Company registration number 03772583 (England and Wales)
WRIGHT READYMIX LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
Premier House
127 Duckmoor Road
Ashton Gate
Bristol
England
BS3 2BJ
WRIGHT READYMIX LTD
CONTENTS
Page
Company information
1
Strategic report
2
Director's report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 29
WRIGHT READYMIX LTD
COMPANY INFORMATION
- 1 -
Director
Mr L Wright
Secretary
Mr G H Ogden
Company number
03772583
Registered office
2a St Ivel Way
Warmley
BRISTOL
England
BS30 8TY
Auditor
TC Group
Premier House
127 Duckmoor Road
Ashton Gate
Bristol
England
BS3 2BJ
WRIGHT READYMIX LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents the strategic report for the year ended 31 December 2023.

Fair review of the business

Revenue increased from £21,766,775 in 2022 to £29,461,595 in 2023, due to increased demand from new and existing customers. The turnover also included a unique project that has allowed us to take on more varied works. Demand has also increased from the promotion of services offered in a new geographical location.

 

Profit before taxation increased year on year from £390,732 to £1,632,876.

 

Net assets increased from £6,429,203 to £7,138,313 from a focused effort to upgrade and expand the fleet of vehicles to allow better service to our clients and fulfil larger contracts.

Principal risks and uncertainties

The key risks and uncertainties affecting the company are considered to relate to general economic conditions affecting the construction industry as detailed below;

 

Volatile Pricing and Supply

The past 12 months have seen prices stabilise compared to previous years, with long term contracts being sought from suppliers to manage future cost increases along with supply demands. The company has a network of reliable suppliers, with whom management work closely to meet contractual needs. Prices are monitored regularly against a panel of suppliers to ensure that we are getting the best value to be able to pass onto our customers.

 

Market Constriction

The demand for new build housing from individuals, can be impacted by availability of support from government schemes, such as help to buy which ended in 2023. With the new Labour government taking office in 2024 with a pledge to deliver 1.5 million new homes over the next 5 years through a freedom to buy scheme this should increase demand.

 

The risk of maintaining growth is mitigated by diversifying our geographical range to allow for our products to be delivered over a greater area, repurposing assets, and staff already within the business, Q3 2024 will see a new operating base open within the Chippenham area while the business continues developing new product lines, with an inhouse block and brick factory. This allows for a greater product diversification and provide a one stop shop for construction products.

 

Competition

The risk of mitigating growing revenue can be dependant on competing businesses. The risk is managed by maintaining quality and customer satisfaction while reviewing prices to remain competitive.

On behalf of the board

Mr L Wright
Director
5 September 2024
WRIGHT READYMIX LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

 

On the 28th June 2024 the company changed it name from Wright Minimix Limited to Wright Readymix Ltd.

Principal activities

The principal activity of the company continued to be that of concrete manufacturing and concrete pumping services.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £600,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr L Wright
Research and development

Research and development cost are expensed through the profit and loss account. The company continues to explore research and development opportunities in order to diversify and remain competitive in the industry within which we operate.

 

Future developments

The economic slow down has affected the whole industry, however the group is well placed to support from within.

The block factory came on stream in October 2023 with a soft start and we are now leveraging sales from our existing customer base providing growth.

 

Our focus in 2024 is the cross-selling of group products and services and the concept of a one stop shop. We will also expand our block factory product offer and expand our readymix offer East of Bristol.

WRIGHT READYMIX LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
Mr L Wright
Director
5 September 2024
WRIGHT READYMIX LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WRIGHT READYMIX LTD
- 5 -
Opinion

We have audited the financial statements of Wright Readymix Ltd (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, 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:

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 director's 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 director 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 director is 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.

WRIGHT READYMIX LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WRIGHT READYMIX LTD
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

WRIGHT READYMIX LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WRIGHT READYMIX LTD
- 7 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

 

WRIGHT READYMIX LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WRIGHT READYMIX LTD
- 8 -

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.

Amanda Kruger FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
5 September 2024
Office: Bristol
WRIGHT READYMIX LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
29,461,595
21,766,775
Cost of sales
(23,961,499)
(18,343,091)
Gross profit
5,500,096
3,423,684
Administrative expenses
(3,945,471)
(3,046,045)
Other operating income
120,402
52,051
Operating profit
4
1,675,027
429,690
Interest receivable and similar income
8
30,275
7,343
Interest payable and similar expenses
9
(72,426)
(46,301)
Profit before taxation
1,632,876
390,732
Tax on profit
10
(154,106)
183,911
Profit for the financial year
1,478,770
574,643

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WRIGHT READYMIX LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
1,478,770
574,643
Other comprehensive income
Tax relating to other comprehensive income
72,916
169,660
Total comprehensive income for the year
1,551,686
744,303
WRIGHT READYMIX LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
7,152,835
6,424,495
Current assets
Debtors
13
7,246,332
5,946,114
Cash at bank and in hand
442,958
635,076
7,689,290
6,581,190
Creditors: amounts falling due within one year
14
(4,134,028)
(4,137,788)
Net current assets
3,555,262
2,443,402
Total assets less current liabilities
10,708,097
8,867,897
Creditors: amounts falling due after more than one year
15
(1,647,287)
(656,013)
Provisions for liabilities
Provisions
18
550,000
733,950
Deferred tax liability
19
1,372,497
1,048,731
(1,922,497)
(1,782,681)
Net assets
7,138,313
6,429,203
Capital and reserves
Called up share capital
21
2
2
Revaluation reserve
22
1,574,710
1,837,460
Profit and loss reserves
23
5,563,601
4,591,741
Total equity
7,138,313
6,429,203
The financial statements were approved and signed by the director and authorised for issue on 5 September 2024
Mr L Wright
Director
Company Registration No. 03772583
The notes on pages 13 to 29 form part of these financial statements
WRIGHT READYMIX LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
2
2,346,438
3,338,460
5,684,900
Year ended 31 December 2022:
Profit for the year
-
-
574,643
574,643
Other comprehensive income:
Tax relating to other comprehensive income
-
169,660
-
0
169,660
Total comprehensive income for the year
-
169,660
574,643
744,303
Transfers
-
(678,638)
678,638
-
Balance at 31 December 2022
2
1,837,460
4,591,741
6,429,203
Year ended 31 December 2023:
Profit for the year
-
-
1,478,770
1,478,770
Other comprehensive income:
Tax relating to other comprehensive income
-
72,916
(242,576)
(169,660)
Total comprehensive income for the year
-
72,916
1,236,194
1,551,686
Dividends
11
-
-
(600,000)
(600,000)
Transfers
-
(335,666)
335,666
-
Balance at 31 December 2023
2
1,574,710
5,563,601
7,138,313
WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Wright Readymix Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2a St Ivel Way, Warmley, BRISTOL, England, BS30 8TY.

 

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 modified to include the revaluation of categories of plant and machinery and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of LGW Group Limited. These consolidated financial statements are available from its registered office 2 St Ivel Way, Warmley, BRISTOL, BS30 8TY

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.2
Going concern

The directors have prepared the forecasts which considers uncertainties from the wider economic environments outside of the businesses control. true

 

Based on the forecasts prepared, directors believe the company is well placed to manage its financial and other business risks satisfactorily and have a reasonable expectation that the company supported by the group will have adequate resources to continue their operation for at least 12 months from the signing date of these accounts. They therefore consider it appropriate to prepare these accounts on a going concern basis.

 

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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:

Other property, plant & equipment
Straight line over a maximum of 20 years
Computers
Straight line over 3 years
Motor vehicles
25% straight line

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.

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash at bank and in hand

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.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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.

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.13
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 so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.14

Exceptional items

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide understanding of the financial performance of the company. They are items that are material either because of their size or their nature, or that are non recurring are considered as exceptional items and are presented within the line items to which they best relate.

1.15

Research and development

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

 

The directors consider the following judgements and estimates to have had the most significant effect on amounts recognised in the financial statements:

 

i) Useful economic lives of tangible fixed assets

The useful economic lives of tangible fixed assets, their residual values and the impairment reviews is a significant area requiring management judgement. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other relevant factors.

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
29,461,596
21,766,775
2023
2022
£
£
Other significant revenue
Interest income
30,275
7,343
2023
2022
£
£
Turnover analysed by geographical market
UK
29,461,596
21,766,775
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
733,782
1,198,298
Depreciation of tangible fixed assets held under finance leases
715,545
175,690
Profit on disposal of tangible fixed assets
(146,503)
(139,395)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,700
11,800
WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

 

2023
2022
Number
Number
Directors
1
1
Managers & Admin
23
20
Operatives
75
77
Total
99
98

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,841,379
3,669,274
Social security costs
409,981
408,942
Pension costs
145,392
143,911
4,396,752
4,222,127
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
18,192
17,980
Company pension contributions to defined contribution schemes
40,269
40,266
58,461
58,246
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
30,275
7,343
WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
759
1,002
Interest on finance leases and hire purchase contracts
65,213
42,858
Other interest
6,454
2,441
72,426
46,301
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
121,333
Deferred tax
Origination and reversal of timing differences
154,106
(305,244)
Total tax charge/(credit)
154,106
(183,911)

The actual charge/(credit) 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
1,632,876
390,732
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
383,726
74,239
Tax effect of expenses that are not deductible in determining taxable profit
(39,911)
6,887
Group relief
(177,612)
(77,296)
Permanent capital allowances in excess of depreciation
(12,097)
(187,741)
Taxation charge/(credit) for the year
154,106
(183,911)
WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 23 -

In addition to the amount charged/(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
(72,916)
(169,660)
11
Dividends
2023
2022
£
£
Final paid
600,000
-
0
12
Tangible fixed assets
Other property, plant & equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 January 2023
8,943,059
56,674
68,700
9,068,433
Additions
2,322,526
-
0
-
0
2,322,526
Disposals
(445,790)
-
0
-
0
(445,790)
At 31 December 2023
10,819,795
56,674
68,700
10,945,169
Depreciation and impairment
At 1 January 2023
2,573,378
56,674
13,886
2,643,938
Depreciation charged in the year
1,440,739
-
0
8,588
1,449,327
Eliminated in respect of disposals
(300,931)
-
0
-
0
(300,931)
At 31 December 2023
3,713,186
56,674
22,474
3,792,334
Carrying amount
At 31 December 2023
7,106,609
-
0
46,226
7,152,835
At 31 December 2022
6,369,681
-
0
54,814
6,424,495
WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 24 -

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
£
£
Other property, plant & equipment
2,976,800
2,395,126

Categories of plant and equipment have been revalued by the directors in 2020 and 2021. The valuations are based on similar assets in an active market place.

 

Plant and equipment are carried at valuation. If plant and machinery were measured using the cost model, the carrying amounts would have been approximately 2023 £1,686,140 (2022 £1,541,877), being cost 2023£2,577.947 (2022 £1,973,052) and accumulated depreciation 2023 £891,807 (2022 £431,175).

The revaluation surplus is disclosed in note 21

13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,471,636
3,295,891
Amounts owed by group undertakings
4,387,645
2,350,904
Other debtors
23,629
-
0
Prepayments and accrued income
363,422
299,319
7,246,332
5,946,114
WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
9,996
9,996
Obligations under finance leases
17
790,159
446,308
Trade creditors
2,525,469
2,321,655
Amounts owed to group undertakings
333,474
195,955
Amounts owed to undertakings in which the company has a participating interest
298,145
399,963
Corporation tax
-
0
161,466
Other taxation and social security
99,795
465,443
Other creditors
12,380
43,724
Accruals and deferred income
64,610
93,278
4,134,028
4,137,788
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
14,955
24,845
Obligations under finance leases
17
1,632,332
631,168
1,647,287
656,013
16
Loans and overdrafts
2023
2022
£
£
Bank loans
24,951
34,841
Payable within one year
9,996
9,996
Payable after one year
14,955
24,845

The above unsecured bank loan of £50,000 was advanced in the financial year ended 31 December 2020 under the UK government CBILS loan scheme. The loan is for a 60 month period with annual fixed interest at 2.3%. The first years interest was paid by the UK government. The amount outstanding at the year end is £24,951 (2022: £34,841).

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
17
Finance lease and hire purchase obligations
2023
2022
Future minimum lease payments due under finance leases and hire purchase contracts:
£
£
Within one year
790,159
446,308
In two to five years
1,632,332
631,168
2,422,491
1,077,476

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The finance leases are secured against the assets to which they relate.

18
Provisions for liabilities
2023
2022
£
£
Other provisions
550,000
733,950
Movements on provisions:
Other provisions
£
At 1 January 2023
733,950
Reversal of provision
(183,950)
At 31 December 2023
550,000

Included in the provisions brought forward is £550,000 related to the rebuild cost of part of the leasehold building as a result of structural damage arising during the period of occupancy. The director believes that it is his responsibility to undertake the work and the amount included is based on his best estimate. The director is currently in negotiations with the landlord and as the outcome is uncertain he believes that the provision should be included.

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
19
Deferred taxation
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
831,169
436,487
Revaluations
541,328
612,244
1,372,497
1,048,731
2023
Movements in the year:
£
Liability at 1 January 2023
1,048,731
Charge to profit or loss
323,766
Liability at 31 December 2023
1,372,497

The deferred tax liability set out above relates to accelerated capital allowances and revaluations.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
145,392
143,911

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each of £1 each
2
2
2
2
WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
22
Revaluation reserve
2023
2022
£
£
At the beginning of the year
1,837,460
2,346,438
Reversal of deferred tax liability on revaluation
72,916
169,660
Transfer to retained earnings
(335,666)
(678,638)
At the end of the year
1,574,710
1,837,460

The revaluation reserve is a non-distributable reserve and has resulted from the revaluation of a category of plant and machinery.

23
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
4,591,741
3,338,460
Profit for the year
1,478,770
574,643
Dividends declared and paid in the year
(600,000)
-
Transfer to revaluation reserve
(242,576)
-
0
Transfer from revaluation reserve
335,666
678,638
At the end of the year
5,563,601
4,591,741
24
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
800,000
25
Related party transactions
Remuneration of key management personnel

The director is considered as key management personnel of this company.

Transactions with related parties

During the year the company entered into the following transactions with related parties:

WRIGHT READYMIX LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Related party transactions
(Continued)
- 29 -
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Callow Readymix Limited
83,042
66,274
1,486,773
1,560,871
Bristol Bath and Developments Limited
13,415
40,749
-
-
2023
2022
Amounts due to related parties
£
£
Callow Readymix Limited
298,145
399,963
Other information

During the year the company has provided goods amounting to £555,205 to 2 Brothers Concrete Pumping Ltd, whose director is a close family member of a director of Wright Readymix Ltd. At the 31 December 2023 the company was due £64,024 from 2 Brothers Concrete Pumping Ltd.

 

The company has also provided goods amounting to £7,645 to Pump Wright Ltd, whose director is a close family member of a director of Wright Readymix Ltd. At 31 December 2023 the balance of £13,627 owed to Wright Readymix Ltd was considered to be irrecoverable and written off.

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