Company registration number 09201235 (England and Wales)
E TERRY GROUP LIMITED, CONSOLIDATED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
E TERRY GROUP LIMITED, CONSOLIDATED
COMPANY INFORMATION
Directors
Mr E J Terry
Mrs R J Terry
Company number
09201235
Registered office
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
E TERRY GROUP LIMITED, CONSOLIDATED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
E TERRY GROUP LIMITED, CONSOLIDATED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Fair review of the business
The principle activity of the Group is the provision of infrastructure, civil engineering, and groundworks.
The board have continued with their strategy of targeting gradual, sustainable growth in profit before tax. Consolidated revenue during the year was £14.4 million (2022: £30.6 million), with PBT of £5 million (2022: £4 million).
Net assets have risen from £16.2 million in 2022 to £19.7 million in 2023. Cash and cash equivalents at the year-end stood at £5.9 million (2022: £8.4 million). It is the shareholders intention to retain liquid assets within the business to aid growth.
The Group’s outlook remains positive with profit before tax for the year increasing. Profit margins for the Group have increased from 11% in 2022 to 24% in 2023. The directors expect that positive performance will continue into 2024 in line with their long-term growth strategy.
Principal risks and uncertainties
The directors consider the Group’s principle key risks to be inflationary pressures and maintaining the level of contract revenue.
Regular assessments of the marketplace are performed by the directors, and they are confident based on current performance and forecasts that neither external factor is likely to impact on revenue and profit margins due to the nature of the groundworks and the locality of operations.
As trading relies on the continuation and success of contracts, the directors maintain strong relationships with clients and are confident that high service levels will ensure the consistency of contract revenue going forward. Tight cost controls and review of margins also contribute to the effective monitoring of business performance.
The Group are becoming well established in the market and are both well positioned and resourced to capitalise on prospective new contracts.
Key performance indicators
The group utilises both financial and non-financial KPIs to monitor performance. The primary financial KPIs regularly employed at both strategic and operational levels are turnover and margins, along with creditors and debtor days. Turnover, contract margins and creditor and debtor days are all regularly reviewed to ensure operational and cash efficiency.
The directors also consider health and safety compliance at all levels to be a key non-financial KPI. They do not believe that there any other non-financial key performance indicators that are materially relevant.
The directors believe that the Group continue to be well positioned in the market and has sufficient cash reserves to meet its future commitments.
Mrs R J Terry
Director
30 September 2024
E TERRY GROUP LIMITED, CONSOLIDATED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company and group continued to be that of civil engineering and groundworks.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £88,000. The directors do not recommend payment of a further 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 E J Terry
Mrs R J Terry
Auditor
In accordance with the company's articles, a resolution proposing that Ormerod Rutter Limited be reappointed as auditor of the group will be put at a General Meeting.
Statement of directors' responsibilities
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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 auditor of the company 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 auditor of the company is aware of that information.
E TERRY GROUP LIMITED, CONSOLIDATED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mrs R J Terry
Director
30 September 2024
E TERRY GROUP LIMITED, CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF E TERRY GROUP LIMITED, CONSOLIDATED
- 4 -
Opinion
We have audited the financial statements of E Terry Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 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.
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 group and parent 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 group's and 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.
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.
We have nothing to report in this regard.
E TERRY GROUP LIMITED, CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF E TERRY GROUP LIMITED, CONSOLIDATED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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 group and the parent company and their 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 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 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 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 parent 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.
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.
Based on our understanding of the company, we identified the principle risks of non-compliance with laws and regulations including those that have a direct impact on the preparation of financial statements such as the Companies Act 2006, and the extent to which non-compliance might have a material effect on the financial statements. Audit procedures performed included discussions with management, testing of journals, designing and performing audit procedures and challenging assumptions and judgements made by management.
There are inherent limitations in the audit procedures described above. We are likely to become aware of instances of non-compliance with laws and regulations which are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misstatement or through 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.
E TERRY GROUP LIMITED, CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF E TERRY GROUP LIMITED, CONSOLIDATED
- 6 -
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.
Peter Ormerod FCA (Senior Stautory Auditor)
For and on behalf of Ormerod Rutter Limited
30 September 2024
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
E TERRY GROUP LIMITED, CONSOLIDATED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
14,393,680
30,555,043
Cost of sales
(7,700,104)
(25,026,357)
Gross profit
6,693,576
5,528,686
Administrative expenses
(1,487,813)
(1,357,493)
Other operating income
17,967
18,427
Exceptional item
4
(365,446)
Operating profit
5
4,858,284
4,189,620
Interest receivable and similar income
7
248,271
145
Interest payable and similar expenses
8
(102,389)
(159,479)
Profit before taxation
5,004,166
4,030,286
Tax on profit
9
(1,513,132)
(766,454)
Profit for the financial year
3,491,034
3,263,832
Profit for the financial year is all attributable to the owners of the parent company.
E TERRY GROUP LIMITED, CONSOLIDATED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
3,491,034
3,263,832
Other comprehensive income
-
-
Total comprehensive income for the year
3,491,034
3,263,832
Total comprehensive income for the year is all attributable to the owners of the parent company.
E TERRY GROUP LIMITED, CONSOLIDATED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,852,047
4,692,084
Investment property
12
5,034,143
4,168,480
Investments
13
754,000
690,500
9,640,190
9,551,064
Current assets
Stocks
15
225,729
753,441
Debtors
16
10,170,667
11,210,455
Cash at bank and in hand
5,930,450
8,402,467
16,326,846
20,366,363
Creditors: amounts falling due within one year
17
(5,378,779)
(9,871,312)
Net current assets
10,948,067
10,495,051
Total assets less current liabilities
20,588,257
20,046,115
Creditors: amounts falling due after more than one year
18
(56,526)
(2,661,521)
Provisions for liabilities
Provisions
21
380,225
Deferred tax liability
22
878,408
754,080
(878,408)
(1,134,305)
Net assets
19,653,323
16,250,289
Capital and reserves
Called up share capital
24
500
500
Profit and loss reserves
19,652,823
16,249,789
Total equity
19,653,323
16,250,289
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
Mrs R J Terry
Director
Company registration number 09201235 (England and Wales)
E TERRY GROUP LIMITED, CONSOLIDATED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
550,401
550,401
Current assets
Debtors
16
16,882,380
10,095,388
Cash at bank and in hand
5,419,560
7,503,137
22,301,940
17,598,525
Creditors: amounts falling due within one year
17
(8,022,165)
(6,301,072)
Net current assets
14,279,775
11,297,453
Net assets
14,830,176
11,847,854
Capital and reserves
Called up share capital
24
500
500
Profit and loss reserves
14,829,676
11,847,354
Total equity
14,830,176
11,847,854
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,070,322 (2022 - £2,589,117 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
Mrs R J Terry
Director
Company registration number 09201235 (England and Wales)
E TERRY GROUP LIMITED, CONSOLIDATED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
500
13,038,957
13,039,457
Year ended 31 December 2022:
Profit and total comprehensive income
-
3,263,832
3,263,832
Dividends
10
-
(53,000)
(53,000)
Balance at 31 December 2022
500
16,249,789
16,250,289
Year ended 31 December 2023:
Profit and total comprehensive income
-
3,491,034
3,491,034
Dividends
10
-
(88,000)
(88,000)
Balance at 31 December 2023
500
19,652,823
19,653,323
E TERRY GROUP LIMITED, CONSOLIDATED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
500
9,311,238
9,311,738
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,589,116
2,589,116
Dividends
10
-
(53,000)
(53,000)
Balance at 31 December 2022
500
11,847,354
11,847,854
Year ended 31 December 2023:
Profit and total comprehensive income
-
3,070,322
3,070,322
Dividends
10
-
(88,000)
(88,000)
Balance at 31 December 2023
500
14,829,676
14,830,176
E TERRY GROUP LIMITED, CONSOLIDATED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,008,495
6,231,756
Interest paid
(102,389)
(159,479)
Income taxes paid
(763,584)
(100,802)
Net cash inflow from operating activities
1,142,522
5,971,475
Investing activities
Purchase of tangible fixed assets
(93,265)
(1,741,893)
Proceeds from disposal of tangible fixed assets
287,526
1,088,750
Purchase of investment property
(865,662)
(874,600)
Proceeds from disposal of joint ventures
-
(549,750)
Proceeds from disposal of investments
(63,500)
(80,000)
Interest received
248,271
145
Net cash used in investing activities
(486,630)
(2,157,348)
Financing activities
Repayment of bank loans
(2,339,046)
414,046
Payment of finance leases obligations
(727,031)
45,811
Dividends paid to equity shareholders
(88,000)
(53,000)
Net cash (used in)/generated from financing activities
(3,154,077)
406,857
Net (decrease)/increase in cash and cash equivalents
(2,498,185)
4,220,984
Cash and cash equivalents at beginning of year
8,402,467
4,181,483
Cash and cash equivalents at end of year
5,904,282
8,402,467
Relating to:
Cash at bank and in hand
5,930,450
8,402,467
Bank overdrafts included in creditors payable within one year
(26,168)
-
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
E Terry Group Limited, Consolidated (“the company”) is a private company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Hownings Farm, Hanbury, Nr Droitwich, Worcestershire, WR9 7DZ.
The group consists of E Terry Group Limited, Consolidated and all of its subsidiaries.
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
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated group financial statements consist of the financial statements of the parent company E Terry Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
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:
Plant and machinery
20% on cost
Fixtures and fittings
20% on cost
Computer equipment
20% on cost
Motor vehicles
20% on cost
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 recognised in the profit and loss account.
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.8
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
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.
1.10
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.11
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.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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.
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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 group 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 group 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
1.15
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Contract revenue
14,393,680
30,555,043
2023
2022
£
£
Other revenue
Interest income
248,271
145
4
Exceptional item
2023
2022
£
£
Expenditure
Irrecoverable loan written off
365,446
-
365,446
-
A connected company, Warren Trading Ltd, has been dissolved. The related debtor balance is not going to be recovered and therefore has been written off.
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
11,844
7,792
Depreciation of owned tangible fixed assets
726,631
727,448
Profit on disposal of tangible fixed assets
(80,855)
(180,783)
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Admin staff
16
14
-
-
Directors
2
4
2
2
Total
18
18
2
2
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
409,308
436,213
Social security costs
38,242
43,782
-
-
Pension costs
8,798
9,613
456,348
489,608
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
248,271
Other interest income
-
145
Total income
248,271
145
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
248,271
-
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
27,201
94,779
Other finance costs:
Interest on finance leases and hire purchase contracts
42,601
51,359
Other interest
32,587
13,341
Total finance costs
102,389
159,479
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,388,511
644,508
Adjustments in respect of prior periods
5,782
2,744
Total current tax
1,394,293
647,252
Deferred tax
Origination and reversal of timing differences
118,839
119,202
Total tax charge
1,513,132
766,454
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:
2023
2022
£
£
Profit before taxation
5,004,166
4,030,286
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,176,980
765,754
Tax effect of expenses that are not deductible in determining taxable profit
353,810
5,988
Tax effect of income not taxable in determining taxable profit
(19,017)
Group relief
(10,802)
Other permanent differences
(125)
Under/(over) provided in prior years
1,359
2,744
Deferred tax adjustments in respect of prior years
2,895
Taxation charge
1,513,132
766,454
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
88,000
53,000
11
Tangible fixed assets
Group
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
7,031,440
16,923
57,930
401,666
7,507,959
Additions
91,753
344
1,168
93,265
Disposals
(444,265)
(17,200)
(461,465)
At 31 December 2023
6,678,928
17,267
59,098
384,466
7,139,759
Depreciation and impairment
At 1 January 2023
2,477,401
13,622
38,810
286,042
2,815,875
Depreciation charged in the year
674,788
2,515
8,080
41,248
726,631
Eliminated in respect of disposals
(247,914)
(6,880)
(254,794)
At 31 December 2023
2,904,275
16,137
46,890
320,410
3,287,712
Carrying amount
At 31 December 2023
3,774,653
1,130
12,208
64,056
3,852,047
At 31 December 2022
4,554,039
3,301
19,120
115,624
4,692,084
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
4,168,481
-
Additions through external acquisition
865,662
-
At 31 December 2023
5,034,143
-
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
401
401
Investments in joint ventures
550,000
550,000
550,000
550,000
Unlisted investments
5,000
5,000
Other investments
199,000
135,500
754,000
690,500
550,401
550,401
Movements in fixed asset investments
Group
Shares in joint ventures
Other investments
Other
Total
£
£
£
£
Cost or valuation
At 1 January 2023
550,000
5,000
135,500
690,500
Additions
-
-
63,500
63,500
At 31 December 2023
550,000
5,000
199,000
754,000
Carrying amount
At 31 December 2023
550,000
5,000
199,000
754,000
At 31 December 2022
550,000
5,000
135,500
690,500
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2023 and 31 December 2023
550,401
Carrying amount
At 31 December 2023
550,401
At 31 December 2022
550,401
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
E Terry Groundworks Limited
United Kingdom
Ordinary
100.00
E Terry Plant Hire Limited
United Kingdom
Ordinary
100.00
E Terry Stabilisation Limited
United Kingdom
Ordinary
100.00
Tandou Limited
United Kingdom
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
225,729
753,441
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
405,469
2,149,394
Gross amounts owed by contract customers
2,588,273
4,211,769
Amounts owed by group undertakings
-
-
11,114,015
7,075,569
Amounts owed by undertakings in which the company has a participating interest
-
135
-
-
Other debtors
6,994,954
4,638,425
5,768,286
3,019,819
Prepayments and accrued income
163,985
198,235
79
10,152,681
11,197,958
16,882,380
10,095,388
Amounts falling due after more than one year:
Deferred tax asset (note 22)
17,986
12,497
Total debtors
10,170,667
11,210,455
16,882,380
10,095,388
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
26,168
183,913
Obligations under finance leases
20
466,877
744,046
Trade creditors
1,264,199
2,269,483
Gross amounts owed to contract customers
1,248,240
5,394,447
Amounts owed to group undertakings
7,464,572
6,290,430
Corporation tax payable
1,690,055
1,059,346
54,786
Other taxation and social security
11,367
3,382
-
-
Other creditors
616,434
165,813
490,508
785
Accruals and deferred income
55,439
50,882
12,299
9,857
5,378,779
9,871,312
8,022,165
6,301,072
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
2,155,133
Obligations under finance leases
20
56,526
506,388
56,526
2,661,521
-
-
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,339,046
Bank overdrafts
26,168
26,168
2,339,046
-
-
Payable within one year
26,168
183,913
Payable after one year
2,155,133
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
466,877
744,046
In two to five years
56,526
506,388
523,403
1,250,434
-
-
Finance lease payments represent rentals payable by the company or group 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 1-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Loss on onerous contract
-
380,225
-
-
Movements on provisions:
Total
Group
£
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
878,408
754,080
17,986
12,497
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 28 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
741,583
-
Charge to profit or loss
118,839
-
Liability at 31 December 2023
860,422
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
8,798
9,613
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
300
300
300
300
Ordinary B of £1 each
100
100
100
100
Ordinary C of £1 each
100
100
100
100
500
500
500
500
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Related party transactions
Groundworks:
Warren Trading Limited:
There were no transactions with this entity during the year. Balances outstanding at the year end were amounts due from this entity of £nil (2022 £157,723).
E Terry Sole Trader:
Transactions in the year with this entity were in relation to purchases of £89,520. Balance outstanding at the year end were amounts due from this entity of £356,213 (2022 £323,353).
Tooma Projects:
Transactions in the year with this entity were in relation to purchases of £40,128. Balance outstanding at the year end were amounts due to this entity of £108,693 (2022 £158,475).
Edway Developments Limited:
There were no transactions with this entity during the year. Balance outstanding at the year end were amounts due from this entity of £137,051 (2022 £137,466).
Stabilisation:
E Terry Sole Trader:
Transactions in the year with this entity were £Nil. Balances outstanding at the year end were amounts due from this entity of £37,300 (2022: £37,300).
Tooma Projects Limited:
Transactions in the year with this entity were in relation to sales of £31,920. Balances outstanding at the year were amounts due form this entity of £128,690 (2022: £96,770)
Plant Hire:
Tooma Projects Limited:
Transactions in the year were £nil for this entity. Balances outstanding at the year end were amounts due from this entity of £181,608 (2022 £154,568).
E Terry Sole Trader:
Transactions in the year were £nil for this entity. Balances outstanding at the year end were amounts due from this entity of £91,518 (2022 £91,518).
Warmech:
Transactions in the year were £nil for this entity. Balances outstanding at the year end were amounts due from this entity of £nil (2022 £135).
Edway Developments:
Transactions in the year were £30,000 of sales to this entity. Balances outstanding at the year end were amounts due from this entity of £30,000 (2022 £nil).
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Related party transactions
(Continued)
- 30 -
Group:
Milawa Limited:
Transactions in the year were in relation to purchases from the entity of £320,095. Balances outstanding at the year end were amounts due from this entity of £2,855,226 (2022 £2,535,131).
Willowbend Limited:
Transactions in the year were in relation to loans to the entity of £5,000 and purchases by the group on behalf of this entity of £95. Balances outstanding at the year end were amounts due from this entity of £282,060 (2022 £276,965).
Warren Trading:
Transactions in the year were in relation to intercompany transfers of £nil. Balances outstanding at the year end were amounts due from this entity of £nil (2022 £207,723).
Tooma Projects Limited:
Transactions in the year were in relation to loans to the entity of £230,000. Balances outstanding at the year end were amounts due from this entity of £230,000 (2022 £nil).
Apollo 77 Projects Limited:
Transactions in the year were in relation to loans to the entity of £1,000. Balances outstanding at the year end were amounts due from this entity of £1,000 (2022 £nil).
Ravenshill Limited:
Transactions in the year were in relation to loans to the entity of £2,300,000. Balances outstanding at the year end were amounts due from this entity of £2,300,000 (2022 £nil).
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
26
Controlling party
The ultimate controlling party is Mr E J Terry and Mrs R J Terry, by virtue of their controlling interest in the company.
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,491,034
3,263,832
Adjustments for:
Taxation charged
1,513,132
766,454
Finance costs
102,389
159,479
Investment income
(248,271)
(145)
Gain on disposal of tangible fixed assets
(80,855)
(180,783)
Depreciation and impairment of tangible fixed assets
726,631
727,448
(Decrease)/increase in provisions
(380,225)
380,225
Movements in working capital:
Decrease/(increase) in stocks
527,712
(31,469)
Decrease/(increase) in debtors
1,045,276
(1,023,714)
(Decrease)/increase in creditors
(4,688,328)
2,170,429
Cash generated from operations
2,008,495
6,231,756
28
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
3,070,322
2,589,116
Adjustments for:
Taxation charged
54,786
Investment income
(3,348,105)
(2,600,000)
Movements in working capital:
Increase in debtors
(6,786,992)
(1,530,060)
Increase in creditors
1,666,307
4,501,563
Cash (absorbed by)/generated from operations
(5,343,682)
2,960,619
E TERRY GROUP LIMITED, CONSOLIDATED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
8,402,467
(2,472,017)
5,930,450
Bank overdrafts
(26,168)
(26,168)
8,402,467
(2,498,185)
5,904,282
Borrowings excluding overdrafts
(2,339,046)
2,339,046
-
Obligations under finance leases
(1,250,434)
727,031
(523,403)
4,812,987
567,892
5,380,879
30
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
7,503,137
(2,083,577)
5,419,560
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