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Registered number: 03291553










LONGCLIFFE GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
LONGCLIFFE GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
R J G Shields 
A M L Shields 
J F G Shields 
P Boustead 
L J A Edwards 
I Gorbould 
O G Stephenson 




Company secretary
I Gorbould



Registered number
03291553



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




Bankers
Natwest Bank
5 Market Place

Chesterfield

Derbyshire

S40 1TW





 
LONGCLIFFE GROUP LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 6
Independent Auditors' Report
 
7 - 10
Consolidated Statement of Comprehensive Income
 
11
Consolidated Balance Sheet
 
12 - 13
Company Balance Sheet
 
14
Consolidated Statement of Changes in Equity
 
15
Company Statement of Changes in Equity
 
16
Consolidated Statement of Cash Flows
 
17 - 18
Consolidated Analysis of Net Debt
 
19
Notes to the Financial Statements
 
20 - 43


 
LONGCLIFFE GROUP LIMITED
 
 
GROUP 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 Group has continued to be the extraction of minerals, producing high purity calcium carbonate products for industrial applications. The Group is also involved in wind farm electricity generation.

Business review
 
The Group had another profitable year, recording profits before taxation of £5,301,000 (2023: £4,946,000), which includes a loss before taxation of £421,000 (2023: £200,000) relating to discontinued operations.
Trading conditions, however, continue to be challenging with inflation, recruitment and resource availability all presenting problems. The Group’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 Group's activities and the transport fleet operated, the volatility of energy prices is a risk to the business. The Group manages this risk by entering into supply contracts at the most opportune time, although fuel prices are subject to changes in worldwide markets.
The Group 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 Group'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 Group, along with future cash flow forecasts, and consider that the Group 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: 37.7% (2023: 34.2%)
Turnover by employee: £255,000 (2023: £247,000)
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 GROUP LIMITED
 

GROUP 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 Group
 
Longcliffe Group: Stakeholder Engagement
As the Board of Directors at Longcliffe Group, 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 Group’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 Group and its stakeholders. This statement addresses the ways in which we as a board satisfy this responsibility.
Promoting the Group’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. 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 GROUP LIMITED
 

GROUP 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 GROUP 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 £4,191,000 (2023 - £3,598,000).

During the year, the Group paid a dividend of £1,250,000 (2023: £364,000).

Directors

The directors who served during the year were:

R J G Shields 
A M L Shields 
J F G Shields 
P Boustead 
L J A Edwards 
I Gorbould 
O G Stephenson 

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group'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 Group 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 the Group and to enable them to ensure that the financial statements comply with the 
Companies Act 2006
They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Political contributions

Political donations amounting to £5,000 (2023: £5,000) were made during the year.

Page 4

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

Future developments

The Group 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.

Disabled employees

The Group has given full and fair considerations to applications for employment received from disabled persons, having regard to their particular attributes and abilities. Wherever possible, the Group continues the employment of, and arranges for the appropriate training of, employees who become disabled whilst employed by the Group. The Group’s policy of training, career development and promotion applied equally to all employees whether disabledor not.

Greenhouse gas emissions, energy consumption and energy efficiency action

img7d5c.png

The Group is accredited under ISO 14001:2015 for our environmental management systems which identify and control the environmental impact of the Group's activities. This directs a continuous improvement in environmental performance and supports a systematic approach to setting environmental objectives.               The Group's accreditation under ISO 50001 for energy management forms part of our Integrated Management System (IMS) and recognises that we have a robust system to manage and reduce our energy consumption.

Page 5

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

There are many established ways of making our plants as energy efficient as possible. We employ the following methods:
 
Ordering the highest rating of energy efficient motors (IE3 and IE4) and employing inverters to minimise energy by controlling motor speed.
Installing power factor correction equipment to bring the power factor as close as is practically possible to unity.
Using sensors to turn off plant when not in use, using LED lighting wherever possible and PIR intelligent lighting controls.
Employing appropriately sized and variable speed air compressors to avoid wasting power.


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 and the Group'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 and the Group's auditors are aware of that information.

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 6

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

Opinion


We have audited the financial statements of Longcliffe Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 7

 
LONGCLIFFE GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGCLIFFE GROUP 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 8

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


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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


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 Group 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 Group.

We assessed the susceptibility of the Group’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.

 
Page 9

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


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,    any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities 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 10

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

Continuing operations
Discontined operations
Total
Continuing operations
Discontinued operations
Total
2024
2024
2024
2023
2023
2023
Note
£000
£000
£000
£000
£000
£000

  

Turnover
 4 
49,291
19
49,310
48,096
49
48,145

Cost of sales
  
(30,971)
-
(30,971)
(31,640)
(37)
(31,677)

Gross profit
  
18,320
19
18,339
16,456
12
16,468

Administrative expenses
  
(12,409)
(11)
(12,420)
(9,872)
(170)
(10,042)

Exceptional administrative expenses
  
-
(426)
(426)
-
(41)
(41)

Other operating income
 6 
506
-
506
433
-
433

Fair value movements
  
316
-
316
(1,082)
-
(1,082)

Operating profit
 7 
6,733
(418)
6,315
5,935
(199)
5,736

Interest payable and similar expenses
 11 
(1,011)
(3)
(1,014)
(789)
(1)
(790)

Profit before taxation
  
5,722
(421)
5,301
5,146
(200)
4,946

Tax on profit
 12 
(1,110)
-
(1,110)
(1,348)
-
(1,348)

Profit for the financial year
  
4,612
(421)
4,191
3,798
(200)
3,598

  

Actuarial gains on defined benefit pension scheme
  
203
704

Movement of deferred tax relating to pension deficit
  
(51)
(176)

Other comprehensive income for the year
  
152
528

Total comprehensive income for the year
  
4,343
4,126

Profit for the year attributable to:
  

Owners of the parent Company
  
4,612
(421)
4,191
3,798
(200)
3,598

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
4,343
4,126

The notes on pages 20 to 43 form part of these financial statements.

Page 11

 
LONGCLIFFE GROUP LIMITED
REGISTERED NUMBER: 03291553

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 14 
20,823
20,001

Investments
 15 
3,160
3,140

Investment property
 16 
14,640
14,121

  
38,623
37,262

Current assets
  

Stocks
 17 
473
571

Debtors: amounts falling due after more than one year
 18 
442
759

Debtors: amounts falling due within one year
 18 
13,137
13,233

Cash at bank and in hand
  
4,614
3,405

  
18,666
17,968

Creditors: amounts falling due within one year
 19 
(14,767)
(14,396)

Net current assets
  
 
 
3,899
 
 
3,572

Total assets less current liabilities
  
42,522
40,834

Creditors: amounts falling due after more than one year
 20 
(12,284)
(12,702)

Provisions for liabilities
  

Deferred taxation
 23 
(2,624)
(2,344)

Net assets excluding pension liability
  
27,614
25,788

Pension liability
  
(1,769)
(3,036)

Net assets
  
25,845
22,752

Page 12

 
LONGCLIFFE GROUP LIMITED
REGISTERED NUMBER: 03291553
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Capital and reserves
  

Called up share capital 
 26 
182
182

Merger reserve
 27 
215
215

Profit and loss account
 27 
25,448
22,355

  
25,845
22,752


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 20 to 43 form part of these financial statements.

Page 13

 
LONGCLIFFE GROUP LIMITED
REGISTERED NUMBER: 03291553

COMPANY BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Investments
 15 
182
182

  

  

  

Net assets
  
182
182


Capital and reserves
  

Called up share capital 
 26 
182
182

  
182
182


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 20 to 43 form part of these financial statements.

Page 14

 
LONGCLIFFE GROUP LIMITED
 

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


Called up share capital
Merger reserve
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 April 2022
182
215
18,593
18,990


Comprehensive income for the year

Profit for the year
-
-
3,598
3,598

Actuarial gains on pension scheme
-
-
528
528
Total comprehensive income for the year
-
-
4,126
4,126


Distributions to owners

Dividends: Equity capital
-
-
(364)
(364)



At 1 April 2023
182
215
22,355
22,752


Comprehensive income for the year

Profit for the year
-
-
4,191
4,191

Actuarial gains on pension scheme
-
-
152
152
Total comprehensive income for the year
-
-
4,343
4,343


Distributions to owners

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


At 31 March 2024
182
215
25,448
25,845


The notes on pages 20 to 43 form part of these financial statements.

Page 15

 
LONGCLIFFE GROUP LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 April 2022
182
-
182


Comprehensive income for the year

Profit for the year
-
364
364
Total comprehensive income for the year
-
364
364


Distributions to owners

Dividends: Equity capital
-
(364)
(364)



At 1 April 2023
182
-
182


Comprehensive income for the year

Profit for the year
-
1,250
1,250
Total comprehensive income for the year
-
1,250
1,250


Distributions to owners

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


At 31 March 2024
182
-
182


The notes on pages 20 to 43 form part of these financial statements.

Page 16

 
LONGCLIFFE GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£000
£000

Cash flows from operating activities

Profit for the financial year
4,191
3,598

Adjustments for:

Depreciation of tangible assets
2,512
2,613

Profit on disposal of tangible assets
(148)
(235)

Interest paid
1,014
790

Taxation charge
1,110
1,348

Decrease/(increase) in stocks
98
(25)

Decrease/(increase) in debtors
412
(1,894)

Increase/(decrease) in creditors
608
(912)

Contributions paid to defined benefit pension scheme
(1,179)
(1,139)

Net fair value (gains)/losses recognised in P&L
(316)
1,082

Corporation tax (paid)/received
(1,296)
50

Net cash generated from operating activities

7,006
5,276


Cash flows from investing activities

Purchase of tangible fixed assets
(2,957)
(1,317)

Sale of tangible fixed assets
155
266

Expenditure on investment properties
(203)
(1,667)

Sale of investment properties
-
2,883

Expenditure on other fixed asset investments
(20)
-

Net cash (used in) / generated from investing activities

(3,025)
165
Page 17

 
LONGCLIFFE GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


2024
2023

£000
£000



Cash flows from financing activities

New secured loans
1,000
-

Repayment of loans
(503)
(701)

Repayment of other loans
-
(1,818)

Repayment of finance leases
(1,120)
(1,210)

Dividends paid
(1,250)
(364)

Interest paid
(899)
(677)

Net cash used in financing activities
(2,772)
(4,770)

Net increase in cash and cash equivalents
1,209
671

Cash and cash equivalents at beginning of year
3,405
2,734

Cash and cash equivalents at the end of year
4,614
3,405


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,614
3,405


The notes on pages 20 to 43 form part of these financial statements.

Page 18

 
LONGCLIFFE GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024





At 1 April 2023
Cash flows
New loans /  finance leases
At 31 March 2024
£000

£000

£000

£000

Cash at bank and in hand

3,405

1,209

-

4,614

Debt due after 1 year

(10,197)

614

(1,000)

(10,583)

Debt due within 1 year

(855)

(111)

-

(966)

Finance leases

(3,543)

1,120

(384)

(2,807)


(11,190)
2,832
(1,384)
(9,742)

The notes on pages 20 to 43 form part of these financial statements.

Page 19

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

1.


General information

Longcliffe Group Limited is a private company, limited by shares, domiciled and incorporated in England and Wales (registered number: 03291553). The registered office address is Longcliffe, Brassington, Matlock, Derbyshire, DE4 4HN. 
The principal activity of the Group has continued to be the extraction and transport of minerals for a number of industrial applications. The Group is also involved in wind farm electricity generation and, previously, in composting of local authority collected green and kitchen waste.

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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the                                     Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Associates are held at cost less impairment.

  
2.3

Discontinued operations

A component is considered to be a discontinued operation where it has been disposed of (that is, sold or closed) at the balance sheet date. Where the definition is met then the results for that component are shown separately from continuing operations on the face of the income statement, both for the current and the prior year.

Page 20

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

2.Accounting policies (continued)

 
2.4

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 Consolidated 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'.

 
2.5

Revenue

Revenue comprises the invoiced value of goods and services exclusive of VAT and is derived from the continuing principal activities of the Group. Revenue is recognised at the point of delivery of the goods in Longcliffe Quarries Limited. In the case of Ryder Point Wind Limited, it is recognised as electricity is generated and fed into the grid. Revenue is accrued at the contractually agreed generation or feed in rates for electricity supplied but not invoiced. 

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Leased assets: the Group 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 21

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

2.Accounting policies (continued)

 
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

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

Defined benefit pension plan

The Group 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 FRS 102 fair value hierarchy and in accordance with the Group'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.

Page 22

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

2.Accounting policies (continued)


2.9
Pensions (continued)

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'.

 
2.10

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 and the Group operate and generate 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.

 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.12

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.

Page 23

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

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

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 or over the life of the tariff
Land
-
Not depreciated

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.

  
2.13

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.14

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.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in overage rights are measured at cost less accumulated impairment based on valuations provided by management's external expert.

Page 24

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

2.Accounting policies (continued)

 
2.16

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.

 
2.17

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.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

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.

 
2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group 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 Group 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 Group is obliged to return the principal asset of Longcliffe Quarries Limited 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.

Page 25

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

2.Accounting policies (continued)

 
2.21

Financial instruments

The Group 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 Consolidated 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 Group would receive for the asset if it were to be sold at the balance sheet date.

 
2.22

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.

Page 26

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

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 these financial statements are:
The pension scheme liability has been valued by an actuary in accordance with FRS 102. Key estimations applied in the valuation of the pension scheme include inflation, discount rate and mortality rates. Management consider the estimations applied by the actuary to be reasonable. 
Estimates have been made in the calculation of the decommissioning 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. 
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 is assessed annually for impairment based on a valuation provided by management's external expert.


4.


Turnover

The whole of the turnover is attributable to the Group's principal business activity.

All turnover arose within the United Kingdom.


5.


Exceptional items

2024
2023
£000
£000


Land remediation costs
426
41


6.


Other operating income

2024
2023
£000
£000

Other operating income
324
230

Net rents receivable
182
203

506
433


Page 27

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

7.


Operating profit

The operating profit is stated after charging:

2024
2023
£000
£000

Depreciation of owned tangible fixed assets
1,800
1,303

Depreciation of tangible fixed assets held under hire purchase
712
1,310

Profit on disposal of fixed assets
(148)
(235)

Operating lease costs
997
721

Defined contribution pension cost
790
639


8.


Auditors' remuneration

During the year, the Group obtained the following services from the Group's auditors:


2024
2023
£000
£000

Fees payable to the Group's auditors for the audit of the consolidated and parent Company's financial statements
6
6

Fees payable to the Group's auditors in respect of:

The auditing of accounts of subsidiaries of the Group
36
32

Taxation compliance services
10
8

All taxation services not included above
16
18

All non-audit services not included above
7
7

Page 28

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

9.


Employees

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


Group
Group
2024
2023
£000
£000


Wages and salaries
11,115
9,363

Social security costs
1,131
1,107

Cost of defined contribution pension schemes
850
640

13,096
11,110


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 administration
88
94

193
195


10.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
1,927
1,306

Group contributions to defined contribution pension schemes
33
27

1,960
1,333


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 £959,000 (2023 - £452,000).

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

Page 29

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

10.Directors' remuneration (continued)

Within the above remuneration, payments totalling £233,000 (2023: £170,000) were made to the Longcliffe Quarries (Self-Administered) Pension Plan. 2 of the directors (2023: 2), including the highest paid director are beneficiaries of this plan. Since March 2008, no further payments have been made to the defined benefit pension scheme in respect of R J G Shields.


11.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
783
466

Other loan interest payable
16
110

Finance leases and hire purchase contracts
100
101

Other interest payable
115
113

1,014
790


12.


Taxation


2024
2023
£000
£000

Corporation tax


Current tax on profits for the year
651
818

Adjustments in respect of previous periods
(88)
267


Total current tax
563
1,085

Deferred tax


Origination and reversal of timing differences
727
263

Adjustments in respect of previous periods
(180)
-

Total deferred tax
547
263


Tax on profit
1,110
1,348
Page 30

 
LONGCLIFFE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.Taxation (continued)


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
£000
£000


Profit before tax
5,301
4,946


Profit multiplied by standard rate of corporation tax in the UK of 25% 
(2023 - 19%)
1,325
939

Effects of:


Expenses not deductible for tax purposes
84
251

Other timing differences
(6)
-

Adjustments to tax charge in respect of prior periods
(269)
267

Other timing differences leading to an increase/(decrease) in taxation
55
(245)

Remeasurement of deferred tax for change in tax rates
-
136

Non-taxable income
(79)
-

Total tax charge for the year
1,110
1,348


13.


Dividends

2024
2023
£000
£000


Ordinary dividends
1,250
364

Page 31

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

14.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Total

£000
£000
£000



Cost


At 1 April 2023
6,850
51,348
58,198


Additions
536
2,805
3,341


Disposals
(7)
(174)
(181)



At 31 March 2024

7,379
53,979
61,358



Depreciation


At 1 April 2023
3,376
34,821
38,197


Charge for the year on owned assets
12
2,500
2,512


Disposals
-
(174)
(174)



At 31 March 2024

3,388
37,147
40,535



Net book value



At 31 March 2024
3,991
16,832
20,823



At 31 March 2023
3,474
16,527
20,001

Page 32

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

           14.Tangible fixed assets (continued)

Freehold property
Freehold property includes land other than that which is currently being quarried amounting to £1,917,000 (2023: £1,651,000).
Hire purchase agreements
Included within the net book value of £20,971,000 is £4,587,000 (2023: £3,502,000) relating to assets held under hire purchase agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £712,000 (2023: £1,310,000).
Capitalised interest
Included within fixed assets is capitalised loan interest of £375,000 relating to the period before the assets were brought into use.
Capital commitments
At 31 March 2024, the Group had capital commitments contracted for but not provided in these financial statements of £1,397,000 (2023: £427,000).


15.


Fixed asset investments

Group





Other fixed asset investments

£000



Cost


At 1 April 2023
3,140


Additions
20



At 31 March 2024
3,160




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 continued to be held at cost to the Group.

Page 33

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





Investments in subsidiary companies

£000



Cost


At 1 April 2023
182



At 31 March 2024
182





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Longcliffe Quarries Limited
Direct
Extraction and sale of minerals
Ordinary
100%
Longcliffe Quarrying Company Limited
Direct
Dormant
Ordinary
100%
Avochie Granite Co. Limited
Indirect
Dormant
Ordinary
100%
Longcliffe Lime Company Limited
Indirect
Dormant
Ordinary
100%
Longcliffe Limited
Indirect
Dormant
Ordinary
100%
Longcliffe Industrial Minerals Limited
Indirect
Dormant
Ordinary
100%
Ryder Point Wind Limited
Indirect
Wind farming
Ordinary
100%
Vital Earth GB Limited
Indirect
Recycling/composting - now discontinued
Ordinary
100%

All subsidiary undertakings have the same registered office address as Longcliffe Group Limited.

Page 34

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

16.


Investment property

Group


Freehold investment property

£000



Valuation


At 1 April 2023
14,121


Additions at cost
203


Surplus on revaluation
316



At 31 March 2024
14,640

The directors have revalued the investment properties on an open market value for an existing use basis with guidance provided by qualified surveyors.



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

2024
2023
£000
£000


Historic cost
11,628
11,425




17.


Stocks

Group
Group
2024
2023
£000
£000

Finished goods and goods for resale
473
571


Page 35

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

18.


Debtors

Group
Group
2024
2023
£000
£000

Due after more than one year

Deferred tax asset
442
759


Group
Group
2024
2023
£000
£000

Due within one year

Trade debtors
9,764
10,586

Other debtors
1,512
393

Prepayments and accrued income
1,861
2,254

13,137
13,233



19.


Creditors: Amounts falling due within one year

Group
Group
2024
2023
£000
£000

Bank loans
966
855

Trade creditors
7,564
6,556

Corporation tax
665
1,085

Other taxation and social security
1,749
2,255

Obligations under finance lease and hire purchase contracts
1,106
1,038

Other creditors
288
277

Accruals and deferred income
2,429
2,330

14,767
14,396


Page 36

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

20.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£000
£000

Bank loans
10,583
10,197

Net obligations under finance leases and hire purchase contracts
1,701
2,505

12,284
12,702


Secured loans
The Longcliffe Quarries Limited bank loan is secured by a fixed and floating charge on the subsidiary's freehold properties. The Ryder Point Wind Limited loan is secured by all assets of the subsidiary company. The interest rates on the loans are 1.75% p.a. above base rate and are repayable over a        15 year period.
Obligations under finance leases and hire purchase contracts are secured by related assets and bear finance charges at normal commercial rates. 




21.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£000
£000

Amounts falling due within one year

Bank loans
966
855

Amounts falling due 1-2 years

Bank loans
868
763

Amounts falling due 2-5 years

Bank loans
4,781
4,571

Amounts falling due after more than 5 years

Bank loans
4,934
4,863

11,549
11,052


Page 37

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

22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£000
£000

Within one year
1,106
1,038

Between 1-5 years
887
1,031

Over 5 years
814
1,474

2,807
3,543


23.


Deferred taxation


Group



2024
2023


£000

£000






At beginning of year
(1,585)
(1,145)


Charged to profit or loss
(547)
(263)


Charged to other comprehensive income
(51)
(176)



At end of year
(2,183)
(1,584)

Page 38

 
LONGCLIFFE GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
23.Deferred taxation (continued)








The deferred tax balance is made up as follows:

Group
Group
2024
2023
£000
£000

Revaluation surplus
(469)
(674)

Excess of taxation allowances over depreciation of fixed assets
(2,159)
(1,698)

Pension deficit
442
784

Other timing differences
4
3

(2,182)
(1,585)

Comprising:

Asset - due after one year
442
759

Liability
(2,624)
(2,344)

(2,182)
(1,585)



24.


Pension commitments

Defined contribution pension schemes
The Group operates two defined contribution pension schemes. 
The assets of the scheme are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the fund and amounted to £790,000 (2023: £640,000). Contributions totalling £79,000 (2023: £76,000) were outstanding at the year end.  

The Group 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 Group 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 the liabilities of the scheme at         31 March 2024.
 
Page 39

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




Reconciliation of present value of plan liabilities:


2024
2023
£000
£000

Reconciliation of present value of plan liabilities


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

Interest cost
807
671

Actuarial gains
(113)
(6,807)

Benefits paid
(726)
(739)

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

Changes to demographic assumptions
(389)
(147)

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



Reconciliation of present value of plan assets:


2024
2023
£000
£000


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

Interest income
692
558

Actuarial losses
(215)
(6,931)

Contributions
1,179
1,139

Benefits paid
(726)
(739)

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


Composition of plan assets:


2024
2023
£000
£000


Equities (including property)
13,134
13,337

Bonds
1,767
563

Insured pensions
90
93

Cash
435
503

Total plan assets
15,426
14,496

Page 40

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

2024
2023
£000
£000


Fair value of plan assets
15,426
14,496

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

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


The amounts recognised in profit or loss are as follows:

2024
2023
£000
£000


Current service cost
807
671

Gains on curtailments and settlements
(692)
(558)

Total
115
113



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



The Group expects to contribute £1,220,000 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 41

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


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

2024
2023
2022
2021
2020
£000
£000
£000
£000
£000
Defined benefit obligation

(17,195)

(17,532)

(25,235)
 
(27,995)
 
(24,578)

Scheme assets

15,426

14,496

20,469
 
19,738
 
14,456

Deficit
(1,769)

(3,036)

(4,766)
 
(8,257)
 
(10,122)





25.


Commitments under operating leases

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


Group
Group
2024
2023
£000
£000

Not later than 1 year
814
930

Later than 1 year and not later than 5 years
1,849
2,314

Later than 5 years
5,709
6,023

8,372
9,267

Commitments under operating leases includes a lease for land and buildings of £300,000 per annum (2023: £300,000 per annum) expiring in 2048.
Other commitments
At 31 March 2024, the Group had capital commitments contracted for but not provided in these financial statements of £1,397,213 (2023: £427,000). 
At 31 March 2024, the Group 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 (2023: £NIL).


26.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



181,842 (2023 - 181,842) Called up share capital shares of £1.00 each
182
182


Page 42

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

27.


Reserves

Merger reserve

The other reserves relate to a 'merger capital reserve' which was created on a previous reconstruction.

Profit and loss account

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


28.


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 £397,000 (2023: £326,000) relating to the development of a quarry occupied by Longcliffe Quarries Limited along with other costs of £74,000 (2023: £87,000) have been incurred by RJG Shields (trading as Avochie Estate Sporting Limited) and recharged to the Group. Of this amount £129,000 (2023: £32,000) is still outstanding at the year end. 
The directors' loan account at the year end is in a debtor position of £1,195,000 (2023: £323,000) relating to costs incurred by the Group on behalf of RJG Shields of £1,175,000 (2023: £303,000) and £20,000 (2023: £20,000) relating to costs incurred by the Group on behalf of JFG Shields.
During the year, costs of £30,000 (2023: £8,000) were incurred by Longcliffe Quarries Limited relating to office accomodation in Avochie Quarry leased from JFG Shields. Of this amount, £1,000 (2023: £8,000) is still outstanding at the year end. 
Pension plan transactions
During the year, payments totalling £233,000 (2023: £170,000) 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 £300,000 (2023: £300,000) from Longcliffe Quarries Limited and £NIL                            (2023: £164,000) 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 was outstanding to the Pension Plan (2023: £114,000).
Key management personnel
Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the Group. The remuneration of the directors can be found in Note 10. Management do not consider there to be any other key management personnel.


29.


Controlling party

The Group is controlled by RJG Shields and members of his immediate family, by virture of their shareholdings in the ultimate parent undertaking.

Page 43