Company registration number 06061138 (England and Wales)
WHITELOCK DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
WHITELOCK DEVELOPMENTS LIMITED
COMPANY INFORMATION
Director
J C Whitelock
Secretary
C Whitelock
Company number
06061138
Registered office
Carleton Road
Skipton
North Yorkshire
BD23 3BT
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Business address
Carleton Road
Skipton
North Yorkshire
BD23 3BT
Bankers
Barclays Bank
49 High St
Skipton
BD23 1DT
WHITELOCK DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
WHITELOCK DEVELOPMENTS 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 results for the company show a pre-tax profit of £0.44m (2022: £1.10m) for the year and turnover of £12.7m (2022: £13.8m).

 

Consistent with the decrease in turnover, gross profit for the year has decreased to £2.25m (2022: £2.43m), achieving a gross profit margin of 17.80% (2021: 17.61%).

 

Strategy

The company’s success is pertained to the track record of its machine hire services and the company regard continued investment into new machinery within a connected company as the foremost way of maintaining its leading market position.

 

The company remains focused on boosting income generated from the quarry and investment into this area is ongoing.

 

The company intends to improve gross profit margin by implementing new strategies to make jobs more streamlined, which will improve efficiency and help reduce costs.

Principal risks and uncertainties

The management of the business and the execution of the company’s strategy are subject to a number of risks.  Risks are rigorously monitored and regularly reviewed by the Board and appropriate processes put in place to manage and mitigate them. 

 

The cost of oil has a significant impact on the company, this has been combatted by increasing sales prices in the prior year to help mitigate the risk of any future cost increases.

 

The cost of wages and salaries have a major impact on the performance of the company. Much of the work performed is labour intensive, resulting in wages being one of the largest company costs. The company will combat any future fluctuations by increasing sales prices, to ensure gross profit margin is maintained.

Key performance indicators

The company monitors progress and the impact of policy adjustments with reference to gross profit margins and EBIT growth combined with ongoing monitoring of our liquidity position.

                    2023    2022

        

Gross Margin            17.80%     17.61% Gross profit generated as a                                 proportion of revenue

 

EBIT                £0.44m    £1.10m    Earnings before interest and tax

On behalf of the board

J C Whitelock
Director
30 July 2024
WHITELOCK DEVELOPMENTS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

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 civil engineering, earth works, environmental services and plant hire.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £140,000. 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:

J C Whitelock
Financial instruments

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Future developments

The company has experienced a decrease in market demand for civil engineering work, due to high levels of inflation and increasing interest rates. Several customers are delaying large projects due to the current economic climate, resulting in a downturn in revenue derived from this stream.

 

As a result, the company has decided to cease the civil engineering trade post year end. The company is putting processes in place to help boost future plant hire and quarry income streams, to reduce the impact of the downturn in civil engineering income.

Auditor

The auditor, JS. Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

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.

WHITELOCK DEVELOPMENTS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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
J C Whitelock
Director
30 July 2024
WHITELOCK DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITELOCK DEVELOPMENTS LIMITED
- 4 -
Opinion

We have audited the financial statements of Whitelock Developments 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:

WHITELOCK DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITELOCK DEVELOPMENTS LIMITED (CONTINUED)
- 5 -
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:

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.

WHITELOCK DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITELOCK DEVELOPMENTS LIMITED (CONTINUED)
- 6 -

Irregularities and fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.

 

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but was not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were completeness of income as well as those related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

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.

WHITELOCK DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITELOCK DEVELOPMENTS LIMITED (CONTINUED)
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Moss BSc F.C.A.
Senior Statutory Auditor
For and on behalf of JS. Audit Limited
31 July 2024
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
WHITELOCK DEVELOPMENTS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
12,651,096
13,800,258
Cost of sales
(10,399,024)
(11,369,746)
Gross profit
2,252,072
2,430,512
Distribution costs
(1,006,042)
(861,833)
Administrative expenses
(864,470)
(530,885)
Other operating income
64,000
60,000
Operating profit
4
445,560
1,097,794
Interest payable and similar expenses
8
(4,760)
(96)
Profit before taxation
440,800
1,097,698
Tax on profit
9
(75,388)
(198,691)
Profit for the financial year
365,412
899,007
Retained earnings brought forward
7,032,161
6,268,672
Dividends
10
(140,000)
(135,518)
Retained earnings carried forward
7,257,573
7,032,161

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

WHITELOCK DEVELOPMENTS LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
115,595
125,258
Current assets
Debtors falling due after more than one year
13
139,298
135,416
Debtors falling due within one year
13
10,995,468
9,187,199
Cash at bank and in hand
966,970
1,306,694
12,101,736
10,629,309
Creditors: amounts falling due within one year
14
(4,951,380)
(3,712,036)
Net current assets
7,150,356
6,917,273
Total assets less current liabilities
7,265,951
7,042,531
Provisions for liabilities
Deferred tax liability
15
8,278
10,270
(8,278)
(10,270)
Net assets
7,257,673
7,032,261
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
18
7,257,573
7,032,161
Total equity
7,257,673
7,032,261
The financial statements were approved and signed by the director and authorised for issue on 30 July 2024
J C Whitelock
Director
Company registration number 06061138 (England and Wales)
WHITELOCK DEVELOPMENTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
18,562
(116,981)
Interest paid
(4,760)
(96)
Income taxes paid
(213,526)
(243,421)
Net cash outflow from operating activities
(199,724)
(360,498)
Investing activities
Purchase of tangible fixed assets
-
0
(92,800)
Proceeds from disposal of tangible fixed assets
-
0
195,502
Net cash (used in)/generated from investing activities
-
102,702
Financing activities
Dividends paid
(140,000)
(135,518)
Net cash used in financing activities
(140,000)
(135,518)
Net decrease in cash and cash equivalents
(339,724)
(393,314)
Cash and cash equivalents at beginning of year
1,306,694
1,700,008
Cash and cash equivalents at end of year
966,970
1,306,694
WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
1
Accounting policies
Company information

Whitelock Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Carleton Road, Skipton, North Yorkshire, BD23 3BT.

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.

 

1.2
Going concern

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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration receivable for the provision of civil engineering, earth works, environmental services and plant hire, shown net of VAT and trade discounts.

Hire revenue is invoiced weekly on a Thursday for the week prior's usage.

 

Civils revenue is invoiced on a job-by-job basis by the Quantity Surveyor working on the job. Larger jobs tend to be invoiced in increments throughout the course of the work. Smaller jobs tend to be invoiced up front.

 

Quarry revenue is invoiced weekly on a Thursday for the week prior's usage.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 4 years.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
2% per annum, straight line basis
Plant and equipment
10% per annum, reducing balance basis
Fixtures and fittings
25% per annum, reducing balance basis
Computers
33% per annum, straight line basis
Motor vehicles
33% per annum, 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.

WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
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.

1.8
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.

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.

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

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
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.

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

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

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.

1.14
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
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The critical estimates made by the directors in preparing theses financial statements relate to the recoverability of trade and related entity debtors.

WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Plant hire
8,712,763
9,787,145
Civil engineering and groundworks
1,436,748
1,450,148
Quarry revenue
2,501,585
2,562,965
12,651,096
13,800,258
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
12,651,096
13,800,258
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
117
-
0
Depreciation of owned tangible fixed assets
9,663
16,093
Operating lease charges
28,500
19,950
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,500
13,000
For other services
All other non-audit services
86,301
18,005
6
Employees

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

2023
2022
Number
Number
Operating
33
34
Administration
6
9
Total
39
43
WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
6
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,376,714
1,426,065
Social security costs
126,638
135,181
Pension costs
25,386
25,698
1,528,738
1,586,944
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
7,500
7,500
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
4,760
96
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
113,223
240,627
Adjustments in respect of prior periods
(35,843)
-
0
Total current tax
77,380
240,627
Deferred tax
Origination and reversal of timing differences
(1,992)
(40,706)
Adjustment in respect of prior periods
-
0
(1,230)
Total deferred tax
(1,992)
(41,936)
Total tax charge
75,388
198,691
WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Taxation
(Continued)
- 17 -

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
440,800
1,097,698
Expected tax charge based on the standard rate of corporation tax in the UK of 22.52% (2022: 19.00%)
99,258
208,563
Tax effect of expenses that are not deductible in determining taxable profit
12,362
1,029
Effect of change in corporation tax rate
(198)
(9,770)
Permanent capital allowances in excess of depreciation
(572)
-
0
Depreciation on assets not qualifying for tax allowances
381
99
Under/(over) provided in prior years
(35,843)
-
0
Deferred tax adjustments in respect of prior years
-
0
(1,230)
Taxation charge for the year
75,388
198,691

A UK corporation tax rate of 25% was announced in the Chancellor’s Budget of 3 March 2021 and applied from 1 April 2023. Deferred tax has been calculated at this rate.

10
Dividends
2023
2022
£
£
Interim paid
140,000
135,518
WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2022
300,000
Disposals
(300,000)
At 31 October 2023
-
0
Amortisation and impairment
At 1 November 2022
300,000
Disposals
(300,000)
At 31 October 2023
-
0
Carrying amount
At 31 October 2023
-
0
At 31 October 2022
-
0
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2022 and 31 October 2023
84,700
35,185
31,292
51,842
14,183
217,202
Depreciation and impairment
At 1 November 2022
522
10,303
25,453
50,821
4,845
91,944
Depreciation charged in the year
1,694
2,488
1,459
909
3,113
9,663
At 31 October 2023
2,216
12,791
26,912
51,730
7,958
101,607
Carrying amount
At 31 October 2023
82,484
22,394
4,380
112
6,225
115,595
At 31 October 2022
84,178
24,882
5,839
1,021
9,338
125,258
WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,988,103
5,674,980
Other debtors
5,969,499
3,492,143
Prepayments and accrued income
37,866
20,076
10,995,468
9,187,199
2023
2022
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
139,298
135,416
Total debtors
11,134,766
9,322,615
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,374,041
1,862,043
Corporation tax
117,105
249,369
Other taxation and social security
40,045
27,956
Accruals and deferred income
3,420,189
1,572,668
4,951,380
3,712,036
15
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
8,278
10,270
2023
Movements in the year:
£
Liability at 1 November 2022
10,270
Credit to profit or loss
(1,992)
Liability at 31 October 2023
8,278
WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
15
Deferred taxation
(Continued)
- 20 -

The deferred tax liability set out above is expected to reverse within 4 years and relates to accelerated capital allowances that are expected to mature within the same period.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
25,386
25,698

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.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
51 Ordinary A shares of £1 each
51
51
51
51
49 Ordinary B shares of £1 each
49
49
49
49
100
100
100
100
18
Profit and loss reserves

Profit and loss reserve

Represents cumulative profits and losses net of distributions to shareholders.

19
Operating lease commitments
Lessee

Operating lease payments predominantly represent rentals payable by the company for certain of its properties. Leases are negotiated for an average term of between 5 and 10 years with break clauses negotiated as appropriate on a property by property basis.

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
29,000
29,000
Between two and five years
9,667
38,667
38,667
67,667
WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
20
Financial commitments, guarantees and contingent liabilities

Whitelock Developments Limited has entered into an unlimited cross company guarantee relating to the bank loan with a connected company, Whitelock Plant Limited. The guarantee to which this company was party to at the year end totalled £5,120,499 (2022: £2,998,799). As a security for this bank loan, there is also a debenture incorporating fixed and floating charges over the assets of the company, as well as legal charges over certain properties owned by the company.

 

Whitelock Developments Limited has entered into an unlimited cross company guarantee relating to the bank loan with a connected company, Whitelock (Invest) Limited. The guarantee to which this company was party to at the year end totalled £278,250 (2022: £Nil). As a security for this bank loan, there is also a debenture incorporating fixed and floating charges over the assets of the company, as well as legal charges over certain properties owned by the company.

21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Entities under common control
64,000
60,000
1,820,136
2,465,036

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities under common control
5,462,749
2,998,799
22
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director
-
391,656
158,752
(147,251)
403,157
391,656
158,752
(147,251)
403,157
23
Ultimate controlling party

The immediate and ultimate controlling party is considered to be John Colin Whitelock by virtue of his majority shareholding in the company.

WHITELOCK DEVELOPMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
24
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
365,412
899,007
Adjustments for:
Taxation charged
75,388
198,691
Finance costs
4,760
96
Depreciation and impairment of tangible fixed assets
9,663
16,093
Movements in working capital:
Increase in debtors
(1,808,269)
(1,902,464)
Increase in creditors
1,371,608
671,596
Cash generated from/(absorbed by) operations
18,562
(116,981)
25
Analysis of changes in net funds
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
1,306,694
(339,724)
966,970
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