Company registration number 03045533 (England and Wales)
THAMES MATERIALS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
THAMES MATERIALS LIMITED
COMPANY INFORMATION
Director
M Clarke
Company number
03045533
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 LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
THAMES MATERIALS 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 company'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 company 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 company 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

- Via its parent company, the company 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 company's performance and progress:

 

Turnover £32,902,598; 2022: £33,766,575; 2021: £30,467,500;

Gross profit £8,489,799; 2022: £7,751,374; 2021: £8,468,574;

Gross profit % 25.8%; 2022: 22.9%; 2021:27.8%;

Growth in sales (2.5%); 2022: 10.8%; 2021: 21.3%;

Net profit percentage 5.3%; 2022: 12.7%; 2021: 17,3%;

Net current assets £36,150,154; 2022: £33,896,315; 2021: £31,465,310;

 

The director is pleased with the trading results and financial position for the year. Although turnover reduced by 2.5% the company managed to achieve an increase in gross profits and GP percentage. It is also satisfying to achieve these results and maintain its net assets value with the continued high prices of fuel and energy since the early part of 2022, and operating in a very competitive industry market throughout the year. The company 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 company, via its parent company, 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 company has invested for a third year in its job management systems which is making the flow of operating and financial data far more efficient and accurate with the company's core activities. The director is confident that the company will continue to trade profitably into the future.

 

 

THAMES MATERIALS 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 company's operation and strategy are credit risk, liquidity risk, operating regulation, the economy and competition.

 

Via its holding company, the company'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 company has the financial resources to comfortably manage. The financing function of its asset purchases is carried on by the company's parent company, this company will still support its parent as required with servicing this debt. The company has various other financial assets and liabilities predominantly trade receivables and supplier payables which are, again, well maintained and controlled. The company 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 company does not have any other interest bearing debt finance with banks or other finance institutions.

 

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

 

The company has a good level of cash assets and manages its finance aided purchases closely. The company 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 company 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 company 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 company's products. The director believes that the continual update of the most advanced vehicles and plant, the company'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 company's objectives and strategy. The company 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 company 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 company 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 company 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 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

On behalf of the board

 

M Clarke
Director
26 July 2024
THAMES MATERIALS 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 activity of the company continued to be that of road haulage, muck away and recycling.

Results and dividends

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

Ordinary dividends were paid amounting to £100,000. The director does not recommend payment of a final dividend.

Director

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

M Clarke
Auditor

Bruton Charles were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
M Clarke
Director
26 July 2024
THAMES MATERIALS 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 company and of the profit or loss of the company 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 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. He is 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.

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

We have audited the financial statements of Thames Materials Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of income and retained earnings, the balance sheet, the 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 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 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 LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF THAMES MATERIALS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the 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 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 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 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.

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

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 company and the industry in which the company 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 company 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 LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF THAMES MATERIALS 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 company'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 member 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 member those matters we are required to state to the member 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 member, 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
The Coach House
Greys Green Business Centre
Henley-on-Thames
Oxfordshire
RG9 4QG
THAMES MATERIALS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
2
32,902,598
33,766,575
Cost of sales
(24,412,799)
(26,015,201)
Gross profit
8,489,799
7,751,374
Administrative expenses
(3,903,625)
(3,690,426)
Other operating income
339,138
319,158
Paye and NIC costs
3
(2,894,182)
-
0
Operating profit
5
2,031,130
4,380,106
Interest receivable and similar income
7
309,045
96,983
Interest payable and similar expenses
8
(264,149)
(203,640)
Other loans written off
(320,000)
-
Profit before taxation
1,756,026
4,273,449
Tax on profit
9
(592,812)
(874,962)
Profit for the financial year
1,163,214
3,398,487
Retained earnings brought forward
30,914,802
27,616,315
Dividends
10
(100,000)
(100,000)
Retained earnings carried forward
31,978,016
30,914,802
THAMES MATERIALS LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
635,847
755,351
Current assets
Stocks
13
349,177
280,120
Debtors
14
31,319,658
28,276,908
Cash at bank and in hand
11,091,838
10,216,040
42,760,673
38,773,068
Creditors: amounts falling due within one year
15
(6,610,519)
(4,876,753)
Net current assets
36,150,154
33,896,315
Total assets less current liabilities
36,786,001
34,651,666
Creditors: amounts falling due after more than one year
16
(4,762,099)
(3,678,555)
Provisions for liabilities
Deferred tax liability
17
45,786
58,209
(45,786)
(58,209)
Net assets
31,978,116
30,914,902
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
31,978,016
30,914,802
Total equity
31,978,116
30,914,902
The financial statements were approved and signed by the director and authorised for issue on 26 July 2024
M Clarke
Director
Company Registration No. 03045533
THAMES MATERIALS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
7,723,298
6,067,239
Interest paid
(264,149)
(203,640)
Income taxes paid
(1,155,030)
(1,187,497)
Net cash inflow from operating activities
6,304,119
4,676,102
Investing activities
Other loans written off
(320,000)
-
0
Purchase of tangible fixed assets
(82,212)
(41,029)
Proceeds from disposal of tangible fixed assets
126,000
-
0
Loan payments
(5,361,154)
(888,596)
Interest received
309,045
96,983
Net cash used in investing activities
(5,328,321)
(832,642)
Financing activities
Repayment of bank loans
-
0
(3,598)
Dividends paid
(100,000)
(100,000)
Net cash used in financing activities
(100,000)
(103,598)
Net increase in cash and cash equivalents
875,798
3,739,862
Cash and cash equivalents at beginning of year
10,216,040
6,476,178
Cash and cash equivalents at end of year
11,091,838
10,216,040
THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
1
Accounting policies
Company information

Thames Materials Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Coach House, Greys Green Business Centre, Rotherfield Greys, Henley on Thames, Oxon, RG9 4QG.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, 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 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: 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 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

 

The financial statements of the company are consolidated in the financial statements of Thames Materials Holding Limited. These consolidated financial statements are available from its registered office, The Coach House, Greys Green Business Centre, Henley-on-Thames, Oxfordshire, RG9 4QG.

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company 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.

1.2
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.

1.3
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.

THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -

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 the fixed assets note 11
Land and buildings Leasehold
Over the term of the lease
Leasehold improvements
20% reducing balance basis
Plant and machinery
20% reducing balance basis
Fixtures, fittings & equipment
20% reducing balance basis
Motor vehicles
20% 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 credited or charged to profit or loss.

1.4
Impairment of fixed assets

At each reporting period end date, the company 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.

1.5
Stocks

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

1.6
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.

1.7
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, 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 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -
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 company 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 company 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.9
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 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 when the company has 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.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

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.

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 leases asset are consumed.

THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Road haulage, muck away and recycling
32,902,598
33,766,575
2023
2022
£
£
Other revenue
Interest income
309,045
96,983
Rent receivable
339,138
319,158

All of the turnover as shown above was to UK based customers.

3
Exceptional item
2023
2022
£
£
Expenditure
PAYE and NIC costs
2,894,182
-

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

4
Employees

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

2023
2022
Number
Number
Management
4
4
Finance and administration
3
3
Logistics back office
17
14
Sales
2
2
Drivers
67
59
Total
93
82
THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
4
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,293,508
3,897,954
Social security costs
479,336
481,652
Pension costs
74,462
115,521
4,847,306
4,495,127
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
6,532
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
23,700
23,000
Depreciation of owned tangible fixed assets
84,329
91,673
Profit on disposal of tangible fixed assets
(8,613)
-
0
Operating lease charges
846,450
735,772
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
72,870
75,269
7
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
309,045
353,382
THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
8
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
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
605,235
870,033
Deferred tax
Origination and reversal of timing differences
(12,423)
4,929
Total tax charge
592,812
874,962

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
1,756,026
4,273,449
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
439,007
811,955
Tax effect of expenses that are not deductible in determining taxable profit
218,075
89,790
Effect of change in corporation tax rate
(66,718)
-
0
Permanent capital allowances in excess of depreciation
14,871
(1,712)
Research and development tax credit
-
0
(30,000)
Deferred tax movement in the year
(12,423)
4,929
Taxation charge for the year
592,812
874,962
10
Dividends
2023
2022
£
£
Interim paid
100,000
100,000
THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
11
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 November 2022
355,670
111,590
82,263
1,566,684
366,629
616,982
3,099,818
Additions
-
0
-
0
-
0
-
0
82,212
-
0
82,212
Disposals
-
0
-
0
-
0
(1,097,395)
-
0
(537,941)
(1,635,336)
At 31 October 2023
355,670
111,590
82,263
469,289
448,841
79,041
1,546,694
Depreciation and impairment
At 1 November 2022
-
0
111,590
61,665
1,407,962
196,557
566,693
2,344,467
Depreciation charged in the year
-
0
-
0
4,120
31,745
38,544
9,920
84,329
Eliminated in respect of disposals
-
0
-
0
-
0
(1,009,883)
-
0
(508,066)
(1,517,949)
At 31 October 2023
-
0
111,590
65,785
429,824
235,101
68,547
910,847
Carrying amount
At 31 October 2023
355,670
-
0
16,478
39,465
213,740
10,494
635,847
At 31 October 2022
355,670
-
0
20,598
158,722
170,072
50,289
755,351
THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
11
Tangible fixed assets
(Continued)
- 20 -

No depreciation is provided on the Freehold land and buildings as a result of a program of regular repairs and maintenance that is carried out and in the opinion of the director the market value of these properties is greater then the carrying value.

12
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
28,679,995
27,646,758
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
1,412,921
2,220,367
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
349,177
280,120
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
7,190,743
9,616,638
Corporation tax recoverable
2,297,445
162,136
Amounts owed by group undertakings
1,804,855
7,029,975
Other debtors
19,684,398
11,000,148
Prepayments and accrued income
342,217
468,011
31,319,658
28,276,908
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,398,839
2,205,298
Corporation tax
1,976,856
391,342
Other taxation and social security
3,027,047
2,072,273
Other creditors
14,082
15,069
Accruals and deferred income
193,695
192,771
6,610,519
4,876,753
THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
16
Creditors: amounts falling due after more than one year
2023
2022
£
£
Taxation and social security
4,762,099
3,678,555
17
Deferred taxation
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
45,786
58,209
2023
Movements in the year:
£
Liability at 1 November 2022
58,209
Credit to profit or loss
(12,423)
Liability at 31 October 2023
45,786
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
74,462
115,521

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.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
20
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
67,631
362,952
Between two and five years
41,276
68,438
108,907
431,390
21
Related party transactions

During the year £200,000 (2022 : £200,000) of rent was paid to a connected company in respect of the company'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 (2022: £Nil) was owed to this company in respect of this rental.

 

Included within other debtors is a directors loan amounting to £6,720,806 due from M Clarke, (2022: £1,491,568).

 

During the year the company 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), £184,318 (2022: £184,318) and £518,093 (2022: £18,093) respectively. These amounts were owed to the group as at the year end and are disclosed within other debtors.

 

 

The company is taking advantage of the exemption from disclosing transactions and balances with its parent company as it holds 100% of the shares in this company and its accounts are being consolidated into the parent company financial statements.

THAMES MATERIALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,163,214
3,398,487
Adjustments for:
Taxation charged
592,812
874,962
Finance costs
264,149
203,640
Investment income
(309,045)
(96,983)
Gain on disposal of tangible fixed assets
(8,613)
-
0
Other loans written off
320,000
-
Depreciation and impairment of tangible fixed assets
84,329
91,673
Movements in working capital:
Increase in stocks
(69,057)
(186,997)
Decrease in debtors
4,453,713
3,278,823
Increase/(decrease) in creditors
1,231,796
(1,496,366)
Cash generated from operations
7,723,298
6,067,239
23
Analysis of changes in net funds
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
10,216,040
875,798
11,091,838
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