net cash used in operating activities
( 2,018,968)
( 1,422,250)
-----------
-----------
Cash flows from investing activities
Purchase of tangible assets
( 110,003)
-----------
-----------
Net cash used in investing activities
( 110,003)
-----------
-----------
Cash flows from financing activities
Proceeds from borrowings
( 9,760)
( 756,311)
Proceeds from loans from group undertakings
2,415,004
2,509,517
Proceeds from loans from participating interests
26,241
Dividends paid
( 200,000)
-----------
-----------
Net cash from financing activities
2,431,485
1,553,206
-----------
-----------
Net increase in cash and cash equivalents
302,514
130,956
Cash and cash equivalents at beginning of year
557,594
426,638
---------
---------
Cash and cash equivalents at end of year
860,108
557,594
---------
---------
ABS Brymar Floors Limited
Notes to the Financial Statements
Year ended 31 July 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 1A The Moorings, Dane Road Industrial Estate, Dane Road, Sale, Cheshire, M33 7BH.
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
(a) Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
(b) Management charges
Management charges are payable on a performance related basis. The company accounts for and pays them in the year in which they are incurred.
(c) Going concern
At the time of approving the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the Director continues to adopt the going concern basis of accounting in preparing the financial statements.
(d) 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. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. We do not however consider that there are any 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.
(e) Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When its probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expenses immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
(f) Revenue recognition
Turnover represents the value of work done in the year. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
(g) 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 debtors.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
(h) 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.
(i) Operating leases
All plant and vehicles are hired under operating leases from the parent company which retains title to the assets. Lease terms for plant and vehicles vary between 3 and 5 years duration. The company occupies property owned by Roger Street Investments Limited, a company solely owned by Mr N Cable, under a lease originally of 10 years. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period lease.
(j) Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
(k) 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 & machinery
-
20% straight line
Fixtures & fittings
-
20% straight line
(l) 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.
(m) Stocks & work in progress
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Work in progress is valued on the basis of direct cost plus attributable overheads based on normal level of activity. Provision is made for any unforeseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
(n) Warranties & provisions
Warranties are made on specific work executed. 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. They are recognised as a liability in the statement of financial position and the amount as an expense. Provisions are initially measured based on the director's best estimate of the most realistic, anticipated outcome, based on the available information 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.
(o) Financial instruments
The company has elected to apply the provision of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all 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. Basic financial assets Basic financial assets, which include trade debtors, cash and bank balances and group balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised. Impairment of financial assets Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit and loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the carrying amount does not exceed what the carrying amount would have been, had the impairment not been previously recognised. The impairment reversal is recognised in profit or loss. Derecognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. Classification of financial assets Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including trade creditors and loans from fellow group and related companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
(p) Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Turnover
Turnover arises from:
2023
2022
£
£
Construction contracts
40,523,330
28,934,389
------------
------------
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
8,913
4,229
Impairment of trade debtors
1,448,105
(5)
Operating lease rentals: plant and machinery
523,835
484,137
Operating lease rentals: other
186,953
177,606
-----------
---------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
8,500
8,500
------
------
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
22
28
Administrative staff
4
4
Management staff
14
14
----
----
40
46
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,661,491
1,959,521
Social security costs
192,668
225,174
Other pension costs
31,537
33,699
-----------
-----------
1,885,696
2,218,394
-----------
-----------
8. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
48,000
48,000
Company contributions to defined contribution pension plans
1,440
1,440
-------
-------
49,440
49,440
-------
-------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
1
1
----
----
9. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
889
45,442
----
-------
10. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
70,140
85,851
Adjustments in respect of prior periods
( 32,593)
( 33,435)
-------
-------
Total current tax
37,547
52,416
-------
-------
Deferred tax:
Origination and reversal of timing differences
20,456
-------
-------
Tax on profit
58,003
52,416
-------
-------
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 21 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
426,733
436,790
---------
---------
Profit on ordinary activities by rate of tax
89,637
82,990
Adjustment to tax charge in respect of prior periods
( 32,593)
( 33,435)
Effect of expenses not deductible for tax purposes
2,112
1,644
Effect of capital allowances and depreciation
( 21,609)
1,217
---------
---------
Tax on profit
37,547
52,416
---------
---------
11. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Equity dividends on ordinary shares
200,000
----
---------
Dividends proposed after the year end and not recognised as a liability:
2023
2022
£
£
Equity dividends on ordinary shares
200,000
---------
----
12. Tangible assets
Plant and machinery
Fixtures and fittings
Total
£
£
£
Cost
At 1 August 2022
23,496
23,496
Additions
110,003
110,003
---------
-------
---------
At 31 July 2023
110,003
23,496
133,499
---------
-------
---------
Depreciation
At 1 August 2022
19,080
19,080
Charge for the year
4,950
3,963
8,913
---------
-------
---------
At 31 July 2023
4,950
23,043
27,993
---------
-------
---------
Carrying amount
At 31 July 2023
105,053
453
105,506
---------
-------
---------
At 31 July 2022
4,416
4,416
---------
-------
---------
13. Stocks
2023
2022
£
£
Raw materials and consumables
169,478
187,532
Work in progress
33,096
5,412
---------
---------
202,574
192,944
---------
---------
14. Debtors
2023
2022
£
£
Trade debtors
7,181,114
7,157,231
Amounts owed by group undertakings
1,700,000
Prepayments and accrued income
1,520,123
34,778
Other debtors
1,780,391
1,366,106
------------
-----------
12,181,628
8,558,115
------------
-----------
The debtors above include the following amounts falling due after more than one year:
2023
2022
£
£
Trade debtors
397,605
269,102
---------
---------
15. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
9,915
9,660
Trade creditors
5,521,000
4,287,878
Amounts owed to group undertakings
4,924,521
2,509,517
Amounts owed to undertakings in which the company has a participating interest
26,241
Accruals and deferred income
434,035
424,236
Corporation tax
70,140
85,851
Social security and other taxes
39,304
49,678
Other creditors
6,094
6,854
------------
-----------
11,031,250
7,373,674
------------
-----------
16. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
24,014
34,029
-------
-------
17. Provisions
Deferred tax (note 18)
£
At 1 August 2022
Additions
20,456
-------
At 31 July 2023
20,456
-------
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 17)
20,456
-------
----
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
20,456
-------
----
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 31,537 (2022: £ 33,699 ).
20. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
1,000
1,000
1,000
1,000
------
------
------
------
21. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
22. Analysis of changes in net debt
At 1 Aug 2022
Cash flows
At 31 Jul 2023
£
£
£
Cash at bank and in hand
557,594
302,514
860,108
Debt due within one year
(2,519,177)
(2,441,500)
(4,960,677)
Debt due after one year
(34,029)
10,015
(24,014)
-----------
-----------
-----------
( 1,995,612)
( 2,128,971)
( 4,124,583)
-----------
-----------
-----------
23. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
116,653
28,370
Later than 1 year and not later than 5 years
1,276,161
1,145,839
Later than 5 years
360,723
590,000
-----------
-----------
1,753,537
1,764,209
-----------
-----------
ABS Brymar Floors Limited
Notes to the Financial Statements (continued)
Year ended 31 July 2023
24. Contingencies
Warranties The company holds indemnity insurance in respect of warranty claims. In accordance with the company's accounting policy, no general provision is made, but specific provision for the anticipated uninsured remedial cost is made in the year of the claim arising in so far as the directors consider that a liability exists or will exist. It is not practicable to calculate the potential value of all outstanding warranties, but the directors consider that the success of any material unprovided warranty claim is remote.
25. Related party transactions
The company was controlled throughout the year by the director of the company, Mr N Cable, who was also director of the parent company Manchester Urban Finance Corporation Limited, and Roger Street Investments Limited, the entity's landlord. Mr Cable was also the controlling partner of Kontrad LLP. Management services provided by: 2023 2022 £ £ Manchester Urban Finance Corporation Ltd 6,500,000 3,000,000 Kontrad LLP 260,000 240,000 Rental of plant & machinery provided by: 2023 2022 £ £ Manchester Urban Finance Corporation Ltd 584,761 536,594 Rents paid under an operating lease to: 2023 2022 £ £ Roger Street Investments Ltd 120,000 120,000 Commercial trade balances due to: 2023 2022 £ £ Manchester Urban Finance Corporation Ltd 4,924,521 2,509,517 Roger Street Investments Ltd 26,241 NIL Global Treasury Fund Related operations which have short-term surplus funds remit these to the holding company. These funds are then made available to other related operations that have a short-term cash requirement and the surplus remaining is invested on the short-term money markets. The returns earned on this investment is then allocated to the participating businesses based upon the amount each has contributed to the investment. Balance due from the holding company under this arrangement is as follows: 2023 2022 £ £ 1,700,000 NIL
26. Controlling party
The immediate parent company is Manchester Urban Finance Corporation Limited, a company incorporated in the UK, which owns 100% of the issued share capital. The company is ultimately controlled by its director.