Company registration number 04353201 (England and Wales)
CABLESHEER (ASBESTOS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
CABLESHEER (ASBESTOS) LIMITED
COMPANY INFORMATION
Directors
Mr D R Brown
Mr D Brown
Secretary
Mr D R Brown
Company number
04353201
Registered office
Unit 3, Fitzroy Business Park
Sandy Lane
Sidcup
Kent
DA14 5NL
Auditor
Crossley Financial Accounting Limited
Star House
Star Hill
Rochester
Kent
ME1 1UX
CABLESHEER (ASBESTOS) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
CABLESHEER (ASBESTOS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 September 2023.
Review of the business
Cablesheer Asbestos Limited (CAL), a subsidiary of the Cablesheer Group, was founded in 2002 to complement the operations of its sister company, Cablesheer Construction Limited (CCL).
In its nascent stages, CAL primarily relied on commissions from CCL, gradually establishing its footing through various industry frameworks. This development laid the foundation for CAL's growth as it enabled the directors to explore business opportunities outside CCL's scope.
Over time, CAL earned recognition as a trusted 'Asbestos Specialist', leading to a rapid growth in operations. This was bolstered by a surge in clients seeking CAL's specialist advice on asbestos management.
Principal risks and uncertainties
We constantly evaluate and address significant risks that could impact our business. The primary risk factors currently include skilled labour, materials, material prices, strategic, commercial, operational, reputational, and financial risks. Our directors actively oversee these areas and we continue to strategise to mitigate these risks.
Strategy for the future
Taking into account the government's aspiration to eliminate all asbestos from buildings by 2035, CAL's directors have adopted a diversification strategy. This forward-thinking approach is designed to prevent an over-reliance on asbestos-related work, and to future-proof our operations.
Consequently, CAL has expanded its portfolio to include building services that parallel asbestos removal in process but not in substance, thereby broadening our market reach while managing risk.
In addition, we have ventured into fire safety solutions, offering services such as fire stopping and fire door installation and maintenance. The Grenfell tragedy has led to a strong governmental and societal focus on fire safety, and CAL is poised to meet this demand with highly trained personnel and accredited services.
Additionally, we have introduced Type 4 Surveys to our range of services, providing a comprehensive analysis of existing buildings to devise a thorough fire strategy and construction plan.
Looking ahead, our strategy involves further cost optimisation and efficiency improvements. We aim to drive efficiency across our operations, utilising technology and strategic management to enhance productivity. We plan to reduce overhead costs, investing where necessary and managing resources effectively to ensure that every expenditure contributes to the growth and profitability of the business.
Also, we will leverage our contractual agreements to maintain profitability, ensuring that our contracts are designed and negotiated to align with our business goals and financial target.
CABLESHEER (ASBESTOS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Development and performance
CAL experienced substantial growth as an identifiable entity in the industry, gaining a reputation as a trusted 'Asbestos Specialist' and observing a surge in clients seeking its specialist advice for asbestos management. Over the years, the simultaneous expansion of CAL's team and business turnover was evident, reflecting a consistent profit margin between 10 to 20%.
Auch a trend, alongside a drive towards operational and onsite efficiencies, led to CAL's substantial investments in IT, equipment, training, fleet, and human resources.
While the company managed to agree on CPI uplifts with most clients during quarters 3 and 4, the effects of these agreements wouldn't fully amnifest until later in the year and into the next.
Efforts to streamline the commercial function, embrace AI, and leverage data analytics through Power BI have enhanced operational efficiency and decision-making capabilities.
However, the profit margin this year has been impacted due to several factors:
Hammersmith Voids: The contract was not proceeded with due to budget constraints, resulting in a break in works between Voids and Phoenix starting.
Hammersmith Roofing Contract: The contract value reduced due to works being taken back to the DLO.
Mobilisation of New Contract for Phoenix: While the same staff were kept on, there was a three-month gap between finishing previous works and significant works starting, necessitating upfront investment.
Additional costs were incurred through recruitment of more admin and operatives, website investment and marketing, and heavy investment into tendering for asbestos and construction works, seen as a future investment.
Various operational challenges and under-pricing of asbestos work have also impacted profitability.
Key performance indicators
We use industry Key Performance Indicators (KPIs) to assess our performance, focusing on Time, Cost, Defects, Health & Safety, and Client/Resident Satisfaction.
CAL's commitment to ongoing investment in operational improvements has proven effective in driving business growth and maintaining healthy profit margins. These efforts encompass continual IT upgrades, equipment improvements, regular staff training, and fleet enhancement.
Equally, CAL's strategic business diversification, in response to potential policy changes, demonstrates its adaptability and resilience in a changing industry environment
CABLESHEER (ASBESTOS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
Future Developments
As we continue to adapt to an evolving market, CAL is prepared for several exciting developments in the near future. Despite current challenges posed by high inflation and the increasing cost of materials, we are actively taking steps to ensure the financial robustness of our company.
We will also continue to drive operational efficiency across all levels of our business, employing strategies that promote productivity, optimise resources, and ultimately, increase our profit margin. This focus on efficiency, coupled with our ongoing commitment to offering a diversified portfolio of services, represents our strategic vision for the future.
CAL is set to expand further into fire safety solutions and building services, with a dedicated focus on professional development and training to ensure that our team is equipped to deliver top-notch service. Alongside this, we intend to continuously invest in our IT infrastructure, plant equipment, and personnel, underlining our commitment to quality and customer satisfaction.
We remain confident in our ability to navigate these future developments and are excited about the opportunities they represent. Our commitment to our clients, our team, and the standards of service we provide will continue to guide our operations as we move into this next phase of our growth.
This report has been prepared in accordance with the requirements of the UK Companies Act 2006. As directors, we confirm that to the best of our knowledge, the information provided accurately represents the strategic direction and performance of Cablesheer Asbestos Limited.
Mr D R Brown
Director
19 April 2024
CABLESHEER (ASBESTOS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D R Brown
Mr R Carter
(Resigned 31 December 2022)
Mr D Brown
Research and development
CAL always try to push the boundaries with R&D, constantly trying to evolve and develop the services that they provide. The activity generally revolves around pushing the limitations of new products and trying to simplify what they do. Both assist CAL in improving the service to their clients. CAL employ an external consultant to assist their R&D claims.
Future developments
Refer to the Strategic Report for information on Future Developments.
Auditor
The auditor, Crossley Financial Accounting Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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). 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
CABLESHEER (ASBESTOS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr D R Brown
Director
19 April 2024
CABLESHEER (ASBESTOS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CABLESHEER (ASBESTOS) LIMITED
- 6 -
Opinion
We have audited the financial statements of Cablesheer (Asbestos) Limited (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 September 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.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CABLESHEER (ASBESTOS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CABLESHEER (ASBESTOS) LIMITED
- 7 -
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 directors' 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 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.
Risks
Based on our understanding of the company and industry, we identified that the principle risks of non-compliance with laws and regulations related to compliance with health and safety and the control of asbestos and we considered the extent to which non-compliance might have a material effect on the financial statements of the company.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
In addition, we considered provisions of other laws and regulations that do not have a direct impact on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These include data protection, employment and environmental regulations.
We evaluated managements incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition, posting inappropriate journals entries to increase turnover or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements such as work in progress.
CABLESHEER (ASBESTOS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CABLESHEER (ASBESTOS) LIMITED
- 8 -
Audit response
Audit procedures performed by the engagement team included:
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud, and review of the reports made by management
Understanding of management’s internal controls designed to prevent and detect irregularities.
Review of tax compliance
Designing audit procedures to incorporate unpredictability around the nature, timing or extent of testing of expenses
System walkthroughs are used to develop an in depth understanding of the entity’s control environment, however, minimal reliance is placed on control within the audit approach. Substantive test of details are carried out, with a broad scope, in order to adequately explore all aspects of revenue recognition.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business
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. Also, 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 misrepresentation, or though collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
S Meah FCCA
Senior Statutory Auditor
For and on behalf of Crossley Financial Accounting Limited
19 April 2024
Chartered Accountants
Statutory Auditor
Star House
Star Hill
Rochester
Kent
ME1 1UX
CABLESHEER (ASBESTOS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
11,941,852
8,322,291
Cost of sales
(8,418,762)
(5,667,215)
Gross profit
3,523,090
2,655,076
Administrative expenses
(3,124,015)
(2,555,716)
Other operating income
1,100
Operating profit
4
399,075
100,460
Interest receivable and similar income
7
3,621
82
Interest payable and similar expenses
8
(64,526)
(13,193)
Profit before taxation
338,170
87,349
Tax on profit
9
(32,785)
(41,926)
Profit for the financial year
305,385
45,423
The income statement has been prepared on the basis that all operations are continuing operations.
CABLESHEER (ASBESTOS) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
466,455
535,685
Current assets
Stocks
11
57,416
57,416
Debtors
12
8,372,187
7,409,140
Cash at bank and in hand
487,080
35,187
8,916,683
7,501,743
Creditors: amounts falling due within one year
13
(2,842,309)
(1,561,475)
Net current assets
6,074,374
5,940,268
Total assets less current liabilities
6,540,829
6,475,953
Creditors: amounts falling due after more than one year
14
(504,047)
(777,341)
Provisions for liabilities
Deferred tax liability
16
76,322
43,537
(76,322)
(43,537)
Net assets
5,960,460
5,655,075
Capital and reserves
Called up share capital
18
1,580
1,580
Profit and loss reserves
5,958,880
5,653,495
Total equity
5,960,460
5,655,075
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 19 April 2024 and are signed on its behalf by:
Mr D R Brown
Director
Company registration number 04353201 (England and Wales)
CABLESHEER (ASBESTOS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2021
1,580
5,608,072
5,609,652
Year ended 30 September 2022:
Profit and total comprehensive income
-
45,423
45,423
Balance at 30 September 2022
1,580
5,653,495
5,655,075
Year ended 30 September 2023:
Profit and total comprehensive income
-
305,385
305,385
Balance at 30 September 2023
1,580
5,958,880
5,960,460
CABLESHEER (ASBESTOS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
873,603
183,275
Interest paid
(64,526)
(13,193)
Net cash inflow from operating activities
809,077
170,082
Investing activities
Purchase of tangible fixed assets
(3,481)
(42,243)
Proceeds from disposal of tangible fixed assets
19,500
26,792
Interest received
3,621
82
Net cash generated from/(used in) investing activities
19,640
(15,369)
Financing activities
Repayment of borrowings
(111,099)
5,446
Payment of finance leases obligations
(265,725)
(125,416)
Net cash used in financing activities
(376,824)
(119,970)
Net increase in cash and cash equivalents
451,893
34,743
Cash and cash equivalents at beginning of year
35,187
444
Cash and cash equivalents at end of year
487,080
35,187
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
1
Accounting policies
Company information
Cablesheer (Asbestos) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3, Fitzroy Business Park, Sandy Lane, Sidcup, Kent, DA14 5NL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet 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.
1.3
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% per annum on reducing balance
Fixtures and fittings
15% per annum on reducing balance
Computer Equipment
33% per annum on reducing balance
Motor vehicles
25% per annum on reducing balance
Office Equipment
25% per annum on reducing balance
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the 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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 statement of financial position 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.
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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 or 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 current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been 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 liabilities
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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 or less. 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.
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of 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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales tax. The directors make key assumptions and estimates regarding the stage of completion, value of income, of future costs and collectability of income.
Depreciation of property, plant and equipment
Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives. The selection of these residual values and estimated lives requires the exercise of management judgement.
3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
3,621
82
Grants received
-
1,100
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(1,100)
Fees payable to the company's auditor for the audit of the company's financial statements
8,350
7,950
Depreciation of owned tangible fixed assets
142,446
119,175
Profit on disposal of tangible fixed assets
(4,264)
(2,701)
Operating lease charges
16,902
13,678
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Employees
60
56
Directors
1
1
Total
61
57
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,444,715
2,173,103
Social security costs
264,616
241,428
Pension costs
52,594
45,387
2,761,925
2,459,918
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
90,282
88,907
Company pension contributions to defined contribution schemes
2,201
1,321
92,483
90,228
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,621
82
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,621
82
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
48,356
5,464
Other finance costs:
Interest on finance leases and hire purchase contracts
16,170
7,729
64,526
13,193
9
Taxation
2023
2022
£
£
Current tax
Benefit arising from a previously unrecognised tax loss or credit
38,028
Deferred tax
Origination and reversal of timing differences
32,785
3,898
Total tax charge
32,785
41,926
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
9
Taxation
(Continued)
- 20 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
338,170
87,349
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
64,252
16,596
Tax effect of expenses that are not deductible in determining taxable profit
2,181
9,305
Tax effect of utilisation of tax losses not previously recognised
(52,206)
Unutilised tax losses carried forward
29,927
Adjustments in respect of prior years
38,028
Group relief
(43,643)
Permanent capital allowances in excess of depreciation
23,422
(55,828)
Deferred tax adjustments in respect of prior years
32,785
3,898
Tax at marginal rate
5,994
Taxation charge for the year
32,785
41,926
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computer Equipment
Motor vehicles
Office Equipment
Total
£
£
£
£
£
£
Cost
At 1 October 2022
177,314
10,405
26,510
736,986
5,965
957,180
Additions
3,481
84,971
88,452
Disposals
(121,160)
(121,160)
At 30 September 2023
177,314
10,405
29,991
700,797
5,965
924,472
Depreciation and impairment
At 1 October 2022
126,143
6,558
13,376
272,059
3,359
421,495
Depreciation charged in the year
12,793
577
6,330
122,003
743
142,446
Eliminated in respect of disposals
(105,924)
(105,924)
At 30 September 2023
138,936
7,135
19,706
288,138
4,102
458,017
Carrying amount
At 30 September 2023
38,378
3,270
10,285
412,659
1,863
466,455
At 30 September 2022
51,171
3,847
13,134
464,927
2,606
535,685
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
57,416
57,416
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
511,287
993,368
Corporation tax recoverable
16,046
16,046
Amounts owed by group undertakings
5,685,060
4,535,247
Other debtors
6,573
9,758
Prepayments and accrued income
2,153,221
1,854,721
8,372,187
7,409,140
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under hire purchase
164,244
53,825
Other borrowings
15
141,521
270,499
Trade creditors
457,160
632,567
Taxation and social security
514,242
88,357
Other creditors
445,570
245,766
Accruals and deferred income
1,119,572
270,461
2,842,309
1,561,475
There is a fixed and floating charge dated 23 March 2016 which covers all property and undertakings of the company.
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under hire purchase
42,160
333,333
Other borrowings
15
461,887
444,008
504,047
777,341
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
15
Loans and overdrafts
2023
2022
£
£
Other loans
603,408
714,507
Payable within one year
141,521
270,499
Payable after one year
461,887
444,008
NSS Trustees Limited, D Brown & A Brown, as Trustees of a retirements benefit scheme, hold fixed and floating charges which cover all the property or undertakings of the company. It contains a negative pledge.
The company has paid rent into the pension scheme of £90,000 (2022 - £90,000).
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
76,322
43,537
2023
Movements in the year:
£
Liability at 1 October 2022
43,537
Charge to profit or loss
32,785
Liability at 30 September 2023
76,322
From 1 April 2023, the corporation tax rate will be 25% where profits exceed £250,000; or at the marginal rate if profits are expected to fall between £50,001 and £250,000.
As deferred tax timing differences are expected to reverse on or after 1 April 2023 and forecasted profits are expected to exceed £250,000, the deferred tax has been measured at 25% at the year end.
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
52,594
45,387
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,560
1,560
1,560
1,560
Ordinary A Shares of £1 each
20
20
20
20
1,580
1,580
1,580
1,580
The company has two classes of share; Ordinary and Ordinary A shares.
Ordinary Shares - each share is entitled to one vote in any circumstances. Each shares is entitled pari passu to dividend payments or any other distribution.
Ordinary A Shares - do not carry any voting rights or rights to dividends.
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
57,500
101,263
Between two and five years
55,417
57,500
156,680
20
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
92,483
90,228
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
20
Related party transactions
(Continued)
- 24 -
Transactions with related parties
The company has taken the exemption from disclosing group transactions.
21
Directors' transactions
During the year under review the following transactions took place with the Directors;
Advances of £2,008 (2022 - £18,117)
Repayments of £5,193 (2022 - £54,339)
Loans from the directors of £490,000 (2022 - £32,777)
Repayments to the directors of £206,793 (2022 - £nil)
As at 30 September 2023 £319,169 (2022 - £32,777) was due to the Directors.
The loans are interest free and repayable on demand.
22
Ultimate controlling party
The company is a wholly owned subsidiary of Cablesheer Group Limited, a company incorporated in England and Wales. Cablesheer Group Limited is the ultimate parent company by virtue of its shareholding.
The ultimate controlling party is Mr D R Brown by virtue of his shareholding in Cablesheer Group Limited (Ultimate Parent Company) a company registered in England and Wales.
The results of Cablesheer (Asbestos) Limited are included by full consolidation in the consolidated accounts prepared by it's parent Cablesheer Group Limited for the period ended 30th September 2023 and a copy of the accounts and audit report can be found at Companies House.
23
Cash generated from operations
2023
2022
as restated
£
£
Profit for the year after tax
305,385
45,423
Adjustments for:
Taxation charged
32,785
41,926
Finance costs
64,526
13,193
Investment income
(3,621)
(82)
Gain on disposal of tangible fixed assets
(4,264)
(2,701)
Depreciation and impairment of tangible fixed assets
142,446
119,175
Movements in working capital:
Decrease in stocks
60,480
(Increase)/decrease in debtors
(963,047)
495,234
Increase/(decrease) in creditors
1,299,393
(589,373)
Cash generated from operations
873,603
183,275
CABLESHEER (ASBESTOS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
24
Analysis of changes in net debt
1 October 2022
Cash flows
New finance leases
30 September 2023
£
£
£
£
Cash at bank and in hand
35,187
451,893
-
487,080
Borrowings excluding overdrafts
(714,507)
111,099
-
(603,408)
Obligations under finance leases
(387,158)
265,725
(84,971)
(206,404)
(1,066,478)
828,717
(84,971)
(322,732)
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