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Registered number: 14007087










TITAN FLOORING LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
TITAN FLOORING LIMITED
 
 
COMPANY INFORMATION


Directors
D Cartwright 
A Gordon 
M Saunders 
T Wragg 




Registered number
14007087



Registered office
South Grove House
South Grove

Rotherham

South Yorkshire

S60 2AF




Independent auditors
Shorts
Chartered Accountants & Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA





 
TITAN FLOORING LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Notes to the Financial Statements
 
11 - 22


 
TITAN FLOORING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their strategic report on the company for the year ended 31st May 2024.

Principal activites
 
The principal activity of the company continues to be that of a specialist flooring contractor carrying out the supply and installation of floor preparation and floor coverings.

Performance review
 
The UK and global economy have been turbulent over the last few years and has seen unprecedented inflation, in particular material price increases and labour shortages have impacted the financial results of the business in the year. 
Despite the economic head winds the business has been able to return a profit in the year.
The business has developed a multi layered strategy focused on processes and efficiency, selective tendering and continuous improvements.
The selective tendering strategy has allowed the business to resize in the year and focus on its core strengths, whilst building on long term client relationships, securing repeat work. This strategy will show rewards in 2025.
The operational and process efficiency strategy has been developed and deployed enabling the business to reduce its fixed costs and drive increased efficiency both at site and in the admin functions, resulting in a 3% overhead reduction in year.
Given the economic pressure the business has faced the Board of Directors are pleased with the result. 
During the year the parent company to TFL, Horbury Group Ltd, delivered a refinance package, attracting new capital investment into the Group which enabled it to repay all its long-term debt. The result of which significantly strengthened the finances of the Group and subsidiaries, giving added security over its long-term future. The UK and global economy have been turbulent over the last few years and has seen unprecedented inflation, in particular material price increases and labour shortages have impacted the financial results of the business in the year.

During the year the parent company to TFL, Horbury Group Ltd, delivered a refinance package, attracting new capital investment into the Group which enabled it to repay all its long-term debt. The result of which significantly strengthened the finances of the Group and subsidiaries, giving added security over its long-term future.

Future prospects
 
The business is well positioned to take advantage of any economic improvement, and the directors are onfident the business will continue to secure contracts and trade profitably.

The core strategy of operational improvement and efficiency, through a continuous focus on productivity and uality the business has improved its profit margins and client satisfaction, whilst our focus on selective endering has enabled the business to develop strong client relationships producing repeat work and derisking uture business.

The business continues to invest in its people and processes and is on plan to deliver its multi layered perational efficiency strategy which will continue to benefit the business for years to come.

Secured orders together with the sales pipeline remain strong and ahead of previous years, the business emains on track deliver incremental growth in financial year 2025 and beyond with improving profit margins.

Page 1

 
TITAN FLOORING LIMITED
 

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

Principal risks and uncertainties
 
The UK construction market remains highly competitive, and future unexpected inflationary pressures and labour shortages cannot be ruled out.  The directors remain confident that the business is well placed to manage these risks through selective contract tendering, regular monitoring of expected and actual contract outcomes, and robust management of working capital.
The company’s principal credit risk arises from extending credit to its customers, which is managed by credit referencing and selective contract tendering. Robust procedures are in place for the collection of monies due to the company and cash flow and debtors are monitored daily with rolling cash flow projections.
The company is not exposed in any material way to bad debts, which caused the current high level of business failure in the construction sector, our core strategy of selective tendering enables us to manage the risk associated with bad debt.

Use of KPIs
 
The company has continued to use enhanced KPI’s, both financial and operational, to manage the business and to effectively deliver the long-term strategic goals. The following is a brief outline of the KPIs being used within the company:
 
• Tender margin versus final account margin on a contract by contract basis
• Project status against original programme timetable
Overdue final account debts
• Retention collection
• Average frequency rate for health and safety data
Enquiry levels
• Work in hand
• Client and Contract selectivity matrix
• Tender conversion monitoring – by sector and client


This report was approved by the board on 17 September 2024 and signed on its behalf.



T Wragg
Director

Page 2

 
TITAN FLOORING LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

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

Directors

The directors who served during the year were:

D Cartwright 
A Gordon 
M Saunders 
T Wragg 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent and;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £98,945 (2023 - £282,940).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Future developments

Future developments have been set out in the strategic report.

Page 3

 
TITAN FLOORING LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

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

This report was approved by the board on 17 September 2024 and signed on its behalf.
 





T Wragg
Director

Page 4

 
TITAN FLOORING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TITAN FLOORING LIMITED
 

Opinion


We have audited the financial statements of Titan Flooring Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 5

 
TITAN FLOORING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TITAN FLOORING LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.



Page 6

 
TITAN FLOORING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TITAN FLOORING LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
through discussions with the directors and other management and from our commercial knowledge and experience of the sector, we identified the laws and regulations applicable to the Company; and
focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
considered journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; 
considered relationship with HMRC, relevant regulators and the Company’s legal advisors; and
review of legal and professional fees and of incident log for evidence of litigation.




Page 7

 
TITAN FLOORING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TITAN FLOORING LIMITED (CONTINUED)


There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





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

17 September 2024
Page 8

 
TITAN FLOORING LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
  
13,208,269
14,043,457

Cost of sales
  
(11,557,669)
(12,164,428)

Gross profit
  
1,650,600
1,879,029

Administrative expenses
  
(1,541,385)
(1,442,593)

Exceptional administrative expenses
 9 
(12,379)
(164,180)

Other operating income
  
-
14,354

Operating profit
  
96,836
286,610

Interest receivable and similar income
 10 
1,958
-

Interest payable and similar expenses
 11 
(249)
(3,270)

Profit before tax
  
98,545
283,340

Tax on profit
 12 
400
(400)

Profit for the financial year
  
98,945
282,940

Other comprehensive income for the year
  

Total comprehensive income for the year
  
98,945
282,940

The notes on pages 11 to 22 form part of these financial statements.

Page 9

 
TITAN FLOORING LIMITED
REGISTERED NUMBER: 14007087

BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,505
4,144

  
2,505
4,144

Current assets
  

Debtors: amounts falling due within one year
 14 
5,901,595
2,351,461

Cash at bank and in hand
 15 
367,742
115,522

  
6,269,337
2,466,983

Creditors: amounts falling due within one year
 16 
(5,889,857)
(2,187,687)

Net current assets
  
 
 
379,480
 
 
279,296

Total assets less current liabilities
  
381,985
283,440

Provisions for liabilities
  

Deferred tax
 17 
-
(400)

  
 
 
-
 
 
(400)

Net assets
  
381,985
283,040


Capital and reserves
  

Called up share capital 
 18 
100
100

Profit and loss account
  
381,885
282,940

  
381,985
283,040


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 September 2024.




T Wragg
Director

The notes on pages 11 to 22 form part of these financial statements.

Page 10

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Titan Flooring Limited is a private company limited by shares, incorporated in England and Wales (registered number: 14007087). Its registered office is South Grove House, South Grove, Rotherham, South Yorkshire S60 2AF. The principal activity of the company throughout the year continued to be that of the supply and fit of floor and wall covering.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The company's functional and presentation currency is Pounds Sterling.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have performed an assessment of going concern at a group level including a revew of
financing, forecasts and covenant compliance, and having considered these factors, they are of the
view that there is a reasonable expectation the the group has adequate resources to continue in
operational existence for a period of at least twelve months following the reporting date.

 
2.3

Revenue

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
In the case of long term contracts, turnover reflects the contract activity during the year and represents a proportion of the total contract value. This proportion is calculated as a percentage of total expected costs.
Construction contracts
The attributable profit on long-term contracts is recognised once their outcome can be assessed with
reasonable certainty. The profit recognised reflects the proportion of work completed to date on the project and is calculated as a percentage of total expected contract costs.
Full provision is made for losses on all contracts in the year in which the loss is first foreseen.
Trade debtors represent contract valuations and retentions certified up to one month after the year end. Amounts recoverable on contracts represent the balance of uncertified valuations.

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 11

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.5

Interest income

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

 
2.6

Finance costs

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

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

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

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

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

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

Page 12

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.10

Exceptional items

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

 
2.11

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Fixtures and fittings
-
20%
straight line

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

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

 
2.12

Cash and cash equivalents

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

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.14

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and
Page 13

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)

subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction,  the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

Page 14

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

3.


Judgements in applying accounting policies 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.
Critical judgements
The following judgement (apart from those involving estimates) has had the most significant effect on amounts recognised in the financial statements. 
Turnover from long term contracts
Turnover is generated from long term contracts. The group recognises contract revenue and contract costs associated with each contract using the percentage of completion method.
The recognition of revenue and profit therefore rely on estimates in relation to the stage of completion and the forecast total costs of each contract.
Margin is presented in the monthly management accounts for each contract as it is earned on the specific
tasks undertaken in the period. A margin is used based on the job budget form completed at the outset, with variations requiring individual approval. Each project’s outturn is reforecast on a monthly basis, so any changes to expected final outturn are reflected in the accounts promptly. The profit to be recognised monthly is calculated on a cumulative basis so that the overall expected outturn is reflected in the cumulative position each month.
The method applies ensures that profit is recognised equally across the life of the project. The calculation of expected outturn is based on the following factors:

Variations to overall contract value (expected turnover) which have been agreed with the client
Costs incurred to date allocated to the project. These allocated costs are reviewed monthly by site managers and matched to site material lists and expected spend.
Budgeted overall costs as calculated at the beginning of the project during the tender process which are used to calculate the expected costs to complete.
 
The degree of estimation uncertainty centres around the expected costs to complete the contract which, combined with the contract turnover, are used to calculate the expected margin outturn on each project. When contract losses are anticipated these are recognised in full at the time of identification in so far as they can be measured reliably.

Page 15

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

4.


Turnover

2024
2023
£
£

Contract revenue
13,208,269
14,043,457

13,208,269
14,043,457


All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Sundry income
-
14,354

-
14,354



6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
20,000
9,900

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


7.


Employees

2024
2023
£
£

Wages and salaries
839,851
814,278

Social security costs
101,822
98,124

Cost of defined contribution scheme
33,685
31,578

975,358
943,980


The average monthly number of employees, including directors, during the year was 21 (2023 - 18).

Page 16

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
134,050
126,000

Company contributions to defined contribution pension schemes
9,529
9,075

143,579
135,075



9.


Exceptional items

2024
2023
£
£


Exceptional costs
12,379
164,180

12,379
164,180

The above exceptional items are in relation to salary and various write offs of contracting applications no longer deemed recoverable as a result of contractor insolvencies.


10.


Interest receivable

2024
2023
£
£


Interest receivable from group companies
1,958
-

1,958
-


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
249
41

Other interest payable
-
3,229

249
3,270

Page 17

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

12.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
(400)
400

Total deferred tax
(400)
400


Tax on profit
(400)
400

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
98,545
283,340


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
25,354
56,668

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
717
2,174

Movement in deferred tax
(400)
400

Group relief
(26,071)
(58,842)

Total tax charge for the year
(400)
400


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

13.


Tangible fixed assets





Fixtures and fittings

£



Cost or valuation


At 1 June 2023
6,304



At 31 May 2024

6,304



Depreciation


At 1 June 2023
2,160


Charge for the year on owned assets
1,639



At 31 May 2024

3,799



Net book value



At 31 May 2024
2,505



At 31 May 2023
4,144

Page 19

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Debtors

2024
2023
£
£


Trade debtors
830,385
1,586,098

Amounts owed by group undertakings
3,345,689
-

Other debtors
100
3,305

Prepayments and accrued income
16,431
3,546

Gross amounts owed by contract customers
1,708,990
758,512

5,901,595
2,351,461


Included in trade debtors are amounts of £200,590 (2023: £142,501) which are debts due in more than twelve months.


15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
367,742
115,522

367,742
115,522



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,684,493
54,534

Amounts owed to group undertakings
3,576,680
1,385,802

Other taxation and social security
157,849
154,772

Other creditors
305,312
352,636

Accruals and deferred income
165,523
239,943

5,889,857
2,187,687


Page 20

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

17.


Deferred taxation




2024


£






At beginning of year
(400)


Charged to profit or loss
400



At end of year
-

The deferred taxation balance is made up as follows:

2024
2023
£
£


Accelerated capital allowances
-
(400)

-
(400)


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



19.


Contingent liabilities

The Company's bankers hold an unlimited Composite Company Limited Multilateral Guarantee and debenture between the following group companies: Horbury Group Limited, Horbury Joinery Limited, Tubular Scaffolding Services Limited, Titan Interior Solutions Limited, T.I.S. Services Limited, South Grove House Limited, Millstone Building Limited, Magna Plant and Tool Hire Limited, Horbury Support Services Limited (formerly known as G.B.W. (Tool Hire) Limited), Horbury Property Services Limited, Horbury Building Systems Limited, Titan Flooring Limited and Environ Safety Management Limited. 

Page 21

 
TITAN FLOORING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

20.


Commitments under operating leases

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

2024
2023
£
£


Not later than 1 year
64,622
68,530

Later than 1 year and not later than 5 years
99,565
99,512

164,187
168,042


21.


Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A from the provisions of section 33 of FRS 102. Related party disclosures, from disclosing transaction with wholly owned subsidiary undertakings. 
Transactions during the year and balances at the year end with related parties are shown below:


2024
2023
£
£

Management services paid to subsidiaries
(213,543)
(205,888)
Rent payable to fellow subsidiaries
(84,000)
(45,001)
Balances owed to group undertakings
(3,576,680)
(1,385,802)
Balances due from group undertakings
3,345,689
-


22.


Controlling party

The immediate parent company is Titan Interior Solutions Limited, a company incorporated in England and Wales.
The ultimate parent undertaking and controlling party is Horbury Group Limited, which prepares group
financial statements.
The registered office of Horbury Group Limited is South Grove House, South Grove, Rotherham, South
Yorkshire, S60 2AF.

 
Page 22