REGISTERED NUMBER: |
Andrews Excavations Limited |
Strategic Report, Report of the Director and |
Audited Financial Statements for the Year Ended 31 March 2023 |
REGISTERED NUMBER: |
Andrews Excavations Limited |
Strategic Report, Report of the Director and |
Audited Financial Statements for the Year Ended 31 March 2023 |
Andrews Excavations Limited (Registered number: 04701571) |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Statement of Comprehensive Income | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Cash Flow Statement | 10 |
Notes to the Cash Flow Statement | 11 |
Notes to the Financial Statements | 12 |
Andrews Excavations Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditor |
67 Westow Street |
Upper Norwood |
London |
SE19 3RW |
Andrews Excavations Limited (Registered number: 04701571) |
Strategic Report |
for the Year Ended 31 March 2023 |
The director presents his strategic report for the year ended 31 March 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the company are the provision of equipment engaged in the operation of processing waste, haulage related activities and the sale of commercial vehicles and construction plant. |
BUSINESS REVIEW |
Turnover in the year has decreased to £5,355,170 (2022 - £12,250,463). No new contracts were taken on in the year subsequent to the haulage operations being transferred to a related company in 2021. The company continues to complete ongoing contracts. Profit after taxation was £1,141,834 (2022 - £3,007,272) and at the year end the company's net assets were £15,810,423 (2022 - £14,691,089). |
The company concentrates on developing the hire of commercial vehicles and contractors' plant for the haulage and waste handling and processing sectors. The majority of hire charges are to related companies, with only a small percentage of sales made to third parties. |
The level of profit has enabled the company to continue to commit to the timeously renewal of its commercial vehicle operating fleet and specialist waste processing plant to ensure they are kept fully compliant, at the optimum efficiency and applying the latest technology. |
The director is pleased with the company's performance, which continues to manage the challenges of the adverse impact of inflationary pressures on fuel, other direct costs and fixed asset acquisitions. He believes the company is also well placed to continue to remain profitable in the future, albeit profits are under additional pressure because of the fall in second hand plant sale values. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Andrews Excavations Limited is a private family owned company where the Director is an integral part of its day to day management. |
The company's activities expose it to a number of financial and liquidity risks which are addressed through a framework of policies, procedures, and internal controls. The company's principal asset at risk is intercompany debts which is controlled by the director. |
The company prepares and reviews cash flow forecasts to manage its liquidity risk. |
The company's operations expose it to the risk of failure to comply with applicable legislation. The company regularly reviews the service it provides to ensure it is fully compliant with regulations so that it is able to meet the needs and expectations of its customers. |
KEY PERFORMANCE INDICATORS |
The company's performance is attributable to the attention by management to all aspects of the business. Key performance indicators (KPIs) are sales and cost of sales which are monitored and are integral to the control of cash flow. Other KPIs are the comprehensive financial and statistical reports covering all aspects of the business. |
ON BEHALF OF THE BOARD: |
Andrews Excavations Limited (Registered number: 04701571) |
Report of the Director |
for the Year Ended 31 March 2023 |
The director presents his report with the financial statements of the company for the year ended 31 March 2023. |
RESULTS |
The profit for the year after taxation amounted to £1,141,834 (2022: £3,007,272). |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2023 was £22,500 (2022: £36,000). No final dividend is proposed. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director 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 of 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 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 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 him 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Andrews Excavations Limited |
Opinion |
We have audited the financial statements of Andrews Excavations Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Andrews Excavations Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, 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 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non- compliance with relevant laws and regulations related to Companies Act 2006, UK tax legislation, health and safety regulations, registered Environment Agency Waste Carriers, Fleet Operator Recognition Scheme (FORS) and registered goods vehicle operator. Non-compliance with these laws and regulations might have a material effect on the financial statements. |
We evaluated management's incentives and opportunity for fraudulent manipulation of the financial statement (including the risk of override of controls) and determined that the principal risks were posting of unusual journal entries outside the normal course of business and revenue recognition journal entries to manipulate the company's performance profit measures and other key performance indicators. |
Audit procedures performed included: review of the financial statements and disclosures to underlying supporting documentation, review of compliance with the above laws and regulations, enquiries with management, testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from 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 misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Andrews Excavations Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditor |
67 Westow Street |
Upper Norwood |
London |
SE19 3RW |
Andrews Excavations Limited (Registered number: 04701571) |
Statement of Comprehensive Income |
for the Year Ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,575,396 | 2,489,953 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Interest receivable and similar income |
1,935,396 | 2,893,298 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Andrews Excavations Limited (Registered number: 04701571) |
Balance Sheet |
31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
Andrews Excavations Limited (Registered number: 04701571) |
Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Andrews Excavations Limited (Registered number: 04701571) |
Cash Flow Statement |
for the Year Ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,007,908 |
Cash and cash equivalents at end of year | 2 | 224,566 | 129,605 |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.23 | 31.3.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 270,787 | 127,021 |
Finance income | - | (1,077 | ) |
3,990,449 | 4,278,837 |
Decrease in stocks |
Decrease/(increase) in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 224,566 | 129,605 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 129,605 | 1,007,908 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank | 129,605 | 94,961 | 224,566 |
129,605 | 224,566 |
Debt |
Finance leases | (5,457,577 | ) | 1,452,039 | (4,005,538 | ) |
(5,457,577 | ) | 1,452,039 | (4,005,538 | ) |
Total | (5,327,972 | ) | 1,547,000 | (3,780,972 | ) |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Andrews Excavations Limited is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements are prepared on a going concern basis, under the historical cost convention. |
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies (see below). |
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 £. |
Significant judgements and estimates |
The company may be required to make estimates and assumptions concerning the future. These estimates and judgements are based on historical events and other factors, including expectations of future events that are believed to be reasonable at the time. The principal areas where judgements are exercised are as follows: |
i) Tangible fixed assets: the directors annually assess both the residual value of these assets and the expected useful life of such assets based on their experience. |
ii) Recoverability of trade debtors: the directors annually assess whether a bad debt provision is required for any bad or doubtful debts. |
Turnover |
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year exclusive of value added tax. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
Revenue from sale of vehicles and plants are recognised when significant risks and rewards of ownership of the vehicles have been passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transactions will flow to the entity and the costs incurred or to be incurred in respect of transaction can be measured reliably. |
Revenue for delivery of loads are recognised on the date the loads are delivered to the site agreed with the customers. |
Revenue from plant and commercial vehicles hire are recognised on a straight line basis over the period that the plant and commercial vehicles are hired. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Commercial vehicles | - |
Computer equipment | - |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Costs include all direct expenditure and an appropriate proportion of fixed and variable overheads. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances and intra-group balances, are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at cost and amortised cost are assessed for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
For financial assets measured at amortised costs, the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated cash flow discounted at the asset's original effective interest rate. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank overdraft, intra-group balances and hire purchase contracts, 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 receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
A grant that specifies performance conditions is recognised in income when the performance conditions are met. |
Going concern |
At the time of approving the financial statements, 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. |
4. | TURNOVER |
An analysis of turnover by class of business is given below: |
31.03.23 | 31.03.22 |
£ | £ |
Haulage and hire of plant and commercial vehicles | 4,972,960 | 11,379,798 |
Sale of commercial vehicles and construction plant | 382,210 | 870,665 |
5,355,170 | 12,250,463 |
The turnover and profit before taxation are attributable to the principal activities of the company, wholly undertaken in the United Kingdom. |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
5. | OTHER OPERATING INCOME |
31.3.23 | 31.3.22 |
£ | £ |
Job retention scheme claim |
Management charge receivable |
360,000 | 402,268 |
No Government grant income was received in the year. For 2022 the grant received was recognised directly as income comprising of amounts reclaimed from the UK Government under the Coronavirus Job Retention Scheme ("Furlough Grant"), claimed to support the wages costs of those employees furloughed during the COVID-19 pandemic. |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | - | 1,629,590 |
Social security costs | - | 187,776 |
- | 1,817,366 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administrative, clerical and office | - | 7 |
Operations | - | 39 |
- | 42 |
2023 | 2022 |
£ | £ |
Director's remuneration | - | 18,750 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.3.23 | 31.3.22 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.23 | 31.3.22 |
£ | £ |
Interest on overdue tax |
Hire purchase and related cost |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Current tax: |
Research and development tax |
credit | - | (496,325 | ) |
Deferred tax |
Tax on profit | ( |
) |
UK corporation tax has been charged at 19% (2022 - 19%). |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.23 | 31.3.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) |
Deferred tax charge | 522,775 | 255,330 |
Unrelieved tax losses | - | 725,373 |
Research and development tax credit | - | (496,325 | ) |
Total tax charge/(credit) | 522,775 | (240,995 | ) |
At the balance sheet date the company had £1,922,288 (2022 - £3,817,755) of unused tax losses which are to be carried forward and relieved against future taxable profits. |
Changes to the future UK corporation tax rates were substantively enacted as part of the Finance Bill 2021 on 24 May 2021. It makes provision for the rate of corporation tax in the UK to increase from 1 April 2023 from 19% to 25% where a company has taxable profits exceeding £250,000. Therefore, the tax rate of 25% has been used to measure deferred taxation, to the extent the related timing differences are expected to reverse in 2023 or later. |
10. | DIVIDENDS |
31.3.23 | 31.3.22 |
£ | £ |
Ordinary shares of £1 each |
Dividend paid |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Motor | Commercial | Computer |
vehicles | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor | Commercial |
machinery | vehicles | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Transfer to ownership | (266,000 | ) | - | (1,716,380 | ) | (1,982,380 | ) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfer to ownership | (156,119 | ) | - | (941,036 | ) | (1,097,155 | ) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
12. | STOCKS |
31.3.23 | 31.3.22 |
£ | £ |
Stocks and work in progress |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Trade debtors |
Other debtors |
Amount owed by related companies | 9,218,022 | 10,465,305 |
VAT |
Prepayments and accrued income |
Amounts owed by related companies are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts (see note 16) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Amount owed to related companies | 646,750 | 1,267,911 |
Accruals and deferred income |
Amounts owed to related companies are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts (see note 16) |
16. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts | 4,005,538 | 5,457,577 |
Obligations under finance and hire purchase contracts are secured against the assets to which the liability relates. |
On 11 November 2020, the company entered into a financial arrangement with its bankers who in exchange for lending facilities have taken a debenture charge over the company's assets. |
On 17 March 2022, the company gave a guarantee to its bankers in exchange for lending facilities provided to a related company. |
Andrews Excavations Limited (Registered number: 04701571) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
18. | PROVISIONS FOR LIABILITIES |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Tax losses carried forward | ( |
) | ( |
) |
1,118,448 | 595,673 |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Provided during year |
Balance at 31 March 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
Ordinary | £1 | 5,050,100 | 5,050,100 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2023 |
21. | RELATED PARTY DISCLOSURES |
31.3.23 | 31.3.22 |
£ | £ |
Sales |
Purchases |
Management charges receivable | 360,000 | 360,000 |
Amount due from related parties |
Amount due to related parties |
22. | ULTIMATE CONTROLLING PARTY |
Mrs C Andrews is the controlling shareholder of the company. |