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Registered number: 04199893










PAGETS BUILDERS MERCHANTS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
COMPANY INFORMATION


Directors
B J Anglin 
E L Anglin 
J P Hespe 
M Potter (appointed 30 October 2023)




Company secretary
S Scutt



Registered number
04199893



Registered office
94 Broadfield Road

Sheffield

South Yorkshire

S8 0XL




Independent auditors
Shorts
Chartered Accountant & Statutory Auditor

Cedar House

63 Napier Street

Sheffield

South Yorkshire

S11 8HA




Bankers
Lloyds Bank Plc





 
PAGETS BUILDERS MERCHANTS LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Balance Sheet
 
10 - 11
Statement of Cash Flows
 
12 - 13
Analysis of Net Debt
 
14
Notes to the Financial Statements
 
15 - 28


 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
As a leading independent builders merchant the Company continues to supply building materials to the construction industry and the general public.

Business review
 
During 2023 the Company changed buying groups.  The directors see this move as extremely positive.
Turnover was held at the same level as the previous year. Continuing inflationary pressures on both material prices and overheads, meant that the profit levels before tax were reduced to 4.8% of revenue. However, the directors are confident that the changes made in 2023 will lay the foundations for growth and improved profits in the coming year, in spite of challenging market conditions.
The directors remain committed to continual investment in the business, developing its premises and updating its fleet of vehicles. The Company is committed to the Real Living Wage and to ensuring that it’s offering to staff remains both competitive and attractive.
The directors will continue to keep a tight control on costs and monitor the performance of the Company against forecasts and industry benchmarks.

Principal risks and uncertainties
 
Operational risk
The Company has good reporting systems and produces timely and accurate management information which is regularly reviewed by the directors and stakeholders.
Price risk
The Company is exposed to downward pressure on margins as a result of operating in a competitive market, however it continues to seek improvements and efficiencies.
Credit risk
The Company’s primary credit risk is its trade debtors.  This risk is managed by maintaining a strict credit control policy.  Prior to granting credit the Company carries out appropriate checks with credit agencies and also has a credit insurance policy to cover larger exposures.
The amounts presented in the Balance Sheet are net of provisions for doubtful debts estimated by the Company’s management based on prior experience and their assessment of the current economic environment. The Company has no significant concentration of credit risk with exposure spread over a large number of customers.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Liquidity risk
The Company’s policy has been to ensure continuity of funding through acquiring major fixed assets via financing where appropriate.  In addition the Company has sufficient banking facilities in place to meet current and future working capital requirements. 

Page 1

 
PAGETS BUILDERS MERCHANTS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The directors consider the financial KPIs of the business to be:
Turnover
Turnover in 2023 was £11.8m, an increase of 0.6% on prior year.
Profit Before Taxation
Profit before taxation was 4.6% of revenue in 2023, compared to 6.6% in the prior year.
Stock Levels
 
Stock holding at the end of 2023 was £900k, a decrease of 16.3% (ie £175k) on prior year.
Cash
Cash balances at the end of 2023 were £158k higher than prior year.

Other key performance indicators
 
The directors consider the non-financial KPIs of the business to be:
 
High standard of customer service
 
Health and safety compliance
 
Company employees/staff engagement


This report was approved by the board on 26 June 2024 and signed on its behalf.



B J Anglin
Director

Page 2

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

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

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


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

make judgements and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £394,664 (2022 - £650,648).

The total distribution of dividend for the year ended 31 December 2023 was £243,000 (2022: £236,000).

Directors

The directors who served during the year were:

B J Anglin 
E L Anglin 
J P Hespe 
M R Peters (resigned 13 January 2023)
M Potter (appointed 30 October 2023)
T O Munkley (appointed 30 October 2023, resigned 29 November 2023)

Qualifying third party indemnity provisions

The directors have been granted a qualifiying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.

Page 3

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

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

This report was approved by the board on 26 June 2024 and signed on its behalf.
 





B J Anglin
Director

Page 4

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAGETS BUILDERS MERCHANTS LIMITED
 

Opinion


We have audited the financial statements of PAGETS BUILDERS MERCHANTS LIMITED (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 5

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAGETS BUILDERS MERCHANTS LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

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


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


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


Responsibilities of directors
 

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


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


Page 6

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAGETS BUILDERS MERCHANTS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


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

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

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

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

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

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

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

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
considering relationships with HMRC, relevant regulators and the Company’s legal advisors;
reviewing minutes of meeting of management and directors;
reviewing incident log to identifiy any breaches and problems; and
reviewing the Company's risk register to identify key risk areas.

There are inherent limitations in our audit procedures described above. The more removed that laws and
Page 7

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PAGETS BUILDERS MERCHANTS LIMITED (CONTINUED)


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

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


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


Use of our report
 

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





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

26 June 2024
Page 8

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,794,680
11,726,959

Cost of sales
  
(8,757,629)
(8,378,729)

Gross profit
  
3,037,051
3,348,230

Administrative expenses
  
(2,437,275)
(2,556,490)

Other operating income
 5 
6,348
12,094

Operating profit
  
606,124
803,834

Interest receivable and similar income
  
-
131

Interest payable and similar expenses
 10 
(64,658)
(29,009)

Profit before tax
  
541,466
774,956

Tax on profit
 11 
(146,802)
(124,308)

Profit after tax
  
394,664
650,648

  

  

Retained earnings at the beginning of the year
  
2,075,273
1,660,625

Profit for the year
  
394,664
650,648

Dividends declared and paid
  
(243,000)
(236,000)

Retained earnings at the end of the year
  
2,226,937
2,075,273
The notes on pages 15 to 28 form part of these financial statements.

Page 9

 
PAGETS BUILDERS MERCHANTS LIMITED
REGISTERED NUMBER: 04199893

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
1,683
2,490

Tangible assets
 13 
3,963,590
3,520,874

Investments
 14 
11,400
11,400

  
3,976,673
3,534,764

Current assets
  

Stocks
 15 
899,943
1,075,109

Debtors: amounts falling due within one year
 16 
1,011,660
1,097,697

Cash at bank and in hand
  
503,629
345,976

  
2,415,232
2,518,782

Creditors: amounts falling due within one year
 17 
(2,113,283)
(2,285,542)

Net current assets
  
 
 
301,949
 
 
233,240

Total assets less current liabilities
  
4,278,622
3,768,004

Creditors: amounts falling due after more than one year
 18 
(1,041,073)
(683,598)

Provisions for liabilities
  

Deferred tax
 20 
(106,313)
(104,834)

Net assets
  
3,131,236
2,979,572


Capital and reserves
  

Called up share capital 
 21 
100,000
100,000

Share premium account
 22 
750,816
750,816

Revaluation reserve
 22 
53,483
53,483

Profit and loss account
 22 
2,226,937
2,075,273

  
3,131,236
2,979,572


Page 10

 
PAGETS BUILDERS MERCHANTS LIMITED
REGISTERED NUMBER: 04199893
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 June 2024.




B J Anglin
Director

The notes on pages 15 to 28 form part of these financial statements.

Page 11

 
PAGETS BUILDERS MERCHANTS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
394,664
650,648

Adjustments for:

Amortisation of intangible assets
807
740

Depreciation of tangible assets
217,871
219,999

Loss on disposal of tangible assets
(8,258)
(7,495)

Government grants
(3,000)
(3,000)

Interest paid
64,658
29,009

Interest received
-
(131)

Taxation charge
146,802
124,308

Decrease/(increase) in stocks
175,166
(243,982)

Decrease/(increase) in debtors
86,036
(114,088)

(Decrease)/increase in creditors
(193,888)
65,194

Corporation tax (paid)
(139,478)
(130,496)

Net cash generated from operating activities

741,380
590,706


Cash flows from investing activities

Purchase of intangible fixed assets
-
(3,230)

Purchase of tangible fixed assets
(550,909)
(595,002)

Sale of tangible fixed assets
8,258
7,495

Government grants received
3,000
3,000

Interest received
-
131

HP interest paid
(12,286)
(10,267)

Net cash from investing activities

(551,937)
(597,873)

Cash flows from financing activities

New secured loans
450,000
-

Repayment of loans
(108,861)
(96,242)

Repayment of/new finance leases
(77,557)
(77)

Dividends paid
(243,000)
(236,000)

Interest paid
(52,372)
(18,742)

Net cash used in financing activities
(31,790)
(351,061)

Net increase/(decrease) in cash and cash equivalents
157,653
(358,228)

Cash and cash equivalents at beginning of year
345,976
704,204

Cash and cash equivalents at the end of year
503,629
345,976

Page 12

 
PAGETS BUILDERS MERCHANTS LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
503,629
345,976

503,629
345,976


The notes on pages 15 to 28 form part of these financial statements.

Page 13

 
PAGETS BUILDERS MERCHANTS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
New finance leases
At 31 December 2023
£

£

£

£

Cash at bank and in hand

345,976

157,653

-

503,629

Debt due after 1 year

(345,786)

(327,987)

-

(673,773)

Debt due within 1 year

(87,220)

(34,831)

-

(122,051)

Finance leases

(269,880)

77,557

(109,677)

(302,000)


(356,910)
(127,608)
(109,677)
(594,195)

The notes on pages 15 to 28 form part of these financial statements.

Page 14

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Pagets Builders Merchants Limited is a private limited Company limited by shares, incorporated in England and Wales (registered number: 04199893). Its registered office is 94 Broadfield Road, Sheffield, South Yorkshire, S8 0XL. The principal activity of the Company throughout the year continued to be that of sale of building supplies.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The Company's functional and presentational currency is pounds sterling.

The following principal accounting policies have been applied:

 
2.2

Revenue

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 the 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.

 
2.3

Operating leases: the Company as lessee

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

Page 15

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.6

Borrowing costs

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

 
2.7

Pensions

Defined contribution pension plan

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

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

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Page 16

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Income and Retained Earnings over its useful economic life.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Website development
-
33%
Straight line
Goodwill
-
5%
Straight line

 
2.10

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

The depreciation rates used are:

Freehold property
-
2% straight line
Plant and machinery
-
10% - 50% straight line
Motor vehicles
-
25% straight line
Motor lorries
-
16% straight line & 25% reducing balance

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

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

Page 17

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Revaluation of tangible fixed assets

Individual freehold properties are carried at fair value at the date of the revaluation, plus any subsequent additions stated at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
The company has taken advantage of the transitional provision in paragraph 35.10 (d) of FRS 102 to use the previous GAAP revaluation of freehold property as its deemed cost at the revaluation date. Hence freehold property is no longer stated under the revaluation model, but is deemed to be measured under the cost model as described in section 17 of FRS 102.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 18

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.
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 had the greatest level of uncertainty are addressed below:
(i) Impairment of debtors
The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. There were no such provisions in the current year.


4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
3,348
9,094

Government grants receivable
3,000
3,000

6,348
12,094



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
217,871
219,999

Amortisation
807
740

Profit on disposal of tangible fixed assets
(8,258)
(7,495)


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,400
14,000
Page 19

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,792,430
1,819,021

Social security costs
176,425
195,408

Cost of defined contribution scheme
55,482
82,810

2,024,337
2,097,239


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
48
55


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
165,649
212,151

Company contributions to defined contribution pension schemes
1,742
18,512

167,391
230,663


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
52,372
18,742

Finance leases and hire purchase contracts
12,286
10,267

64,658
29,009

Page 20

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
145,323
139,478

Adjustments in respect of previous periods
-
(5)


145,323
139,473


Total current tax
145,323
139,473

Deferred tax


Origination and reversal of timing differences
1,479
(15,165)

Total deferred tax
1,479
(15,165)


Tax on profit
146,802
124,308

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the calculated rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit before tax
541,466
774,956


Profit multiplied by calculated rate of corporation tax in the UK of 23.52% (2022 - 19%)
127,356
147,242

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,882
3,109

Capital allowances for year in excess of depreciation
13,476
3,134

Deferred tax underprovided in previous year
-
(25,533)

Other timing differences leading to an increase (decrease) in taxation
-
(5)

Remeasurement of deferred tax for changes in tax rates
88
(3,639)

Total tax charge for the year
146,802
124,308

Page 21

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Intangible assets




Computer software
Goodwill
Total

£
£
£



Cost


At 1 January 2023
5,230
255,340
260,570



At 31 December 2023

5,230
255,340
260,570



Amortisation


At 1 January 2023
2,740
255,340
258,080


Charge for the year on owned assets
807
-
807



At 31 December 2023

3,547
255,340
258,887



Net book value



At 31 December 2023
1,683
-
1,683



At 31 December 2022
2,490
-
2,490



Page 22

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 January 2023
3,082,749
823,334
889,244
4,795,327


Additions
472,343
15,380
172,864
660,587


Disposals
-
(2,936)
(85,855)
(88,791)



At 31 December 2023

3,555,092
835,778
976,253
5,367,123



Depreciation


At 1 January 2023
202,637
390,063
681,753
1,274,453


Charge for the year on owned assets
52,431
73,758
7,702
133,891


Charge for the year on financed assets
-
10,632
73,348
83,980


Disposals
-
(2,936)
(85,855)
(88,791)



At 31 December 2023

255,068
471,517
676,948
1,403,533



Net book value



At 31 December 2023
3,300,024
364,261
299,305
3,963,590



At 31 December 2022
2,880,112
433,271
207,491
3,520,874

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
75,335
85,967

Motor vehicles
244,915
193,399

320,250
279,366

As permitted by FRS 102, freehold land and buildings were measured at fair value on the date of transition to FRS 102 and this fair value has been used as deemed cost of this asset as at that date. As the asset depreciated, an appropriate transfer is made from the revaluation reserve to retained earnings.

Page 23

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£



Cost
3,691,131
3,218,788

Accumulated depreciation
(444,589)
(392,158)

Net book value
3,246,542
2,826,630


14.


Fixed asset investments





Investments in subsidiary companies
Other fixed asset investments
Total

£
£
£



Cost or valuation


At 1 January 2023
10,100
1,300
11,400



At 31 December 2023
10,100
1,300
11,400









15.


Stocks

2023
2022
£
£

Raw materials and consumables
899,943
1,075,109


Page 24

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

2023
2022
£
£


Trade debtors
749,767
817,363

Other debtors
261,893
280,334

1,011,660
1,097,697



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
100,372
87,220

Trade creditors
1,420,943
1,565,390

Corporation tax
145,323
139,478

Other taxation and social security
184,183
160,671

Obligations under finance lease and hire purchase contracts
69,800
70,168

Other creditors
85,121
63,468

Accruals and deferred income
107,541
199,147

2,113,283
2,285,542


Page 25

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
673,773
345,786

Net obligations under finance leases and hire purchase contracts
232,200
199,712

Amounts owed to group undertakings
10,100
10,100

Accruals and deferred income
125,000
128,000

1,041,073
683,598


The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:

2023
2022
£
£


Repayable by instalments
316,414
114,005

316,414
114,005

The amounts held within bank loans are secured against certain owned assets.
The amounts held within obligations under finance leases and hire purchase contracts are secured against the assets to which they relate to.


19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
69,801
70,167

Between 1-5 years
232,199
199,712

302,000
269,879

Page 26

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Deferred taxation




2023


£






At beginning of year
104,834


Charged to profit or loss
1,479



At end of year
106,313

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
107,654
106,368

Pension surplus
(1,341)
(1,534)

106,313
104,834


21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100,000 (2022 - 100,000) Ordinary Shares shares of £1.00 each
100,000
100,000



22.


Reserves

Share premium account

The share premium reserve represents the amount above the nominal value received for shares sold, less transaction costs.

Revaluation reserve

The revaluation reserve represents the cumulative effect of revaluations of freehold land and buildings which are revalued to fair value at each reporting date.

Profit and loss account

Profit and loss account represents all current and prior period retained profits and losses and is all considered to be distributable.

Page 27

 
PAGETS BUILDERS MERCHANTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held seperately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amount to £55,482 (2022: £82,810). Contributions totalling £10,807 (2022: £12,667) were payable to the fund at the balance sheet date and are included in creditors.


24.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
19,626
23,982

Later than 1 year and not later than 5 years
13,795
22,330

Later than 5 years
-
660

33,421
46,972

 
Page 28