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Registration number: 11232672

Dragon Asphalt Ltd

Unaudited Filleted Financial Statements

for the Year Ended 31 August 2023

 

Dragon Asphalt Ltd

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 8

 

Dragon Asphalt Ltd

(Registration number: 11232672)
Balance Sheet as at 31 August 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

4,919,034

4,968,523

Current assets

 

Stocks

6

248,568

196,683

Debtors

7

2,851,489

1,666,340

Cash at bank and in hand

 

2,300,377

805,667

 

5,400,434

2,668,690

Creditors: Amounts falling due within one year

8

(2,479,089)

(1,698,335)

Net current assets

 

2,921,345

970,355

Total assets less current liabilities

 

7,840,379

5,938,878

Creditors: Amounts falling due after more than one year

8

(1,504,439)

(2,015,752)

Provisions for liabilities

(1,072,384)

(264,983)

Net assets

 

5,263,556

3,658,143

Capital and reserves

 

Called up share capital

1,000

1,000

Share premium reserve

499,000

499,000

Retained earnings

4,763,556

3,158,143

Shareholders' funds

 

5,263,556

3,658,143

 

Dragon Asphalt Ltd

(Registration number: 11232672)
Balance Sheet as at 31 August 2023

For the financial year ending 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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

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

Approved and authorised by the Board on 8 March 2024 and signed on its behalf by:
 

.........................................
Mr M Cowley
Director

 

Dragon Asphalt Ltd

Notes to the Financial Statements for the Year Ended 31 August 2023

1

General information

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

The address of its registered office is:
2 Old Bath Road
Newbury
Berkshire
RG14 1QL
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the manufacture of concrete products for construction purposes in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax payable and deferred tax.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

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

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

Dragon Asphalt Ltd

Notes to the Financial Statements for the Year Ended 31 August 2023

Tangible assets

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

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

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

7 - 20 years straight line

Hardware and office equipment

5 years straight line

Software

10 years straight line

Cash and cash equivalents

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

Debtors

Trade debtors are amounts due from customers for the manufacture of concrete products for construction purposes in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Borrowings

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

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

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

 

Dragon Asphalt Ltd

Notes to the Financial Statements for the Year Ended 31 August 2023

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

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

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

3

Taxation

2023

2022

£

£

Corporation tax

-

-

Deferred tax

807,401

159,246

807,401

159,246

4

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 19 (2022 - 15).

 

Dragon Asphalt Ltd

Notes to the Financial Statements for the Year Ended 31 August 2023

5

Tangible assets

Hardware and office equipment
£

Plant and machinery
£

Software
£

Total
£

Cost or valuation

At 1 September 2022

17,121

5,192,596

32,132

5,241,849

Additions

-

273,054

-

273,054

At 31 August 2023

17,121

5,465,650

32,132

5,514,903

Depreciation

At 1 September 2022

14,762

243,555

15,009

273,326

Charge for the year

905

318,425

3,213

322,543

At 31 August 2023

15,667

561,980

18,222

595,869

Carrying amount

At 31 August 2023

1,454

4,903,670

13,910

4,919,034

At 31 August 2022

2,359

4,949,041

17,123

4,968,523

6

Stocks

2023
£

2022
£

Other inventories

248,568

196,683

7

Debtors

Current

2023
£

2022
£

Trade debtors

2,324,739

1,413,416

Prepayments

474,250

169,899

Other debtors

52,500

83,025

 

2,851,489

1,666,340

 

Dragon Asphalt Ltd

Notes to the Financial Statements for the Year Ended 31 August 2023

8

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

Loans and borrowings

476,063

173,925

Trade creditors

1,466,589

1,266,948

Taxation and social security

280,999

19,862

Other creditors

255,438

237,600

2,479,089

1,698,335

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

1,504,439

2,015,752

9

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

202,640

198,480

Later than one year and not later than five years

606,275

340,915

808,915

539,395

Dragon Asphalt Ltd has several operating leases with the commitments detailed above. For one of the rental leases it sublets part of the land on the same conditions to which it has a lease agreed. This therefore means that the tenant has a commitment to Dragon Asphalt Ltd for rental payments of £20,060 within one year and £80,240 later than one year but not later than five years.

 

Dragon Asphalt Ltd

Notes to the Financial Statements for the Year Ended 31 August 2023

10

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Hire purchase contracts

476,063

173,925

Hire purchase liabilities are secured on the assets to which they relate.

2023
£

2022
£

Non-current loans and borrowings

Hire purchase contracts

1,504,439

2,015,752

11

Related party transactions

Loans from related parties

2022

Parent
£

Total
£

At start of period

232,000

232,000

Repaid

(234,320)

(234,320)

Interest transactions

2,320

2,320

At end of period

-

-

12

Parent and ultimate parent undertaking

The company's immediate parent is Addison Clark Limited, incorporated in England and Wales.