REGISTERED NUMBER: 13024063 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
CRAGGS HOLDINGS LIMITED |
REGISTERED NUMBER: 13024063 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
CRAGGS HOLDINGS LIMITED |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
CRAGGS HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
12 Market Street |
Hebden Bridge |
West Yorkshire |
HX7 6AD |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
The business is a significant oil distribution business supplying homes, farms, businesses and public sector |
companies with low emission HVO fuels, heating oils, gas oil (red diesel), DERV (white diesel), industrial |
fuels, lubricants and fuel services. |
During the year Moorland Fuels Limited was merged with Craggs Energy Limited creating one business, under the 100% employee owned Trust (EOT) with bases in Hebden Bridge, West Yorkshire, Padiham in Lancashire and Okehampton in Devon. A strong emphasis on customer service and the use of technology, provides an efficient and innovative service. |
REVIEW OF BUSINESS |
The Directors are pleased with the performance for the year, with significant investments in a new ERP system and new vehicles driving improvements in customer service and efficiencies. |
The engagement with employees across the business has increased under the EOT, with each beneficiary receiving a tax free bonus in the year. New wellbeing programmes have been introduced, including mental health, BUPA and life assurance based on feedback from employees, improving the overall culture within the company. |
The regular monitoring of performance against forecasts and industry KPI's, ensures the business delivers efficient and competitive products to its customers. |
Craggs recognises the need to help customers move to renewable and sustainable fuels and has invested in expanding its delivery of HVO in Okehampton alongside one of the largest in-land HVO distribution hub and HVO bunker points sitting within the Keyfuels network in Lancashire. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Directors are aware of the various risks inherent in the business and meet regularly to consider them, ensuring that suitable management processes are in place to avoid, control or mitigate where possible. The key business risks are: |
Credit risk |
Craggs principle financial assets are cash, stock and trade debtors and the company's credit risk is primarily associated with trade debtors. This risk is managed by a strict policy of credit checking and reviewing all new and existing commercial customers. The company also maintains credit insurance to help mitigate this risk. |
Commodity Price risk |
Due to potential price fluctuations in the wholesale fuel market a price risk exists. Craggs seeks to mitigate this risk by having low levels of stock and short lead times between purchasing stock and delivering it to customers. Craggs also uses a proactive daily pricing policy aimed at minimising this risk. |
Liquidity risk |
Craggs seeks to manage liquidity risk by having sufficient funds and banking facilities in place to meet current and future working capital requirements. |
Environmental and regulatory risk |
The company is subject to environmental and regulatory risk due to the inherent nature of the sector in which it operates. Craggs ensures it meets all its environmental and regulatory requirements by having suitably qualified individuals and systems in place. |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FINANCIAL KEY PERFORMANCE INDICATORS |
The Directors use a combination of financial and non-financial KPIs, monitored on a monthly basis with variances acted upon as required, to determine how well the company is performing against its objectives and overall strategy. |
KPI's |
- Volumes ordered |
- Quantities delivered |
- Gross margins by product per litre |
- Transport and operational costs |
- Trade debtors and ageing |
- Stock levels |
FUTURE DEVELOPMENTS |
Craggs Holdings Limited will continue to serve its loyal customer base with traditional products whilst promoting greener alternatives such as HVO and the use of offsetting and insetting. The ongoing investment in new more efficient vehicles, investment in employees and improved IT systems will provide the platform for further organic growth. |
ON BEHALF OF THE BOARD: |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £1,099,999.(2022 £1,547,317). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Cresswells Accountants (UK) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRAGGS HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Craggs Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 group's and of the parent company affairs as at 31st December 2023 and of the group's 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 group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRAGGS HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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 a Report of the Auditors 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: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to Craggs Holdings Limited and determined that the most significant are those that relate to the reporting framework (Companies Act 2006) and the relevant tax compliance regulations in the jurisdictions in which Craggs Holdings Limited operates. In addition, we concluded that there are certain significant laws and regulations that may have an effect on the determination of the amounts and disclosures in the financial statements and those laws and regulations relating to health and safety, employee matters, environmental, and bribery and corruption practices. |
We understood how Craggs Holdings Limited is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of board minutes and papers provided to the audit team. |
We assessed the susceptibility of Craggs Holdings Limited's Financial Statements to material misstatement, including how fraud might occur, we utilised internal and external information to perform a fraud risk assessment. We considered the risk of fraud through management override and, in response, we incorporated a review of manual journal entries into our audit approach. We also considered the possibility of fraudulent or corrupt payments made through third parties. |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CRAGGS HOLDINGS LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
12 Market Street |
Hebden Bridge |
West Yorkshire |
HX7 6AD |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 68,718,747 | 67,621,036 |
Cost of sales | 63,617,931 | 61,825,557 |
GROSS PROFIT | 5,100,816 | 5,795,479 |
Administrative expenses | 4,685,929 | 4,240,984 |
414,887 | 1,554,495 |
Other operating income | 54,877 | 73,722 |
OPERATING PROFIT | 4 | 469,764 | 1,628,217 |
Interest payable and similar expenses | 5 | 94,965 | 71,002 |
PROFIT BEFORE TAXATION | 374,799 | 1,557,215 |
Tax on profit | 6 | 31,816 | 135,730 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 342,983 | 1,421,485 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 342,983 | 1,421,485 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
342,983 |
1,421,485 |
Total comprehensive income attributable to: |
Owners of the parent | 342,983 | 1,421,485 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 3,552,534 | 4,060,582 |
Tangible assets | 10 | 3,466,818 | 2,586,663 |
Investments | 11 | - | - |
7,019,352 | 6,647,245 |
CURRENT ASSETS |
Stocks | 12 | 957,111 | 811,046 |
Debtors | 13 | 8,319,705 | 5,839,143 |
Cash at bank and in hand | 37 | 786,944 |
9,276,853 | 7,437,133 |
CREDITORS |
Amounts falling due within one year | 14 | 11,271,681 | 8,285,124 |
NET CURRENT LIABILITIES | (1,994,828 | ) | (847,991 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,024,524 |
5,799,254 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(1,229,361 |
) |
(1,274,438 |
) |
PROVISIONS FOR LIABILITIES | 18 | (469,199 | ) | (441,836 | ) |
NET ASSETS | 3,325,964 | 4,082,980 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 10,764 | 10,764 |
Share premium | 20 | 3,293,417 | 3,293,417 |
Retained earnings | 20 | 21,783 | 778,799 |
SHAREHOLDERS' FUNDS | 3,325,964 | 4,082,980 |
The financial statements were approved by the Board of Directors and authorised for issue on 19th September 2024 and were signed on its behalf by: |
J P Sharp - Director |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,099,999 | 1,500,004 |
The financial statements were approved by the Board of Directors and authorised for issue on |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 | 6,889 | 904,631 | 3,293,417 | 4,204,937 |
Changes in equity |
Issue of share capital | 3,875 | - | - | 3,875 |
Dividends | - | (1,547,317 | ) | - | (1,547,317 | ) |
Total comprehensive income | - | 1,421,485 | - | 1,421,485 |
Balance at 31st December 2022 | 10,764 | 778,799 | 3,293,417 | 4,082,980 |
Changes in equity |
Dividends | - | (1,099,999 | ) | - | (1,099,999 | ) |
Total comprehensive income | - | 342,983 | - | 342,983 |
Balance at 31st December 2023 | 10,764 | 21,783 | 3,293,417 | 3,325,964 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st December 2023 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (959,145 | ) | 3,023,136 |
Interest paid | (77,725 | ) | (48,434 | ) |
Interest element of hire purchase payments paid |
(17,240 |
) |
(22,568 |
) |
Tax paid | (61,931 | ) | (257,375 | ) |
Net cash from operating activities | (1,116,041 | ) | 2,694,759 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (591,409 | ) |
Purchase of tangible fixed assets | (1,893,795 | ) | (108,615 | ) |
Sale of tangible fixed assets | 531,069 | 32,610 |
Net cash from investing activities | (1,362,726 | ) | (667,414 | ) |
Cash flows from financing activities |
Loan repayments in year | (1,083,115 | ) | (266,666 | ) |
Capital repayments in year | 957,180 | (231,989 | ) |
Share issue | - | 3,875 |
Equity dividends paid | (1,099,999 | ) | (1,547,317 | ) |
Net cash from financing activities | (1,225,934 | ) | (2,042,097 | ) |
Decrease in cash and cash equivalents | (3,704,701 | ) | (14,752 | ) |
Cash and cash equivalents at beginning of year |
2 |
786,944 |
801,696 |
Cash and cash equivalents at end of year |
2 |
(2,917,757 |
) |
786,944 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 374,799 | 1,557,215 |
Depreciation charges | 1,032,722 | 906,207 |
Loss/(profit) on disposal of fixed assets | 114,876 | (8,322 | ) |
Finance costs | 94,965 | 71,002 |
1,617,362 | 2,526,102 |
Increase in stocks | (146,065 | ) | (422,693 | ) |
Increase in trade and other debtors | (2,480,871 | ) | (1,245,931 | ) |
Increase in trade and other creditors | 50,429 | 2,165,658 |
Cash generated from operations | (959,145 | ) | 3,023,136 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 37 | 786,944 |
Bank overdrafts | (2,917,794 | ) | - |
(2,917,757 | ) | 786,944 |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 786,944 | 801,696 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 786,944 | (786,907 | ) | 37 |
Bank overdrafts | - | (2,917,794 | ) | (2,917,794 | ) |
786,944 | (3,704,701 | ) | (2,917,757 | ) |
Debt |
Finance leases | (701,601 | ) | (820,785 | ) | - | (1,679,364 | ) |
Debts falling due |
within 1 year | (266,667 | ) | 266,667 | - | - |
Debts falling due |
after 1 year | (800,000 | ) | 800,000 | - | - |
(1,768,268 | ) | 245,882 | - | (1,679,364 | ) |
Total | (981,324 | ) | (3,458,819 | ) | - | (4,597,121 | ) |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Craggs Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Revenue recognition |
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. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from sale of goods is recognised when all of the following conditions are satisfied: |
- the Company has transferred the significant risks and rewards of ownership to the buyer; |
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the Company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters in basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to 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 present value of the future cash flows and subsequently at amortised costs using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or finance at a rate of interest that is not a market rate or in the case of an out-right short-term loan nor at a market rate, 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 that are measured at cost and amortised costs are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income. |
For financial assets measured at amortised costs, the impairment loss is measured as the difference between an assets carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an assets carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the statement of comprehensive income 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 systemic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Finance costs |
Finance costs are charged to the statement of comprehensive income 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. |
Borrowing costs |
All borrowing costs are recognised in the statement of comprehensive income in the year in which they are incurred. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,073,769 | 1,771,339 |
Social security costs | 202,394 | 211,953 |
Other pension costs | 32,274 | 30,876 |
2,308,437 | 2,014,168 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 5 | 5 |
Staff | 52 | 55 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 376,109 | 400,312 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 88,880 | 110,645 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | - | 1,418 |
Other operating leases | 39,912 | 59,350 |
Depreciation - owned assets | 524,673 | 396,534 |
Loss/(profit) on disposal of fixed assets | 114,876 | (8,322 | ) |
Goodwill amortisation | 507,876 | 507,876 |
Patents and licences amortisation | 172 | 1,799 |
Auditors' remuneration | 34,000 | 28,745 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 77,725 | 48,434 |
Hire purchase | 17,240 | 22,568 |
94,965 | 71,002 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 62,200 | (7,546 | ) |
No description | - | 33 |
Total current tax | 62,200 | (7,513 | ) |
Deferred tax | (30,384 | ) | 143,243 |
Tax on profit | 31,816 | 135,730 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of 1 each |
Interim | 1,099,999 | 1,547,317 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
and 31st December 2023 | 5,078,754 | 17,985 | 5,096,739 |
AMORTISATION |
At 1st January 2023 | 1,018,344 | 17,813 | 1,036,157 |
Amortisation for year | 507,876 | 172 | 508,048 |
At 31st December 2023 | 1,526,220 | 17,985 | 1,544,205 |
NET BOOK VALUE |
At 31st December 2023 | 3,552,534 | - | 3,552,534 |
At 31st December 2022 | 4,060,410 | 172 | 4,060,582 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1st January 2023 | 347,940 | 60,741 | 404,173 |
Additions | - | 17,149 | 115,393 |
Disposals | - | (60,741 | ) | (154,837 | ) |
At 31st December 2023 | 347,940 | 17,149 | 364,729 |
DEPRECIATION |
At 1st January 2023 | 46,959 | 41,333 | 243,729 |
Charge for year | 6,000 | 6,808 | 45,385 |
Eliminated on disposal | - | (44,425 | ) | (114,728 | ) |
At 31st December 2023 | 52,959 | 3,716 | 174,386 |
NET BOOK VALUE |
At 31st December 2023 | 294,981 | 13,433 | 190,343 |
At 31st December 2022 | 300,981 | 19,408 | 160,444 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2023 | 234,300 | 3,061,109 | 1,130,182 | 5,238,445 |
Additions | 93,697 | 1,686,025 | 138,509 | 2,050,773 |
Disposals | (82,129 | ) | (1,907,542 | ) | - | (2,205,249 | ) |
At 31st December 2023 | 245,868 | 2,839,592 | 1,268,691 | 5,083,969 |
DEPRECIATION |
At 1st January 2023 | 160,440 | 1,613,442 | 545,879 | 2,651,782 |
Charge for year | 20,915 | 343,796 | 101,769 | 524,673 |
Eliminated on disposal | (63,483 | ) | (1,336,668 | ) | - | (1,559,304 | ) |
At 31st December 2023 | 117,872 | 620,570 | 647,648 | 1,617,151 |
NET BOOK VALUE |
At 31st December 2023 | 127,996 | 2,219,022 | 621,043 | 3,466,818 |
At 31st December 2022 | 73,860 | 1,447,667 | 584,303 | 2,586,663 |
The net book value of assets held under finance lease or hire purchase contracts, included above, are as follows; |
2022 |
£ |
Motor vehicles | 971,689 |
971,689 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 957,111 | 811,046 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 7,286,366 | 4,786,071 |
Other debtors | 81,895 | 603,906 |
Tax | - | 308 |
VAT | 560,033 | 186,572 |
Prepayments and accrued income | 391,411 | 262,286 |
8,319,705 | 5,839,143 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 2,917,794 |
266,667 |
Hire purchase contracts (see note 17) | 450,003 | 227,163 |
Trade creditors | 6,731,930 | 7,241,588 |
Amounts owed to group undertakings | - | - |
Tax | 62,161 | - |
Social security and other taxes | 57,920 | 60,676 |
Other creditors | 476,574 | 417,608 |
Accrued expenses | 575,299 | 71,422 |
11,271,681 | 8,285,124 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | - | 800,000 |
Hire purchase contracts (see note 17) | 1,229,361 | 474,438 |
1,229,361 | 1,274,438 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 2,917,794 | - |
Bank loans | - | 266,667 |
2,917,794 | 266,667 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | - | 266,667 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | - | 533,333 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 450,003 | 227,163 |
Between one and five years | 1,229,361 | 474,438 |
1,679,364 | 701,601 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 469,199 | 441,836 |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | 441,836 |
Provided during year | 27,363 |
Balance at 31st December 2023 | 469,199 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 10,764 | 10,764 |
20. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st January 2023 | 778,799 | 3,293,417 | 4,072,216 |
Profit for the year | 342,983 | 342,983 |
Dividends | (1,099,999 | ) | (1,099,999 | ) |
At 31st December 2023 | 21,783 | 3,293,417 | 3,315,200 |
Share premium account |
The share premium account represents the excess of the proceeds of share issues over the nominal value of the shares. |
Profit and loss account |
The profit and loss reserve represents historic profit generated by the Company retained within the Company. |
21. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £38,218 (2022 £36,159). Contributions totalling £3,370 (2022 £5,054) were payable to the fund at the reporting date ad are included in creditors. |
CRAGGS HOLDINGS LIMITED (REGISTERED NUMBER: 13024063) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
22. | RELATED PARTY DISCLOSURES |
During the year the company made transactions with several companies that have common directors as follows |
2023 | 2022 |
Purchases | Sales | Purchases | Sales |
Greenarc Limited | 564,375 | 848,681 | 112,954 | 2,015,733 |
Craggs Country Business Park LLP | 84,407 | 25,909 | 84,158 | - |
LCM Environmental Services Limited | 561,000 | 532,811 | 1,066,923 | 8,906 |
Elektec Electrical Ltd | - | 1,346 | - | - |
Greenarc Vehicles Limited | 3,272 | 50,685 | - | - |
PIS Ireland Ltd | - | 3,103 | - | - |
Greenarc Fuelcards Limited | 159,459 | 589,035 | 168,690 | 3,644,670 |
Holmes Tec Limited | - | 2,221 | - | - |
Cragg Vale Consultancy Limited | - | 1,369 | - | - |
The amounts (owed to)/due from related parties at the year end are as follows; |
2023 | 2022 |
£ | £ |
The Craggs Country Business Park LLP | (318 | ) | 5,934 |
R E Thornber Limited | - | - |
Cragg Vale Consultancy Limited | - | - |
Greenarc Limited | 134,644 | (58,778 | ) |
LCM Environmental Services Limited | (11,437 | ) | (35,905 | ) |
Greenarc Fuel Cards Limited | (494,358 | ) | (115,921 | ) |
LCM Environmental Services Holdings Limited | - | 229,950 |
Greenarc Energy Ltd | - | 103,200 |
The Craggs Personal Storage Limited | - | 48 |
Director loan balances |
C Bingham | 10,000 | 10,000 |
R Wallace | 10,000 | 10,000 |
M Crockett | 20,000 | 20,000 |
(331,469 | ) | 168,528 |