Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-31falsetruefalsetruetrue190false2023-04-01Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate. 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Registered number: 00273400










LONGCLIFFE QUARRIES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
LONGCLIFFE QUARRIES LIMITED
 
 
COMPANY INFORMATION


Directors
R J G Shields 
J F G Shields 
P M Boustead 
I Gorbould 
I McDonald 
D E Mooney 
O G Stephenson 
C Wainwright 




Company secretary
I Gorbould



Registered number
00273400



Registered office
Longcliffe
Brassington

Matlock

Derbyshire

DE4 4HN




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA





 
LONGCLIFFE QUARRIES LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Statement of Comprehensive Income
 
10
Balance Sheet
 
11 - 12
Statement of Changes in Equity
 
13
Notes to the Financial Statements
 
14 - 35


 
LONGCLIFFE QUARRIES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The directors present their Strategic Report for the year ended 31 March 2024.
Principal activity
The principal activity of the Company has continued to be the extraction of minerals, producing high purity calcium carbonate products for industrial applications.

Business review
 
The Company had another profitable year, recording profits on ordinary activities before taxation of £4,741,590 (2023 - £4,230,559).
Trading conditions, however, continue to be challenging with inflation, recruitment and resource availability all presenting problems. The Company’s balance sheet strength and favourable cash position will ensure these challenges are overcome. The directors are confident of delivering another profitable result in 2025.
The progress of the business has continued to be supported by significant investment in capital expenditure.

Principal risks and uncertainties
 
Owing to the nature of the Company's activities and the transport fleet operated, the volatility of energy prices is a risk to the business. The Company manages this risk by entering into supply contracts at the most opportune time, although fuel prices are subject to changes in worldwide markets.
The Company has exposure to interest rate fluctuations with bank borrowings being based on variable rates. The directors consider that the risk of material impact as a result of a change in rates is small and can be accommodated through cash flows arising from forecast performance. The Company's banking facilities have been renewed and are considered adequate going forward. Short-term flexibility is achieved by overdraft facilities.
Credit risk arises on financial instruments such as trade debtors.  Policies and procedures exist to ensure that the trade debtors have an appropriate credit history and make payments in accordance with terms. Debtors are stated net of provision.
From the Balance Sheet date to the date of this report the directors have considered the trading position of the Company, along with future cash flow forecasts, and consider that the Company will be able to operate within the existing bank facility. The directors have renewed the existing facilities for the group which provide low-cost funding and sufficient working capital to support the trading expectations going forward.

Financial and non-financial key performance indicators
 
The directors use a number of key performance indicators to monitor performance of the business:
Gross margin: 36.0% (2023: 32.2%)
Turnover by employee: £249,000 (2023: £243,000)
Lost time injury events: 3 (2023: 6)
Accident frequency rate (number of lost time injuries per 1m hours worked): 0.65 (2023: 1.31)
Voluntary staff turnover: 9.8% (2023: 14.2%)

Page 1

 
LONGCLIFFE QUARRIES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Section 172 Statement - Directors' statement of compliance with duty to promote the success of the Company
 
Longcliffe Quarries: Stakeholder Engagement

As the Board of Directors at Longcliffe Quarries, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the Company’s success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the Company and its stakeholders. This statement addresses the ways in which we as a board satisfy this responsibility.

Promoting the Company’s success for its members

Longcliffe Group was established in 1927 by the Shields family and continues to be owned and operated by them today. We are proud that over almost a century we have provided employment, training and income to the employees and members.

The Longcliffe Group comprises businesses involved predominantly in quarrying but also in renewable energy and composting. The main quarrying business is one of the largest independent quarrying companies in the country. At the heart of the Group is our focus on providing a quality product, providing added value solutions to our customers and the continued acquisition of minerals and planning to sustain the quarry processing and operations.

Engaging with stakeholders

Our key stakeholders, and the ways in which we engage with them, are as follows:

Our employees
We rely upon a specialist highly skilled workforce to run our quarries and distribute our product. Our businesses are renowned for high levels of customer care and satisfaction, and this can only be achieved with the involvement of a content and dedicated workforce.

Recruitment and retention of staff at all levels is therefore critical to our success. We engage with our workforce by:
Setting remuneration at market-leading rates and rewarding performance with bonuses at all levels in all businesses
Providing structured training and development support
Providing apprenticeship training where appropriate
Involving all employees in regular business trading updates delivered in person by the Group MD
Issuing merit awards for worthwhile acts and ideas

Our customers and suppliers

We provide high quality goods and services to our customers at the right time and at the right price. We pride ourselves on being always available to our customers to respond to their needs. Our highly trained and experienced field-based employees maintain regular ongoing relationships with our customers to ensure a detailed understanding of their requirements.

Over nearly 100 years enduring relationships have also been established with our suppliers who are, where possible, sourced from the local area. Longcliffe Quarries has a reputation as a fair and transparent business partner.
 
Page 2

 
LONGCLIFFE QUARRIES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Our community 

As a family run company with roots in the local area, we have through our Longcliffe Community Fund invested heavily with charitable donations and support programmes. We aid the local parish councils and actively support local and grass roots businesses. Sponsorships are also made to local schools and sports teams. We also engage with our local schools by hosting educational trips to the quarries.

Our planet

The quarrying industry plays a vital role in maintaining and improving biodiversity and Longcliffe is passionately committed to the protection of the environment. We always strive to be a good neighbour and our substantial investment in environmentally friendly measures will ensure a lasting legacy for the benefit of the future generations. We adopt the latest continuous improvement training, techniques, and technology through our Operational Fundamentals programme and in the future through a World Class Manufacturing (WCM) programme. Through setting targets for the reduction of energy consumption and carbon emissions, we aim to reduce our use of fossil fuels in our operations, primarily production and transport and through energy efficiency and seeking alternative renewable energy sources. This has led to an overall target of net zero carbon by 2030.


This report was approved by the board on 8 August 2024 and signed on its behalf.



I Gorbould
Director

Page 3

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Results and dividends

The profit for the year, after taxation, amounted to £3,757,063 (2023 - £3,079,786).

Particulars of dividends are disclosed in note 12. 

Directors

The directors who served during the year were:

R J G Shields 
J F G Shields 
P M Boustead 
I Gorbould 
I McDonald 
D E Mooney 
O G Stephenson 
C Wainwright 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 4

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Future developments

The Company is committed to a capital expenditure plan to both maintain and improve the service provision and product offering. This will enable it to take advantage of demand fluctuations across the varied market sectors it sells into.

Research and development activities

Research and development expenditure during the year has been concentrated on the development of new processes for value added limestone products.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsShortswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 August 2024 and signed on its behalf.
 





I Gorbould
Director

Page 5

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGCLIFFE QUARRIES LIMITED
 

Opinion


We have audited the financial statements of Longcliffe Quarries Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 United Kingdom, including the Financial Reporting Council'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.


Page 6

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGCLIFFE QUARRIES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report 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 Directors' 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:


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 Directors' Responsibilities Statement set out on page 4, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the 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.


Page 7

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGCLIFFE QUARRIES LIMITED (CONTINUED)


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 
the engagement team collectively had the appropriate competence, capabilities and skills to identify and  recognise non-compliance with applicable laws and regulations; and
through discussions with the directors and other management and from our commercial knowledge, we  identified the laws and regulations applicable to the Company.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their   knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws  and regulations.

To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
reviewed the general ledger entries during the year to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims;
considering relationships with HMRC and other relevant regulators; and
reviewing legal and professional costs to identify any indicators of litigation.

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.
 
Page 8

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGCLIFFE QUARRIES LIMITED (CONTINUED)




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 Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





Andrew Irvine (Senior Statutory Auditor)
  
for and on behalf of
Shorts
 
Chartered Accountants
Statutory Auditor
  
Cedar House
63 Napier Street
Sheffield
South Yorkshire
S11 8HA

8 August 2024
Page 9

 
LONGCLIFFE QUARRIES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
47,977,381
46,231,381

Cost of sales
  
(30,693,602)
(31,362,233)

Gross profit
  
17,283,779
14,869,148

Administrative expenses
  
(13,138,891)
(11,112,443)

Other operating income
 5 
506,396
432,979

Fair value movements
  
315,660
(1,081,791)

Operating profit
 6 
4,966,944
3,107,893

Income from shares in group undertakings
  
626,709
1,800,000

Interest payable and similar expenses
 10 
(852,324)
(677,334)

Profit before tax
  
4,741,329
4,230,559

Tax on profit
 11 
(984,266)
(1,150,773)

Profit for the financial year
  
3,757,063
3,079,786

Other comprehensive income for the year
  

Actuarial gains on defined benefit pension scheme
  
203,000
704,000

Movement of deferred tax relating to pension deficit
  
(50,750)
(176,000)

Other comprehensive income for the year
  
152,250
528,000

Total comprehensive income for the year
  
3,909,313
3,607,786

The notes on pages 14 to 35 form part of these financial statements.

Page 10

 
LONGCLIFFE QUARRIES LIMITED
REGISTERED NUMBER: 00273400

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
17,663,409
16,565,120

Investments
 14 
3,160,152
3,140,502

Investment property
 15 
14,640,116
14,121,538

  
35,463,677
33,827,160

Current assets
  

Stocks
 16 
472,723
571,280

Debtors: amounts falling due after more than one year
 17 
442,250
759,000

Debtors: amounts falling due within one year
 17 
12,732,621
12,774,567

Cash at bank and in hand
  
4,289,888
3,063,445

  
17,937,482
17,168,292

Creditors: amounts falling due within one year
 18 
(13,900,683)
(12,883,714)

Net current assets
  
 
 
4,036,799
 
 
4,284,578

Total assets less current liabilities
  
39,500,476
38,111,738

Creditors: amounts falling due after more than one year
 19 
(10,109,033)
(10,393,154)

Provisions for liabilities
  

Deferred tax
  
(2,158,113)
(1,877,440)

Net assets excluding pension liability
  
27,233,330
25,841,144

Pension liability
  
(1,769,000)
(3,036,000)

Net assets
  
25,464,330
22,805,144

Page 11

 
LONGCLIFFE QUARRIES LIMITED
REGISTERED NUMBER: 00273400
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
  
145,474
145,474

Share premium account
 23 
234,375
234,375

Capital redemption reserve
 23 
16,493
16,493

Profit and loss account
 23 
25,067,988
22,408,802

  
25,464,330
22,805,144


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 August 2024.




R J G Shields
I Gorbould
Director
Director

The notes on pages 14 to 35 form part of these financial statements.

Page 12

 
LONGCLIFFE QUARRIES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 April 2022
145,474
234,375
16,493
19,164,700
19,561,042


Comprehensive income for the year

Profit for the year
-
-
-
3,079,786
3,079,786

Actuarial gains on pension scheme
-
-
-
528,000
528,000
Total comprehensive income for the year
-
-
-
3,607,786
3,607,786

Dividends: Equity capital
-
-
-
(363,684)
(363,684)



At 1 April 2023
145,474
234,375
16,493
22,408,802
22,805,144


Comprehensive income for the year

Profit for the year
-
-
-
3,757,063
3,757,063

Actuarial gains on pension scheme
-
-
-
152,250
152,250
Total comprehensive income for the year
-
-
-
3,909,313
3,909,313

Dividends: Equity capital
-
-
-
(1,250,127)
(1,250,127)


At 31 March 2024
145,474
234,375
16,493
25,067,988
25,464,330


The notes on pages 14 to 35 form part of these financial statements.

Page 13

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Longcliffe Quarries Limited is a private company, limited by shares, domiciled and incorporated in England and Wales (registered number: 00273400). The registered office address is Longcliffe, Brassington, Matlock, Derbyshire, DE4 4HN. The principal activity of the business in the year remained that of quarrying activities.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Longcliffe Group Limited as at 31 March 2024 and these financial statements may be obtained from Companies House.

Page 14

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Revenue is recognised at the point of delivery of goods.

 
2.5

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 15

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit pension plan

The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 16

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 17

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
20 - 50 years
Plant and machinery
-
3 - 15 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 18

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Page 19

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
The Company is obliged to return the principal asset of the business to a condition specified by local planning law and permissions. A calculation has been made based on estimated costs to be incurred in the various stages of plant decommissioning and land remediation expected to be required in the future at the end of the life of the quarries. This provision will be built up each year based on the expected output of the quarries over their expected life.


 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management are required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
The key estimates used in the preparation of the financial statements are as follows:
The pension liability has been valued by an actuary in accordance with FRS 102. Key estimates applied in the valuation of the pension scheme include inflation, discount rate and mortality rates. Management consider the estimates applied by the actuary to be reasonable.
Estimates have been made in the calculation of the decomissioning provision of future costs to be incurred in the plant decommissioning and land remediation as well as the expected future output of the quarries.
Investment property is recognised at fair value, subject to property valuations which are in themselves an estimate by an external expert.
Similarly, the depreciation rates adopted for all classes of property, plant and equipment are an estimate based on management's best estimate of the use and longevity of the asset. 
The carrying value of overage rights at historic cost is considered annually for impairment based on a valuation provided by management's external expert.

Page 20

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

4.


Turnover

The whole of the turnover is attributable to the single business activity.

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
324,075
229,641

Net rents receivable
182,321
203,338

506,396
432,979



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation charge on owned assets
1,522,804
1,020,697

Depreciation of assets held under hire purchase
712,266
1,310,310

Profit on sale of tangible assets
(140,312)
(347,926)

Other operating lease rentals
997,271
329,806

Defined contribution pension cost
789,811
639,240


7.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's annual financial statements
30,000
28,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 21

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
11,115,398
9,352,463

Social security costs
1,131,219
1,104,328

Cost of defined contribution pension schemes
789,811
639,240

13,036,428
11,096,031


Other pension costs are charged in respect of the defined benefit pension scheme with £115,000                   (2023: £113,000) being recognised within the Statement of Comprehensive Income.
Finance charges in respect of the defined benefit pension scheme are shown within Note 10, with actuarial movements, net of deferred tax, being shown within other comprehensive income.

The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production, distribution and sales
105
101



Management and administrative
88
89

193
190

Page 22

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
2,246,612
1,680,083

Company contributions to defined contribution pension schemes
211,172
219,343

2,457,784
1,899,426


During the year retirement benefits were accruing to 4 directors (2023 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £958,595 (2023 - £457,156).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).

The value of the Company's contributions paid to a defined benefit pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).

The total accrued pension provision of the highest paid director at 31 March 2024 amounted to £NIL (2023 - £NIL).

The amount of the accrued lump sum in respect of the highest paid director at 31 March 2024 amounted to £NIL (2023 - £NIL).


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
621,434
353,817

Other loan interest payable
15,826
110,003

Finance leases and hire purchase contracts
100,064
100,514

Other interest relating to defined benefit pension scheme
115,000
113,000

852,324
677,334

Page 23

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
525,947
636,276

Adjustments in respect of previous periods
(88,354)
266,844


Total current tax
437,593
903,120

Deferred tax


Origination and reversal of timing differences
727,048
247,653

Adjustment in respect of prior periods
(180,375)
-

Total deferred tax
546,673
247,653


Tax on profit
984,266
1,150,773

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of25% (2023 -19%). The differences are explained below:

2024
2023
£
£


Profit before tax
4,741,330
4,230,559


Profit multiplied by standard rate of corporation tax in the UK of 25% 
(2023 - 19%)
1,185,333
803,806

Effects of:


Expenses not deductible for tax purposes
336,776
517,467

Adjustments to tax charge in respect of prior periods
(268,729)
266,844

Non-taxable income
(235,592)
(342,000)

Remeasurement of deferred tax for changes in tax rates
-
126,804

Other differences leading to a decrease in the tax charge
53,362
(222,148)

Group relief
(86,884)
-

Total tax charge for the year
984,266
1,150,773

Page 24

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Dividends

2024
2023
£
£


Ordinary dividends
1,250,127
363,684


13.


Tangible fixed assets





Freehold property
Plant and machinery
Total

£
£
£



Cost


At 1 April 2023
5,080,572
45,689,483
50,770,055


Additions
535,735
2,804,579
3,340,314


Disposals
(6,816)
(173,977)
(180,793)



At 31 March 2024

5,609,491
48,320,085
53,929,576



Depreciation


At 1 April 2023
791,927
33,413,008
34,204,935


Charge for the year on owned assets
11,768
2,223,302
2,235,070


Disposals
-
(173,838)
(173,838)



At 31 March 2024

803,695
35,462,472
36,266,167



Net book value



At 31 March 2024
4,805,796
12,857,613
17,663,409



At 31 March 2023
4,288,645
12,276,475
16,565,120


Freehold property includes land other than that which is currently being quarried amounting to £1,916,780 (2023: £1,650,783).
The net book value of assets held under finance leases or hire purchase contracts, included above within plant and machinery, was £2,807,234 (2023: £3,502,256).

Page 25

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

14.


Fixed asset investments





Investments in subsidiary companies
Other fixed asset investments
Total

£
£
£



Cost or valuation


At 1 April 2023
2,551,002
3,139,500
5,690,502


Additions
-
19,650
19,650



At 31 March 2024

2,551,002
3,159,150
5,710,152



Impairment


At 1 April 2023
2,550,000
-
2,550,000



At 31 March 2024

2,550,000
-
2,550,000



Net book value



At 31 March 2024
1,002
3,159,150
3,160,152



At 31 March 2023
1,002
3,139,500
3,140,502


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Avochie Granite Co. Limited
Dormant
Ordinary
100%
Longcliffe Lime Company Limited
Dormant
Ordinary
100%
Longcliffe Limited
Dormant
Ordinary
100%
Longcliffe Industrial Minerals Limited
Dormant
Ordinary
100%
Ryder Point Wind Limited
Wind farming
Ordinary
100%
Vital Earth GB Limited
Recycling and composting - now discontinued
Ordinary
100%

The other fixed asset investments relate to overage rights on land acquired from a director in previous years. The valuation of these overage rights is considered annually by an independent firm of chartered surveyors to ensure there is no impairment with this asset confirmed to be held at cost to the Company.

Page 26

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Investment property


Freehold investment property

£



Valuation


At 1 April 2023
14,121,538


Additions at cost
202,918


Surplus on revaluation
315,660



At 31 March 2024
14,640,116

The 2024 valuations were made by Cauldwell & Co, Bowlts Chartered Surveyors, Mather Jamie Limited and Salloway Property Consultants on an open market value for existing use basis.



If the investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2024
2023
£
£


Historic cost
11,628,365
11,425,447


16.


Stocks

2024
2023
£
£

Finished goods and goods for resale
472,723
571,280


Page 27

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.


Debtors

2024
2023
£
£

Due after more than one year

Deferred tax asset
442,250
759,000


2024
2023
£
£

Due within one year

Trade debtors
9,666,897
10,450,680

Amounts owed by group undertakings
11,794
11,794

Other debtors
1,510,772
369,760

Prepayments and accrued income
1,543,158
1,942,333

12,732,621
12,774,567



18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
868,422
762,641

Trade creditors
7,162,561
6,314,211

Amounts owed to group undertakings
6,212
6,212

Corporation tax
589,507
903,120

Other taxation and social security
1,697,015
2,155,366

Obligations under finance lease and hire purchase contracts
1,105,867
1,022,414

Other creditors
147,894
136,228

Accruals and deferred income
2,323,205
1,583,522

13,900,683
12,883,714


Page 28

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
8,407,666
7,913,312

Net obligations under finance leases and hire purchase contracts
1,701,367
2,479,842

10,109,033
10,393,154


Secured loans
The bank loan is secured by a fixed and floating charge on the relevant freehold properties. The loan is repayable over a 15 year period with interest charged at 1.75% p.a. above base rate.
Obligations under finance leases and hire purchase contracts are secured by related assets and bear finance charges at normal commercial rates.


20.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
868,422
762,641

Amounts falling due 1-2 years

Bank loans
868,422
762,641

Amounts falling due 2-5 years

Bank loans
2,605,265
2,287,924

Amounts falling due after more than 5 years

Bank loans
4,933,979
4,862,746

9,276,088
8,675,952


Page 29

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
1,105,867
1,022,414

Between 1-5 years
887,483
1,015,460

Over 5 years
813,884
1,464,382

2,807,234
3,502,256


22.


Deferred taxation




2024
2023


£

£






At beginning of year
(1,118,440)
(694,787)


Charged to profit or loss
(546,673)
(247,653)


Charged to other comprehensive income
(50,750)
(176,000)



At end of year
(1,715,863)
(1,118,440)

The deferred tax balance is made up as follows:

2024
2023
£
£


Revaluation surplus
(469,505)
(674,023)

Excess of taxation allowances over depreciation of fixed assets
(1,688,608)
(1,228,485)

Pension deficit
442,250
784,068

(1,715,863)
(1,118,440)

Comprising:

Asset - due after one year
442,250
759,000

Liability
(2,158,113)
(1,877,440)

(1,715,863)
(1,118,440)


Page 30

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.


Reserves

Share premium account

The share premium account is used to record the aggregate amount or value of premiums paid when the Company's shares are issued at an amount in excess of nominal value.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the Company.

Profit and loss account

This reserve relates to the cumulative retained earnings less amounts distributed to shareholders. 


24.


Capital commitments

At 31 March 2024, the Company had capital commitments contracted for but not provided in these financial statements of £1,397,213 (2023: £427,000). 
At 31 March 2024, the Company had a commitment in place to purchase diesel at a fixed future price on a monthly basis for a total amount of £2,311,650 excluding VAT (2023: £NIL).


25.


Pension commitments

The Company operates two defined contribution pension schemes. 
The assets of the scheme are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to the fund and amounted to £789,811 (2023 - £639,240). Contributions totalling £78,947 (2023 - £75,784) were outstanding at the year end.

The Company operates a defined benefit pension scheme.

The defined benefit pension scheme is for all qualifying employees which is funded by the payment of contributions to separately administered funds. The scheme is closed both to new entrants and to future benefit accruals. The Company made contributions of £1,179,000 during the year (2023 - £1,139,000). 
The valuation is based on the most recent comprehensive actuarial valuation dated 31 March 2022 which has been updated by Barnett Waddingham to assess the assets and liabilities of the scheme at 31 March 2024.

Page 31

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
25.Pension commitments (continued)



Reconciliation of present value of plan liabilities:


2024
2023
£
£

Reconciliation of present value of plan liabilities


At the beginning of the year
17,532,000
25,235,000

Interest cost
807,000
671,000

Actuarial gains
(113,000)
(6,807,000)

Benefits paid
(726,000)
(739,000)

Experience loss/(gain) on liabilities
84,000
(681,000)

Changes to demographic assumptions
(389,000)
(147,000)

At the end of the year
17,195,000
17,532,000



Reconciliation of present value of plan assets:


2024
2023
£
£


At the beginning of the year
14,496,000
20,469,000

Interest income
692,000
558,000

Actuarial losses
(215,000)
(6,931,000)

Contributions
1,179,000
1,139,000

Benefits paid
(726,000)
(739,000)

At the end of the year
15,426,000
14,496,000


Composition of plan assets:


2024
2023
£
£


Equities (including properties)
13,134,000
13,337,000

Bonds
1,767,000
563,000

Insured pensions
90,000
93,000

Cash
435,000
503,000

Total plan assets
15,426,000
14,496,000

Page 32

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
25.Pension commitments (continued)

2024
2023
£
£


Fair value of plan assets
15,426,000
14,496,000

Present value of plan liabilities
(17,195,000)
(17,532,000)

Net pension scheme liability
(1,769,000)
(3,036,000)


The amounts recognised in profit or loss are as follows:

2024
2023
£
£


Interest on obligation
807,000
671,000

Interest income on plan assets
(692,000)
(558,000)

Total
115,000
113,000



The cumulative amount of actuarial gains and losses recognised in the Statement of Comprehensive Income was £11,340,000 (2023 - £11,543,000).



The Company expects to contribute £1,219,590 to its defined benefit pension scheme in 2025.





Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024
2023
%
%
Discount rate


4.75

4.7
 
Future salary increases


3.5

3.5
 
Inflation assumption


2.8

2.8
 
Mortality rates



 
- for a male aged 65 now


22.0 years

21.3 years
 
- at 65 for a male aged 45 now


20.8 years

22.6 years
 
- for a female aged 65 now


24.7 years

23.7 years
 
- at 65 for a female member aged 45 now


23.3 years

25.1 years
 


Page 33

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
25.Pension commitments (continued)


Amounts for the current and previous four periods are as follows:

2024
2023
2022
2021
2020
£
£
£
£
£
Defined benefit obligation

(17,195,000)

(17,532,000)

(25,235,000)
 
(27,995,000)
 
(24,578,000)

Scheme assets

15,426,000

14,496,000

20,469,000
 
19,738,000
 
14,456,000

Deficit
(1,769,000)

(3,036,000)

(4,766,000)
 
(8,257,000)
 
(10,122,000)





26.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
785,988
922,414

Later than 1 year and not later than 5 years
1,841,885
2,314,047

Later than 5 years
5,709,025
6,022,850

8,336,898
9,259,311

Commitments under operating leases include a lease for land and buildings of £300,475 per annum (2023: £300,475 per annum) expiring in 2048.

Page 34

 
LONGCLIFFE QUARRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

27.


Related party transactions

The Company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities.
Costs of £397,095 (2023: £325,749) relating to the development of a quarry occupied by Longcliffe Quarries Limited along with other costs of £73,948 (2023: £86,734) have been incurred by RJG Shields (trading as Avochie Estate Sporting Limited) and recharged to the Company. Of this amount, £129,170 (2023: £32,070) is still outstanding at the year end.
The directors' loan account at the year end is in a debtor position of £1,195,212 (2023: £323,063) relating to costs incurred by the Company on behalf of RJG Shields of £1,175,067 (2023: £302,918) and £20,145 (2023: £20,145) relating to costs incurred by the Company on behalf of JFG Shields.
Costs of £30,250 (2023: £7,563) were incurred during the year relating to office accommodation in Avochie Quarry leased from JFG Shields. Of this amount £1,313 (2023: £7,563) is still outstanding at the year end.
Pension plan transactions
During the year, payments totalling £233k (2023: £170k) were made to The Longcliffe Quarries  (Self-Administered) Pension Plan. This is a private pension plan, of which RJG Shields, JFG Shields (both directors), AML Shields (wife of RJG Shields), EEG Shields and EAG Shields (daughters of RJG Shields) are the beneficiaries.
Rental charges of £300k (2023: £300k) from Longcliffe Quarries Ltd and £NIL (2023: £164k) from       Vital Earth GB Limited were paid in the year to The Longcliffe Quarries (Self-Administered) Pension Plan in relation to the rental of land. At the year end an amount of £NIL (2023: £114k) was outstanding from Vital Earth GB Limited to the Pension Plan.


28.


Controlling party

The immediate and ultimate parent undertaking is Longcliffe Group Limited, a company registered in England and Wales. 
The largest and smallest group of undertakings for which group accounts for the year ended 31 March 2024 have been drawn up is that headed by Longcliffe Group Limited. Copies of the group accounts are available at Companies House. 
The ultimate controlling party is RJG Shields and members of his immediate family, by virtue of their shareholding in the ultimate parent undertaking.

 
Page 35