Company Registration No. 04439953 (England and Wales)
NUSTONE PRODUCTS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
LB GROUP
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
NUSTONE PRODUCTS LTD
COMPANY INFORMATION
Directors
Mr A Modani
Mrs S Modani
Company number
04439953
Registered office
Dobbies Lane
Marks Tey
Colchester
Essex
United Kingdom
CO6 1EP
Auditor
LB Group Limited (Colchester)
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
NUSTONE PRODUCTS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 29
NUSTONE PRODUCTS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Principal activities

The principal activity of the company during the year was supply and sale of building supplies.

Review of the business

Nustone has continued to consolidate its position in the market due to its strength in strategic sourcing of quality materials through a robust global network.

 

By introducing new and related product categories like eco-friendly fiberglass planters, garden furniture and composite decking, among others, it has diversified the company’s offering, leading to return customer attraction as well as wider market coverage. Brand presence and social media activity has also attributed towards customer loyalty and kept reputation intact, with more than 3,200 customer reviews being a significant milestone.

 

Looking towards 2025, Nustone targets a substantial increase in revenues, driven by releasing new product lines along with strengthening the brand through forming strategic partnerships. Nustone will continue to emphasize quality, sustainability, and customer satisfaction throughout strategies, staying ahead of other firms at the same time.

Principal risks and uncertainties

There have been major challenges caused by ongoing global supply chain issues compounded by Red Sea disruptions. This has resulted in higher ocean freight rates, delayed deliveries and slightly slower stock rotations causing cash squeeze.

 

To control supply chain threats, Nustone has an expert management team closely observing the dynamics of supply chain among other things like changes in inventory management to ensure sufficient stock levels.

 

With ocean freight surges and higher interest rates squeezing liquidity while higher UK taxes impact net margins, Nustone has enhanced its finance team by appointing senior personnel. This will ensure financial planning continues to be vigilant, in analyses costs incurred to maintain profitability and increased growth.

NUSTONE PRODUCTS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Development and performance

The company has been successful compared to other players in the industry through effective search engine optimisation, brand awareness and utilizing social media. Additionally, with our showrooms open on Saturdays and customer care helplines working seven days a week, Nustone enjoys an advantage of providing its clients with a proper platform that enables them to make informed choices when purchasing from tour stores.

 

The lease of the 5.3 – acre site in Kettering which is home to a 143,000 square foot building gives Nustone an upper hand to develop cleaner products as well as more appealing product lines.

 

Entry into other markets like composite and garden furniture has significantly increased growth potential. Enhanced investment into marketing and brand awareness support this growth aspiration. A recent partnership with Ipswich Town Football Club is one of the most significant developments.

 

These encompass sales growth rates, gross profit margins and net profit margins; all of which are on upward trends except for the latter, due to higher external borrowing costs, higher local taxation and non-recurring development costs.

Key performance indicators

2024          2023

Turnover                    16,466,208    12,384,856

Gross profit                6,771,855    4,403,165

Gross profit margin            41.13%        35.55%

Net profit margin                7.24%        9.63%

On behalf of the board

Mr A Modani
Director
12 September 2024
NUSTONE PRODUCTS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Results and dividends

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

Directors

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

Mr A Modani
Mrs S Modani
Matters covered in the strategic report

The strategic report covers principle activities, business review and future developments and principle risks and uncertainties and key financial indicators.

Auditor

LB Group Limited (Colchester) were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 A Modani
Director
12 September 2024
NUSTONE PRODUCTS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

NUSTONE PRODUCTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NUSTONE PRODUCTS LTD
- 5 -

Qualified opinion

We have audited the financial statements of Nustone Products Ltd (the 'company') for the year ended 31 March 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the company until after 31 March 2023 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 March 2023, which are included in the balance sheet at £8,592,369, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

 

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 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.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £8,592,369 held at 31 March 2023. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

NUSTONE PRODUCTS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NUSTONE PRODUCTS LTD
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

NUSTONE PRODUCTS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NUSTONE PRODUCTS LTD
- 7 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including, but not limited to, fraud and non-compliance with laws and regulations was as follows:

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

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

 

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 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

The financial statement of the Company for the year ended 31 March 2023 were not audited.

 

 

NUSTONE PRODUCTS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NUSTONE PRODUCTS 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.

Shaun Roberts
Senior Statutory Auditor
For and on behalf of LB Group Limited (Colchester)
12 September 2024
Chartered Accountants
Statutory Auditor
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
NUSTONE PRODUCTS LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Year
Year
ended
ended
31 March
31 March
2024
2023 Unaudited
as restated
Notes
£
£
Turnover
3
16,466,208
12,384,856
Cost of sales
(9,694,353)
(7,981,691)
Gross profit
6,771,855
4,403,165
Administrative expenses
(4,693,061)
(2,696,543)
Other operating income
641
-
0
Operating profit
4
2,079,435
1,706,622
Interest payable and similar expenses
8
(531,898)
(229,624)
Profit before taxation
1,547,537
1,476,998
Tax on profit
9
(354,745)
(283,866)
Profit for the financial year
1,192,792
1,193,132

The income statement has been prepared on the basis that all operations are continuing operations.

NUSTONE PRODUCTS LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023 Unaudited
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
11
939,902
619,579
Current assets
Stocks
12
11,260,372
8,592,369
Debtors
13
892,804
123,195
Cash at bank and in hand
658,075
327,673
12,811,251
9,043,237
Creditors: amounts falling due within one year
14
(9,061,242)
(6,476,618)
Net current assets
3,750,009
2,566,619
Total assets less current liabilities
4,689,911
3,186,198
Creditors: amounts falling due after more than one year
15
(1,557,541)
(1,294,814)
Provisions for liabilities
Deferred tax liability
18
158,676
110,482
(158,676)
(110,482)
Net assets
2,973,694
1,780,902
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
2,973,594
1,780,802
Total equity
2,973,694
1,780,902
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
Mr A Modani
Director
Company Registration No. 04439953
NUSTONE PRODUCTS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
100
679,643
679,743
Period ended 31 March 2023:
Profit and total comprehensive income for the period
-
1,193,132
1,193,132
Dividends
10
-
(91,973)
(91,973)
Balance at 31 March 2023
100
1,780,802
1,780,902
Period ended 31 March 2024:
Profit and total comprehensive income for the period
-
1,192,792
1,192,792
Balance at 31 March 2024
100
2,973,594
2,973,694
NUSTONE PRODUCTS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023 Unaudited
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(1,910,372)
993,305
Interest paid
(531,898)
(229,624)
Income taxes (paid)/refunded
(84,740)
1,598
Net cash (outflow)/inflow from operating activities
(2,527,010)
765,279
Investing activities
Purchase of tangible fixed assets
(86,881)
(446,835)
Proceeds from disposal of tangible fixed assets
16,678
83,658
Movement on directors loan
-
0
1,332
Net cash used in investing activities
(70,203)
(361,845)
Financing activities
Proceeds from (Repayment of) borrowings
3,124,995
(131,918)
Payment of finance leases obligations
(197,380)
(152,895)
Dividends paid
-
0
(91,973)
Net cash generated from/(used in) financing activities
2,927,615
(376,786)
Net increase in cash and cash equivalents
330,402
26,648
Cash and cash equivalents at beginning of year
327,673
301,025
Cash and cash equivalents at end of year
658,075
327,673
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Nustone Products Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Dobbies Lane, Marks Tey, Colchester, Essex, United Kingdom, CO6 1EP.

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 freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence fortrue at least the 12 months following balance sheet sign off. The financial statements report an increasing net asset position and an improved net current asset position. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Revenue is recognised on payment date as opposed to delivery date with a year end adjustment for deferred income of any goods delivered post year end. The following criteria must also be met before revenue is recognised:

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

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:

Freehold land and buildings
10% to 20% straight line
Leasehold land and buildings
15 years straight line
Plant and equipment
10% to 20% straight line
Motor vehicles
25% reducing balance
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -

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.

During the year to 31 March 2024, the directors changed the method of depreciating its freehold land and buildings from 25% on a reducing balance basis to 10% to 20% straight line and plant and equipment from 25% on a reducing balance basis to 10% to 20% straight line. This revised method better reflects the entity's consumption of these assets over their useful lives and is consistent with the entity's replacement cycle.

 

The change in depreciation method is a change in accounting estimate and is accounted for in the period of the change and in subsequent periods.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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 statement of financial position 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.

NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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 and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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.

Derecognition of financial liabilities

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

NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 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 income statement, 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.

1.11
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.

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 statement of financial position 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.

NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements in applying accounting policies and key sources of estimation uncertainty

Key accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year as addressed below:

Stock valuation

Stock held is valued at the lower of cost and net realisable value with cost being materials cost plus overheads incurred in bringing the stocks to the present location and condition. This includes a judgement around the value of freight and delivery costs directly linked to stock purchases.

Deferred income & prepaid costs

Revenue is recorded on the date of payment leading to a discrepancy on revenue and cost of sales recorded at year end compared to revenue earned and cost of sales incurred. At year end a calculation of the amount of revenue and costs to be deferred takes place and is adjusted in the financial statements.

Goods in transit

Due to purchases of stock being made from overseas companies with significant lead times, at year end there are purchases made for which stock has not been received. The terms of purchase are confirmed with suppliers and adjustments made to ensure goods in transit are reflected in the financial statements, as an asset and a liability where applicable.

Impairment of financial assets

Annually the company considered whether financial assets are impaired. Where an indication of impairment is identified, an estimation of the recoverable value is required. The recoverable number of amounts owed by group undertakings is estimates based on the balance sheet of the group undertaking concerned.

3
Turnover
2024
2023 Unaudited
as restated
£
£
Turnover analysed by class of business
Supply and sale of building supplies
16,466,208
12,384,856
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
4
Operating profit
2024
2023 Unaudited
Operating profit for the period is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
25,641
42,112
Depreciation of tangible fixed assets held under finance leases
111,053
164,415
(Profit)/loss on disposal of tangible fixed assets
(99)
932
Operating lease charges
319,737
181,901
5
Auditor's remuneration
2024
2023 Unaudited
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
32,000
-
0
For other services
Other assurance services
26,160
6,567
6
Employees

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

2024
2023 Unaudited
Number
Number
42
26

Their aggregate remuneration comprised:

2024
2023 Unaudited
£
£
Wages and salaries
1,194,385
698,437
Social security costs
98,701
65,700
Pension costs
20,381
25,667
1,313,467
789,804
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
7
Directors' remuneration
2024
2023 Unaudited
£
£
Remuneration for qualifying services
40,000
39,719
8
Interest payable and similar expenses
2024
2023 Unaudited
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
414,467
189,799
Other finance costs:
Interest on finance leases and hire purchase contracts
66,671
38,228
Other interest
50,760
1,597
531,898
229,624
9
Taxation
2024
2023 Unaudited
£
£
Current tax
UK corporation tax on profits for the current period
331,017
264,193
Adjustments in respect of prior periods
(24,466)
(34,154)
Total current tax
306,551
230,039
Deferred tax
Origination and reversal of timing differences
48,194
53,827
Total tax charge
354,745
283,866
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023 Unaudited
£
£
Profit before taxation
1,547,537
1,476,998
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023 Unaudited: 19.00%)
386,884
280,630
Tax effect of expenses that are not deductible in determining taxable profit
14,188
1,583
Adjustments in respect of prior years
(24,466)
(41,671)
Permanent capital allowances in excess of depreciation
(70,055)
(42,486)
Deferred tax adjustments in respect of prior years
48,194
53,827
Transition adjustments
-
31,983
Taxation charge for the period
354,745
283,866
10
Dividends
2024
2023 Unaudited
£
£
Final paid
-
0
91,973
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
87,078
-
0
586,879
214,120
888,077
Additions
7,169
62,499
403,928
-
0
473,596
Disposals
-
0
-
0
(395)
(16,283)
(16,678)
At 31 March 2024
94,247
62,499
990,412
197,837
1,344,995
Depreciation and impairment
At 1 April 2023
21,770
-
0
177,685
69,043
268,498
Depreciation charged in the year
9,309
3,819
94,421
29,145
136,694
Eliminated in respect of disposals
-
0
-
0
(99)
-
0
(99)
At 31 March 2024
31,079
3,819
272,007
98,188
405,093
Carrying amount
At 31 March 2024
63,168
58,680
718,405
99,649
939,902
At 31 March 2023
65,308
-
0
409,194
145,077
619,579

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023 Unaudited
£
£
Plant and equipment
646,686
339,200
Motor vehicles
72,542
96,723
Land and buildings
49,677
57,320
768,905
493,243
12
Stocks
2024
2023 Unaudited
as restated
£
£
Finished goods and goods for resale
11,260,372
8,592,369

Included in the above is stock in transit at year end of £6,723,346 (2023: £1,268,259).

 

Stocks recognised as an expense in the year were £8,072,380 (2023: £9,149,216).

NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
13
Debtors
2024
2023 Unaudited
Amounts falling due within one year:
£
£
Trade debtors
-
0
7,562
Other debtors
837,348
105,495
Prepayments and accrued income
55,456
10,138
892,804
123,195

Included in other debtors are amounts owed by Group undertakings of £783,090 (2023: Nil)

 

Included in other debtors are amounts owed by related undertakings £29,882 (2023: £81,120)

 

 

14
Creditors: amounts falling due within one year
2024
2023 Unaudited
as restated
Notes
£
£
Obligations under finance leases
17
216,677
137,119
Other borrowings
16
4,167,859
1,195,814
Trade creditors
3,225,009
1,767,737
Corporation tax
583,555
361,744
Other taxation and social security
518,409
2,224,030
Other creditors
167,205
510,560
Accruals and deferred income
182,528
279,614
9,061,242
6,476,618

A fixed and floating charge in favour of Sellersfunding International Portfolio Ltd created 21 November 2022 exists over all assets and undertaking of the Company. The charge contains a negative pledge. Ankit Modani, director of Nustone Products Ltd has also given a 100% personal guarantee on this borrowing with a short term year end liability of £1,740,541 (2023: £Nil), included in other borrowings.

15
Creditors: amounts falling due after more than one year
2024
2023 Unaudited
Notes
£
£
Obligations under finance leases
17
541,514
431,737
Other borrowings
16
1,016,027
863,077
1,557,541
1,294,814
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Creditors: amounts falling due after more than one year
(Continued)
- 23 -

A fixed and floating charge in favour of Sellersfunding International Portfolio Ltd created 21 November 2022 exists over all assets and undertaking of the Company. The charge contains a negative pledge. Ankit Modani, director of Nustone Products Ltd has also given a 100% personal guarantee on this borrowing with a year end liability due after more than one year of £1,016,027 (2023: £863,077), included in other borrowings.

16
Loans and overdrafts
2024
2023 Unaudited
£
£
Other loans
5,183,886
2,058,891
Payable within one year
4,167,859
1,195,814
Payable after one year
1,016,027
863,077

The long-term loans are secured by fixed charges over all property of the company.

17
Finance lease obligations
2024
2023 Unaudited
Future minimum lease payments due under finance leases:
£
£
Within one year
216,677
137,119
In two to five years
541,514
431,737
758,191
568,856

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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023 Unaudited
Balances:
£
£
Accelerated capital allowances
158,676
110,482
2024
Movements in the year:
£
Liability at 1 April 2023
110,482
Charge to profit or loss
48,194
Liability at 31 March 2024
158,676

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2024
2023 Unaudited
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,381
25,667

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.

20
Share capital
2024
2023 Unaudited
2024
2023 Unaudited
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023 Unaudited
£
£
Within one year
281,683
236,744
Between two and five years
818,654
904,154
In over five years
221,500
357,750
1,321,837
1,498,648
22
Capital commitments

As at 31 March 2024 and 31 March 2023, the company had no capital commitments.

23
Events after the reporting date

On 22nd July 2024, the company entered into an operating lease for rental of a property in Kettering. The lease has a term of 15 years at an annual rental of £675,000 and is being rented from a company with common ownership & directorship, Rudra Reality Limited.

NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
24
Related party transactions

Within debtors due within one year is a balance of £783,090 (2023: Nil) relating to payments on account for stock purchases from Marble Lane Trading LLC, the parent company of Nustone Products Limited. Within other creditors there is a balance of £Nil (2023: £254,595).

Within debtors due within one year is a balance of £6,500 (2023: £1,314) relating to a loan owed by Rudra Reality Limited. Rudra Reality is a subsidiary of Marble Lane Trading LLC and therefore is considered a related party by virtue of common directorship and ultimate common ownership.

On 22nd July 2024, the company entered into an operating lease for rental of a property owned by Rudra Reality. The lease has a term of 15 years at an annual rental of £675,000, at market rate.

Within debtors due within one year is a balance of £23,382 (2023: £79,806) relating to a loan owed by Skyz Stones UK Ltd to the company. Skyz Stones UK Ltd is considered to be a related party by virtue of common directorship and ultimate common ownership. During the year there were purchases of £677,802 (2023: £Nil) and sales of £Nil (2023: £236,552).

Within creditors due within one year is a balance of £16,876 (2023: £44,810) owed to A Modani, a director of the company and ultimate controlling party by virtue of his majority shareholding in Marble Lane Trading LLC.

During the year there were no dividends paid or proposed to Marble Lane Trading LLC (2023: £91,973).

There have been no transactions and no balance is owed or owed to Surbhi Modani at year end (2023: £Nil).

Skyz Stones PVT Limited, a company registered in India is considered a related party by virtue of common directorship and family ownership. Ankit Modani was a 21% shareholder up to 26 August 2023 with 47% being owned by Mukesh Kumar Modani, father of Ankit Modani. On 26 August 2023, Ankit Modani resigned as shareholder and director and Mukesh Modani became a 49% shareholder.

During the year ended 31 March 2024 purchases were made from Skyz Stones PVT Limited of £1,611,411. At year end £655,225 of these purchases were included in goods in transit and Trade creditors.

During the year ended 31 March 2023 purchases of £192,826 were made from this company with a year end balance owed to Skyz Stones PVT Limited of £13,225.

 

25
Directors' transactions

As described in note 14, A Modani has given a guarantee for a funding facility in place at year end.

26
Ultimate controlling party

The company’s immediate parent undertaking is Marble Lane Trading LLC, a company registered in Dubai, U.A.E. Ankit Modani is the 100% owner of Marble Lane Trading LLC and therefore the ultimate controlling party of Nustone Products Ltd.

NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
27
Cash (absorbed by)/generated from operations
2024
2023 Unaudited
£
£
Profit for the year after tax
1,192,792
1,193,132
Adjustments for:
Taxation charged
354,745
283,866
Finance costs
531,898
229,624
(Gain)/loss on disposal of tangible fixed assets
(99)
932
Depreciation and impairment of tangible fixed assets
136,694
206,527
Movements in working capital:
Increase in stocks
(2,668,003)
(5,187,991)
Increase in debtors
(769,609)
(76,729)
(Decrease)/increase in creditors
(688,790)
4,343,944
Cash (absorbed by)/generated from operations
(1,910,372)
993,305
28
Analysis of changes in net debt
1 April 2023
Cash flows
New finance leases
31 March 2024
£
£
£
£
Cash at bank and in hand
327,673
330,402
-
658,075
Borrowings excluding overdrafts
(2,058,891)
(3,124,995)
-
(5,183,886)
Obligations under finance leases
(568,856)
197,380
(386,715)
(758,191)
(2,300,074)
(2,597,213)
(386,715)
(5,284,002)
NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
29
Prior period adjustment
Reconciliation of changes in equity
1 April
31 March
2022
2023
Notes
£
£
Adjustments to prior year
Prepaid costs
1
-
95,264
Deferred income
2
-
(263,599)
Goods in transit
3
-
-
Total adjustments
-
(168,335)
Equity as previously reported
679,743
1,949,237
Equity as adjusted
679,743
1,780,902
Analysis of the effect upon equity
Profit and loss reserves
-
(168,335)
Reconciliation of changes in profit for the previous financial period
2023 Unaudited
Notes
£
Adjustments to prior year
Prepaid costs
1
95,264
Deferred income
2
(263,599)
Goods in transit
3
-
Total adjustments
(168,335)
Profit as previously reported
1,361,467
Profit as adjusted
1,193,132
Notes to reconciliation
Prepaid costs

This adjustment relates to costs recorded in the 2023 accounts at a value of £95,264, for which the related sale did not take place until April 2023. The cost has therefore been prepaid to account for the cost in the same period as the revenue in the financial year ended 31 March 2024, which has been adjusted via deferred income.

Deferred income

The restatement in the prior relates to revenue of £263,599, initially recorded in the 2023 financial year which related to revenue earned in April 2023.

NUSTONE PRODUCTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
29
Prior period adjustment
(Continued)
- 29 -
Goods in transit

The restatement in the prior year relates to goods in transit, at a value of £1,268,259, which were not previously recognised in assets or liabilities. The goods were purchased prior to 31 March 2024 and delivered post 31 March 2024 and therefore have been adjusted to reflect the correct level of assets and liabilities as at year end. This adjustment has increased both assets and liabilities, therefore having no effect on profit or equity.

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