REGISTERED NUMBER: 03560161 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
CORNWALL GROUP LIMITED |
REGISTERED NUMBER: 03560161 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
CORNWALL GROUP LIMITED |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
CORNWALL GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Mr J Pearce |
AUDITORS: |
Statutory Auditors |
The Old Carriage Works |
Moresk Road |
Truro |
Cornwall |
TR1 1DG |
BANKERS: | Barclays Bank plc |
14 King Street |
Truro |
Cornwall |
TR1 2RB |
SOLICITORS: |
78 Lemon Street |
Truro |
TR1 2PN |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
As we look back over the last 12 trading months, it has been a very challenging market place, with supply exceeding demand, and a European market generally very flat. Prices have been kept arguably unsustainably low, given significant increases in many overheads such as labour and energy. |
We believe this will improve as we enter QTR 4 of 2024 and into 2025. With the new incoming government providing some longer term stability along with anticipated reductions in interest rates and a tight control of inflationary pressures we strongly feel 2025 will provide a much needed return to a more settled period for the whole economy within the UK. |
During our last trading year we made a significant and strategic investment, the largest in our family business's history with the acquisition of Forward Glass Ltd, Birmingham. This investment has brought to our Group approaching 90 new faces and colleagues, with much experience and skills, along with a geographical reach previously unviable for us. This investment will take 2-3 years to fully transition into our Group with many synergies yet to tap into. |
During the last 12 months we have invested some £16 million in plant, property, IT and specialist fleet vehicles. As we wrote in our last Strategic Report, we remain steadfast and focused on a 5 - 10 year horizon, which currently with our simple shareholding structure, experienced team of Directors and colleagues throughout the business places us in a strong position as the UK economy stabilises and grows. |
Despite a tricky trading year, we have been able to enhance our much loved Charitable Fund, a wonderful legacy for many years to come as we put back into our local Communities much needed resources. |
FUTURE DEVELOPMENTS |
We expect in the coming 12 months to invest in excess of £4m in new toughening plants and processing equipment throughout various parts of the Group. |
Our endeavours with our long established Apprenticeship Journey throughout the Group continues to produce marvellous results for both individuals and the businesses in which they play a vital part. We hope with the new Government in place the Apprenticeship Levy is significantly reviewed and improved so that the next generation of skilled colleagues, Managers and future Directors come through the workplace with meaningful and worthwhile training and qualifications, this is truly essential if we are to sustainably expand our businesses in the coming decade. |
Whilst Glass and Glazing is the cornerstone of our Group we continue to look at modest divestment and have and will continue to add rental properties and non-glass related retail outlets to our portfolio when viable. |
As we touched on last year, we nudge closer to our Golden Anniversary in 2028 which will be a memorable and significant milestone for us all. |
We remain both acquisitive and optimistic for the coming year ahead, and feel well placed to benefit from organic growth, whilst keeping a watchful eye on wider global issues which can impact us all. |
KEY PERFORMANCE INDICATORS |
The Board use a wide range of financial and non-financial KPI's to assess and monitor the performance of our wider Group businesses. Individual Boards meet quarterly to make strategic decisions, and consider benchmarking data from our like-minded competitors and key account customers. |
The turnover and profitability of the group in the period was as follows: |
2024 | 2023 |
Turnover | £ | 28,653,123 | 25,830,000 |
Gross profit | £ | 12,754,534 | 12,300,683 |
Gross profit Percentage | 44.5 | 47.6 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
With our hands on approach both the Senior Management Team and Board of Directors continually monitor all reasonable day to day operational risks. Our centralized Group team of colleagues focus on matters regarding credit, insurance, financial and cyber risks allowing the Operational team to focus on their ever expanding daily challenges and opportunities. |
All Managing Directors along with the current three Group Directors maintain close and regular relationships with our main partners in the supply chain, ensuring wherever possible that we are on the front foot regarding market conditions, trends and numerous networking opportunities both in the UK and wider world. |
At the heart of our business is the desire to provide sustainable and stable trading relationships with all stakeholders; colleagues, customers, suppliers and lenders. We work hard to both foster and encourage throughout our Group open, harmonious, credible and reliable longer term working relationships wherever possible. |
On all major strategic decisions we remain very mindful of our experienced and dedicated team of colleagues and their reliance on workplace security. |
ON BEHALF OF THE BOARD: |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the processing and supply of glass and glazing products and the provision of glazing services. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
RESEARCH AND DEVELOPMENT |
The group has engaged in Research and Development activities in relation to improving its manufacturing systems and processes. Costs relating to this activity are recognised in the profit and loss account in the period in which the expenditure is incurred. During the period, the group has made claims for research and development tax relief in relation to earlier accounting periods and the amount calculated in relation to the tax relief is included within the corporation tax charge for the year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
DONATIONS |
The group made charitable donations to the Cornwall, Devon and Somerset Community Foundations in the combined sum of £114,200 (2023: £87,000) and other charitable donations of £1,131 (2023: £58). |
POLICY ON THE EMPLOYMENT OF DISABLED PERSONS |
We have an extensive Equal Opportunities Policy at Cornwall Group, which includes Disabled Persons. We aim to promote equality, harmony and respect amongst individuals and to eliminate discrimination, harassment and victimisation of all kinds. We also aim that the composition of our workforce should reflect and promote a diverse mix of colleagues that represent the diversity of our local community and that all colleagues and employment applicants will be offered equal opportunities to achieve their full potential. Every effort is made to ensure that our workplace is made available and suitable for Disabled Persons and we commit to working closely with any colleague who becomes disabled during their employment. |
ENGAGEMENT WITH EMPLOYEES |
Cornwall Group recognises the importance of an effective colleague engagement policy in that it not only heightens productivity and colleague retention, but also improves colleague wellbeing and job satisfaction. We are committed to maintaining two way lines of communication and ensure that Directors are visible and present to provide opportunities for colleagues to raise any concerns, thoughts or ideas. We also endeavour to nurture our colleagues during their employment and provide training and refresher courses where relevant to ensure their continuing development. We have a designated Apprenticeship Journey which ensures our Apprentices are supported during the whole process. Where possible, relevant information and updates on the Group and its performance are communicated. Colleagues could see this engagement in a number of ways, such as annual reviews with a Director, letters, newsletters that a published and shared, we are also present in the local and national media along with being active on social media platforms. High levels of colleague engagement help shape and influence the decisions that we make during the year, for example highlighting areas in the business which require investment. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CORNWALL GROUP LIMITED |
Opinion |
We have audited the financial statements of Cornwall Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CORNWALL GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CORNWALL GROUP LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. |
Our approach was as follows: |
- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations; |
- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK; |
- We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration; |
- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit; |
- We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. |
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CORNWALL GROUP LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
The Old Carriage Works |
Moresk Road |
Truro |
Cornwall |
TR1 1DG |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 28,653,123 | 25,830,000 |
Cost of sales | (15,898,589 | ) | (13,529,317 | ) |
GROSS PROFIT | 12,754,534 | 12,300,683 |
Distribution costs | (2,109,431 | ) | (1,792,584 | ) |
Administrative expenses | (8,503,608 | ) | (7,627,021 | ) |
2,141,495 | 2,881,078 |
Other operating income | 5 | 392,106 | 217,757 |
OPERATING PROFIT | 7 | 2,533,601 | 3,098,835 |
Interest receivable and similar income | 36,079 | - |
2,569,680 | 3,098,835 |
Gain/loss on revaluation of investment property |
107,829 |
- |
2,677,509 | 3,098,835 |
Interest payable and similar expenses | 8 | (609,186 | ) | (128,781 | ) |
PROFIT BEFORE TAXATION | 2,068,323 | 2,970,054 |
Tax on profit | 9 | (64,003 | ) | (615,861 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,004,320 | 2,354,193 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,004,320 | 2,354,193 |
OTHER COMPREHENSIVE INCOME |
Revaluation of freehold property | 892,171 | 337,566 |
Income tax relating to other comprehensive income |
(223,043 |
) |
(63,750 |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
669,128 |
273,816 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,673,448 |
2,628,009 |
Total comprehensive income attributable to: |
Owners of the parent | 2,673,448 | 2,628,009 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 814,882 | - |
Tangible assets | 13 | 17,837,333 | 7,939,956 |
Investments | 14 | - | - |
Investment property | 15 | 5,041,899 | 1,559,574 |
23,694,114 | 9,499,530 |
CURRENT ASSETS |
Stocks | 16 | 2,285,457 | 1,797,415 |
Debtors | 17 | 5,875,117 | 4,538,436 |
Cash at bank and in hand | 504,318 | 3,014,536 |
8,664,892 | 9,350,387 |
CREDITORS |
Amounts falling due within one year | 18 | (5,775,443 | ) | (4,746,181 | ) |
NET CURRENT ASSETS | 2,889,449 | 4,604,206 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
26,583,563 |
14,103,736 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(11,875,417 |
) |
(3,394,709 |
) |
PROVISIONS FOR LIABILITIES | 23 | (2,287,854 | ) | (962,183 | ) |
NET ASSETS | 12,420,292 | 9,746,844 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 2,002 | 2,002 |
Revaluation reserve | 25 | 1,481,647 | 812,519 |
Capital redemption reserve | 25 | 1,001 | 1,001 |
Fair value reserve | 25 | 80,872 | - |
Retained earnings | 25 | 10,854,770 | 8,931,322 |
SHAREHOLDERS' FUNDS | 12,420,292 | 9,746,844 |
The financial statements were approved by the Board of Directors and authorised for issue on 24 October 2024 and were signed on its behalf by: |
M J Mitchell - Director |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
COMPANY BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 18 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
19 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Revaluation reserve | 25 |
Capital redemption reserve | 25 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 18,776 | 82,932 |
The financial statements were approved by the Board of Directors and authorised for issue on |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 July 2022 | 2,002 | 6,577,129 | 538,703 |
Changes in equity |
Total comprehensive income | - | 2,354,193 | 273,816 |
Balance at 30 June 2023 | 2,002 | 8,931,322 | 812,519 |
Changes in equity |
Total comprehensive income | - | 1,923,448 | 669,128 |
Balance at 30 June 2024 | 2,002 | 10,854,770 | 1,481,647 |
Capital | Fair |
redemption | value | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 July 2022 | 1,001 | - | 7,118,835 |
Changes in equity |
Total comprehensive income | - | - | 2,628,009 |
Balance at 30 June 2023 | 1,001 | - | 9,746,844 |
Changes in equity |
Total comprehensive income | - | 80,872 | 2,673,448 |
Balance at 30 June 2024 | 1,001 | 80,872 | 12,420,292 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2024 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,949,978 | 3,640,855 |
Interest paid | (558,322 | ) | (116,031 | ) |
Interest element of hire purchase payments paid |
(50,864 |
) |
(12,750 |
) |
Tax paid | (209,548 | ) | (620,403 | ) |
Taxation refund | - | 5,659 |
Net cash from operating activities | 1,131,244 | 2,897,330 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (311,112 | ) | - |
Purchase of tangible fixed assets | (8,501,563 | ) | (1,199,466 | ) |
Purchase of investment property | (3,527,777 | ) | (510,975 | ) |
Sale of tangible fixed assets | 50,333 | 21,523 |
Sale of investment property | 344,010 | - |
Interest received | 36,079 | - |
Net cash from investing activities | (11,910,030 | ) | (1,688,918 | ) |
Cash flows from financing activities |
Bank loan repayments in year | (332,108 | ) | (184,630 | ) |
New bank loans in year | 8,249,200 | - |
Movement on proceeds of factored debts | 589,902 | 93,120 |
Hire purchase repayments in year | (247,485 | ) | (223,265 | ) |
Amount introduced by directors | 9,059 | 6,056 |
Net cash from financing activities | 8,268,568 | (308,719 | ) |
(Decrease)/increase in cash and cash equivalents | (2,510,218 | ) | 899,693 |
Cash and cash equivalents at beginning of year |
2 |
3,014,536 |
2,114,843 |
Cash and cash equivalents at end of year | 2 | 504,318 | 3,014,536 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,068,323 | 2,970,054 |
Depreciation charges | 756,019 | 578,822 |
Profit on disposal of fixed assets | (124,449 | ) | (14,263 | ) |
Gain on revaluation of fixed assets | (107,829 | ) | - |
Movement on warranty provision | 80,889 | 36,811 |
Finance costs | 609,186 | 128,781 |
Finance income | (36,079 | ) | - |
3,246,060 | 3,700,205 |
Increase in stocks | (488,042 | ) | (362,879 | ) |
(Increase)/decrease in trade and other debtors | (1,309,210 | ) | 430,171 |
Increase/(decrease) in trade and other creditors | 501,170 | (126,642 | ) |
Cash generated from operations | 1,949,978 | 3,640,855 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30/6/24 | 1/7/23 |
£ | £ |
Cash and cash equivalents | 504,318 | 3,014,536 |
Year ended 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 3,014,536 | 2,114,843 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/7/23 | Cash flow | changes | At 30/6/24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 3,014,536 | (2,510,218 | ) | 504,318 |
3,014,536 | (2,510,218 | ) | 504,318 |
Debt |
Finance leases | (523,757 | ) | 247,485 | - | (1,329,272 | ) |
Debts falling due |
within 1 year | (230,458 | ) | (168,069 | ) | - | (398,527 | ) |
Debts falling due |
after 1 year | (2,972,141 | ) | (7,749,023 | ) | - | (10,721,164 | ) |
(3,726,356 | ) | (7,669,607 | ) | - | (12,448,963 | ) |
Total | (711,820 | ) | (10,179,825 | ) | - | (11,944,645 | ) |
4. | ACQUISITION OF BUSINESS |
Included within investment and other cash flows are payments for the acquisition of two subsidiaries at a combined cost of £6,985,635. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Cornwall Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
Amounts in the accounts are rounded to the nearest £1. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The activities of the group together with the factors likely to affect its future development, performance and financial position are set out in the Group Strategic Report. The group has net assets of £12.4m at the balance sheet date. The group is exposed to risks including credit risk and other operational risks, however management has prepared detailed forecasts for 12 months from the date of signing the accounts, and having considered the assumptions and conclusions made by management, and the availability of financial resources, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, and as a minimum for a period of at least 12 months from the date of approval of these financial statements. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
The consolidated financial statements incorporate the individual financial statements of Cornwall Group Limited and the entities under its control (its subsidiaries). |
Subsidiary undertakings include Cornwall Glass (Manufacturing) Limited, Cornwall Glass & Glazing Limited, Mackenzie Glass Limited, Annie & Maude Limited, Forward Glass Limited and Forging Forward Limited. The latter two companies were acquired by the group during the year. |
No group company has been excluded from the consolidation. |
Control is achieved where the company has the power to govern the financial and operating policies of an invested entity so as to obtain benefits from its activities. |
Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination. Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. |
The results of subsidiaries acquired or disposed during the year are included in Profit and Loss from the effective date of acquisition or up to the effective date of disposal, as appropriate. |
Intra-group transactions, income and expenses are eliminated on consolidation. |
The consolidated balance sheet amalgamates all assets and liabilities of the group at the balance sheet date. Intra-group balances are eliminated on consolidation. |
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. |
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. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
Key sources of estimation uncertainty |
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Useful economic life of tangible fixed assets |
The Company makes an estimate for the useful economic life of tangible fixed assets taking into account the age, condition, residual value and the expectations for the usage of each class of asset and applies a policy to charge depreciation on a systematic basis over that assessment of useful life, taking into account any impairment that has been identified. |
Useful economic life of goodwill |
The Company makes an estimate for the useful economic life of goodwill acquired in connection with the acquisition of subsidiary companies taking into account the expectations for period of time over which the cash flows arising from the acquisition are expected to arise and applies a policy to charge amortisation on a systematic basis over that assessment of useful life, taking into account any impairment that has been identified. |
Valuation of freehold and investment property |
Property is included in the accounts at a valuation determined annually by the directors or professional valuers as may be appropriate. The valuation of property is based on observable market prices, adjusted as necessary for any difference in the nature, location or condition of the specific asset. Such valuations are subjective and prone to changes in the market and other economic factors. |
Stock valuation |
The company applies a policy of valuing stock at the lower of cost and net realisable value which involves making an assessment of cost, based on prices of raw materials and other components from a range of suppliers, and assessing the net realisable value of the goods taking into account the selling prices of those goods to a range of customers. |
Provision for warranty |
The company sells double glazed units with a warranty of up to 5 years. Based on the expected costs of rectifying claims under warranty and the experience of claims in the previous 5 years, the company estimates the expected future cost based on current levels of production and the history of previous claims, and this is adjusted annually. |
Critical judgments |
The directors do not believe there are any critical judgments that have been made in applying the company's accounting policies. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised for the sale of glass and glass-related products when the entity has transferred the significant risks and rewards of ownership, it is probable that the economic benefit will flow to the entity and the revenue and associated costs can be reliably measured. This typically occurs when goods are dispatched to a customer. |
When the outcome of a contract for glass processing services can be measured reliably, the entity will recognise both income and costs by reference to the percentage of completion of the contract. If the outcome cannot be reliably measured, all costs are expensed and revenue is only recognised to the extent that it is probable that costs are recoverable. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Goodwill |
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years. |
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Buildings | Freehold | - 2% on valuation less residual value |
Leasehold | - Amortised over the lease term |
Plant and machinery etc | - 8% - 33% on cost |
Freehold property is included in the accounts at a valuation determined annually by the directors or professional valuers as may be appropriate. The valuation of property is based on observable market prices, adjusted as necessary for any difference in the nature, location or condition of the specific asset. |
Tangible fixed assets are reviewed annually for indicators of impairment and any impairment losses arising from the difference between the carrying amount and the recoverable amount are recognised in profit or loss for the period. |
Government grants |
Government grants relating to revenue expenditure are recognised in the profit and loss account in the period in which the relevant costs are incurred. |
Grants relating to capital expenditure are deferred and released to the profit and loss account in line with the depreciation of the associated assets. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Investment property is included in the accounts at a valuation determined annually by the directors or professional valuers as may be appropriate. The valuation of property is based on observable market prices, adjusted as necessary for any difference in the nature, location or condition of the specific asset. |
Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments' to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Basic financial assets |
Basic financial assets, which include trade and other debtors, 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
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, that the 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. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including trade, other creditors and asset finance agreements 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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled. or they expire. |
Invoice discounting |
The company had entered into an invoice discounting arrangement. The gross amount of invoice debtors are included within current assets, and the liabilities include an amount in respect of proceeds received from the finance provider. The provider's service charge is recognised as it accrues and included in the profit and loss account as bank charges. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of the proceeds received net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
The group has engaged in Research and Development activities in relation to improving its manufacturing systems and processes. Costs relating to this activity are recognised in the profit and loss account in the period in which the expenditure is incurred. During the period, the group has made claims for research and development tax relief in relation to earlier accounting periods and the amount calculated in relation to the tax relief is included within the corporation tax charge for the year. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Warranty provisions |
Provisions in respect of warranty claims are made in accordance with FRS 102, in order to cover the likely costs of future claims, calculated by reference to historic experience and the duration of the warranty period. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense. |
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
5. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Rents receivable | 272,786 | 99,230 |
Revenue grant | 16,508 | 10,353 |
Sundry receipts | 93,754 | 108,174 |
Profit on sale of tangible fixed assets | 9,058 | - |
392,106 | 217,757 |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 8,886,523 | 7,229,222 |
Social security costs | 789,362 | 653,385 |
Other pension costs | 588,307 | 536,334 |
10,264,192 | 8,418,941 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management | 21 | 19 |
Staff | 297 | 252 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 169,566 | 140,642 |
Directors' pension contributions to money purchase schemes | 9,420 | 7,395 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 59,588 | 71,273 |
Other operating leases | 187,522 | 128,874 |
Depreciation - owned assets | 476,311 | 341,576 |
Depreciation - assets on hire purchase contracts | 264,108 | 237,246 |
Profit on disposal of fixed assets | (124,449 | ) | (14,263 | ) |
Goodwill amortisation | 50,480 | - |
Auditors' remuneration | 67,000 | 39,439 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Loan interest | 558,322 | 116,031 |
Hire purchase interest | 50,864 | 12,750 |
609,186 | 128,781 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | (130,691 | ) | 497,846 |
Deferred tax | 194,694 | 118,015 |
Tax on profit | 64,003 | 615,861 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,068,323 | 2,970,054 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.500 %) |
517,081 |
608,861 |
Effects of: |
Expenses not deductible for tax purposes | 13,986 | 4,844 |
Income not taxable for tax purposes | (26,957 | ) | - |
Capital allowances in excess of depreciation | (167,140 | ) | (110,306 | ) |
Adjustments to tax charge in respect of previous periods | (423,444 | ) | (5,553 | ) |
Deferred tax | 194,694 | 118,015 |
Adjustments arising on consolidation of new subsidiaries | (44,217 | ) | - |
Total tax charge | 64,003 | 615,861 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property | 892,171 | (223,043 | ) | 669,128 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property | 337,566 | (63,750 | ) | 273,816 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Profit and loss account of the parent company is not presented as part of these financial statements. |
11. | ACQUISITION OF UNDERTAKINGS |
On 30 November 2023, the group acquired two subsidiary companies, Forward Glass Limited and Forging Forward Limited. As described in the accounting policy for the basis of consolidation, the acquisition has been accounted for using the acquisition method of accounting. The fair value of the consideration given by the group inclusive of transaction costs was £6,985,635 and the fair values of the assets and liabilities acquired are given in the table below. Property was revalued to fair value immediately prior to acquisition, the net book value of plant and machinery is considered to represent its fair value and other assets and liabilities are measured on the historic cost basis. The excess of the purchase price over the fair value of the assets was £865,361 and this has been accounted for as goodwill arising on consolidation. |
Forward Glass Limited |
Forging Forward Limited |
£ | £ |
Property | - | 5,000,000 |
Plant and machinery | 206,675 | - |
Stock and work in progress | 640,723 | - |
Trade and other debtors | 1,602,549 | 2,948 |
Cash at bank and in hand | 532,687 | 140,550 |
Trade and other creditors | (1,001,101 | ) | (169,732 | ) |
Provisions for liabilities | (32,328 | ) | (802,697 | ) |
Total | 1,949,205 | 4,171,069 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
Additions | 865,362 |
At 30 June 2024 | 865,362 |
AMORTISATION |
Amortisation for year | 50,480 |
At 30 June 2024 | 50,480 |
NET BOOK VALUE |
At 30 June 2024 | 814,882 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Leasehold | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2023 | 5,058,013 | 229,910 | 7,585,212 |
Additions | 8,458,170 | 30,000 | 1,341,769 |
Disposals | - | - | (27,513 | ) |
Revaluations | 892,171 | - | - |
Reclassification | (92,671 | ) | - | - |
At 30 June 2024 | 14,315,683 | 259,910 | 8,899,468 |
DEPRECIATION |
At 1 July 2023 | - | 135,759 | 5,445,326 |
Charge for year | 41,774 | 12,459 | 519,477 |
Eliminated on disposal | - | - | (27,513 | ) |
At 30 June 2024 | 41,774 | 148,218 | 5,937,290 |
NET BOOK VALUE |
At 30 June 2024 | 14,273,909 | 111,692 | 2,962,178 |
At 30 June 2023 | 5,058,013 | 94,151 | 2,139,886 |
Fixtures |
and | Motor | Office |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 July 2023 | 230,157 | 1,296,245 | 736,057 | 15,135,594 |
Additions | 7,681 | 20,149 | 4,469 | 9,862,238 |
Disposals | - | (48,645 | ) | - | (76,158 | ) |
Revaluations | - | - | - | 892,171 |
Reclassification | - | - | - | (92,671 | ) |
At 30 June 2024 | 237,838 | 1,267,749 | 740,526 | 25,721,174 |
DEPRECIATION |
At 1 July 2023 | 199,249 | 858,317 | 556,987 | 7,195,638 |
Charge for year | 7,869 | 106,783 | 52,057 | 740,419 |
Eliminated on disposal | - | (24,703 | ) | - | (52,216 | ) |
At 30 June 2024 | 207,118 | 940,397 | 609,044 | 7,883,841 |
NET BOOK VALUE |
At 30 June 2024 | 30,720 | 327,352 | 131,482 | 17,837,333 |
At 30 June 2023 | 30,908 | 437,928 | 179,070 | 7,939,956 |
Included in cost or valuation of land and buildings is freehold land of £1,401,217 (2023 - £480,000) which is not depreciated. |
Freehold property having a carrying value of £14,273,909 (2023: £5,058,013) has been pledged as security to the bank. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 30 June 2024 is represented by: |
Freehold | Leasehold | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2020 | 418,041 | - | - |
Valuation in 2023 | 255,000 | - | - |
Valuation in 2024 | 892,171 | - | - |
Cost | 12,750,471 | 259,910 | 8,899,468 |
14,315,683 | 259,910 | 8,899,468 |
Fixtures |
and | Motor | Office |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2020 | - | - | - | 418,041 |
Valuation in 2023 | - | - | - | 255,000 |
Valuation in 2024 | - | - | - | 892,171 |
Cost | 237,838 | 1,267,749 | 740,526 | 24,155,962 |
237,838 | 1,267,749 | 740,526 | 25,721,174 |
If freehold property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 12,750,471 | 4,384,972 |
Aggregate depreciation | 276,478 | 237,850 |
Value of land in freehold land and buildings | 1,103,075 | 438,333 |
Freehold property was valued on an open market basis on 30 June 2024 by the directors . |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2023 | 2,485,333 | 255,971 | 2,741,304 |
Additions | 1,000,000 | - | 1,000,000 |
Reclassification | 170,000 | - | 170,000 |
At 30 June 2024 | 3,655,333 | 255,971 | 3,911,304 |
DEPRECIATION |
At 1 July 2023 | 1,708,718 | 120,900 | 1,829,618 |
Charge for year | 234,906 | 29,202 | 264,108 |
Reclassification/transfer | 1,417 | - | 1,417 |
At 30 June 2024 | 1,945,041 | 150,102 | 2,095,143 |
NET BOOK VALUE |
At 30 June 2024 | 1,710,292 | 105,869 | 1,816,161 |
At 30 June 2023 | 776,615 | 135,071 | 911,686 |
Company |
Fixtures |
Freehold | Leasehold | and |
property | property | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2023 |
Additions |
Reclassification | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Company |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2023 |
Additions |
Reclassification | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Included in cost or valuation of land and buildings is freehold land of £ 1,060,000 (2023 - £ 480,000 ) which is not depreciated. |
Freehold property having a carrying value of £10,861,737 (2023: £5,058,013) has been pledged as security to the bank. |
Cost or valuation at 30 June 2024 is represented by: |
Fixtures |
Freehold | Leasehold | and |
property | property | fittings |
£ | £ | £ |
Valuation in 2020 | 418,041 | - | - |
Valuation in 2023 | 255,000 | - | - |
Cost | 10,230,471 | 16,784 | 26,078 |
10,903,512 | 16,784 | 26,078 |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2020 | - | - | 418,041 |
Valuation in 2023 | - | - | 255,000 |
Cost | 21,496 | 522,461 | 10,817,290 |
21,496 | 522,461 | 11,490,331 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Company |
If freehold property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 10,230,471 | 4,384,972 |
Aggregate depreciation | 274,698 | 237,850 |
Value of land in freehold land and buildings | 1,018,333 | 438,333 |
Freehold property was valued on an open market basis on 30 June 2024 by the directors . |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Old Mansion House, 9 Quay Street, Truro, Cornwall, England, TR1 2HE |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: Old Mansion House, 9 Quay Street, Truro, Cornwall, England, TR1 2HE |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Old Mansion House, 9 Quay Street, Truro, Cornwall, England, TR1 2HE |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Old Mansion House, 9 Quay Street, Truro, Cornwall, England, TR1 2HE |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Registered office: Old Mansion House, 9 Quay Street, Truro, Cornwall, England, TR1 2HE |
Nature of business: |
% |
Class of shares: | holding |
2024 |
£ |
Aggregate capital and reserves |
Profit for the year |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
Registered office: Old Mansion House, 9 Quay Street, Truro, Cornwall, England, TR1 2HE |
Nature of business: |
% |
Class of shares: | holding |
2024 |
£ |
Aggregate capital and reserves |
Profit for the year |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 July 2023 | 1,559,574 |
Additions | 3,527,777 |
Disposals | (245,952 | ) |
Revaluations | 107,829 |
Reclassification/transfer | 92,671 |
At 30 June 2024 | 5,041,899 |
NET BOOK VALUE |
At 30 June 2024 | 5,041,899 |
At 30 June 2023 | 1,559,574 |
Fair value at 30 June 2024 is represented by: |
£ |
Valuation in 2024 | 107,829 |
Cost | 4,934,070 |
5,041,899 |
If Investment property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 4,934,070 | 1,559,574 |
Investment property was valued on an open market basis on 30 June 2024 by the directors . |
Investment property having a net book value of £5,041,899 (2023: £1,559,574) has been pledged as security to the bank. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
15. | INVESTMENT PROPERTY - continued |
Company |
Total |
£ |
FAIR VALUE |
At 1 July 2023 |
Additions |
Disposals | ( |
) |
Reclassification/transfer | 92,671 |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
16. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials and consumables | 2,285,457 | 1,797,415 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 4,255,513 | 2,999,922 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contracts | 341,006 | 147,061 |
Other debtors | 23,063 | - |
Directors' current accounts | 593,794 | 600,767 | 593,794 | 600,834 |
Directors' loan accounts | 1,384 | 4,081 | - | - |
Corporation tax | 274,190 | 195,860 |
Other debtors | 386,167 | 549,556 |
Proceeds of factored debts | - | 41,189 | - | - |
5,875,117 | 4,538,436 |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 398,527 | 230,458 |
Hire purchase contracts (see note 21) | 316,686 | 186,189 |
Trade creditors | 2,349,408 | 2,451,908 |
Proceeds of factored debts | 548,713 | - | - | - |
Amounts owed to group undertakings | - | - |
Corporation tax | - | 261,909 |
Social security and other taxes | 209,317 | 162,500 |
VAT | 810,557 | 464,950 | 158,738 | 56,507 |
Other creditors | 254,937 | 85,203 |
Directors' current accounts | 3,770 | 4,381 | 19 | - |
Accruals and deferred income | 883,528 | 892,181 |
Deferred government grants | - | 6,502 |
5,775,443 | 4,746,181 |
The company has entered into a confidential invoice discounting facility. At the year end the balance notified to the bank was £3,871,702 (2023: £2,668,987). |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 20) | 10,721,164 | 2,972,141 |
Hire purchase contracts (see note 21) | 1,012,586 | 337,568 |
Other creditors | 141,667 | 85,000 |
11,875,417 | 3,394,709 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 398,527 | 230,458 |
Amounts falling due between two and five | years: |
Bank loans | 10,721,164 | 2,972,141 |
The group has 4 bank loans which carry interest rates of between 3.333% and 7.729% with amortisation profiles of between 10 and 20 years and renewal periods of between 3 and 10 years. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 316,686 | 186,189 |
Between one and five years | 748,500 | 335,175 |
In more than five years | 264,086 | 2,393 |
1,329,272 | 523,757 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 529,719 | 350,952 |
Between one and five years | 1,798,300 | 1,207,560 |
In more than five years | 404,870 | 391,788 |
2,732,889 | 1,950,300 |
Operating lease commitments relate to a number of the group's properties and vehicles. No amounts are given for properties occupied under a tenancy at will. In accordance with FRS 102, the figures are the total amounts committed to be paid over the entire lease agreements. |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 11,119,691 | 3,202,599 |
Hire purchase contracts | 1,329,272 | 523,757 | - | - |
Proceeds of factored debts | 548,713 | - | - | - |
Company credit card | 11,271 | 4,257 | 180 | 750 |
13,008,947 | 3,730,613 |
Bank loans, factoring proceeds and overdraft facilities are secured by way of a fixed and floating charge over various properties and other assets of the group. |
Liabilities under hire purchase contracts are secured on the assets to which they relate. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
23. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 167,737 | 118,015 | ( |
) |
Other timing differences | 1,077,045 | 63,750 | - | - |
Balance brought forward | 638,225 | 456,460 | 188,780 | 188,780 |
1,883,007 | 638,225 | 179,556 | 188,780 |
Other provisions |
Warranty provision | 404,847 | 323,958 | - | - |
Aggregate amounts | 2,287,854 | 962,183 | 179,556 | 188,780 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 July 2023 | 638,225 | 323,958 |
Charge to Income statement during year | - | 80,889 |
Accelerated capital allowances | 167,737 | - |
Deferred tax on valuation | 250,000 | - |
Deferred tax arising in |
subsidiaries acquired | 827,045 | - |
Balance at 30 June 2024 | 1,883,007 | 404,847 |
Company |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Accelerated capital allowances | (9,224 | ) |
Deferred tax on revaluation |
Balance at 30 June 2024 |
The group provides warranties of between 5 and 10 years on certain products. The warranty provision is based on the historical experience of warranty claims and the number of units under warranty. The calculation is updated annually on a rolling basis. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: |
Class: |
Nominal value: |
2023 |
2022 |
£ | £ |
2,000 | 'A' Ordinary | £1.00 | 2,000 | 2,000 |
2 | 'C' Ordinary | £0.50 | 1 | 1 |
2 | 'D' Ordinary | £0.50 | 1 | 1 |
2,002 | 2,002 |
25. | RESERVES |
Group |
Capital | Fair |
Retained | Revaluation | redemption | value |
earnings | reserve | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 July 2023 | 8,931,322 | 812,519 | 1,001 | - | 9,744,842 |
Profit for the year | 2,004,320 | 2,004,320 |
Revaluation | (107,829 | ) | 892,171 | - | 107,829 | 892,171 |
Deferred tax on revaluation | 26,957 | (223,043 | ) | - | (26,957 | ) | (223,043 | ) |
At 30 June 2024 | 10,854,770 | 1,481,647 | 1,001 | 80,872 | 12,418,290 |
Company |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2023 | 3,569,273 |
Profit for the year |
At 30 June 2024 | 3,588,049 |
26. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. Contributions charged to the profit and loss account during the year amounted to £588,307 (2023: £536,335). There were no outstanding contributions at the year end. |
CORNWALL GROUP LIMITED (REGISTERED NUMBER: 03560161) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
27. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 June 2024 and 30 June 2023: |
2024 | 2023 |
£ | £ |
M J Mitchell |
Balance outstanding at start of year | 600,767 | 601,877 |
Amounts repaid | (6,976 | ) | (1,110 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 593,791 | 600,767 |
The loan carries interest at 5% per annum which may be paid together with the capital sum of the loan by or at the end of the loan term. |
28. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year the group rented various premises from a director and their close family members, the pension scheme of these individuals, and a trust in which one of the directors and his spouse are trustees at combined rents of £282,608 (2023: £267,983). |
A net amount of £2,386 (2023: £300) is outstanding in respect of loans made to the group by directors of subsidiary companies. |
Certain property owned by directors have been provided as security to the bank. |
The group considers its own directors and those of the subsidiary companies, comprising of thirteen (2023: twelve) individuals to be the key management personnel and their combined remuneration including pension contributions is £949,562 (2023: £782,818). |
29. | ULTIMATE CONTROLLING PARTY |
The group is controlled by M J Mitchell who, together with his spouse controls 100% of the issued share capital. |