REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 March 2024 |
for |
Thomas Bow Limited |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 March 2024 |
for |
Thomas Bow Limited |
Thomas Bow Limited (Registered number: 04503934) |
Contents of the Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
Thomas Bow Limited |
Company Information |
for the Year Ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
The Old Manse |
29 St. Mary Street |
Ilkeston |
Derbyshire |
DE7 8AB |
BANKERS: |
11 Smithy Row |
Nottingham |
NG1 3EJ |
Thomas Bow Limited (Registered number: 04503934) |
Strategic Report |
for the Year Ended 31 March 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
Turnover for the year was £37.7 million (2023 - £34.2 million) and pre-tax profits for the year amounted to £1,300,000 (2023 - £1,011,000). |
The company remains well-capitalised with net assets of £3,053,000 (2023 - £2,873,000) and maintains a strong liquidity position, the cash balance at 31 March 2024 being £5,448,000 (2023 - £5,419,000). |
As a civil engineering and highway surfacing contractor, the company continues to operate within its core geographical area of the Midlands and Yorkshire and on long-term customer projects throughout the UK. |
Our strategy is to deliver infrastructure services to support, develop and maintain the UK's vital road networks, built environment and public realm whilst striving for best customer service. |
Our vision is to be a leading infrastructure business delivering a "One-Stop-Shop" through collaboration, protection of resources, building a "right first time" philosophy, ensuring a high level of customer service, giving each client director access. We aim to maintain these exceptionally high standards, no matter what size of job. The quality and commitment of our team is paramount to ensuring that we constantly exceed our customers' expectations. |
We consider that our key financial performance indicators are those that communicate the financial performance of the business, these being turnover and gross margin. These are shown below. |
Turnover - £37,645,000 (2023 - £34,176,000) |
Gross Profit - £3,148,000 (2023 - £2,376,000) |
Gross Profit Margin - 8.4% (2023 - 7.0%) |
The year commenced with the company continuing to benefit from increased levels of work with local authority clients, particularly by way of the Transforming Cities Fund (TCF), aimed at improving connections between major employment sites and promoting active travel and public transport. Also, we benefitted from additional works at Witham St Hughs and unbudgeted surfacing works for two local authorities. After a slow start to the year, July, August, February and March were each record months for the company in terms of both turnover and margin, despite difficult trading conditions with unprecedented weather. Early contractor involvement with our clients is key in ensuring consistent workflow is available as weather has become a critical factor, potentially making our surfacing operations more seasonal. |
In contrast with early 2023, we are now seeing asphalt supply outstripping demand and we are continually seeing the effects of aggressive pricing within the market-place. With reduced spending on national highways and housing infrastructure, it is noticeable that the surfacing market has greater competition. This is in contrast with construction, where opportunities have been above expectations with recent awards from Rutland County Council for their Highways Term Maintenance Contract, valued at £70 million over a period of twenty years, Town Centre Public Realm works with Chesterfield Borough Council and West End Point Highway Junction Improvements with Nottingham City Council. |
In common with most other businesses, we have continued to be impacted by increases in the cost of plant and vehicles with labour and material costs now settling. Notwithstanding these challenges, the company has succeeded in maintaining gross profit margin in excess of 2021, 2022 and 2023 levels. With the continuing conflict in Eastern Europe and the effects of a new central government, prospects for the next two to three years are uncertain. Despite these challenges, the outlook moving forward for 2024/2025 is cautiously optimistic in that we will see surfacing volumes improve and we will continue to monitor costs, as well as seeking growth opportunities that fall within our geographical area of operation, along with the development of our "One-Stop-Shop" philosophy. |
Thomas Bow Limited (Registered number: 04503934) |
Strategic Report |
for the Year Ended 31 March 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Our ability to identify and manage the risks to our business is an important element of ensuring our continued success. The company's approach to risk management is to identify key risks and then to develop actions or processes within the business to eliminate or mitigate those risks to an acceptable level. |
The directors have identified the following key strategic and operational risks: |
Market conditions - As contractors within the construction sector, our order book and operations are influenced by macro-economic factors, including public sector capital and maintenance budgets, over which we have little control. Where possible, we endeavour to mitigate this risk by having a diversified client base across the public and private sectors. |
Competition and margins - To remain competitive, we continue to focus on delivering and completing our projects to the highest possible standards, on time and on budget. The company recognises the fact that efficiently managing each contract is of vital importance to its continued success and profitability. Strong management and financial controls are in place in respect of contract management, including a proactive job-costing system and strong procurement policies and procedures. |
Input costs - The conflict in Ukraine has contributed toward challenges with regard to certain building products and plant items in terms of increased cost and availability issues. Where possible, this is mitigated in conjunction with our clients by pre-planning and working with extended supply chains. |
Health, safety, wellbeing and environmental impact - Managing our impact on the environment and the health and safety of all employees, customers and contractors is of vital importance to the business. The company has in place, processes and procedures designed to mitigate health and safety risks and any potential environmental issues. These policies are regularly reviewed to ensure all are up to date and meet the requirements of all relevant parties. |
People - The company recognises a key factor in its continued success is its ability to attract, retain and develop the best workforce that it can. The company has an excellent record in retaining its key staff and will strive to continue this by ensuring staff development and training is encouraged at all levels. |
In support of our people strategy, Thomas Bow are developing a high performing culture, where employees feel part of the Thomas Bow family and love to be here. |
We will create positivity and energy to maximise opportunities and find solutions for our clients through working collaboratively and demonstrating our willingness to learn and mentor others. We will foster mutual trust and respect by ensuring honest open communication and consultation across the organisation. |
We will hold each other accountable to deliver the company objective of sustainable growth and to act in the Thomas Bow way. |
ON BEHALF OF THE BOARD: |
Thomas Bow Limited (Registered number: 04503934) |
Report of the Directors |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of general construction, civil engineering and surfacing contractors. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2024 was £788,554. |
An interim dividend of £788.55 per share, in respect of the year ended 31 March 2024, was declared and paid on the A Ordinary £1 shares on 21 August 2023. |
An interim dividend of £788.55 per share, in respect of the year ended 31 March 2024, was declared and paid on the B Ordinary £1 shares on 21 August 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Thomas Bow Limited (Registered number: 04503934) |
Report of the Directors |
for the Year Ended 31 March 2024 |
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 company'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 company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Thomas Bow Limited |
Opinion |
We have audited the financial statements of Thomas Bow Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 31 March 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 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 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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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. |
Report of the Independent Auditors to the Members of |
Thomas Bow Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Thomas Bow 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: |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- The nature of the industry and sector, control environment and business performance including targets for income and net profit; |
- Results of our enquiries of management and the directors about their own identification and assessment of the risks of irregularities; |
- Any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance, including any related to the General Data Protection Regulation or Bribery Act 2010; |
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- The internal controls to mitigate risks of fraud or non-compliance with laws and regulations; |
- The matters discussed among the audit engagement team and including relevant internal tax specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in the ability of management to manipulate revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and the Financial Reporting Standard 102. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These include The General Data Protection Regulation, the Bribery Act 2010 and Health and Safety policies. |
Audit response to risks identified |
Our procedures to respond to risks identified above include the following: |
Report of the Independent Auditors to the Members of |
Thomas Bow Limited |
- Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- Enquiring of management and directors concerning actual and potential litigation and claims; |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- in addressing the fraud risk in revenue recognition we have tested a sample of revenue recorded in the year through agreement to the relevant sales terms and conditions and bank statements. Additionally, at an analytical review level, we developed an expectation of the revenue with reference to our experience of the client and discussions on the recognition and volatility of revenue in the year ; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
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 |
Chartered Accountants & Statutory Auditors |
The Old Manse |
29 St. Mary Street |
Ilkeston |
Derbyshire |
DE7 8AB |
Thomas Bow Limited (Registered number: 04503934) |
Statement of Comprehensive Income |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,150,213 | 870,105 |
Other operating income |
OPERATING PROFIT | 5 |
Income from shares in group undertakings |
Interest receivable and similar income |
145,294 | 423,356 |
1,299,613 | 1,378,461 |
Amounts written off investments | 6 | - | 367,870 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Thomas Bow Limited (Registered number: 04503934) |
Balance Sheet |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Thomas Bow Limited (Registered number: 04503934) |
Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Issue of share capital | 2,000,000 | - | - | 2,000,000 |
Share premium reduction | - | 499,100 | (499,100 | ) | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2024 |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Thomas Bow Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 £. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
As permitted by FRS 102 Section 1.12, the company has taken advantage of the disclosure exemptions available in relation to the presentation of a statement of cash flows. Where required, equivalent disclosures are given in the consolidated financial statements of the ultimate parent, Breedon Group plc, a company registered in England & Wales. |
Preparation of consolidated financial statements |
The financial statements contain information about Thomas Bow Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Breedon Group plc, a company registered in England & Wales. |
The results of the Company are included within the consolidated results of Breedon Group plc, a company incorporated in England & Wales with registration number 14739556. Copies of these consolidated financial statements can be obtained from the Company Secretary, Breedon Group plc, Pinnacle House, Breedon Quarry, Breedon On The Hill, Derby, DE73 8AP. |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below. |
Recognition of profit on long term contracts |
Profit recognition is the area requiring the greatest use of judgement and is based on an assessment of the overall profitability forecast on individual contracts. Losses are recognised as soon as they are foreseen. Profits are recognised when the outcome of the contract can be assessed with reasonable certainty. The profit recognised reflects that part of the total profit currently estimated to arise over the duration of the contract that fairly represents the profit attributable to work performed at the accounting date. Contract reviews are undertaken on a monthly basis by the management team. |
Recoverability of debtors |
Trade and other debtors are recognised to the extent that they are judged recoverable. Management team reviews are performed to estimate the level of provision required for irrecoverable debt. Provision is made specifically against invoices, applications and retentions, as considered appropriate, where recoverability is uncertain. |
The management team specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and change the profit and loss account. |
Turnover |
Turnover represents net invoiced sales of goods and services, excluding value added tax, as adjusted for movements in sales retentions and work not invoiced. |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Office equipment | - |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
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. |
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. |
Investments in subsidiaries |
Investment in subsidiary undertakings are recognised at cost, after making due allowance for indications of impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Basic financial instruments |
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. |
Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Direct labour and supervision | 56 | 54 |
Administration | 13 | 10 |
Directors | 2 | 3 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
6. | AMOUNTS WRITTEN OFF INVESTMENTS |
2024 | 2023 |
£ | £ |
Impairment of value of |
subsidiary | - | 367,870 |
On 7 March 2023, the company received a dividend of £367,870 from its dormant subsidiary, City Asphalt Limited. As a consequence of the resulting reduction in City Asphalt's reserves, an impairment of £367,870 against the value of the investment is also reflected in these financial statements. These two transactions have a combined zero effect on the company's profit for the year. |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Overprovision in prior year | - | (23,359 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Capital allowances super-deduction | - | (33,947 | ) |
Increase in corporation tax rate on deferred tax | - | 40,749 |
Total tax charge | 331,896 | 176,738 |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Final - 2022 |
Interim - 2023 |
A Ordinary shares of £1 each |
Interim |
B Ordinary shares of £1 each |
Interim |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | TANGIBLE FIXED ASSETS |
Improvements |
to | Plant and | Motor | Office |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The net book value of tangible fixed assets includes £ 56,652 (2023 - £ 128,809 ) in respect of assets held under hire purchase contracts. |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertaking |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Ashbow Court, 4-12 Middleton Street, Lenton, Nottingham, NG7 2AL |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
12. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contract |
Corporation Tax |
Prepayments |
Amounts falling due after more than one year: |
Trade debtors due after more |
than one year |
Aggregate amounts |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 15) |
Payments on account |
Trade creditors |
Amounts owed to group undertakings |
Corporation Tax |
Social security and other taxes |
Accruals |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 15) |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
During the year, total operating lease payments recognised as an expense amounted to £106,683 (2023 - £108,964). |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 53,991 | 121,826 |
Various hire purchase contracts are secured on the specific plant items to which they relate. |
17. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 160,693 | 169,780 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Accelerated capital allowances | (20,587 | ) |
Other timing differences | 11,500 |
Balance at 31 March 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | £1 | 800 | 800 |
B Ordinary | £1 | 200 | 200 |
Preference | £1 | 2,000,000 | 2,000,000 |
2,001,000 | 2,001,000 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
Thomas Bow Limited (Registered number: 04503934) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
20. | PENSION COMMITMENTS |
The company operates contributory pension schemes. They are defined contribution schemes and contributions are charged to the profit and loss account as they accrue. The charge for the year was £205,884 (2023 - £139,023). |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, where applicable, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
2024 | 2023 |
£ | £ |
Sales |
Purchases |
Management charges payable | 95,000 | 95,000 |
Purchase of fixed assets | 100,000 | - |
Amount due from related party |
Amount due to related party |
2024 | 2023 |
£ | £ |
Expenses recharged to related party |
Sales |
Rent paid to related party | 41,000 | 39,199 |
Amount due from related parties |
During the year, a total of key management personnel compensation of £ |
22. | CONTROL RELATIONSHIP |
The Company's immediate parent is Breedon Trading Limited, a company incorporated in England & Wales with a registered office address of Pinnacle House, Breedon Quarry, Breedon On The Hill, Derby, DE73 8AP. |
The ultimate parent company is Breedon Group plc, a company incorporated and domiciled in England & Wales with registration number 14739556. Consolidated accounts are available from the Company Secretary, Breedon Group plc, Pinnacle House, Breedon Quarry, Breedon On The Hill, Derby, DE73 8AP. |