REGISTERED NUMBER: 10472770 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2023 |
FOR |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED |
REGISTERED NUMBER: 10472770 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2023 |
FOR |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST MAY 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Registered Auditors |
162-164 High Street |
Rayleigh |
Essex |
SS6 7BS |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MAY 2023 |
The director presents his strategic report of the company and the group for the year ended 31st May 2023. |
REVIEW OF BUSINESS |
The Directors are pleased with the progress that has been made during the financial year ending 31st May 2023, which is in line with management's expectations as we continue with our focus on strategic growth to a level and mix that will enable us to optimise trading performance within our set-up. |
Considerable new investment has been made, and continues to be made, in all areas of the business. Our strategy is focused on developing new growth opportunities within our existing markets, as well as developing new opportunities that create synergies with our existing services, which will increase our competitiveness, providing cost-benefit and increased profit opportunity for both the group and our clients. |
PRINCIPAL RISKS AND UNCERTAINTIES |
World affairs have a very direct impact upon trade. The cost of energy, the availability of supplies and general market confidence are all factors of consideration when planning forward. As a management team we remain politically and market aware, whilst focusing on being the very best that we can be, regardless of the many challenges that external factors often impose upon trading conditions. |
FUTURE PROSPECTS |
The group operates within a highly competitive marketplace in which there is no room for complacency and, equally, there is no shortage of opportunity. |
As a group we are focused on continuing to provide an outstanding service, competitively. |
In order to achieve this objective, management focus has been, and continues to be, concentrated on the many strengths and opportunities of the group, enabled by the outstanding team of people that the group employs, the business location and site (and the opportunities that such set-up has enabled) and the investment that is being made in plant and machinery that will ensure that, as a group we are one of the most efficient, competitive, and capable providers within our chosen market areas. |
We fully expect to achieve all of our forward strategic objectives, specifically with regards to maintaining sales turnover and improving profitability. |
ON BEHALF OF THE BOARD: |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST MAY 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31st May 2023. |
PRINCIPAL ACTIVITY |
The group's primary activity remains focused on providing innovative and prestigious commercial glazing solutions to suit an extensive range of applications. |
DIVIDENDS |
The total interim dividends of £2,950 per ordinary share were paid during the year ended 31st May 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31st May 2023 will be £295,000. |
DIRECTOR |
FINANCIAL INSTRUMENTS |
Financial risk management |
The group's operations expose it to a variety of financial risks that include the effect of changes in liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. |
Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department. |
Liquidity risk |
The group actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the group has sufficient available funds for operations and planned extensions. |
Interest rate cash flow risk |
The group only has interest bearing liabilities. |
Credit risk |
The group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
Price risk |
The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. |
POLITICAL DONATIONS AND EXPENDITURE |
Donations paid during the year amounted to £6,433, none of which related to political organisations. |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST MAY 2023 |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, ESW Limited, will be proposed for appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED |
Qualified opinion |
We have audited the financial statements of Ridgeway Building Envelope Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st May 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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, except for the possible effect of the matter described in the Basis for Qualified Opinion paragraph, the financial statements: |
- give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2023 and of the group's 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 qualified 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 group 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. The evidence available to us was limited because we were not appointed as auditor of the group and company until 2 May 2023 and in consequence it was not possible for us to perform the auditing procedures necessary to obtain sufficient appropriate audit evidence for the closing balances included in the preceding years’ financial statements. Any adjustment to these figures would have a consequential effect on the profit for the year ended 31 May 2023. |
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 group's and the parent 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 Group 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 Group 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 Group 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 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 four, 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 group's and the parent 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 group or the parent 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: |
The group is subject to numerous laws and regulations that could reasonably be expected to have a material effect on the financial statements. From our general commercial experience and discussion with management, we identified the following laws and regulations; environmental regulations, employment laws and regulations, health and safety, employment taxes, financial reporting and distributable profits. |
Our audit procedures to address potential fraud and non-compliance with laws and regulations included: |
- Enquiry of management regarding compliance with relevant laws and regulations, and any litigation or claims |
- Review of legal correspondence and documentation |
- Performance of analytical review to identify unexpected account movements and investigation of variances |
- Assessment of potential management override by review of journals and unusual accounting entries |
- Inspection of third-party supporting documentation |
- Identification and review of transactions with related parties |
- Review of year end cut-off and after date transactions |
- Reconciliation of intercompany balances |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
RIDGEWAY BUILDING ENVELOPE GROUP 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 |
& Registered Auditors |
162-164 High Street |
Rayleigh |
Essex |
SS6 7BS |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 19,360,679 | 17,229,103 |
Cost of sales | (16,923,802 | ) | (15,977,945 | ) |
GROSS PROFIT | 2,436,877 | 1,251,158 |
Administrative expenses | (1,745,329 | ) | (1,520,773 | ) |
OPERATING PROFIT/(LOSS) | 5 | 691,548 | (269,615 | ) |
Interest receivable and similar income | 3,079 | 2,053 |
694,627 | (267,562 | ) |
Interest payable and similar expenses | 6 | (124,907 | ) | (52,695 | ) |
PROFIT/(LOSS) BEFORE TAXATION | 569,720 | (320,257 | ) |
Tax on profit/(loss) | 7 | (79,099 | ) | 291,902 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( | ) |
Profit/(loss) attributable to: |
Owners of the parent | 490,621 | (28,355 | ) |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 490,621 | (28,355 | ) |
OTHER COMPREHENSIVE INCOME |
Revaluation movement | 271,978 | 52,212 |
Income tax relating to other comprehensive income | (80,787 | ) | - |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | 191,191 | 52,212 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 681,812 | 23,857 |
Total comprehensive income attributable to: |
Owners of the parent | 681,812 | 23,857 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
CONSOLIDATED BALANCE SHEET |
31ST MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 2,739,220 | 1,934,491 |
Investments | 11 | - | - |
2,739,220 | 1,934,491 |
CURRENT ASSETS |
Stocks | 12 | 1,367,653 | 1,216,152 |
Debtors | 13 | 3,618,624 | 4,213,844 |
Cash at bank | 1 | 229,560 |
4,986,278 | 5,659,556 |
CREDITORS |
Amounts falling due within one year | 14 | (3,490,509 | ) | (4,267,509 | ) |
NET CURRENT ASSETS | 1,495,769 | 1,392,047 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 4,234,989 | 3,326,538 |
CREDITORS |
Amounts falling due after more than one year | 15 | (1,657,010 | ) | (1,484,033 | ) |
PROVISIONS FOR LIABILITIES | 19 | (368,543 | ) | (19,881 | ) |
NET ASSETS | 2,209,436 | 1,822,624 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Revaluation reserve | 21 | 242,359 | 52,212 |
Retained earnings | 21 | 1,966,977 | 1,770,312 |
SHAREHOLDERS' FUNDS | 2,209,436 | 1,822,624 |
The financial statements were approved by the director and authorised for issue on 31st January 2024 and were signed by: |
J L Arrowsmith - Director |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
COMPANY BALANCE SHEET |
31ST MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 | ( | ) | ( | ) |
NET CURRENT LIABILITIES | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( | ) | ( | ) |
PROVISIONS FOR LIABILITIES | 19 | ( | ) | ( | ) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 269,653 | 144,592 |
The financial statements were approved by the director and authorised for issue on |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST MAY 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st June 2021 | 100 | 1,860,924 | 147,743 | 2,008,767 |
Changes in equity |
Dividends | - | (210,000 | ) | - | (210,000 | ) |
Total comprehensive income | - | 119,388 | (95,531 | ) | 23,857 |
Balance at 31st May 2022 | 100 | 1,770,312 | 52,212 | 1,822,624 |
Changes in equity |
Dividends | - | (295,000 | ) | - | (295,000 | ) |
Total comprehensive income | - | 491,665 | 190,147 | 681,812 |
Balance at 31st May 2023 | 100 | 1,966,977 | 242,359 | 2,209,436 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST MAY 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st June 2021 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - | ( | ) |
Balance at 31st May 2022 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - |
Balance at 31st May 2023 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 501,987 | 13,876 |
Interest paid | (89,041 | ) | (33,964 | ) |
Interest element of hire purchase payments paid | (35,866 | ) | (18,731 | ) |
Tax refund | 150,394 | 242,907 |
Net cash from operating activities | 527,474 | 204,088 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (68,745 | ) | (1,077,355 | ) |
Sale of tangible fixed assets | 128,160 | 991,170 |
Interest received | 3,079 | 2,053 |
Net cash from investing activities | 62,494 | (84,132 | ) |
Cash flows from financing activities |
New loans in year | - | 700,000 |
Loan repayments in year | (227,961 | ) | (414,401 | ) |
Capital repayments in year | (351,139 | ) | (164,194 | ) |
Amount introduced by directors | - | 3,916 |
Amount withdrawn by directors | (36,598 | ) | - |
Equity dividends paid | (295,000 | ) | (210,000 | ) |
Net cash from financing activities | (910,698 | ) | (84,679 | ) |
(Decrease)/increase in cash and cash equivalents | (320,730 | ) | 35,277 |
Cash and cash equivalents at beginning of year | 2 | 229,560 | 194,283 |
Cash and cash equivalents at end of year | 2 | (91,170 | ) | 229,560 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST MAY 2023 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit/(loss) before taxation | 569,720 | (320,257 | ) |
Depreciation charges | 252,593 | 134,581 |
Profit on disposal of fixed assets | (20,455 | ) | (38,493 | ) |
Finance costs | 124,907 | 52,695 |
Finance income | (3,079 | ) | (2,053 | ) |
923,686 | (173,527 | ) |
Increase in stocks | (151,501 | ) | (412,103 | ) |
Decrease/(increase) in trade and other debtors | 595,220 | (1,070,692 | ) |
(Decrease)/increase in trade and other creditors | (865,418 | ) | 1,670,198 |
Cash generated from operations | 501,987 | 13,876 |
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 31st May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 1 | 229,560 |
Bank overdrafts | (91,171 | ) | - |
(91,170 | ) | 229,560 |
Year ended 31st May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 229,560 | 332,009 |
Bank overdrafts | - | (137,726 | ) |
229,560 | 194,283 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST MAY 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.6.22 | Cash flow | changes | At 31.5.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 229,560 | (229,559 | ) | 1 |
Bank overdrafts | - | (91,171 | ) | (91,171 | ) |
229,560 | (320,730 | ) | (91,170 | ) |
Debt |
Finance leases | (562,553 | ) | 351,139 | - | (1,035,718 | ) |
Debts falling due |
within 1 year | (270,935 | ) | 35,911 | - | (235,024 | ) |
Debts falling due |
after 1 year | (1,090,125 | ) | 192,050 | - | (898,075 | ) |
(1,923,613 | ) | 579,100 | - | (2,168,817 | ) |
Total | (1,694,053 | ) | 258,370 | - | (2,259,987 | ) |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2023 |
1. | STATUTORY INFORMATION |
Ridgeway Building Envelope Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within 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 taxes. |
Revenue from manufacturing and installation contracts is recognised by reference to the stage of completion of the contract activity at the end of the reporting period. Revenue is based upon surveys of measured works and materials at the stage of completion of each contract. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Consumable stock is valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items. |
Work in progress in relation to manufacturing and installation contracts is valued at the cost of materials and other direct costs incurred at the end of the reporting period. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group, wholly within the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,224,232 | 2,197,539 |
Social security costs | 249,943 | 241,995 |
Other pension costs | 51,029 | 49,555 |
2,525,204 | 2,489,089 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Direct staff | 54 | 57 |
Administration | 5 | 5 |
2023 | 2022 |
£ | £ |
Director's remuneration | 17,568 | 17,737 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 88,310 | 51,360 |
Depreciation - assets on hire purchase contracts | 164,283 | 83,221 |
Profit on disposal of fixed assets | (20,455 | ) | (38,493 | ) |
Auditors' remuneration | 20,000 | - |
Auditors' remuneration for non audit work | 8,400 | 8,480 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 21,727 | 14,785 |
Bank loan interest | 24,095 | 5,722 |
Other interest | 60 | 840 |
Taxation, surcharges and interest | 829 | 191 |
Mortgage | 42,330 | 12,426 |
Hire purchase | 35,866 | 18,731 |
124,907 | 52,695 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (188,776 | ) | (242,287 | ) |
Deferred tax | 267,875 | (49,615 | ) |
Tax on profit/(loss) | 79,099 | (291,902 | ) |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit/(loss) before tax | 569,720 | (320,257 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) | 108,247 | (60,849 | ) |
Effects of: |
Expenses not deductible for tax purposes | 11,276 | 7,293 |
Capital allowances in excess of depreciation | (105,950 | ) | (105,427 | ) |
Utilisation of tax losses | (4,264 | ) | - |
(Profit)/Loss on disposal of fixed assets | (3,886 | ) | (7,314 | ) |
Research and development tax credits | (194,199 | ) | (134,271 | ) |
Deferred taxation | 267,875 | (49,615 | ) |
Tax losses carried forward | - | 34,536 |
Tax on capital gains | - | 23,745 |
Total tax charge/(credit) | 79,099 | (291,902 | ) |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation movement | 271,978 | (80,787 | ) | 191,191 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation | 52,212 | - | 52,212 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Interim | 295,000 | 210,000 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1st June 2022 | 838,718 | 171,028 | 607,261 |
Additions | - | 20,361 | 534,277 |
Disposals | - | - | (10,750 | ) |
Revaluations | 271,978 | - | - |
At 31st May 2023 | 1,110,696 | 191,389 | 1,130,788 |
DEPRECIATION |
At 1st June 2022 | 3,922 | 11,537 | 354,961 |
Charge for year | 16,774 | 3,828 | 74,215 |
Eliminated on disposal | - | - | (10,750 | ) |
At 31st May 2023 | 20,696 | 15,365 | 418,426 |
NET BOOK VALUE |
At 31st May 2023 | 1,090,000 | 176,024 | 712,362 |
At 31st May 2022 | 834,796 | 159,491 | 252,300 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1st June 2022 | 212,972 | 715,668 | 105,571 | 2,651,218 |
Additions | - | 331,086 | 7,325 | 893,049 |
Disposals | - | (243,869 | ) | - | (254,619 | ) |
Revaluations | - | - | - | 271,978 |
At 31st May 2023 | 212,972 | 802,885 | 112,896 | 3,561,626 |
DEPRECIATION |
At 1st June 2022 | 45,320 | 220,600 | 80,387 | 716,727 |
Charge for year | 17,745 | 129,541 | 10,490 | 252,593 |
Eliminated on disposal | - | (136,164 | ) | - | (146,914 | ) |
At 31st May 2023 | 63,065 | 213,977 | 90,877 | 822,406 |
NET BOOK VALUE |
At 31st May 2023 | 149,907 | 588,908 | 22,019 | 2,739,220 |
At 31st May 2022 | 167,652 | 495,068 | 25,184 | 1,934,491 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31st May 2023 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2019 | 161,616 | - | - |
Valuation in 2020 | 23,232 | - | - |
Valuation in 2023 | 271,978 | - | - |
Cost | 653,870 | 191,389 | 1,130,788 |
1,110,696 | 191,389 | 1,130,788 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2019 | - | - | - | 161,616 |
Valuation in 2020 | - | - | - | 23,232 |
Valuation in 2023 | - | - | - | 271,978 |
Cost | 212,972 | 802,885 | 112,896 | 3,104,800 |
212,972 | 802,885 | 112,896 | 3,561,626 |
If freehold property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 786,506 | 786,506 |
Aggregate depreciation | 19,652 | 3,922 |
Freehold property was valued on a fair value basis on 28th November 2023 by Ash Chartered Surveyors . |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st June 2022 | 130,707 | 658,022 | 788,729 |
Additions | 493,218 | 331,086 | 824,304 |
Disposals | - | (243,869 | ) | (243,869 | ) |
At 31st May 2023 | 623,925 | 745,239 | 1,369,164 |
DEPRECIATION |
At 1st June 2022 | 31,814 | 170,413 | 202,227 |
Charge for year | 36,607 | 127,676 | 164,283 |
Eliminated on disposal | - | (136,164 | ) | (136,164 | ) |
At 31st May 2023 | 68,421 | 161,925 | 230,346 |
NET BOOK VALUE |
At 31st May 2023 | 555,504 | 583,314 | 1,138,818 |
At 31st May 2022 | 98,893 | 487,609 | 586,502 |
Company |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1st June 2022 |
Revaluations |
At 31st May 2023 |
DEPRECIATION |
At 1st June 2022 |
Charge for year |
At 31st May 2023 |
NET BOOK VALUE |
At 31st May 2023 |
At 31st May 2022 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Cost or valuation at 31st May 2023 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2022 | 52,212 | - | - | 52,212 |
Valuation in 2023 | 271,978 | - | - | 271,978 |
Cost | 786,506 | 104,267 | 167,718 | 1,058,491 |
1,110,696 | 104,267 | 167,718 | 1,382,681 |
If freehold property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 786,506 | 786,506 |
Aggregate depreciation | 19,652 | 3,922 |
Freehold property was valued on a fair value basis on 28th November 2023 by Ash Chartered Surveyors . |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st June 2022 |
and 31st May 2023 |
NET BOOK VALUE |
At 31st May 2023 |
At 31st May 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Unit 4 The Perry Centre, Davy Way, Quedgeley, Gloucestershire, England, GL2 2AD |
Nature of business: |
% |
Class of shares: | holding |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: Unit 4 The Perry Centre, Davy Way, Quedgeley, Gloucestershire, England, GL2 2AD |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Unit 4 The Perry Centre, Davy Way, Quedgeley, Gloucestershire, England, GL2 2AD |
Nature of business: |
% |
Class of shares: | holding |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 470,154 | 467,961 |
Work-in-progress | 897,499 | 748,191 |
1,367,653 | 1,216,152 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,091,569 | 1,011,847 |
Amounts owed by group undertakings | - | - |
Other debtors | 2,372,162 | 2,868,346 |
VAT | 94,320 | 285,360 |
Prepayments | 60,573 | 48,291 |
3,618,624 | 4,213,844 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 187,838 | 96,667 |
Other loans (see note 16) | 138,357 | 174,268 |
Hire purchase contracts (see note 17) | 276,783 | 168,645 |
Trade creditors | 2,752,966 | 3,615,282 |
Amounts owed to group undertakings | - | - |
Tax | - | 38,382 |
Social security and other taxes | 92,549 | 107,247 |
Other creditors | 21,100 | 29,504 |
Directors' current accounts | 916 | 37,514 | - | - |
Accruals and deferred income | 20,000 | - |
3,490,509 | 4,267,509 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 16) | 726,050 | 803,837 |
Other loans (see note 16) | 172,025 | 286,288 |
Hire purchase contracts (see note 17) | 758,935 | 393,908 |
1,657,010 | 1,484,033 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 91,171 | - |
Bank loans | 96,667 | 46,667 |
Bank loans | - | 50,000 | - | - |
Other loans | 138,357 | 174,268 |
326,195 | 270,935 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 186,667 | 186,667 |
Other loans - 2-5 years | 172,025 | 286,288 |
358,692 | 472,955 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 years |
by instalments | 539,383 | 617,170 | 431,050 | 458,837 |
539,383 | 617,170 | 431,050 | 458,837 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 276,783 | 168,645 |
Between one and five years | 758,935 | 393,908 |
1,035,718 | 562,553 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 91,250 | 85,000 |
Between one and five years | 475,000 | 471,250 |
In more than five years | 419,583 | 514,583 |
985,833 | 1,070,833 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 822,717 | - |
Hire purchase contracts | 1,035,718 | - | - | - |
1,858,435 | - |
The bank overdraft facility and loans are secured by a debenture over the whole of the group's assets. |
Hire purchase agreements are secured over the asset to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 368,543 | 19,881 | 100,457 | 15,853 |
Group |
Deferred |
tax |
£ |
Balance at 1st June 2022 | 19,881 |
Accelerated capital allowances | 267,875 |
Revaluation of property | 80,787 |
Balance at 31st May 2023 | 368,543 |
Company |
Deferred |
tax |
£ |
Balance at 1st June 2022 |
Accelerated capital allowances | 3,817 |
Revaluation of property | 80,787 |
Balance at 31st May 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1.00 | 100 | 100 |
RIDGEWAY BUILDING ENVELOPE GROUP LIMITED (REGISTERED NUMBER: 10472770) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2023 |
21. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st June 2022 | 1,770,312 | 52,212 | 1,822,524 |
Profit for the year | 490,621 | 490,621 |
Dividends | (295,000 | ) | (295,000 | ) |
Revaluation movement | - | 271,978 | 271,978 |
Depreciation movement | 1,044 | (1,044 | ) | - |
Deferred tax charge | - | (80,787 | ) | (80,787 | ) |
At 31st May 2023 | 1,966,977 | 242,359 | 2,209,336 |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st June 2022 | 379,548 |
Profit for the year |
Dividends | ( | ) | ( | ) |
Revaluation movement |
Depreciation movement | 1,044 | (1,044 | ) | - |
Deferred tax charge | - | (80,787 | ) | (80,787 | ) |
At 31st May 2023 | 545,392 |
22. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31st May 2023 and 31st May 2022: |
2023 | 2022 |
£ | £ |
J L Arrowsmith |
Balance outstanding at start of year | (37,514 | ) | (33,598 | ) |
Amounts advanced | 36,598 | - |
Amounts repaid | - | (3,916 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (916 | ) | (37,514 | ) |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is J L Arrowsmith. |