Company Registration No. SC061834 (Scotland)
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
COMPANY INFORMATION
Directors
W Munro
J Munro
Secretary
J Munro
Company number
SC061834
Registered office
5 River Drive
Teaninich Industrial Estate
ALNESS
IV17 0PG
Auditor
Johnston Carmichael LLP
Clava House
Cradlehall Business Park
INVERNESS
IV2 5GH
Solicitors
Wright, Johnston & Mackenzie LLP
The Green House
Beechwood Business Park North
INVERNESS
IV2 3BL
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 28
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Fair review of the business
As shown in the company's statement of comprehensive income, the company has reported a total comprehensive income for the year of £295,461 (2022 18 month period - £467,407). The prior period included a revaluation gain of £624,226. The company generated turnover of £4,819,977 for the year (2022 18 month period - £5,132,572) and gross margin has decreased from 30.1% to 28.4%. The balance sheet shows that the net asset position of the company has increased to £3,385,846 (2022 - £2,622,978). The company has made use of its overdraft facility during the year. Total debt has decreased from £1,229,172 to £1,311,880 at the reporting date in line with the directors' expectations. The director's are confident that the level of bank debt will decrease over subsequent financial periods.
The company continues to increase business with local authorities and commercial clients, whilst simultaneously focusing on the development of its owned commercial landbank and properties. The directors are confident that the wide mix of services which the company has to offer will ensure its continued success going forward. The directors continue to assess the strategic position of the company and its subsidiaries with regards to the type of business the group engages in over the short to medium term. The directors are committed to supporting the company for the foreseeable future which amounts to at least 12 months from the date of approval of these financial statements.
Principal risks and uncertainties
The principal risks and uncertainties facing the company are broadly grouped as follows:
- Business risk – these include the lack of public works contracts, competition from rivals, success in negotiation of contracts and increased regulation. The directors are confident that the company is sufficiently diverse to mitigate this risk as a multi-disciplined contractor.
- Liquidity risks - the company continues to operate within its available bank facilities and is repaying its debt on hire purchase. The directors are also committed to supporting the company for the foreseeable future. Liquidity does not pose a significant risk to the company.
- Interest rate risk - The company does utilise bank facilities and incurs interest. The company also funds the purchase of certain fixed assets with hire purchase finance as required. The current fixed rates of hire purchase finance are highly competitive. Interest payments are not considered material to the company and so interest rate risk is not deemed to pose a significant risk to the company.
- Credit risk - the company policy is to minimise exposure to losses of defaulting customers. Credit terms are only granted to customers who satisfy credit worthiness procedures. Credit limits are reviewed regularly in conjunction with debt ageing and collection history.
Future developments
The future plans of the company include:
- Further reduction of material going to landfill and an increase in recycling across all corners.
- Enhancement of its waste processing facilities including green waste.
- Expansion of its quarrying and concrete division.
- Continuation of a focus on its core activities.
- Development of assets.
Key performance indicators
The key performance indicators of the company include turnover, gross profit margin, total comprehensive income, net assets and level of debt finance. The review of the business includes reference to these key performance indicators.
W Munro
Director
30 April 2024
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
The company has taken advantage of the ability to flex the end of the financial period from its accounting reference date of 29 March 2023, in accordance with the Companies Act 2006 Section 390(3). Accordingly, the accounts have been prepared for the financial year ended 31 March 2023. The prior financial period covered 18 months from 1 October 2020 to 31 March 2022.
Principal activities
The principal activity of the company continued to be that of construction and civil engineering, together with ancillary services and waste management services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
W Munro
J Munro
Results and dividends
The results for the year are set out on page 8.
The directors recommend that no dividend be paid (2022 - £nil).
Auditor
The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
W Munro
Director
30 April 2024
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
The directors are responsible for preparing the strategic report, directors' report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period.
In preparing these financial statements, the directors are 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 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
- 4 -
Opinion
We have audited the financial statements of William Munro Construction (Highland) Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to note 1.2 in the financial statements which acknowledges the ability of the company to meet its liabilities over the next twelve months as they fall due is dependent on the cost and timings of repayment of loans owed to the company’s retirement benefit scheme. As stated in note 1.2, these events or conditions, along with other matters set forth in note 1.2, indicate that a material uncertainty exists which may cast significant doubt on the company’s ability to continue as a going concern. 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. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, set out on page 3, the directors are 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 directors determine is 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 directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor 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 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 financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
- 6 -
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:
UK Generally Accepted Accounting Practice.
Companies Act 2006;
Corporation Tax legislation;
Healthy & Safety Regulations; and
VAT legislation
We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies, external inspections and legal fees.
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:
In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:
Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;
Performing audit work procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias;
Performing audit work procedures over the risk of revenue recognition, including testing of the accuracy, cut off and completeness of revenue and the valuation of amounts recoverable on contracts;
Completion of appropriate checklists and use of our experience to assess the company’s compliance with the Companies Act 2006; and
Agreement of the financial statement disclosures to supporting documentation.
Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
- 7 -
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 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.
Martin Bannerman (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
1 May 2024
Statutory Auditor
Clava House
Cradlehall Business Park
INVERNESS
IV2 5GH
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
Year
Period
ended
ended
31 March
31 March
2023
2022
Notes
£
£
Turnover
3
4,819,977
5,132,572
Cost of sales
(3,451,822)
(3,588,880)
Gross profit
1,368,155
1,543,692
Administrative expenses
(1,014,132)
(1,503,443)
Other operating income
310
31,314
Operating profit
4
354,333
71,563
Interest payable and similar expenses
7
(59,183)
(60,981)
Profit before taxation
295,150
10,582
Tax on profit
8
311
(167,401)
Profit/(loss) for the financial year
295,461
(156,819)
Other comprehensive income
Revaluation of tangible fixed assets
624,226
Total comprehensive (expenditure)/income
295,461
467,407
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 9 -
31 March
31 March
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,740,831
2,884,792
Investments
10
57,002
57,002
2,797,833
2,941,794
Current assets
Stocks
12
2,259,269
1,635,211
Debtors
13
1,581,889
1,536,995
Cash at bank and in hand
36,403
115
3,877,561
3,172,321
Creditors: amounts falling due within one year
14
(2,012,284)
(1,688,291)
Net current assets
1,865,277
1,484,030
Total assets less current liabilities
4,663,110
4,425,824
Creditors: amounts falling due after more than one year
15
(872,730)
(908,268)
Provisions for liabilities
18
(404,534)
(427,171)
Net assets
3,385,846
3,090,385
Capital and reserves
Called up share capital
21
20,002
20,002
Revaluation reserve
22
1,166,299
1,268,446
Profit and loss reserves
23
2,199,545
1,801,937
Total equity
3,385,846
3,090,385
The financial statements were approved by the board of directors and authorised for issue on 30 April 2024 and are signed on its behalf by:
W Munro
Director
Company Registration No. SC061834
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2020
20,002
700,595
1,902,381
2,622,978
Period ended 31 March 2022:
Loss for the period
-
-
(156,819)
(156,819)
Other comprehensive income:
Revaluation of tangible fixed assets
-
624,226
-
624,226
Total comprehensive income/(expenditure) for the period
624,226
(156,819)
467,407
Transfers
-
(56,375)
56,375
-
Balance at 31 March 2022
20,002
1,268,446
1,801,937
3,090,385
Year ended 31 March 2023:
Total comprehensive income/(expenditure) for the period
-
-
295,461
295,461
Transfers
-
(102,147)
102,147
-
Balance at 31 March 2023
20,002
1,166,299
2,199,545
3,385,846
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Year ended
Period ended
31 March 2023
31 March 2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(31,732)
557,270
Interest paid
(59,183)
(60,981)
Income taxes refunded
35,692
33,872
Net cash (outflow)/inflow from operating activities
(55,223)
530,161
Investing activities
Purchase of tangible fixed assets
(14,253)
(11,521)
Proceeds on disposal of tangible fixed assets
7,000
Net cash used in investing activities
(7,253)
(11,521)
Financing activities
Proceeds from borrowings
200,000
Repayment of borrowings
(80,000)
Repayment of bank loans
(10,950)
(8,370)
Payment of finance leases obligations
(85,289)
(285,702)
Net cash generated from/(used in) financing activities
23,761
(294,072)
Net (decrease)/increase in cash and cash equivalents
(38,715)
224,568
Cash and cash equivalents at beginning of year
(142,444)
(367,012)
Cash and cash equivalents at end of year
(181,159)
(142,444)
Relating to:
Cash at bank and in hand
36,403
115
Bank overdrafts included in creditors payable within one year
(217,562)
(142,559)
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information
William Munro Construction (Highland) Limited is a private company limited by shares incorporated in Scotland. The registered office is 5 River Drive, Teaninich Industrial Estate, ALNESS, IV17 0PG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain tangible fixed assets at fair value and to include certain tangible fixed assets at deemed cost. The principal accounting policies adopted are set out below.
The company prepares publicly available consolidated financial statements which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
The consolidated financial statements are available from its registered office.
1.2
Going concern
The directors are confident that the company will continue to generate profits in forthcoming financial periods and increase business with local authorities and commercial clients, whilst simultaneously focusing on development of its owned commercial landbank and properties. The company continues to make use of its overdraft facility however enjoys a constructive relationship with its bankers, with the directors fully anticipating this facility will remain in place for the foreseeable future.true
Forecast projections have been prepared through to September 2025 and whilst the directors believe these are reasonable, achievable and sufficient to meet the cash requirements of the company, it is acknowledged that they rely on various factors and assumptions related to its trade, including the timing of landbank sales.
The forecasts assume that the loans owed to its retirement benefit scheme will not be recalled within a period of 12 months from the date of approval of the financial statements. Whilst such representation from the retirement benefit scheme has been provided to the company, there remain uncertainties as to the cost and timings of repayment of these loans. These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to realise its assets and discharge its liabilities in the normal course of business and as such, continue as a going concern.
The directors are confident that on balance, and on the basis of the above that at the time of approving the financial statements, the company has adequate resources to continue in operational existence for at least 12 months and it is therefore appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Reporting period
In the previous financial period, the company amended its accounting reference date and in conjunction with flexing the end of the financial period in accordance with the Companies Act 2006 Section 390(3), the financial statements were prepared with an eighteen month financial period to 31 March 2022 to align the reporting date with key customer year ends. The current financial period is for the year ended 31 March 2023 and are therefore not entirely comparable.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Long-term contracts
Where the outcome of a long-term contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a long-term contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land
Not depreciated
Leasehold buildings
2% straight line
Plant and machinery
10% reducing balance
Fixtures, fittings & equipment
33% straight line
Motor vehicles
20% reducing balance
The part of the annual depreciation charge on revalued assets which relates to the revaluation surplus is transferred from the revaluation reserve to the profit and loss reserve.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit and loss.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. Investments are assessed for impairment at each reporting date.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Investment in subsidiaries that are acquired as part of a restructuring arrangement meeting the merger relief criteria of Section 612 of the Companies Act 2006, are recorded in accordance with the nominal value of shares issued as part of the acquisition arrangement. The shares issued are recorded at a corresponding equivalent nominal value with a premium being recognised in the consolidated financial statements.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss.
1.8
Stocks
Stocks, work in progress and development land are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Amounts recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work done after any provisions for contingencies and anticipated future losses on contracts, less amounts recovered as progress payments on account. Excess progress payments are included in creditors as payments on account.
All retentions receivable, which are included in debtors, are disclosed as a current asset at the year end.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year
or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not they will be recovered.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease are consumed.
1.16
Government grants
Grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Grants are recognised in accordance with the performance model. Grants with performance related conditions attached are recognised as deferred income and released to the profit and loss account as the performance related conditions are met. Grants with no performance related conditions attached are recognised immediately in the profit and loss account.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Turnover and margin recognition
The company's turnover and margin recognition policies are central to how the company values the work it has carried out in each financial year. These policies require forecasts to be made of the outcomes of long-term contracts, which require assessments and judgements to be made on the recovery of pre-contract costs, changes in work scope, contract programmes, stage of completion, defects and maintenance liabilities and changes in costs and retentions receivable and payable. The company regularly reviews these estimates to ensure they reflect the latest known position.
At the year end, balances held in relation to long-term contracts include gross amounts owed by contract customers totalling £42,738 (2022 - £nil).
Quarry stock carrying amounts
The carrying amount of quarry stocks of £791,347 (2022 - £987,638) held within finished goods and goods for resale is a key area of estimation. The cost and impairment of these stocks are considered and the carrying amounts applied accordingly. Details of the policies applied can be found in the accounting policies section of the notes to the financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover
Construction
1,374,659
1,672,863
Asbestos
33,583
128,312
Demolition
774,548
883,703
Quarry
160,474
314,575
Recycling and Waste
2,473,780
2,127,512
Other
2,933
5,607
4,819,977
5,132,572
Grants received
-
26,519
Turnover analysed by geographical market
2023
2022
£
£
United Kingdom
4,819,977
5,132,572
The amount of contract revenue recognised in the year amounts to £2,182,790 (2022 - £2,684,878).
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(26,519)
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
10,175
Depreciation of owned tangible fixed assets
103,929
267,484
Depreciation of tangible fixed assets held under finance leases
71,130
118,066
(Profit)/loss on disposal of tangible fixed assets
(3,613)
5,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Direct labour
17
21
Management and administration
3
6
Total
20
27
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
718,385
1,067,890
Social security costs
81,162
122,298
Pension costs
25,515
25,767
825,062
1,215,955
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
11,988
17,982
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts
5,482
5,635
Interest on finance leases and hire purchase contracts
7,951
16,473
Interest on loans
45,750
38,753
59,183
60,861
Other finance costs:
Other interest
120
59,183
60,981
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
62,280
29,096
Adjustments in respect of prior periods
(39,954)
(494)
Total current tax
22,326
28,602
Deferred tax
Origination and reversal of timing differences
(22,637)
138,503
Adjustment in respect of prior periods
296
Total deferred tax
(22,637)
138,799
Total tax (credit)/charge
(311)
167,401
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Taxation
(Continued)
- 20 -
The actual (credit)/charge for the year based on the profit and loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
295,150
10,582
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
56,079
2,011
Tax effect of expenses that are not deductible in determining taxable profit
637
1,826
Adjustments in respect of prior years
(40,045)
(494)
Group relief
(14,893)
Permanent capital allowances in excess of depreciation
3,344
17,797
Deferred tax adjustments in respect of prior years
296
Chargeable gains
43,444
Adjust deferred tax to average rate
(5,433)
102,521
Taxation (credit)/charge for the year
(311)
167,401
9
Tangible fixed assets
Freehold land
Leasehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
585,858
930,000
3,572,049
65,720
694,898
5,848,525
Additions
11,000
216
23,269
34,485
Disposals
(8,723)
(8,723)
At 31 March 2023
585,858
930,000
3,583,049
65,936
709,444
5,874,287
Depreciation and impairment
At 1 April 2022
2,405,672
57,505
500,556
2,963,733
Depreciation charged in the year
18,600
114,211
3,362
38,886
175,059
Eliminated in respect of disposals
(5,336)
(5,336)
At 31 March 2023
18,600
2,519,883
60,867
534,106
3,133,456
Carrying amount
At 31 March 2023
585,858
911,400
1,063,166
5,069
175,338
2,740,831
At 31 March 2022
585,858
930,000
1,166,377
8,215
194,342
2,884,792
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Tangible fixed assets
(Continued)
- 21 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
359,476
290,326
Motor vehicles
147,022
155,942
506,498
446,268
Freehold land and certain items of plant and machinery were accounted for at deemed cost of £585,858 and £580,000 respectively at 30 September 2016. At 31 March 2023 the directors still consider those valuations to be appropriate.
Leasehold buildings were valued at £930,000 at January 2023 on a market value with vacant possession basis by Rennie Property Consultants, an independent firm of Chartered Surveyors.
The historic cost of the revalued fixed assets at 31 March 2023 was £970,442 (2022 - £970,442) with net book values thereon of £232,558 (2022 - £238,838).
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
57,002
57,002
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 April 2022 & 31 March 2023
57,002
Carrying amount
At 31 March 2023
57,002
At 31 March 2022
57,002
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
11
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Avonfield Limited
5 River Drive, Teaninich Industrial Estate, Alness, Ross-shire, IV19 0PG
Hotelier
Ordinary
100.00
Avonmanse Limited
As above
Dormant
Ordinary
100.00
Calrichie Land Management Limited
As above
Sale of waste composite products
Ordinary
100.00
Munro (Highland) Limited
As above
Haulage and waste disposal contracting
Ordinary
100.00
The non-dormant subsidiaries of Avonfield Limited (Registration number SC379471), Calrichie Land Management Ltd. (Registration number SC210135) and Munro (Highland) Limited (Registration number SC061156) have claimed exemption from preparing audited financial statements under section S479A of the Companies Act 2006 relating to subsidiary companies.
12
Stocks
2023
2022
£
£
Work in progress
1,413,287
574,029
Finished goods and goods for resale
845,982
1,061,182
2,259,269
1,635,211
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
294,921
219,708
Gross amounts owed by contract customers
42,738
Amounts owed by group undertakings
950,751
933,655
Other debtors
182,556
315,591
Prepayments and accrued income
110,923
68,041
1,581,889
1,536,995
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
227,562
152,559
Obligations under finance leases
17
7,991
48,460
Other borrowings
16
240,000
120,000
Trade creditors
463,885
514,391
Amounts owed to group undertakings
403,312
340,894
Corporation tax
162,889
104,871
Other taxation and social security
61,856
32,039
Other creditors
139,147
101,797
Accruals and deferred income
305,642
273,280
2,012,284
1,688,291
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
20,680
31,630
Obligations under finance leases
17
52,050
76,638
Other borrowings
16
800,000
800,000
872,730
908,268
16
Loans and overdrafts
2023
2022
£
£
Bank loans
30,680
41,630
Bank overdrafts
217,562
142,559
Other loans
1,040,000
920,000
1,288,242
1,104,189
Payable within one year
467,562
272,559
Payable after one year
820,680
831,630
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Loans and overdrafts
(Continued)
- 24 -
Other loans represent amounts owed to the company's retirement benefit scheme.
The original loan from retirement benefit scheme, of which £40,000 was outstanding at the year end, accrues interest at 1.5% per annum. This loan is repayable over a 5 year period from the date of drawdown. At 31 March 2023, the maturity date of the loan falls due within one year and has been repaid subsequent to the year end.
Further loans were obtained in 2019 of £500,000 and in 2020 of £300,000 from the retirement benefit scheme which both accrue interest at 3.0% plus base per annum. During the year, maturity dates on these loans were extended to 2024 and 2025 respectively.
Two additional loans, each of £100,000, were taken obtained from the pension scheme during the year. These loan balances accrue interest at 3.0% above the base rate with maturity dates falling due within one year at 31 March 2023.
A bank loan of which £30,680 is outstanding at the year end is repayable in 42 monthly instalments by June 2026 with interest being charged at a fixed rate of 2.5%
The bank overdraft is secured by a bond and floating charge over the assets of the company.
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
7,991
48,460
In two to five years
56,863
95,179
64,854
143,639
Less: future finance charges
(4,813)
(18,541)
60,041
125,098
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Obligations under finance leases are secured against the assets to which they relate.
18
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
19
404,534
427,171
404,534
427,171
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
264,866
287,502
Capital gains
139,668
139,669
404,534
427,171
2023
Movements in the year:
£
Liability at 1 April 2022
427,171
Credit to profit and loss
(22,637)
Liability at 31 March 2023
404,534
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit and loss in respect of defined contribution schemes
25,515
25,767
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2023
2022
£
£
Issued and fully paid
20,002 Ordinary Shares of £1 each
20,002
20,002
22
Revaluation reserve
The revaluation reserve relates to the surplus recognised on the revaluation of property, plant and equipment within tangible fixed assets. The tax impact of those items is also reflected through the revaluation reserve.
23
Profit and loss reserves
The profit and loss reserves represent accumulated profits less distributions.
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
24
Financial commitments, guarantees and contingent liabilities
As noted in note 16 to the financial statements, as at 31 March 2023, the balance sheet includes loans amounting to £1,040,000 owed by the company to the retirement benefit scheme for which it is the sponsoring employer. No provision has been recognised in respect of any potential tax liabilities associated with these loans - which could result in a possible outflow from the company since there is insufficient information available to reliably measure any such amounts.
25
Operating lease commitments
At 31 March 2023 the company was committed to making the following payments under non-cancellable operating leases:
2023
2022
£
£
Within one year
61,175
61,175
Between two and five years
152,938
61,175
214,113
The lease payments recognised as an expense amount to £61,175 (2022 - £84,700) and represent leases that are continuing on a 12 month rolling basis at 31 March 2023.
26
Events after the reporting date
Subsequent the year end, the company disposed of the leasehold buildings to its retirement benefit scheme for a consideration of £675,000 and acquired development land from its retirement benefit scheme for a consideration of £249,000.
27
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales to:
Rent charged in the year from:
2023
2022
2023
2022
£
£
£
£
Other related parties
-
21,542
63,263
83,700
Expenditure recharged in the year to:
2023
2022
£
£
Other related parties
47,972
50,083
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
27
Related party transactions
(Continued)
- 27 -
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts owed to related parties
£
£
Other related parties
1,174,513
1,062,500
Amounts owed to related parties included the loans detailed in note 16 in addition to accrued interest thereon of £42,750 and rent charged in the year.
2023
2022
Amounts owed by related parties
£
£
Other related parties
78,885
310,943
Other related parties include the company pension scheme and an unincorporated entity controlled by a director.
At the year end the company owed a balance of £9,291 (2022 - £10,800) to key management personnel. This balance is unsecured, interest free and has no fixed terms of repayment.
The company has taken advantage of the exemption available within FRS102 Section 33 paragraph 33.1A from the requirement to disclose transactions with its wholly owned subsidiaries.
28
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit/(loss) for the year after tax
295,461
(156,819)
Adjustments for:
Taxation (credited)/charged
(311)
167,401
Finance costs
59,183
60,981
(Gain)/loss on disposal of tangible fixed assets
(3,613)
7,492
Depreciation and impairment of tangible fixed assets
175,059
385,550
Movements in working capital:
(Increase)/decrease in stocks
(624,058)
329,669
Increase in debtors
(44,894)
(150,186)
Increase/(decrease) in creditors
111,441
(90,684)
Cash (absorbed by)/generated from operations
(31,732)
553,404
WILLIAM MUNRO CONSTRUCTION (HIGHLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
29
Analysis of changes in net debt
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
115
36,288
-
36,403
Bank overdrafts
(142,559)
(75,003)
-
(217,562)
(142,444)
(38,715)
(181,159)
Borrowings excluding overdrafts
(961,630)
(109,050)
-
(1,070,680)
Obligations under finance leases
(125,098)
85,289
(20,232)
(60,041)
(1,229,172)
(62,476)
(20,232)
(1,311,880)
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