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COMPANY REGISTRATION NUMBER: 02850815
Hi Way Services Limited
Financial Statements
30 November 2023
Hi Way Services Limited
Financial Statements
Year ended 30 November 2023
Contents
Page
Strategic report
1
Directors' report
2
Independent auditor's report to the members
4
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11
Hi Way Services Limited
Strategic Report
Year ended 30 November 2023
Principal activities and business review
The principal activity of the company during the year under review continued to be the provision of roadmarking and traffic management services. Turnover for the year is £9,034,216 which represents an increase of 23.3% on the previous year. The directors consider the gross profit margin to be a key performance indicator. The gross profit margin for the current year was 35.3%, compared to 33.9% in 2022. The directors are pleased with the performance of the company during the year, reporting a profit before tax of £1,450,906.
Future prospects
The directors are optimistic in respect of the future performance of the company. The directors anticipate that the improvement in the UK and global economy will ensure that the company remains profitable. The company continues to benefit from repeat business with high profile customers. Its association with such companies and prestigious projects also generates interest from potential new customers. An ongoing commitment to the improvement and development of services, training and Health & Safety, as well as research in to possible new markets ensures the longevity of the company.
Risks and uncertainties
The directors continually review the financial and commercial risks the company is potentially exposed to. Where these risks are significant the directors will take appropriate actions to mitigate these risks. The directors believe that technological changes are a key risk and so by monitoring industry developments and investing to improve quality and efficiency the company can ensure it retains its position as one of the UK's leading roadmarking companies.
This report was approved by the board of directors on 20 August 2024 and signed on behalf of the board by:
Mr A J O'Reilly
Director
Registered office:
Unit 32
Thomas Way
3a Lakesview International Business Park
Hersden
Canterbury
Kent
CT3 4JZ
Hi Way Services Limited
Directors' Report
Year ended 30 November 2023
The directors present their report and the financial statements of the company for the year ended 30 November 2023 .
Directors
The directors who served the company during the year were as follows:
Mr A J O'Reilly
Mrs M J O'Reilly
Mr D J O'Reilly
Dividends
Particulars of dividends paid during the year are detailed in note 13 to the financial statements. No further dividends have been recommended in respect of profits generated during the year.
Disclosure of information in the strategic report
The directors have chosen to incorporate their assessment of the performance of the business and the principal risks and uncertainties facing the company in the Strategic Report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the 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 judgments 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 20 August 2024 and signed on behalf of the board by:
Mr A J O'Reilly
Director
Registered office:
Unit 32
Thomas Way
3a Lakesview International Business Park
Hersden
Canterbury
Kent
CT3 4JZ
Hi Way Services Limited
Independent Auditor's Report to the Members of Hi Way Services Limited
Year ended 30 November 2023
Opinion
We have audited the financial statements of Hi Way Services Limited (the 'company') for the year ended 30 November 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 30 November 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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.
Other information
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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. 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: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered; the nature of the industry, control environment and business performance with particular reference to the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets. We also consider the results of our enquiries of management, relating to their own identification and assessment of the risks of irregularities and possible related fraud. This includes reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness. Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end, posting of unusual journals and manipulating the Company's performance measures to meet remuneration targets and bank covenants. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit. Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.
Dominic Wood
(Senior Statutory Auditor)
For and on behalf of
Burgess Hodgson LLP
Chartered accountants & statutory auditor
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
20 August 2024
Hi Way Services Limited
Statement of Comprehensive Income
Year ended 30 November 2023
2023
2022
Note
£
£
Turnover
4
8,926,049
7,325,021
Cost of sales
( 5,842,079)
( 4,841,395)
------------
------------
Gross profit
3,083,970
2,483,626
Administrative expenses
( 1,555,588)
( 1,326,090)
------------
------------
Operating profit
5
1,528,382
1,157,536
Other interest receivable and similar income
9
57,457
51,150
Interest payable and similar expenses
10
( 61,238)
( 41,322)
------------
------------
Profit before taxation
1,524,601
1,167,364
Tax on profit
11
( 415,618)
( 235,188)
------------
------------
Profit for the financial year and total comprehensive income
1,108,983
932,176
------------
------------
All the activities of the company are from continuing operations.
Hi Way Services Limited
Statement of Financial Position
30 November 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
14
2,608,552
2,282,676
Investments
15
1
1
------------
------------
2,608,553
2,282,677
Current assets
Stocks
16
399,137
271,602
Debtors
17
6,339,204
5,503,758
Cash at bank and in hand
499,715
23,192
------------
------------
7,238,056
5,798,552
Creditors: amounts falling due within one year
18
1,954,212
1,348,079
------------
------------
Net current assets
5,283,844
4,450,473
------------
------------
Total assets less current liabilities
7,892,397
6,733,150
Creditors: amounts falling due after more than one year
19
1,034,763
916,278
Provisions
21
327,334
185,155
------------
------------
Net assets
6,530,300
5,631,717
------------
------------
Capital and reserves
Called up share capital
24
90
90
Revaluation reserve
25
328,213
341,313
Profit and loss account
25
6,201,997
5,290,314
------------
------------
Shareholders funds
6,530,300
5,631,717
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 20 August 2024 , and are signed on behalf of the board by:
Mr A J O'Reilly
Director
Company registration number: 02850815
Hi Way Services Limited
Statement of Changes in Equity
Year ended 30 November 2023
Called up share capital
Revaluation reserve
Profit and loss account
Total
£
£
£
£
At 1 December 2021
90
354,413
5,042,938
5,397,441
Profit for the year
932,176
932,176
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 13,100)
13,100
----
---------
------------
------------
Total comprehensive income for the year
( 13,100)
945,276
932,176
Dividends paid and payable
12
( 697,900)
( 697,900)
----
---------
------------
------------
Total investments by and distributions to owners
( 697,900)
( 697,900)
At 30 November 2022
90
341,313
5,290,314
5,631,717
Profit for the year
1,108,983
1,108,983
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account
( 13,100)
13,100
----
---------
------------
------------
Total comprehensive income for the year
( 13,100)
1,122,083
1,108,983
Dividends paid and payable
12
( 210,400)
( 210,400)
----
----
---------
---------
Total investments by and distributions to owners
( 210,400)
( 210,400)
----
---------
------------
------------
At 30 November 2023
90
328,213
6,201,997
6,530,300
----
---------
------------
------------
Hi Way Services Limited
Notes to the Financial Statements
Year ended 30 November 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 32, Thomas Way, 3a Lakesview International Business Park, Hersden, Canterbury, CT3 4JZ, Kent.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Hi Way Services (UK) Holdings Limited. As such, advantage has been taken of the disclosure exemptions available under paragraph 1.12 of FRS 102 and no cashflow statement has been presented for the company.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: - Finance leases - Directors believe that substantially all of the risk and reward of ownership relating to the leased vehicles in their fleet is transferred to them. Therefore, they believe it is appropriate to recognise the lease as a finance lease, with the vehicles included within the fixed assets in the accounts, and a respective liability within creditors. - Purchase recognition - Directors recognise the purchases when significant risks and rewards of ownership are passed to them as buyer. They consider this has taken place on delivery and therefore record all deliveries not yet invoiced as accruals at the year end. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: - Useful economic life of fixed and intangible assets - The annual depreciation and amortisation charges are based upon management's assessment of the useful economic lives and residual values of the company's tangible assets. These are re-assessed annually and amended where necessary. - Bad debts - Directors have included bad debt provisions for items due from customers in administration and any other debts which are in dispute have been reviewed and a proportion has been provided based on expected outcome.
Revenue recognition
Turnover represents revenue due from the normal activities of the business to the extent that the seller obtains a right to consideration in exchange for its performance of those activities, exclusive of VAT. The revenue recognised is measured by reference to the amounts likely to be chargeable to customers, less a suitable allowance to recognise the uncertainties remaining in the completion of the obligations. Contingent income is recognised only when the contingent element is assured.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
All fixed assets are initially recorded at cost. Freehold and leasehold properties are revalued to open market value. This is assessed on a yearly basis by the directors and by professional valuers on a minimum of a 5 yearly basis.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold & Leasehold Property
-
4% straight line
Plant & Machinery
-
25% straight line
Fixtures & Fittings
-
20% straight line
Motor Vehicles
-
4 - 7 years straight line
Equipment
-
25% straight line
An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
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 agreement are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Profit and Loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Operating lease agreements
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Roadmarking and traffic management services
8,926,049
7,325,021
------------
------------
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
434,259
330,886
(Gains)/loss on disposal of tangible assets
( 80,317)
2,284
Impairment of trade debtors
5,813
943
---------
---------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
10,000
9,500
--------
-------
Fees payable to the company's auditor and its associates for other services:
Audit-related assurance services
1,000
1,000
--------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
44
43
Administrative staff
10
10
----
----
54
53
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
2,249,335
1,996,467
Other pension costs
147,021
64,217
------------
------------
2,396,356
2,060,684
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
15,600
15,300
Company contributions to defined contribution pension plans
31,200
--------
--------
15,600
46,500
--------
--------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
3
3
----
----
9. Other interest receivable and similar income
2023
2022
£
£
Other interest
57,457
51,150
--------
--------
10. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
27,709
11,815
Interest on obligations under finance leases and hire purchase contracts
33,529
29,507
--------
--------
61,238
41,322
--------
--------
11. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
274,518
135,476
Adjustments in respect of prior periods
( 1,079)
85
---------
---------
Total current tax
273,439
135,561
---------
---------
Deferred tax:
Origination and reversal of timing differences
142,179
99,627
---------
---------
Tax on profit
415,618
235,188
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,524,601
1,167,364
------------
------------
Profit on ordinary activities by rate of tax
350,825
221,799
Adjustment to tax charge in respect of prior periods
( 1,079)
85
Effect of expenses not deductible for tax purposes
( 9,992)
8,909
Effect of capital allowances and depreciation
( 66,315)
( 95,232)
Movement in deferred tax provision
142,179
99,627
------------
------------
Tax on profit
415,618
235,188
------------
------------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Dividends on equity shares
210,400
697,900
---------
---------
13. Intangible assets
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
30,000
--------
Amortisation
At 1 December 2022 and 30 November 2023
30,000
--------
Carrying amount
At 30 November 2023
--------
At 30 November 2022
--------
14. Tangible assets
Freehold & Leasehold Property
Plant & Machinery
Fixtures & Fittings
Motor Vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 Dec 2022
1,616,030
626,784
86,776
3,702,976
18,926
6,051,492
Additions
36,273
2,850
846,688
885,811
Disposals
( 198,936)
( 198,936)
------------
---------
--------
------------
--------
------------
At 30 Nov 2023
1,616,030
663,057
89,626
4,350,728
18,926
6,738,367
------------
---------
--------
------------
--------
------------
Depreciation
At 1 Dec 2022
360,068
586,677
79,170
2,725,607
17,294
3,768,816
Charge for the year
43,584
14,430
2,796
372,960
489
434,259
Disposals
( 73,260)
( 73,260)
------------
---------
--------
------------
--------
------------
At 30 Nov 2023
403,652
601,107
81,966
3,025,307
17,783
4,129,815
------------
---------
--------
------------
--------
------------
Carrying amount
At 30 Nov 2023
1,212,378
61,950
7,660
1,325,421
1,143
2,608,552
------------
---------
--------
------------
--------
------------
At 30 Nov 2022
1,255,962
40,107
7,606
977,369
1,632
2,282,676
------------
---------
--------
------------
--------
------------
Within freehold and leasehold property there is land with a value of £169,494 (2022: £169,494) that is not being depreciated.
Tangible assets held at valuation
Freehold and leasehold properties were last revalued during the year ended 30 November 2014. The revaluation was based on a valuation provided by the directors and has not been updated as the carrying amount at the balance sheet date is considered to continue to represent the open market value of the properties. The historic cost of freehold properties is £1,288,534. Cumulative depreciation on the historic cost of freehold properties is £384,079.
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant & Machinery
Motor Vehicles
Total
£
£
£
At 30 November 2023
19,667
1,037,434
1,057,101
--------
------------
------------
At 30 November 2022
11,202
759,719
770,921
--------
------------
------------
15. Investments
Shares in group undertakings
£
Cost
At 1 December 2022 and 30 November 2023
1
----
Impairment
At 1 December 2022 and 30 November 2023
----
Carrying amount
At 30 November 2023
1
----
At 30 November 2022
1
----
The company owns 100% of the issued share capital of Ridgedeck Road Markings Limited. The company is currently dormant.
Under the provision of section 400 of the Companies Act 2006, the company is not required to prepare consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.
16. Stocks
2023
2022
£
£
Raw materials and consumables
399,137
271,602
---------
---------
17. Debtors
2023
2022
£
£
Trade debtors
1,180,384
1,374,125
Amounts owed by group undertakings
119,783
Amounts owed by undertakings in which the company has a participating interest
887,813
887,813
Prepayments and accrued income
112,193
169,591
Directors loan account
2,969,862
2,206,271
Other debtors
1,069,169
865,958
------------
------------
6,339,204
5,503,758
------------
------------
18. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
39,002
39,002
Trade creditors
670,934
305,168
Amounts owed to group undertakings
39,629
Accruals and deferred income
278,169
125,950
Corporation tax
274,489
135,476
Social security and other taxes
38,128
22,929
Obligations under finance leases and hire purchase contracts
282,980
272,971
Other creditors
370,510
406,954
------------
------------
1,954,212
1,348,079
------------
------------
Bank loans and overdrafts are secured by the company by way of fixed and floating charges over its assets and undertakings.
19. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
264,817
465,553
Obligations under finance leases and hire purchase contracts
769,946
450,725
------------
---------
1,034,763
916,278
------------
---------
Bank loans and overdrafts are secured by the company by way of fixed and floating charges over its assets and undertakings.
20. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
282,980
282,980
Later than 1 year and not later than 5 years
769,946
440,716
------------
---------
1,052,926
723,696
------------
---------
21. Provisions
Deferred tax (note 22)
£
At 1 December 2022
185,155
Additions
142,179
---------
At 30 November 2023
327,334
---------
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 21)
327,334
185,155
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
327,334
185,155
---------
---------
23. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 147,021 (2022: £ 64,217 ).
24. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
A Ordinary shares of £ 1 each
75
75
75
75
B Ordinary shares of £ 1 each
15
15
15
15
----
----
----
----
90
90
90
90
----
----
----
----
25. Reserves
Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.
26. Directors' advances, credits and guarantees
At the year end the directors owed £2,969,862 (2022: £2,206,271) to the company. During the year the company made aggregate advances to the directors of £916,535 and the directors made aggregate repayments of £210,400. Interest of £57,457 was charged at an average rate of 2.25% on outstanding amounts during the year.
27. Related party transactions
At the year end the company was owed £887,813 (2022: £887,813) by a company associated under common control.
28. Controlling party
The ultimate controlling party is Mr A J O'Reilly via his controlling share holding in Hi Way Services (UK) Holdings Limited. The registered office of the parent company is Unit 32 Thomas Way, 3a Lakesview International Business Park Hersden, Canterbury, Kent, CT3 4JZ .