Company registration number 01896340 (England and Wales)
KEITH WALTON BRICKWORK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KEITH WALTON BRICKWORK LIMITED
COMPANY INFORMATION
Directors
Mr H J Clayton
Mr K Walton
Mr W Kelly
Mr S J Watson
Mrs H E Atkin Watson
Company number
01896340
Registered office
Southfield House
Southfield Street
Nelson
Lancashire
BB9 9QF
Auditor
NRB Chartered Accountants
1st Floor, Waterside House
Waterside Drive
Wigan
Lancashire
WN3 5AZ
Business address
Southfield House
Southfield Street
Nelson
Lancashire
BB9 9QF
Bankers
Handelsbanken plc
Greenbank Court
Challenge Way
Greenbank Business Park
Blackburn
Lancashire
BB1 5QB
KEITH WALTON BRICKWORK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
KEITH WALTON BRICKWORK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The principal activity of the company during the year continued to be that of a specialist masonry contractor, working with large clients on commercial, retail and residential builds. We have maintained our relationships with our long-term client base and forged new relationships as a result of our performance and quality workmanship. We have maintained our high standards in respect of Health & Safety, Quality, Environmental and Sustainability matters as this is the key to our long term success.
The financial year has shown a much stronger trading performance with increased turnover of £12.6m (2022 - £9.8m) and an improved profit before taxation of £1,540k (2022 - £363k). We attribute the increased profitability to our proactive approach to managing inflation, control of salaries and working for our key clients.
We recognise the importance of building the foundations for the next generation of bricklayers and construction professionals to ensure the longevity of our business, and as such we have continued to provide apprenticeships and promote the development and progression of our whole team, both onsite and in the office.
We, like many others, have increased our efforts to support and drive environmental changes in our bid to reduce our carbon footprint. This has been done by investing in more electric vehicles and working with suppliers and labour local to contracts to reduce travel.
Principal risks and uncertainties
The company does not actively use financial instruments as part of its financial risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means that they are not subject to price risk or liquidity risk. Its policy is to finance working capital through group retained earnings.
Other risks and uncertainties identified by the directors which could adversely and materially affect the company, but which are actively managed and appropriate actions taken to mitigate these risks, are as follows:-
Labour retention - as in previous years, the company has identified the potential risk of both the acquisition and retention of bricklayers. To mitigate these risks, the company actively monitors the market conditions and pay out rates. In addition, the company provides apprenticeships for bricklayers and maintains good relationships with several colleges.
Inflation - uncertainty surrounding inflation has previously been identified as a risk to company contracts and pricing. This has been addressed during the financial year by using projections and adjusted price planning by the directors.
Competition - a number of new bricklaying subcontractors have been identified in our area of operation. Although these subcontractors do not carry the extensive accreditations held by us as required by the majority of our clients, they have been used as a price comparison in some instances at tender stage. The directors have addressed this by demonstrating the standards and accreditations held by the company.
Development and performance
Whilst the current and future economic climate remains uncertain, the company's secured and targeted workload remains largely in established sectors which remain reasonably active, including public sector schemes, education and healthcare. With our current workflow, we are expecting turnover for the forthcoming year to increase. We are increasing the opportunities for apprentices year on year to ensure the continuity of our workforce.
KEITH WALTON BRICKWORK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
The company considers its key financial indicators to be those that communicate the financial strength of the company as a whole, being turnover, gross profit, operating profit and profit before taxation as set out in the profit and loss account.
The key performance indicators are monitored by the board of directors. In addition to the above, contract margins are monitored monthly to ensure that the company's contracts are progressing as planned and in a timely manner.
Non-financial key performance indicators are measured on an annual basis using customer feedback questionnaires. This is also a requirement of our ISO 9001:2005 accredited management system to evaluate client satisfaction with the finished product, our service levels, the overall programme and time taken, health and safety, communication and commercial aspects of the project.
.............................................
Mr H J Clayton
Director
Date: .............................................
KEITH WALTON BRICKWORK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of specialist brickwork masonry contractors.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,100,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr H J Clayton
Mr K Walton
Mr W Kelly
Mr S J Watson
Mrs H E Atkin Watson
Auditor
NRB Chartered Accountants were appointed as auditor to the company.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosures in the strategic report
The disclosures in respect of the business review, future developments and the financial risk management, objectives and policies are included in the strategic report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
KEITH WALTON BRICKWORK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr H J Clayton
Director
20 August 2024
KEITH WALTON BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KEITH WALTON BRICKWORK LIMITED
- 5 -
Opinion
We have audited the financial statements of Keith Walton Brickwork Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
KEITH WALTON BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEITH WALTON BRICKWORK LIMITED
- 6 -
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 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, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:
The nature of the industry and the company’s control environment.
Results of our enquiries of management.
The company’s procedures and controls on compliance with laws and regulations and the risks of fraud.
Discussions among the audit engagement team concerning potential indicators of fraud.
We are also required to perform specific procedures to respond to the risk of management override.
As a result of our audit procedures we did not identify a material risk of fraud or other non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
KEITH WALTON BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KEITH WALTON BRICKWORK LIMITED
- 7 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Neil Whittingham BA FCA ATT (Senior Statutory Auditor)
20 August 2024
for and on behalf of NRB
1st Floor Waterside House
Waterside Drive
Wigan
Lancashire
WN3 5AZ
KEITH WALTON BRICKWORK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
12,615,256
9,760,716
Cost of sales
(8,965,432)
(7,506,027)
Gross profit
3,649,824
2,254,689
Administrative expenses
(2,113,558)
(1,889,608)
Operating profit
4
1,536,266
365,081
Interest receivable and similar income
7
5,677
Interest payable and similar expenses
8
(2,402)
(2,409)
Profit before taxation
1,539,541
362,672
Tax on profit
9
(330,079)
(63,079)
Profit for the financial year
1,209,462
299,593
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KEITH WALTON BRICKWORK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
209,156
191,449
Current assets
Debtors
12
2,923,403
1,942,584
Cash at bank and in hand
1,253,258
1,093,355
4,176,661
3,035,939
Creditors: amounts falling due within one year
13
(2,900,163)
(1,877,058)
Net current assets
1,276,498
1,158,881
Total assets less current liabilities
1,485,654
1,350,330
Creditors: amounts falling due after more than one year
14
(42,085)
(21,065)
Provisions for liabilities
Deferred tax liability
16
45,788
40,946
(45,788)
(40,946)
Net assets
1,397,781
1,288,319
Capital and reserves
Called up share capital
18
150,000
150,000
Capital redemption reserve
75,000
75,000
Profit and loss reserves
1,172,781
1,063,319
Total equity
1,397,781
1,288,319
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 20 August 2024 and are signed on its behalf by:
Mr H J Clayton
Director
Company registration number 01896340 (England and Wales)
KEITH WALTON BRICKWORK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
150,000
75,000
1,263,726
1,488,726
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
299,593
299,593
Dividends
10
-
-
(500,000)
(500,000)
Balance at 31 December 2022
150,000
75,000
1,063,319
1,288,319
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,209,462
1,209,462
Dividends
10
-
-
(1,100,000)
(1,100,000)
Balance at 31 December 2023
150,000
75,000
1,172,781
1,397,781
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Keith Walton Brickwork Limited is a private company limited by shares incorporated in England and Wales. The registered office is Southfield House, Southfield Street, Nelson, Lancashire, BB9 9QF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption in FRS 102 paragraph 1.12 from the requirement to produce a cash flow statement and to disclose certain related party disclosures.
Keith Walton Brickwork Limited is a wholly owned subsidiary of Keith Walton Construction Company Limited and the results of Keith Walton Brickwork Limited are included in the consolidated financial statements of Keith Walton Construction Company Limited which are available from Southfield House, Southfield Street, Nelson, Lancashire BB9 9QF.
The company's ultimate parent company is Keith Walton Construction Company Limited, a company registered in England and Wales.
1.2
Going concern
The directors are not aware of any material uncertainties affecting the company and consider that the company will have sufficient resources to continue trading for the foreseeable future. As a result the directors have continued to adopt the going concern basis in preparing the financial statements.true
1.3
Turnover
Turnover represents the value of work performed for third parties net of VAT and trade discounts.
Long term contract balances are included in debtors at realisable value to recognise the company's right to receive consideration by its performance under contract works.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% straight line or reducing balance
Fixtures, fittings & equipment
25% to 33.33% straight line or reducing balance
Motor vehicles
33.33% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss on a straight line basis.
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.13
Retentions
Income in respect of retentions is incorporated in the Profit and Loss Account as such income becomes receivable. Any costs which may be incurred by the company in claiming the retentions held by its customers are charged to the Profit and Loss Account in the period in which they are incurred.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
WIP estimates
Work in progress for ongoing contracts is considered to be a key accounting estimate for which detailed assessments are made by senior management for each and every contract on a quarterly basis which includes the financial year-end.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Brickwork masonry contractors
12,615,256
9,760,716
2023
2022
£
£
Other significant revenue
Interest income
5,677
-
The company's turnover was generated wholly within the United Kingdom.
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditors for the audit of the company's financial statements
11,520
11,300
Depreciation of owned tangible fixed assets
16,329
47,415
Depreciation of tangible fixed assets held under finance leases
22,801
24,427
Loss/(profit) on disposal of tangible fixed assets
-
(230)
Cost of stocks recognised as an expense
3,814,943
3,207,749
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
16
14
Production
61
66
Total
77
80
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,723,806
2,692,789
Pension costs
58,381
49,657
2,782,187
2,742,446
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
6
Directors' remuneration
The number of directors for whom retirement benefits are accruing under defined contribution schemes with the parent company, Keith Walton Construction Company Limited, amounted to 4 (2022 - 4).
The directors of the company were remunerated by the company's parent, Keith Walton Construction Company Limited. During the year the directors have received emoluments from Keith Walton Construction Company Limited amounting to £484,562 (2022 - £445,252).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
173,977
168,564
Company pension contributions to defined contribution schemes
27,700
27,700
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
5,677
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
80
-
Interest on finance leases and hire purchase contracts
2,322
2,409
2,402
2,409
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
360,351
79,784
Adjustments in respect of prior periods
(35,114)
(1,609)
Total current tax
325,237
78,175
Deferred tax
Origination and reversal of timing differences
4,842
(15,096)
Total tax charge
330,079
63,079
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,539,541
362,672
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
362,100
68,908
Tax effect of expenses that are not deductible in determining taxable profit
2,656
Adjustments in respect of prior years
(35,114)
(1,609)
Effect of change in corporation tax rate
287
(3,623)
Other non-reversing timing differences
8
Enhanced capital allowances claims
142
(597)
Taxation charge for the year
330,079
63,079
10
Dividends
2023
2022
£
£
Interim paid
1,100,000
500,000
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
118,073
63,901
223,055
405,029
Additions
20,354
10,273
96,815
127,442
Disposals
(9,573)
(28,900)
(143,104)
(181,577)
At 31 December 2023
128,854
45,274
176,766
350,894
Depreciation and impairment
At 1 January 2023
77,152
14,105
122,323
213,580
Depreciation charged in the year
10,766
1,416
26,948
39,130
Eliminated in respect of disposals
(2,003)
(14,105)
(94,864)
(110,972)
At 31 December 2023
85,915
1,416
54,407
141,738
Carrying amount
At 31 December 2023
42,939
43,858
122,359
209,156
At 31 December 2022
40,921
49,796
100,732
191,449
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 18 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Motor vehicles
104,251
48,861
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Gross amounts owed by contract customers
2,395,460
1,458,648
Corporation tax recoverable
35,136
Other debtors
340,921
338,628
Prepayments and accrued income
151,886
145,308
2,923,403
1,942,584
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
15
43,540
24,033
Trade creditors
486,926
499,648
Amounts owed to group undertakings
1,647,668
1,086,531
Corporation tax
360,351
79,784
Other taxation and social security
81,950
56,398
Accruals and deferred income
279,728
130,664
2,900,163
1,877,058
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
42,085
21,065
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
46,425
25,521
In two to five years
43,921
21,327
90,346
46,848
Less: future finance charges
(4,721)
(1,750)
85,625
45,098
Net obligations under finance leases are secured by fixed charges on the assets concerned.
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
45,788
40,946
2023
Movements in the year:
£
Liability at 1 January 2023
40,946
Charge to profit or loss
4,842
Liability at 31 December 2023
45,788
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,381
49,657
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
150,000 Ordinary shares of £1 each
150,000
150,000
KEITH WALTON BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
19
Financial commitments, guarantees and contingent liabilities
The company has guaranteed the bank borrowings of its parent company, Keith Walton Construction Company Limited. At 31 December 2023 the bank borrowings of this fellow group company were £nil (2022 - £nil).
20
Ultimate controlling party
The ultimate parent company is Keith Walton Construction Company Limited, a company registered in England and Wales.
The ultimate controlling party is Mr K Walton, a director of the company, by virtue of his beneficial interest in The Keith Walton (1999) Settlement.
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