Company number 08626874 (England & wales)
THAMES MATERIALS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
THAMES MATERIALS HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr M Clarke
Company number
08626874
Registered office
The Coach House
Greys Green Business Centre
Rotherfield Greys
Henley on Thames
Oxon
RG9 4QG
Auditor
Bruton Charles
The Coach House
Greys Green Business Centre
Henley-on-Thames
Oxfordshire
RG9 4QG
THAMES MATERIALS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 33
THAMES MATERIALS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The director presents the strategic report for the year ended 31 October 2023.

Review of the business

The director can summarise the group's main objectives as follows:-

- Sustaining its trading growth and profitability

- Achieving growth and profits by demonstrating high level compliance with health and safety and environmental regulations

- Maintaining a strong industry reputation

- Continuing to deliver services to a high degree of quality from its strong training and fleet safety programs.

- Continuing to offer a comprehensive range of Haulage services and plant provision at competitive prices

- Seeking to operate as efficiently as possible

- Maximising the re-cycling of materials and products

 

The group has adopted strategies to ensure that it is achieving its objectives and these are reviewed regularly by the director and key management; these are:-

- The group maintains a strong industry networking relationship system that allows it to maintain its level of sales

- It purposefully seeks to trade with reputable organisations carrying out detailed profile research procedures prior to acting for customers

- The group continually updates its plant and equipment to hold the most up to date and highest quality items

- It constantly seeks out synergies with its haulage and recycling activities

- It strives to deliver a high quality service to its customers providing a combination of experienced drivers and a reliable fleet.

- It retains a core of key personnel for the long term who play a central role in the operations of the company in areas such as customer and supplier relationships and staff management

- It continually reviews the way that it operates its trading activities to identify improvements to efficiency

 

The director has identified the following Key performance indicators to assist in his measurement of the group's performance and progress:

 

Turnover £32,471,594; 2022: £34,052,387; 2021: £30,467,423;

Gross profit £12,739,104; 2022: £11,664,302; 2021: £11,194,131;

Gross profit % 39.2%; 2022: 34.2%; 2021: 36.7%;

Growth in sales (4.6%); 2022: 11.76%; 2021: 20.9%

Net profit percentage 18.2%; 2022: £23.6% 2021: 25.9%;

Net current assets £39,826,259; 2022: £32,489,277: 2021: £27,773,321; 2020: £23,004,021;

 

The director is pleased with the trading results and financial position for the year. Although turnover slightly reduced the group managed to achieve an increase in gross profits and GP percentage. It is also satisfying to achieve these results and increase its net assets value with the continued high prices of fuel and energy costs since the early part of 2022, and operating in a very competitive industry market throughout the year. The group has continued to trade with a very wide and varied client base which has mitigated effects from strong levels of competition that are faced. The group invested heavily in its lorries, plant and equipment during the 2022 year and so did not need to do so this year, but continued with a program of high levels of maintenance so as to operate with plant and vehicles of the highest quality. The group has invested for a third year in its job management systems which are making the flow of operating and financial data far more efficient and accurate with the group's core activities. The director is confident that the group will continue to trade profitably into the future.

 

 

 

 

THAMES MATERIALS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Principal risks and uncertainties

The director considers that the principal risks and uncertainties that are relevant to the group's operation and strategy are credit risk, liquidity risk, operating regulation, the economy and competition.

 

The group's principal financial instruments are hire purchase and finance lease contracts that are used to purchase its fleet of vehicles and plant and equipment. These are all short term fixed interest agreements that the group has the financial resources to comfortably manage. The group has various other financial assets and liabilities predominantly trade receivables and supplier payables which are, again, well maintained and controlled. The group uses credit insurance for a large amount of its sales to customers on credit and looks into each new customer carefully before the offer of credit is made which mitigates a high proportion of risks associated with bad debts. Currently, the group does not have any other interest bearing debt finance with banks or other finance institutions.

 

The group predominantly conducts its business within the UK and therefore it has very little foreign exchange rate fluctuations risks.

 

The group has a good level of cash assets and manages its finance aided purchases closely. The group does not use aggressive or high risk growth strategies concentrating on more targeted and careful customer and product choice. Therefore it does not view liquidity risk as a major concern.

 

The group takes health and safety and the environment very seriously and has specifically allocated a manager to oversee compliance. It has accreditation with such bodies as 'FORS', (at gold level), and CHAS. It carries out extensive staff and driver training on health safety and has developed procedures to risk assess each project that it is to work on. The group therefore feels that it fully mitigates any risks associated with health and safety and the environment.

 

The director recognises that competitors and the state of the economy form a risk to the level of demand for the group's products. The director believes that the continual update of the most advanced vehicles and plant, the group's long established track record and its high levels of quality in respect of health and safety and environmental policies can counter this risk effectively.

 

 

Environment

Reducing the environmental impact of waste, repurposing as much waste as possible and playing its part in the circular economy drive is a key part of the group's objectives and strategy. The group has been able to achieve this via its own 'Environmental Agency' permitted recycling facility and by the use of other highly reputable recycling tip sites.

 

Its own site uses a state of the art washing and recycling facility that enables the group to produce Wrap approved materials, an action programme that aids working towards a circular economy and reducing waste. The company uses up to date testing of all materials that pass through its facility. The water used in the washing process is recycled to ensure the minimum environmental impact and a bespoke drainage system has been installed to store surface and rain water that can be used in the washing process.

 

Via its own facility and from the use of environmentally approved external tip sites the group has been able to divert from Landfill over 95% of all waste received, allowing it to be re-used in land restoration projects and building & construction work. The group has been certified by BSI with 'BES 6001 certification' in respect of Responsibility Sourcing of Products which underpins its supply chain management and control of the environmental effect of its operations.

 

THAMES MATERIALS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

On behalf of the board

Mr M Clarke
Director
26 July 2024
THAMES MATERIALS HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -

The director presents his annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activities of the company and group continued to be that of Road Haulage & Plant Hire.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr M Clarke
Results and dividends

The results for the year are set out on page 9.

 

Auditor

In accordance with the company's articles, a resolution proposing that Bruton Charles be reappointed as auditor of the group will be put at a General Meeting.

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 auditor of the company is unaware. Additionally, the directors individually 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 auditor of the company is aware of that information.

On behalf of the board
Mr M Clarke
Director
26 July 2024
THAMES MATERIALS HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THAMES MATERIALS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THAMES MATERIALS HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Thames Materials Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

THAMES MATERIALS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THAMES MATERIALS HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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.

 

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 misstatement in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

As a result of the activities of the group and the industry in which the group operates, we identified the following arears of laws and regulations as the most likely to have a material impact on the financial statements: Health and Safety; Employment law (including the Working Time Directive); DVSA legislation; environmental laws in respect of recycling, including hazardous waste. Based on this knowledge we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of how the group has operated that may be contrary to applicable laws and regulations and an evaluation of management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).

THAMES MATERIALS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THAMES MATERIALS HOLDINGS LIMITED
- 8 -

Audit procedures performed as part of our audit included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Reviewing the group's accounting systems and applicable controls in place to prevent and detect irregularities.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

 

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. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment or though collusion. Additionally, the further removed non-compliance is from the events and transactions reflected in the financial statements , the less likely the auditor is to become aware of it or to recognise the non-compliance.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Neil Major (Senior Statutory Auditor)
For and on behalf of Bruton Charles
26 July 2024
Chartered Accountants
Statutory Auditor
THAMES MATERIALS HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
32,471,594
34,052,387
Cost of sales
(19,732,490)
(22,388,085)
Gross profit
12,739,104
11,664,302
Administrative expenses
(4,027,441)
(3,770,759)
Other operating income
372,283
329,498
PAYE and NIC costs
2
(2,894,182)
-
0
Operating profit
6
6,189,764
8,223,041
Interest receivable and similar income
8
309,045
96,983
Interest payable and similar expenses
7
(275,982)
(256,381)
Other loans written off
(320,000)
-
Profit before taxation
5,902,827
8,063,643
Tax on profit
9
(1,867,532)
(1,476,672)
Profit for the financial year
4,035,295
6,586,971
Profit for the financial year is all attributable to the owner of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THAMES MATERIALS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
2023
2022
£
£
Profit for the year
4,035,295
6,586,971
Other comprehensive income
-
-
Total comprehensive income for the year
4,035,295
6,586,971
Total comprehensive income for the year is all attributable to the owners of the parent company.
THAMES MATERIALS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
10,821,550
13,178,429
Current assets
Stocks
15
349,177
280,120
Debtors
16
33,502,944
25,092,034
Cash at bank and in hand
13,784,907
12,963,779
47,637,028
38,335,933
Creditors: amounts falling due within one year
17
(7,810,769)
(5,846,656)
Net current assets
39,826,259
32,489,277
Total assets less current liabilities
50,647,809
45,667,706
Creditors: amounts falling due after more than one year
18
(4,775,010)
(3,954,166)
Provisions for liabilities
Deferred tax liability
20
1,728,691
1,504,727
(1,728,691)
(1,504,727)
Net assets
44,144,108
40,208,813
Capital and reserves
Called up share capital
22
1
1
Profit and loss reserves
44,144,107
40,208,812
Total equity
44,144,108
40,208,813
The financial statements were approved and signed by the director and authorised for issue on 26 July 2024
26 July 2024
Mr M Clarke
Director
Company registration number 08626874 (England and Wales)
THAMES MATERIALS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
8,649,780
10,887,155
Investments
12
200
200
8,649,980
10,887,355
Current assets
Debtors
16
4,131,424
3,990,601
Cash at bank and in hand
2,417,723
2,464,944
6,549,147
6,455,545
Creditors: amounts falling due within one year
17
(1,286,400)
(6,294,475)
Net current assets
5,262,747
161,070
Total assets less current liabilities
13,912,727
11,048,425
Creditors: amounts falling due after more than one year
18
(12,911)
(275,611)
Provisions for liabilities
Deferred tax liability
20
1,682,905
1,446,518
(1,682,905)
(1,446,518)
Net assets
12,216,911
9,326,296
Capital and reserves
Called up share capital
22
1
1
Profit and loss reserves
12,216,910
9,326,295
Total equity
12,216,911
9,326,296

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,990,615 (2022 - £3,315,156 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 26 July 2024
26 July 2024
Mr M Clarke
Director
Company registration number 08626874 (England and Wales)
THAMES MATERIALS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
1
33,721,841
33,721,842
Year ended 31 October 2022:
Profit and total comprehensive income
-
6,586,971
6,586,971
Dividends
10
-
(100,000)
(100,000)
Balance at 31 October 2022
1
40,208,812
40,208,813
Year ended 31 October 2023:
Profit and total comprehensive income
-
4,035,295
4,035,295
Dividends
10
-
(100,000)
(100,000)
Balance at 31 October 2023
1
44,144,107
44,144,108
THAMES MATERIALS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
1
6,111,139
6,111,140
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
3,315,156
3,315,156
Dividends
10
-
(100,000)
(100,000)
Balance at 31 October 2022
1
9,326,295
9,326,296
Year ended 31 October 2023:
Profit and total comprehensive income
-
2,990,615
2,990,615
Dividends
10
-
(100,000)
(100,000)
Balance at 31 October 2023
1
12,216,910
12,216,911
THAMES MATERIALS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
7,953,433
11,529,846
Interest paid
(275,982)
(256,381)
Income taxes paid
(1,439,928)
(1,672,692)
Net cash inflow from operating activities
6,237,523
9,600,773
Investing activities
Other loans written off
(320,000)
-
Purchase of tangible fixed assets
(158,813)
(4,209,250)
Proceeds on disposal of tangible fixed assets
1,082,203
998,161
Payment of loans
(5,361,977)
(888,596)
Interest received
309,045
96,983
Net cash used in investing activities
(4,449,542)
(4,002,702)
Financing activities
Repayment of bank loans
-
(3,598)
Payment of finance leases obligations
(866,853)
(826,373)
Dividends paid to equity shareholders
(100,000)
(100,000)
Net cash used in financing activities
(966,853)
(929,971)
Net increase in cash and cash equivalents
821,128
4,668,100
Cash and cash equivalents at beginning of year
12,963,779
8,295,679
Cash and cash equivalents at end of year
13,784,907
12,963,779
THAMES MATERIALS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
237,584
5,474,552
Interest paid
(11,833)
(52,741)
Income taxes paid
(284,898)
(485,195)
Net cash (outflow)/inflow from operating activities
(59,147)
4,936,616
Investing activities
Purchase of tangible fixed assets
(76,601)
(4,168,221)
Proceeds on disposal of tangible fixed assets
956,203
998,161
Receipts/ (payments) arising from loans made
(823)
-
0
Dividends received
100,000
100,000
Net cash generated from/(used in) investing activities
978,779
(3,070,060)
Financing activities
Payment of finance leases obligations
(866,853)
(826,373)
Dividends paid to equity shareholders
(100,000)
(100,000)
Net cash used in financing activities
(966,853)
(926,373)
Net (decrease)/increase in cash and cash equivalents
(47,221)
940,183
Cash and cash equivalents at beginning of year
2,464,944
1,524,761
Cash and cash equivalents at end of year
2,417,723
2,464,944
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
1
Accounting policies
Company information

Thames Materials Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Thames Materials Holdings Limited and all of its subsidiaries.

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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The consolidated group financial statements consist of the financial statements of the parent company Thames Materials Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 October 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.2
Business combinations

On 1 November 2014 pursuant to a Scheme of Arrangement under Part 26 of the Companies Act 2006 this company was introduced to hold the entire issued share capital in its trading subsidiary company, Thames Materials Limited.

 

The introduction of this company constituted a Group reconstruction and has been accounted for using merger accounting principles, which FRS 102 permits. Therefore although the Group reconstruction in respect of this subsidiary did not become effective until 1 November 2014 the consolidated financial statements of Thames Materials Holdings Limited are presented as if this holding company and this subsidiary company have always been part of the same group. Accordingly, the results of the Group for the year ended 31 October 2023 are shown in the consolidated Profit and Loss account.

1.3
Basis of consolidation

The basis of consolidation for the parent company and its subsidiary Thames Materials Limited is stated above as a business combination. In respect of Thames Materials Property Holdings Limited the group has applied the acquisition method of accounting. This subsidiary was acquired on its incorporation when the fair value of net assets was only its share capital. Profits or losses and other comprehensive income of this subsidiary are recognised from the effective date of acquisition, so in this case all of these will be recognised by the group.

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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:

Land and buildings Freehold
See fixed assets note 11
Land and buildings Leasehold
Over the term of the lease
Leasehold improvements
Over the term of the lease
Plant and equipment
10% and 20% on a reducing balance basis
Fixtures, fittings & equipment
20% on a reducing balance basis
Motor vehicles
15% and 20% on a reducing balance basis

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 recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.8
Stocks

Stocks 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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group’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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
2
Exceptional item
2023
2022
£
£
Expenditure
PAYE and NIC costs
2,894,182
-

The exceptional item above represents a provision made for the settlement of PAYE and NIC in respect of previous year's tax schemes.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Road Haulage & Plant Hire
32,471,594
34,052,387
2023
2022
£
£
Other significant revenue
Interest income
309,045
96,983
Rent receivable
339,138
319,158
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,100
5,250
Audit of the financial statements of the company's subsidiaries
27,050
26,000
34,150
31,250
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
6
6
1
1
Finance & Administration
3
3
-
-
Back office & logistics
17
14
-
-
Sales
2
2
-
-
67
59
-
-
Total
95
84
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,293,508
3,897,954
-
0
-
0
Social security costs
479,336
481,652
-
0
-
0
Pension costs
74,462
115,521
-
0
-
0
4,847,306
4,495,127
-
0
-
0
6
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
6,532
-
0
Depreciation of owned tangible fixed assets
1,321,288
1,342,829
Depreciation of tangible fixed assets held under finance leases
350,088
542,522
Profit on disposal of tangible fixed assets
(237,887)
(61,247)
Operating lease charges
846,450
735,772
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
0
63
Other interest on financial liabilities
264,149
203,577
264,149
203,640
Other finance costs:
Interest on finance leases and hire purchase contracts
11,833
47,842
Other interest
-
4,899
Total finance costs
275,982
256,381
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
234,065
19,257
Other interest income
74,980
353,382
Total income
309,045
353,382

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
300,534
353,382
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,643,568
870,033
Adjustments in respect of prior periods
-
0
(209)
Total current tax
1,643,568
869,824
Deferred tax
Origination and reversal of timing differences
223,964
606,848
Total tax charge for the year
1,867,532
1,476,672
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Taxation
(Continued)
- 25 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
5,902,827
8,063,643
Expected tax charge based on an effective rate of corporation tax in the UK of 25.00% (2022: 19.00%)
1,475,707
1,532,092
Tax effect of expenses that are not deductible in determining taxable profit
221,350
94,890
Tax effect of utilisation of tax losses not previously recognised
(108,951)
-
0
Unutilised tax losses carried forward
-
0
82,802
Effect of change in corporation tax rate
(189,948)
-
Permanent capital allowances in excess of depreciation
245,410
(809,960)
Research and development tax credit
-
0
(30,000)
Deferred tax charge (credit) for the year
223,964
606,848
Taxation charge for the year
1,867,532
1,476,672
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
100,000
100,000
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
11
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Leasehold improvements
Plant and equipment
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 November 2022
1,891,593
111,590
82,263
10,447,048
366,629
8,438,988
21,338,111
Additions
-
0
-
0
-
0
8,250
82,212
68,351
158,813
Disposals
-
0
-
0
-
0
(2,211,395)
-
0
(1,468,435)
(3,679,830)
At 31 October 2023
1,891,593
111,590
82,263
8,243,903
448,841
7,038,904
17,817,094
Depreciation and impairment
At 1 November 2022
-
0
111,590
61,665
4,712,824
196,557
3,077,046
8,159,682
Depreciation charged in the year
-
0
-
0
4,120
857,328
38,544
771,384
1,671,376
Eliminated in respect of disposals
-
0
-
0
-
0
(1,759,172)
-
0
(1,076,342)
(2,835,514)
At 31 October 2023
-
0
111,590
65,785
3,810,980
235,101
2,772,088
6,995,544
Carrying amount
At 31 October 2023
1,891,593
-
0
16,478
4,432,923
213,740
4,266,816
10,821,550
At 31 October 2022
1,891,593
-
0
20,598
5,734,224
170,072
5,361,942
13,178,429
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 27 -
Company
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 November 2022
8,880,364
7,822,006
16,702,370
Additions
8,250
68,351
76,601
Disposals
(1,114,000)
(930,494)
(2,044,494)
At 31 October 2023
7,774,614
6,959,863
14,734,477
Depreciation and impairment
At 1 November 2022
3,304,862
2,510,353
5,815,215
Depreciation charged in the year
825,583
761,464
1,587,047
Eliminated in respect of disposals
(749,289)
(568,276)
(1,317,565)
At 31 October 2023
3,381,156
2,703,541
6,084,697
Carrying amount
At 31 October 2023
4,393,458
4,256,322
8,649,780
At 31 October 2022
5,575,502
5,311,653
10,887,155

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
708,953
834,063
708,953
834,063
Motor vehicles
1,274,878
1,997,850
1,274,878
1,997,850
1,983,831
2,831,913
1,983,831
2,831,913

As a result of a regular program of maintenance and repairs that is carried out, in the opinion of the director, the market value of freehold land and buildings is greater than the carrying value, and so no provision for depreciation on freehold land and buildings has been provided for.

12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
200
200
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
12
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022 and 31 October 2023
200
Carrying amount
At 31 October 2023
200
At 31 October 2022
200
13
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Thames Materials Limited
United Kingdom
Ordinary
100.00
Thames Materials Property Holdings Ltd
United Kingdom
Ordinary
100.00
14
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
30,765,097
24,364,284
4,033,924
3,893,101
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
1,619,895
3,308,938
206,974
6,417,890
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
349,177
280,120
-
0
-
0
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,192,377
9,616,638
-
0
-
0
Unpaid share capital
100
100
-
0
-
0
Corporation tax recoverable
2,394,945
259,636
97,500
97,500
Amounts owed by group undertakings
-
-
145,600
145,600
Other debtors
23,573,305
14,747,649
3,888,324
3,747,501
Prepayments and accrued income
342,217
468,011
-
0
-
0
33,502,944
25,092,034
4,131,424
3,990,601
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
189,280
793,433
189,280
793,433
Trade creditors
1,403,622
2,227,425
4,783
22,127
Amounts owed to group undertakings
-
0
-
0
89,150
5,327,542
Corporation tax payable
2,595,558
256,609
618,702
(134,733)
Other taxation and social security
3,401,732
2,352,871
374,685
280,128
Other creditors
14,082
14,247
-
0
(822)
Accruals and deferred income
206,495
202,071
9,800
6,800
7,810,769
5,846,656
1,286,400
6,294,475
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
12,911
275,611
12,911
275,611
Other taxation and social security
4,762,099
3,678,555
-
0
-
0
4,775,010
3,954,166
12,911
275,611
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
189,280
793,433
189,280
793,433
In two to five years
12,911
275,611
12,911
275,611
202,191
1,069,044
202,191
1,069,044

Finance lease payments represent rentals payable by the company or group 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 finance term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,728,691
1,504,727
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
1,682,905
1,446,518
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
1,504,727
1,446,518
Charge to profit or loss
223,964
236,387
Liability at 31 October 2023
1,728,691
1,682,905
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
74,462
115,521

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
67,631
362,952
-
-
Between two and five years
41,276
68,438
-
-
108,907
431,390
-
-
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 32 -
24
Related party transactions

During the year £200,000 (2022 : £200,000) of rent was paid to a connected company in respect of the group's main business premises and yard at Harefield. The shareholder of this connected company is Martin Clarke. At 31 October 2023 £Nil (2022: £Nil) was owed to this company in respect of this rental.

 

During the year £400,000 (2022: £400,000) was paid to a connected company in respect of the yard at Northolt used in the course of the business. The shareholder of this connected company is Martin Clarke . At 31 October 2023 £Nil (2021: £Nil) was owed to this company in respect of this rental.

 

Included within other debtors is a directors loan amounting to £7,126,545 due from M Clarke, (2022: £1,791,568).

 

During the year the group provided loan finance to a number of companies commonly owned by M Clarke. The resulting balances were £6,195,173 (2022: £3,883,311), £500,000 (2022: £500,000), £Nil (2022: £91,489), £Nil (2022: £893,563), £763,837 (2022: £745,093), £771,898 (2022: £771,898), £1,984,357 (2022: £1,213,600), £1,777,699 (2022: £1,777,699) and £2,372,213 (2022: £1,872,213) respectively. These amounts were owed to the group as at the year end and are disclosed within other debtors.

25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
4,035,295
6,586,971
Adjustments for:
Taxation charged
1,867,532
1,476,672
Finance costs
275,982
256,381
Investment income
(309,045)
(96,983)
Gain on disposal of tangible fixed assets
(237,887)
(61,247)
Other loans written off
320,000
-
Depreciation and impairment of tangible fixed assets
1,671,376
1,885,351
Movements in working capital:
Increase in stocks
(69,057)
(186,997)
(Increase)/decrease in debtors
(913,624)
2,868,290
Increase/(decrease) in creditors
1,312,861
(1,198,592)
Cash generated from operations
7,953,433
11,529,846
THAMES MATERIALS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 33 -
26
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
2,990,615
3,315,156
Adjustments for:
Taxation charged
1,274,720
601,919
Finance costs
11,833
52,741
Investment income
(100,000)
(100,000)
Gain on disposal of tangible fixed assets
(229,274)
(61,247)
Depreciation and impairment of tangible fixed assets
1,587,047
1,793,678
Movements in working capital:
(Increase)/decrease in debtors
(140,000)
169,271
Decrease in creditors
(5,157,357)
(296,966)
Cash generated from operations
237,584
5,474,552
27
Analysis of changes in net funds - group
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
12,963,779
821,128
13,784,907
Obligations under finance leases
(1,069,044)
866,853
(202,191)
11,894,735
1,687,981
13,582,716
28
Analysis of changes in net funds - company
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
2,464,944
(47,221)
2,417,723
Obligations under finance leases
(1,069,044)
866,853
(202,191)
1,395,900
819,632
2,215,532
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