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REGISTERED NUMBER: 04701571 (England and Wales)















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: D T Andrews





REGISTERED OFFICE: Frog Lane
Off Marsh Way
Rainham
Essex
RM13 8UG





REGISTERED NUMBER: 04701571 (England and Wales)





AUDITORS: CWF & Partners Ltd
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:





D T Andrews - Director


21 February 2024

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
D T Andrews held office during the whole of the period from 1 April 2022 to the date of this report.

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:





D T Andrews - Director


21 February 2024

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.




A J Fitzgerald FCA (Senior Statutory Auditor)
for and on behalf of CWF & Partners Ltd
Chartered Accountants and
Statutory Auditor
67 Westow Street
Upper Norwood
London
SE19 3RW

21 February 2024

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 5,355,170 12,250,463

Cost of sales (1,482,122 ) (7,256,019 )
GROSS PROFIT 3,873,048 4,994,444

Administrative expenses (2,297,652 ) (2,504,491 )
1,575,396 2,489,953

Other operating income 5 360,000 402,268
OPERATING PROFIT 7 1,935,396 2,892,221

Interest receivable and similar income - 1,077
1,935,396 2,893,298

Interest payable and similar expenses 8 (270,787 ) (127,021 )
PROFIT BEFORE TAXATION 1,664,609 2,766,277

Tax on profit 9 (522,775 ) 240,995
PROFIT FOR THE FINANCIAL YEAR 1,141,834 3,007,272

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,141,834

3,007,272

Andrews Excavations Limited (Registered number: 04701571)

Balance Sheet
31 March 2023

31.3.23 31.3.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 11,931,819 11,202,941

CURRENT ASSETS
Stocks 12 392,265 454,745
Debtors 13 9,484,746 10,966,152
Cash at bank 224,566 129,605
10,101,577 11,550,502
CREDITORS
Amounts falling due within one year 14 3,993,473 4,584,455
NET CURRENT ASSETS 6,108,104 6,966,047
TOTAL ASSETS LESS CURRENT
LIABILITIES

18,039,923

18,168,988

CREDITORS
Amounts falling due after more than one year 15 (1,111,052 ) (2,882,226 )

PROVISIONS FOR LIABILITIES 18 (1,118,448 ) (595,673 )
NET ASSETS 15,810,423 14,691,089

CAPITAL AND RESERVES
Called up share capital 19 5,050,100 5,050,100
Retained earnings 20 10,760,323 9,640,989
SHAREHOLDERS' FUNDS 15,810,423 14,691,089

The financial statements were approved by the director and authorised for issue on 21 February 2024 and were signed by:





D T Andrews - Director


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 5,050,100 6,669,717 11,719,817

Changes in equity
Dividends - (36,000 ) (36,000 )
Total comprehensive income - 3,007,272 3,007,272
Balance at 31 March 2022 5,050,100 9,640,989 14,691,089

Changes in equity
Dividends - (22,500 ) (22,500 )
Total comprehensive income - 1,141,834 1,141,834
Balance at 31 March 2023 5,050,100 10,760,323 15,810,423

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 4,676,057 1,649,811
Interest element of hire purchase payments
paid

(270,787

)

(126,588

)
Tax paid (51,839 ) -
Net cash from operating activities 4,353,431 1,523,223

Cash flows from investing activities
Purchase of tangible fixed assets (2,414,704 ) (1,640,907 )
Sale of tangible fixed assets 1,352,166 1,478,471
Net cash from investing activities (1,062,538 ) (162,436 )

Cash flows from financing activities
Capital repayments in year (3,173,432 ) (2,203,090 )
Equity dividends paid (22,500 ) (36,000 )
Net cash from financing activities (3,195,932 ) (2,239,090 )

Increase/(decrease) in cash and cash equivalents 94,961 (878,303 )
Cash and cash equivalents at beginning of
year

2

129,605

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 1,664,609 2,766,277
Depreciation charges 2,683,118 1,949,228
Profit on disposal of fixed assets (628,065 ) (562,612 )
Finance costs 270,787 127,021
Finance income - (1,077 )
3,990,449 4,278,837
Decrease in stocks 62,480 27,864
Decrease/(increase) in trade and other debtors 1,481,406 (2,491,431 )
Decrease in trade and other creditors (858,278 ) (165,459 )
Cash generated from operations 4,676,057 1,649,811

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 94,961 224,566
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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

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

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - not provided
Improvements to property - 10% on cost
Plant and machinery - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Commercial vehicles - 25% on reducing balance
Computer equipment - 25% on cost

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:

31.03.2331.03.22
£   £   
Haulage and hire of plant and commercial vehicles4,972,96011,379,798
Sale of commercial vehicles and construction plant382,210870,665
5,355,17012,250,463

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 - 42,268
Management charge receivable 360,000 360,000
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 683,735 454,238
Depreciation - assets on hire purchase contracts 1,999,383 1,494,990
Profit on disposal of fixed assets (628,065 ) (562,612 )
Auditors' remuneration 13,000 12,500

8. INTEREST PAYABLE AND SIMILAR EXPENSES
31.3.23 31.3.22
£    £   
Interest on overdue tax - 433
Hire purchase and related cost 270,787 126,588
270,787 127,021

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 522,775 255,330
Tax on profit 522,775 (240,995 )

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 1,664,609 2,766,277
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

316,276

525,593

Effects of:
Expenses not deductible for tax purposes 2,937 3,781
Capital allowances in excess of depreciation - (1,254,747 )
Depreciation in excess of capital allowances 40,925 -
Utilisation of tax losses (360,138 ) -
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 22,500 36,000

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 2,344,491 867,869 2,194,716
Additions - 34,500 792,705
Disposals - - (374,870 )
At 31 March 2023 2,344,491 902,369 2,612,551
DEPRECIATION
At 1 April 2022 - 355,522 782,311
Charge for year - 89,374 426,562
Eliminated on disposal - - (117,633 )
At 31 March 2023 - 444,896 1,091,240
NET BOOK VALUE
At 31 March 2023 2,344,491 457,473 1,521,311
At 31 March 2022 2,344,491 512,347 1,412,405

Motor Commercial Computer
vehicles vehicles equipment Totals
£    £    £    £   
COST
At 1 April 2022 218,161 9,983,616 17,361 15,626,214
Additions 339,692 2,969,200 - 4,136,097
Disposals (55,470 ) (701,556 ) (17,361 ) (1,149,257 )
At 31 March 2023 502,383 12,251,260 - 18,613,054
DEPRECIATION
At 1 April 2022 44,562 3,223,517 17,361 4,423,273
Charge for year 87,991 2,079,191 - 2,683,118
Eliminated on disposal (7,849 ) (282,313 ) (17,361 ) (425,156 )
At 31 March 2023 124,704 5,020,395 - 6,681,235
NET BOOK VALUE
At 31 March 2023 377,679 7,230,865 - 11,931,819
At 31 March 2022 173,599 6,760,099 - 11,202,941

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 1,156,227 89,494 8,562,818 9,808,539
Additions 315,300 - 1,787,400 2,102,700
Disposals - - (363,400 ) (363,400 )
Transfer to ownership (266,000 ) - (1,716,380 ) (1,982,380 )
At 31 March 2023 1,205,527 89,494 8,270,438 9,565,459
DEPRECIATION
At 1 April 2022 446,946 18,645 2,475,187 2,940,778
Charge for year 216,732 17,711 1,764,940 1,999,383
Eliminated on disposal - - (212,042 ) (212,042 )
Transfer to ownership (156,119 ) - (941,036 ) (1,097,155 )
At 31 March 2023 507,559 36,356 3,087,049 3,630,964
NET BOOK VALUE
At 31 March 2023 697,968 53,138 5,183,389 5,934,495
At 31 March 2022 709,281 70,849 6,087,631 6,867,761

12. STOCKS
31.3.23 31.3.22
£    £   
Stocks and work in progress 392,265 454,745

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.23 31.3.22
£    £   
Trade debtors 165,305 127,196
Other debtors 90,000 11,000
Amount owed by related companies 9,218,022 10,465,305
VAT 11,419 336,617
Prepayments and accrued income - 26,034
9,484,746 10,966,152

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) 2,894,486 2,575,351
Trade creditors 321,200 513,729
Corporation tax - 51,839
Social security and other taxes - 8,498
Other creditors 8,763 13,874
Amount owed to related companies 646,750 1,267,911
Accruals and deferred income 122,274 153,253
3,993,473 4,584,455

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) 1,111,052 2,882,226

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 2,894,486 2,575,351
Between one and five years 1,111,052 2,882,226
4,005,538 5,457,577

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 1,599,020 1,321,046
Tax losses carried forward (480,572 ) (725,373 )
1,118,448 595,673

Deferred
tax
£   
Balance at 1 April 2022 595,673
Provided during year 522,775
Balance at 31 March 2023 1,118,448

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.3.23 31.3.22
value: £    £   
5,050,100 Ordinary £1 5,050,100 5,050,100

20. RESERVES
Retained
earnings
£   

At 1 April 2022 9,640,989
Profit for the year 1,141,834
Dividends (22,500 )
At 31 March 2023 10,760,323

21. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
31.3.23 31.3.22
£    £   
Sales 3,437,207 4,120,991
Purchases 53,276 1,195,860
Management charges receivable 360,000 360,000
Amount due from related parties 9,218,022 10,465,305
Amount due to related parties 646,750 1,267,911

22. ULTIMATE CONTROLLING PARTY

Mrs C Andrews is the controlling shareholder of the company.