Registered number:
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
COMPANY INFORMATION
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NRLB LIMITED
CONTENTS
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NRLB LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
Emerging from the devastating impact caused by the coronavirus pandemic across the global economy and the Group over the previous financial years and then facing the challenging climate as a result of the war in Ukraine, the operating results for financial year 2023 demonstrate the importance of the decisive actions taken by the directors and key management to adapt to the challenges faced, to control overheads, to safeguard staff members and to ensure the business has continued to deliver outstanding service levels to its customers.
Despite the major global economic factors during the year the Group has successfully delivered strong growth in annualised turnover whilst maintaining profitability at an operating level. Whilst operating profit has reduced significantly compared to the previous period this is largely attributable to certain legacy contracts which have since completed post year-end. Ongoing contracts continue to deliver good returns which demonstrate the Group has risen to the task in hand by maintaining strong working relationships with its key customers and suppliers. The underlining loss for the year was predominantly driven by financing costs on loans with key strategic partners and these costs have significantly reduced post year end. The Group’s European demolition project for a major blue-chip customer continued to perform well and generated strong returns underlining the Group’s outstanding reputation both in the UK and internationally and paves the way for further expansion into Europe.
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NRLB LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
From a financial perspective, the directors have always maintained appropriate banking facilities to ensure that the Group can manage fluctuations in working capital requirements and continue to invest in plant and machinery to successfully tender, win, and complete large high-profile contracts.
The directors recognise that it is important for the Group’s customers to be confident of the financial strength and integrity of the Group. Risk from customer debt is low, in-line with the Group’s client base and quality standards. Forward contracts are used to de-risk from price fluctuations where appropriate. The Group also has no significant concentration of supply risk, with exposure adequately spread over several suppliers. As part of the Group’s Quality Management System, all subcontractors and suppliers are required to submit specific information to enable routine review of the Group’s approved subcontractors and suppliers list. Operating risks are managed via a combination of strong internal controls and external accreditations as detailed below. Financial assets and business risks are also suitably covered by relevant insurance policies. This provides assurance to both the Group and its customers. Risk management The Group adopts a measured approach in identifying and managing its financial and business risks. The directors recognise that the specialist sector and competitive environment in which the Group operates require that management maintains an active and direct involvement in the assessment and running of the key operational priorities:
∙health, safety & environment (via our “Integrated Management Systems”), the Company seeks to achieve its primary objectives of zero accidents, incidents, environmental or otherwise;
∙staff training (via continuous general and specific training programmes and efforts to obtain full CSCS certification), to work safely, employing and demonstrating a professional, efficient, competent and fully trained workforce;
∙compliance with industry standards and regulations (as demonstrated by various accreditations and maintained via internal quality control system and regular external audits);
∙to continue as one of the leading demolition/dismantling contractors and steadily increase upon market share;
∙to ensure that projects are completed within the stated contract duration and stated contract budget;
∙to maintain repeat business as 'preferred' contract to major client base.
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NRLB LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
The directors are pleased to report turnover has increased from £47.3m (10 month period) to £63.3m for the year and whilst operating profit has reduced from £2.1m to £307k the Group has returned an overall operating profit to shareholders during this challenging year which demonstrates the Group’s continuing ability to secure and fulfil large demolition contracts in the UK and abroad and underlining its position as a market leader. Significant financing costs have however resulted in an overall net loss for the financial year but are forecasted to be significantly lower moving forwards.
Whilst the loss for the year has reduced the balance sheet value, the Group has significantly strengthened its net current asset position from £14.1m to £33.1m including an increase in cash reserves from £5.8m to £8.1m ensuring adequate liquidity and cash flow facilities to continue investing in new plant allowing it to target further growth in revenues in financial year 2024. The directors will continue to manage costs and resources effectively and prudently on its multi-year contracts, the results of which are expected to be reflected in improved margins in future years. Directors' statement of compliance with duty to promote the success of the Group The directors of the Group have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the Group’s success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the Group and its stakeholders and in doing so must have regard to the following: • the likely consequences of any decision in the long term; • the interests of the Group’s employees; • the need to foster the Group’s business relationships with suppliers, customers and others; • the impact of the Group’s operations on the community and the environment; • the desirability of the Group maintaining a reputation for high standards of business conduct; and • the need to act fairly between members of the Group. Our key stakeholders, and the ways in which we engage with them, are as follows: Employment policy The Group does not discriminate against anyone on any grounds. The sole criterion for selection or promotion is the suitability of the person for the job. It is the policy of the Group to provide employment to people irrespective of sex, age, religion or disability whenever the demands of the Group and the abilities of the individual will allow. Appropriate levels of training and development are available for all levels and categories of staff. Customers and suppliers The Group is aware that our customers and suppliers are an important part of our success. We strive to build long standing, sustainable relationships with both to ensure mutual benefit, and always aim to be honest and transparent in line with our Group culture. Our conduct guarantees that we treat all customers and suppliers fairly. All suppliers are paid to terms with any queries being dealt with as a matter of urgency to ensure the supply chain continues uninterrupted. Environment The Group is registered with National Quality Assurance (NQA), a leading assessment, verification and certification body in quality, environment and health & safety management. The Group operates an integrated management system which complies with the three recognised standards of BS EN ISO9001, ISO14001 and ISO45001.
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NRLB LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
Standards of Business Conduct The Group is committed to conducting its business with the highest integrity and compliance with the law and has standards in place which must be adhered to by everyone who represents the Group. These standards embody the fundamental principles that govern our ethical and legal obligations and not only comply with the Group's policies but also with applicable laws and regulations.
The fragile state of the UK and global economy as we emerge from the coronavirus pandemic, together with the long-term effects of Brexit on trade within the EU and further afield, pressure on labour rates, significant increases in energy costs as a result of the war in Ukraine, the fluctuating value of Sterling against the US dollar and unprecedented inflationary pressures across all cost centres, inevitably provides future economic uncertainty for the Group.
Management continues to take decisive action to manage and adapt to an ever-changing situation and ensure the Group is well-positioned to capitalise on future opportunities. The Group has strong commercial and strategic relationships with its key trading partners in ferrous and nonferrous scrap and continues to target improving efficiencies across every area of operations and maximise economies of scale as it grows revenue streams. The Group’s pipeline of projects remains strong on the back of further contract wins during and after the year and the directors anticipate further contract wins over the next 12 months. This demonstrates the Group’s ability to meet its customers’ requirements, to complete projects to their agreed timetable and programme, safely, competently and efficiently. It is also an endorsement of the Group’s operational capabilities. The directors would like to take this opportunity to thank its staff, customers, and business partners for their continued support throughout the period.
This report was approved by the board on 30 April 2024 and signed on its behalf.
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NRLB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
The directors present their report and the financial statements for the year ended 30 April 2023.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are 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 directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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.
The loss for the year, after taxation, amounted to £2,619,093 (2022 - profit £1,645,729).
The director who served during the year was:
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NRLB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
In February 2022, a Company subsidiary, Brown and Mason Group Limited (as economic successor to another company, Brown and Mason Limited), admitted participation in two infringements of competition law (in 2013 and 2014) following an investigation by the Competition and Markets Authority (CMA) into suspected anti-competitive tendering practices (cover bidding and compensation payments) on the part of 10 companies (across 19 projects) in the demolition sector.
Having settled the case (involving the imposition of a reduced fine), the CMA notified the Company’s then managing director, Mr Nicholas Brown, that it was continuing to pursue disqualification proceedings against him in view of his role in and responsibility for the infringements. Mr Brown subsequently offered (and the CMA accepted) a competition director disqualification undertaking (CDU) which, once taking effect, would apply until 28 July 2030. Following a subsequent Court application from Mr Brown, the effect of the CDU was suspended in respect of the Company and Brown and Mason Group Limited until 23:59 on 28 July 2024, until which time Mr Brown has the Court’s permission (subject to stringent conditions) to act as a director of, and be involved in the management of, those two companies only. Thereafter, for information, it is anticipated that Mr Brown will provide consultancy services to the Company’s subsidiary, Brown and Mason Group Limited, subject to the strictures of the CDU. A copy of the Court Order (and the CDU) setting out further information on this matter can be accessed on the Company’s website (as well as the CMA’s website) via the following link: https://brownandmason .com/commitment/competition -law-compliance/ The Group is absolutely committed to driving better industry practices and applying the CMA's guidance to encourage and enable competition law-compliant behaviours. A rigorous competition law compliance and training programme has been implemented within its group. The reputation of the Group and the trust and confidence of those with whom it deals are among its most vital resources, and the protection of these is of fundamental importance.
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NRLB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
The emissions in Tonnes of Carbon Dioxide Equivalent (“tCO2e”) related to the Group’s energy demand for the period is 7,198.
The intensity ratio for the Group based on the total tCO2e emissions per million pounds of turnover is 114. The emissions and energy consumption information disclosed were calculated using SECR methodology, as specified in "Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting and greenhouse gas reporting" used in conjunction with Government GHG reporting conversion factors.
Measures taken to increase energy efficiency during the period
We recognise that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions. Environmental management measures and projects have been completed or implemented since 2013 and the carbon emission reduction achieved by these schemes equate to circa 4000tCO2e. To affect such change we have:
∙Implemented environmental management measures including certification to ISO14001.
∙Tracked carbon emissions to focus the business on reduction measures.
∙Joined the Global Compact.
∙Incorporated environmental issues, including carbon reduction, into board level meetings and reviews.
We are committed to the continual improvement of our environmental performance, not just limited to the prevention of pollution where ever practicable but also to minimising our ecological impact and the potential to affect biodiversity. In our decision making we will take due cognisance of the environmental impact of our activities.
We will:
∙Promote the safe implementation of demolition and asbestos removal techniques.
∙Control harmful emissions to the environment.
∙Utilise techniques to reduce the environmental impact of current and future intended activities.
∙We will change fuel source from Red Diesel to Green D+ HVO for all site plant and equipment.
∙Plan and implement our work with due cognisance of and respect for local biodiversity.
∙Determine our strategies for compliance to both local and national ecological constraints.
∙Show our commitment to the continual improvement of our environmental management system and procedures.
∙We will adopt the use of LED lights and PIR lighting controls across the business.
∙We will look to the electrification of the group's fleet of cars and vans.
∙Reduce the amount and environmental impact of waste generated through waste minimisation with emphasis on re-use and recycling following the Waste Minimisation Hierarchy; reduce, reuse, recycle, dispose.
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NRLB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
There have been no significant events affecting the Group since the year end.
The auditor, Barnes Roffe LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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NRLB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NRLB LIMITED
We have audited the financial statements of NRLB Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, 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).
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 Auditor's 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 United Kingdom, including the Financial Reporting Council'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.
We draw attention to the Further information section of the Directors’ report of these financial statements, which details disqualification proceedings against a director of the Group, the pending application of that director for permission to act as a director of the Group and the interim permission granted by the Court for that director to act until 28 July 2024. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the directors' 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 or 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 directors with respect to going concern are described in the relevant sections of this report.
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NRLB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NRLB LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Directors' report.
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NRLB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NRLB LIMITED (CONTINUED)
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NRLB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NRLB LIMITED (CONTINUED)
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 an Auditor's report 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 Group financial statements.
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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:
∙The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙We identified the laws and regulations applicable to the Company through discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector;
∙The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follos;
°Companies Act 2006
°FRS102
°ISO standards
°Health and Safety legislation
∙We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting legal correspondence; and
∙Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
∙Making enquires of management as to where they consider there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud;
∙Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
∙Reviewing the financial statements and testing the disclosures against supporting documentation;
∙Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
∙Inspecting and testing journal entries to identify unusual or unexpected transactions;
∙Assessing whether judgements and assumptions made in determining significant accounting estimates, including stock obsolescence, depreciation and bad debt provision were indicative of management bias; and
∙Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
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NRLB LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NRLB LIMITED (CONTINUED)
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 Auditor's 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 an Auditor's report 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
Statutory Auditor
Leytonstone House
London
E11 1GA
Date:
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NRLB LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
REGISTERED NUMBER: 12348377
CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 April 2024.
The notes on pages 24 to 42 form part of these financial statements.
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NRLB LIMITED
REGISTERED NUMBER: 12348377
COMPANY BALANCE SHEET
AS AT 30 APRIL 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 24 to 42 form part of these financial statements.
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NRLB LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022
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NRLB LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022
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NRLB LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
NRLB Limited ("the Company") is a private Company, limited by shares and incorporated in England and Wales. The address of its registered office is Anson House Schooner Court, Crossways Business Park, Dartford, Kent, United Kingdom, DA2 6QQ.
The principal activity of the Group continued to be that of demolition of buildings and disposal of materials extracted therefrom.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date.
The Group continues to adopt the going concern basis in preparing its financial statements.
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the Statement of income and retained earnings turnover and related costs as contract activity progresses. Revenue is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract. Where contracts consist of demolition services and the extraction of scrap, they are treated as one for the purpose of accounting for long term contracts as they are, in effect, part of a single project with an overall profit margin. The scrap arising from the demolition work in reaching that stage of completion is taken to revenue on delivery. Any potential loss on a long-term demolition contract is provided in full as soon as it is foreseen. In order to apply the above policy, the contracts are reviewed at the end of the year to determine the estimated costs to completion, the future sales value of the contracts and the estimated revenues to be earned on the sale of scrap.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following annual bases:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated statement of comprehensive income over its useful economic life. At each balance sheet date, work in progress is assessed for impairment and any impairment loss is recognised immediately in the statement of income and retained earnings.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
2.Accounting policies (continued)
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
Determining the stage of completion on contracts requires the assessment of future costs to complete and the probability that the economic benefits will flow to the entity so that revenue can be measured reliably with reasonable certainty. In order to apply the above assessment, the directors will review the contracts at the end of the year and make estimates and assumptions based on historic experience and expected outcomes. This consideration will impact upon revenue, profits and the valuation of stock of scrap. The annual depreciation charge for tangible fixed assets is sensitive to changes in estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property, plant and equipment, and note 2.6 for useful economic lives for each class of asset.
Analysis of turnover by country of destination:
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
10.Taxation (continued)
The Group has taxable losses to carry forward and utilise against future taxable profits of £12,323,166 (2022 - £5,752,096).
There was a corporation tax rate increase from 1 April 2023 from 19% to 25%, as enacted in the legislation.
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
14.Tangible fixed assets (continued)
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
Secured loans
The bank loan of £1,143,990 (2022 - £1,296,526) is secured by means of legal charge over three properties held by the Group and any assets located at these properties. Net obligations under finance leases and hire purchase contracts are secured on the assets to which they relate. Other creditors includes a loan with accumulated interest of £12,062,565 (2022 - £11,791,945) secured by means of a legal fixed charge over all land and intellectual property owned by the Group.
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £260,804 (2022 - £228,858). Contributions totalling £33,012 (2022 - £27,064) were payable to the fund at the balance sheet date and are included in creditors.
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NRLB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
The Group is controlled by N T Brown.
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