REGISTERED NUMBER: 09629244 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
BERM HOLDINGS LIMITED |
REGISTERED NUMBER: 09629244 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023 |
FOR |
BERM HOLDINGS LIMITED |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
BERM HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Harelands Courtyard Offices |
Moor Road |
Melsonby |
Richmond |
North Yorkshire |
DL10 5NY |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 October 2023. |
REVIEW OF BUSINESS |
During this year work began in earnest on our direct contracts with National Highways for traffic management works on the country's main infrastructure. The effect of these contracts can be seen in this years results. |
We have continued to work throughout this year to consolidate our position. Including continued work to refine our management systems and ensuring key personnel are established in key positions. |
The outlook for the future is very positive, the National Highways works are progressing as expected and other works are continuing at historical levels. |
Turnover has risen with sales of £32 million (2022 £19 million). Gross profit margin has remained consistent at 21.4% (2022 20.9%). We have continued to monitor overhead costs closely whilst investing in our staff and systems to improve our management information and controls. |
Profit before tax this year was £2 million compared to £0.1 million in 2022. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The process of identifying risks with which the company is faced is addressed by the directors and senior management team on an ongoing basis through the setting out of policies, procedures and adequate controls to mitigate against such. |
In line with other businesses any further significant increases in interest rates and/or increases in taxation could have a detrimental effect on our figures. We constantly review interest rates and build them into our ongoing modelling for the future. |
In addition, fuel prices have an impact on all consumers. Similar to interest rates above, we are constantly monitoring the costs of fuel and regularly review the way that we incorporate this into our job costing. |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
KEY PERFORMANCE INDICATORS |
In continuing economically challenging times the business has delivered a set of results for the year in line with expectations. |
The summary below shows how the key measures in the business compare against prior years. We remain pleased with the progress of the business as it continues to develop in line with our plans. |
Performance is measured with reference to the following KPI's below : |
2023 | 2022 | 2021 |
Turnover | £32.2m | £19.1m | £17.9m |
Turnover % increase | 68% | 7.1% | 10% |
Gross Margin as a % of sales | 21.4% | 20.9% | 22.8% |
Net profit as a % of sales | 6.3% | 0.5% | 1.0% |
Performance has been in line with our expectations. |
The key performance indicators used by the directors and management to monitor and control the performance of the company include monthly management accounts, monthly performance reviews and regular progress meetings to compare actual performance against expected performance |
ON BEHALF OF THE BOARD: |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 October 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 October 2023 will be £ 234,360 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
DONATIONS AND EXPENDITURE |
Group donations total £8,585. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
AUDITORS |
The auditors, Momentum Taxation & Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BERM HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Berm Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BERM HOLDINGS LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BERM HOLDINGS LIMITED |
Auditors' 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 a Report of the Auditors 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: |
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. We also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our audit procedures were designed to respond to risks of material misstatement in the financial statements,recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery,misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the more remote that the non-compliances (eg with laws and regulations) are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BERM HOLDINGS LIMITED |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Harelands Courtyard Offices |
Moor Road |
Melsonby |
Richmond |
North Yorkshire |
DL10 5NY |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 32,229,872 | 19,133,918 |
Cost of sales | 25,342,446 | 15,139,931 |
GROSS PROFIT | 6,887,426 | 3,993,987 |
Administrative expenses | 4,486,720 | 3,646,994 |
2,400,706 | 346,993 |
Other operating income | 1,546 | 9,942 |
OPERATING PROFIT | 4 | 2,402,252 | 356,935 |
Interest receivable and similar income | 3,750 | 29 |
2,406,002 | 356,964 |
Interest payable and similar expenses | 5 | 387,538 | 258,641 |
PROFIT BEFORE TAXATION | 2,018,464 | 98,323 |
Tax on profit | 6 | 481,837 | 54,438 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,536,627 | 43,885 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,536,627 | 43,885 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,536,627 |
43,885 |
Total comprehensive income attributable to: |
Owners of the parent | 1,536,627 | 43,885 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
CONSOLIDATED BALANCE SHEET |
31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 681,243 | 854,833 |
Investments | 10 | 4,716,433 | 4,716,433 |
5,397,676 | 5,571,266 |
CURRENT ASSETS |
Stocks | 11 | 351,397 | 222,694 |
Debtors | 12 | 5,578,133 | 3,566,300 |
Cash at bank | 1,630,330 | 477,635 |
7,559,860 | 4,266,629 |
CREDITORS |
Amounts falling due within one year | 13 | 7,197,682 | 5,276,263 |
NET CURRENT ASSETS/(LIABILITIES) | 362,178 | (1,009,634 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,759,854 |
4,561,632 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(732,895 |
) |
(830,764 |
) |
PROVISIONS FOR LIABILITIES | 18 | (100,307 | ) | (106,483 | ) |
NET ASSETS | 4,926,652 | 3,624,385 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 136 | 136 |
Retained earnings | 20 | 4,926,516 | 3,624,249 |
SHAREHOLDERS' FUNDS | 4,926,652 | 3,624,385 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 July 2024 and were signed on its behalf by: |
R G Elliott - Director |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
COMPANY BALANCE SHEET |
31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's profit/(loss) for the financial year |
116,080 |
(74,231 |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 | 136 | 3,740,364 | 3,740,500 |
Changes in equity |
Dividends | - | (160,000 | ) | (160,000 | ) |
Total comprehensive income | - | 43,885 | 43,885 |
Balance at 31 October 2022 | 136 | 3,624,249 | 3,624,385 |
Changes in equity |
Dividends | - | (234,360 | ) | (234,360 | ) |
Total comprehensive income | - | 1,536,627 | 1,536,627 |
Balance at 31 October 2023 | 136 | 4,926,516 | 4,926,652 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 October 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2023 | ( |
) | ( |
) |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,222,371 | 572,826 |
Interest paid | (365,130 | ) | (226,140 | ) |
Interest element of hire purchase payments paid |
(22,344 |
) |
(32,501 |
) |
Finance costs paid | (64 | ) | - |
Tax paid | (101,253 | ) | (234,584 | ) |
Net cash from operating activities | 1,733,580 | 79,601 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (178,596 | ) | (159,380 | ) |
Sale of tangible fixed assets | 30,588 | 20,716 |
Interest received | 3,750 | 29 |
Net cash from investing activities | (144,258 | ) | (138,635 | ) |
Cash flows from financing activities |
New loans in year | 271,250 | 750,000 |
Loan repayments in year | (242,542 | ) | (79,193 | ) |
Related company loan movements | 55,447 | (13,365 | ) |
Capital repayments in year | (181,490 | ) | (153,191 | ) |
Amount introduced by directors | 234,364 | 207,241 |
Amount withdrawn by directors | (267,351 | ) | (275,374 | ) |
Equity dividends paid | (234,360 | ) | (160,000 | ) |
Net cash from financing activities | (364,682 | ) | 276,118 |
Increase in cash and cash equivalents | 1,224,640 | 217,084 |
Cash and cash equivalents at beginning of year |
2 |
405,690 |
188,606 |
Cash and cash equivalents at end of year |
2 |
1,630,330 |
405,690 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,018,464 | 98,323 |
Depreciation charges | 361,399 | 245,458 |
Loss/(profit) on disposal of fixed assets | 13,262 | (16,176 | ) |
Finance costs | 387,538 | 258,641 |
Finance income | (3,750 | ) | (29 | ) |
2,776,913 | 586,217 |
Increase in stocks | (128,703 | ) | (14,037 | ) |
Increase in trade and other debtors | (2,043,588 | ) | (169,864 | ) |
Increase in trade and other creditors | 1,617,749 | 170,510 |
Cash generated from operations | 2,222,371 | 572,826 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2023 |
31/10/23 | 1/11/22 |
£ | £ |
Cash and cash equivalents | 1,630,330 | 477,635 |
Bank overdrafts | - | (71,945 | ) |
1,630,330 | 405,690 |
Year ended 31 October 2022 |
31/10/22 | 1/11/21 |
£ | £ |
Cash and cash equivalents | 477,635 | 188,606 |
Bank overdrafts | (71,945 | ) | - |
405,690 | 188,606 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
Other |
non-cash |
At 1/11/22 | Cash flow | changes | At 31/10/23 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 477,635 | 1,152,695 | 1,630,330 |
Bank overdrafts | (71,945 | ) | 71,945 | - |
405,690 | 1,224,640 | 1,630,330 |
Debt |
Finance leases | (308,572 | ) | 181,490 | - | (178,492 | ) |
Debts falling due |
within 1 year | (191,832 | ) | (55,689 | ) | - | (247,521 | ) |
Debts falling due |
after 1 year | (676,416 | ) | 5,730 | - | (670,686 | ) |
(1,176,820 | ) | 131,531 | - | (1,096,699 | ) |
Total | (771,130 | ) | 1,356,171 | - | 533,631 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
1. | STATUTORY INFORMATION |
Berm Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 15,243,350 | 9,472,003 |
Social security costs | 23,554 | - |
Other pension costs | 207,806 | 168,366 |
15,474,710 | 9,640,369 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Direct | 172 | 144 |
Administration | 31 | 30 |
Directors | 7 | 4 |
The average number of employees by undertakings that were proportionately consolidated during the year was 210 (2022 - 174 ) . |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 628,420 | 431,357 |
Other operating leases | 151,978 | 199,214 |
Depreciation - owned assets | 359,746 | 224,806 |
Depreciation - assets on hire purchase contracts | - | 20,652 |
Loss/(profit) on disposal of fixed assets | 13,262 | (16,176 | ) |
Auditors' remuneration | 22,925 | 19,500 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 820 | 1,062 |
Loan | 71,779 | 39,345 |
Interest payable | 56,389 | 27,447 |
Factoring charges | 233,927 | 156,645 |
Other interest payable | 2,215 | 1,641 |
Hire purchase | 22,344 | 32,501 |
Late payment interest | 64 | - |
387,538 | 258,641 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 488,012 | 42,248 |
Deferred tax | (6,175 | ) | 12,190 |
Tax on profit | 481,837 | 54,438 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Final | 234,360 | 160,000 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | Long | to | Plant and |
property | leasehold | property | machinery |
£ | £ | £ | £ |
COST |
At 1 November 2022 | 272,368 | 125,783 | 65,204 | 1,303,727 |
Additions | - | - | - | 212,794 |
Disposals | - | - | - | (689,780 | ) |
Reclassification/transfer | - | - | - | 615,941 |
At 31 October 2023 | 272,368 | 125,783 | 65,204 | 1,442,682 |
DEPRECIATION |
At 1 November 2022 | 36,762 | 83,837 | 37,758 | 1,042,780 |
Charge for year | 6,817 | 5,032 | 8,026 | 326,925 |
Eliminated on disposal | - | - | - | (657,675 | ) |
Reclassification/transfer | - | - | - | 370,641 |
At 31 October 2023 | 43,579 | 88,869 | 45,784 | 1,082,671 |
NET BOOK VALUE |
At 31 October 2023 | 228,789 | 36,914 | 19,420 | 360,011 |
At 31 October 2022 | 235,606 | 41,946 | 27,446 | 260,947 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2022 | 11,166 | 1,204,427 | 22,877 | 3,005,552 |
Additions | - | - | 17,212 | 230,006 |
Disposals | (10,659 | ) | (410,895 | ) | - | (1,111,334 | ) |
Reclassification/transfer | - | (615,941 | ) | - | - |
At 31 October 2023 | 507 | 177,591 | 40,089 | 2,124,224 |
DEPRECIATION |
At 1 November 2022 | 9,750 | 919,485 | 20,347 | 2,150,719 |
Charge for year | 101 | 5,491 | 7,354 | 359,746 |
Eliminated on disposal | (9,750 | ) | (400,059 | ) | - | (1,067,484 | ) |
Reclassification/transfer | - | (370,641 | ) | - | - |
At 31 October 2023 | 101 | 154,276 | 27,701 | 1,442,981 |
NET BOOK VALUE |
At 31 October 2023 | 406 | 23,315 | 12,388 | 681,243 |
At 31 October 2022 | 1,416 | 284,942 | 2,530 | 854,833 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 November 2022 | 82,610 |
Transfer to ownership | (82,610 | ) |
At 31 October 2023 | - |
DEPRECIATION |
At 1 November 2022 | 48,064 |
Transfer to ownership | (48,064 | ) |
At 31 October 2023 | - |
NET BOOK VALUE |
At 31 October 2023 | - |
At 31 October 2022 | 34,546 |
10. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertaking |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 | 4,716,433 |
NET BOOK VALUE |
At 31 October 2023 | 4,716,433 |
At 31 October 2022 | 4,716,433 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
PTM Holdings owns 100% of the Ordinary and Ordinary A shares in Premier Traffic Management Limited. |
Therefore, by virtue of ownership, BERM Holdings Limited own 100% of shares in Premier Traffic Management Limited also. |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
11. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 351,397 | 222,694 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,315,608 | 1,943,594 |
Retentions | 18,403 | 37,112 | - | - |
Account applications | 2,537,543 | 1,140,070 | - | - |
Amounts owed by group undertakings | - | 35,850 |
Amounts recoverable on contract | 433,566 | 286,398 |
Other debtors | 54,372 | 6,742 |
Directors' loan accounts | 4,095 | - | 4,095 | - |
VAT | - | - |
Prepayments | 94,877 | 96,404 |
Accrued income | 119,669 | 20,130 | - | - |
5,578,133 | 3,566,300 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 32,537 | 103,513 |
Other loans (see note 15) | 214,984 | 160,264 |
Hire purchase contracts (see note 16) | 116,283 | 154,224 |
Trade creditors | 4,050,226 | 2,873,652 |
Amounts owed to group undertakings | - | - |
Tax | 508,502 | 121,743 |
Social security and other taxes | 226,987 | 282,041 | ( |
) | ( |
) |
Net wages | 90,332 | 89,726 | - | - |
Pension liabilities | 27,069 | 24,817 | - | - |
Attachment of Earnings | 901 | 231 | - | - |
VAT | 5,611 | 118,960 | 36,355 | - |
Other creditors | 355,103 | 452,091 |
Factored debts | 1,085,586 | 603,148 | - | - |
Credit card | 2,224 | - | - | - |
Directors' loan accounts | 81,260 | 110,152 | 81,260 | 110,152 |
Accrued expenses | 400,077 | 181,701 |
7,197,682 | 5,276,263 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) | 56,480 | 89,079 |
Other loans (see note 15) | 614,206 | 587,337 |
Hire purchase contracts (see note 16) | 62,209 | 154,348 |
732,895 | 830,764 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | - | 71,945 |
Bank loans | 10,077 | 9,829 |
Mortgage <1 year | 22,460 | 21,739 |
Other loans | 10,097 | - |
Other loans | 204,887 | 160,264 |
247,521 | 263,777 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 33,510 | 32,532 |
Other loans - 1-2 years | 177,941 | 170,539 |
Other loans 1-2 years | 54,917 | - |
266,368 | 203,071 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 22,970 | 56,547 |
Other loans - 2-5 years | 298,806 | 416,798 |
Other loans 2-5 years | 82,542 | - |
404,318 | 473,345 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 116,283 | 154,224 |
Between one and five years | 62,209 | 154,348 |
178,492 | 308,572 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 178,492 | 308,572 |
Mortgage | 61,575 | 83,376 |
Invoice Discounting | 1,085,586 | 603,147 |
1,325,653 | 995,095 |
Hire purchase creditors are secured on the assets to which they relate. |
The invoice discounting debt is secured by a fixed and floating charge. The floating charge covers all the property or undertaking of the company. |
HSBC UK also holds the following security for the group companies: |
Composite Company Unlimited Multilateral Guarantee dated 17 July 2013 given by Premier Traffic Management Limited and PTM Holdings Limited. |
Debenture including fixed charge over all present freehold and leasehold property; First fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future dated 27 April 2018 for Premier Traffic Management Limited. |
Unlimited Multilateral Guarantee dated 13 March 2018 given by Premier Traffic Management Limited, Berm Holdings Limited, PTM Holdings Limited and Premier Roadmarkings Limited. |
First legal charge dated 24 June 2016 over Freehold Property known as Former Parsons Container Depot, Salters Lane Industrial Estate, County Durham TS21 3EE. |
Debenture including fixed charge over all present freehold and leasehold property; First fixed charge over book and other debts, chattells, goodwill and uncalled capital, both present and future dated 10 April 2013 for Premier Roadmarkings Limited. |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 100,307 | 106,483 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2022 | 106,483 |
Credit to Income Statement during year | (6,176 | ) |
Balance at 31 October 2023 | 100,307 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 136 | 136 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 November 2022 | 3,624,249 |
Profit for the year | 1,536,627 |
Dividends | (234,360 | ) |
At 31 October 2023 | 4,926,516 |
BERM HOLDINGS LIMITED (REGISTERED NUMBER: 09629244) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2023 |
20. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 November 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 October 2023 | ( |
) |
21. | OTHER FINANCIAL COMMITMENTS |
The group has entered into non-cancellable operating leases in respect to motor vehicles. |
The following is a schedule of the future minimum lease payments required under these leases as at 31 October 2022: |
2023 | 2022 |
£ | £ |
Due within one year | 23645 | 46995 |
Due between one and five years | 0 | 23645 |