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Registration number: 02808339

Avon Material Supplies Limited

Annual Report and Financial Statements

for the Year Ended 30 April 2023

 

Avon Material Supplies Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 13

 

Avon Material Supplies Limited

Company Information

Directors

Mr K Hawkins

Mr I Mariner

Mr S Mariner

Mrs J Leach

Company secretary

Mrs L A Mariner

Registered office

Unit 26-28 Thorne Way
Woolsbridge Industrial Estate
Three Legged Cross
Wimborne
Dorset
BH21 6FB

Accountants

Elysium
Chartered Accountants
Unit A7 The Arena
9 Nimrod Way
Ferndown
Wimborne
Dorset
BH21 7UH

Auditors

Ward Goodman Audit Services Limited
4 Cedar Park
Cobham Road
Ferndown Industrial Estate
Wimborne
Dorset
BH21 7SF

 

Avon Material Supplies Limited

(Registration number: 02808339)
Balance Sheet as at 30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

7

12,113

15,459

Current assets

 

Stocks

32,105

-

Debtors

8

4,025,411

4,276,888

Cash at bank and in hand

 

2,080,637

1,315,937

 

6,138,153

5,592,825

Creditors: Amounts falling due within one year

9

(2,754,796)

(2,480,336)

Net current assets

 

3,383,357

3,112,489

Total assets less current liabilities

 

3,395,470

3,127,948

Creditors: Amounts falling due after more than one year

9

(139,172)

(223,676)

Provisions for liabilities

(3,028)

(2,937)

Net assets

 

3,253,270

2,901,335

Capital and reserves

 

Called up share capital

10

10,000

10,000

Retained earnings

3,243,270

2,891,335

Shareholders' funds

 

3,253,270

2,901,335

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

These financial statements were approved by the Board of Directors and authorised for issue on 8 January 2024 and signed on its behalf by:
 

.........................................
Mr I Mariner
Director

.........................................
Mr J Howarth
Chairman

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The principal place of business is:
Unit 26-28 Thorne Way
Woolsbridge Industrial Estate
Three Legged Cross
Wimborne
Dorset
BH21 6FB

2

Accounting policies

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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 £.

Name of parent of group

These financial statements are consolidated in the financial statements of Avon Material Supplies (Holdings) Limited..

The financial statements of Avon Material Supplies (Holdings) Limited. may be obtained from Unit 26-28 Thorne Way, Woolsbridge Industrial Estate, Three Legged Cross, Wimborne, Dorset, BH21 6FB.
 

Judgements

The directors believe that no material judgements or estimates have been used within the financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Government grants

Grants of a revenue nature are recognised in income in the period the related costs are incurred and for which the grant is intended to compensate.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of UK tax rates and laws.

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

Straight line over 3 years

Fixtures and fittings

Straight line over 4 years

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Straight line over 3 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Audit report

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 12 January 2024 was Ian Rodd BSc FCA FCCA, who signed for and on behalf of the Statutory Auditor Ward Goodman Audit Services Limited.

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 28 (2022 - 28).

4

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

13,750

13,750


 

5

Profit before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

7,456

5,344

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

6

Intangible assets

Goodwill
 £

Total
£

Cost

At 1 May 2022

150,000

150,000

At 30 April 2023

150,000

150,000

Amortisation

At 1 May 2022

150,000

150,000

At 30 April 2023

150,000

150,000

Carrying amount

At 30 April 2023

-

-

7

Tangible assets

Fixtures and fittings
£

Office equipment
£

Total
£

Cost or valuation

At 1 May 2022

29,372

58,217

87,589

Additions

2,492

1,619

4,111

At 30 April 2023

31,864

59,836

91,700

Depreciation

At 1 May 2022

28,681

43,449

72,130

Charge for the year

305

7,152

7,457

At 30 April 2023

28,986

50,601

79,587

Carrying amount

At 30 April 2023

2,878

9,235

12,113

At 30 April 2022

691

14,768

15,459

8

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

3,915,956

3,937,935

Amounts owed by group undertakings

14

-

131,185

Prepayments

 

86,739

38,765

Other debtors

 

22,716

169,003

   

4,025,411

4,276,888

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

9

Creditors

Creditors: amounts falling due within one year

Note

2023
 £

Unaudited
2022
 £

Due within one year

 

Bank loans and overdrafts

11

100,000

100,000

Trade creditors

 

2,105,412

1,955,605

Amounts owed to group undertakings, undertakings in which the company has a participating interest and other related parties

14

103,272

14,000

Taxation and social security

 

328,660

343,013

Other creditors

 

-

5,464

Accrued expenses

 

117,452

62,254

 

2,754,796

2,480,336

Due after one year

 

Loans and borrowings

11

139,172

223,676

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

11

139,172

223,676

10

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

10,000

10,000

10,000

10,000

         

11

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

139,172

223,676

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

2023
£

2022
£

Current loans and borrowings

Bank borrowings

100,000

100,000

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

Bank borrowings - Secured

Bank loan is denominated in sterling with a nominal interest rate of 4.32% fixed rate%, and the final instalment is due on 28 November 2024. The carrying amount at year end is £239,172 (2022 - £323,676).

National Westminster Bank Plc hold a debenture dated 28/11/19 to secure all bank borrowings.

12

Dividends

Interim dividends paid

 

2023
£

2022
£

Interim dividend of £5.44 (2022 - £30.04) per each Ordinary share

54,400

300,400

     

13

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

45,250

43,313

The amount of non-cancellable operating lease payments recognised as an expense during the year was £45,250 (2022 - £43,313).

14

Related party transactions

Parent and subsidiary transactions:

The company is a qualifying entity for the purposes of Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', being a member of a group where the parent of that group prepares publicly available consolidated financial statements. The company has therefore taken advantage of exemptions from disclosure of related party transactions with its parent company and fellow wholly owned subsidiaries.

Other related parties and transactions:

During the year the company traded at preferential rates with an entity in which three of the directors of this company are also directors. The company made sales of £1,421,773 (2022: £954,893) to this entity and purchased £3,778,907 (2022: £3,922,405) worth of goods and materials from this entity. At the year-end there was a debtor balance of £323,951 (2022: £203,506) and a creditor balance of £721,086 (2022: £402,881) with this entity.

During the year transactions took place between the company and Waste & Aggregate Management Ltd, a company in which the parent company holds a 50% share. Services costing £66,548 were purchased from this entity.

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023

Summary of transactions with key management

During the year, the company paid rent to the Mariner Family Pension Trust in respect of the lease of business premises. Amounts paid to the trust were £7,083 (2022: £Nil).
 


 

Transactions with directors

2023

At 1 May 2022
£

Advances to director
£

Repayments by director
£

At 30 April 2023
£

Loan to company

(14,000)

39,372

(50,400)

(25,028)

         
       

 

2022

At 1 May 2021
£

Advances to director
£

Repayments by director
£

At 30 April 2022
£

Loan to company

(20,669)

57,069

(50,400)

(14,000)

         
       

 

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

255,272

183,595

Contributions paid to money purchase schemes

40,000

-

295,272

183,595

 

Avon Material Supplies Limited

Notes to the Financial Statements for the Year Ended 30 April 2023


15

Parent and ultimate parent undertaking

The company's immediate parent and ultimate controlling party is Avon Material Supplies (Holdings) Limited, a company incorporated in England.