Company registration number 04320396 (England and Wales)
CIRRUS TRADING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
CIRRUS TRADING LIMITED
COMPANY INFORMATION
Director
Mr VC McNulty
Company number
04320396
Registered office
Cirrus Building Lodge Way
Lodge Farm Industrial Estate
Northampton
Northamptonshire
UK
NN5 7US
Auditor
Cottons Accountants LLP
1 Billing Road
Northampton
United Kingdom
NN1 5AL
CIRRUS TRADING LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
CIRRUS TRADING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The director presents the strategic report for the year ended 30 April 2024.

Review of the business

Cirrus Trading Limited are a specialist distributor of plastic ducting and drainage to the building and construction industry. Our commitment to exceptional customer service and our customer focused approach allows us to excel in this industry whilst ensuring financial stability.

 

Throughout 2023/24, Cirrus Trading Limited are pleased to report a positive performance and continue to maintain an optimistic outlook on the future.

 

Business Strategy:

Financial Prudence: Focus on efficient financial management.

 

Client Focused Approach: Provide exceptional customer service to build customer loyalty and customer recommendations.

Principal risks and uncertainties

The company acknowledges several principal risks and uncertainties that impact its operations:

 

1. Supply Chain Challenges - manufacturers’ inability to match demand.

2. Interest Rate Fluctuations - potential adverse effect on consumer spending.

Development and performance

The company has taken several strategic steps to enhance its financial stability and operational efficiency:

1. Reduced Borrowing: due to interest rate rises the company has reduced borrowing to a negligible level.

2. Key Performance Indicators (KPIs): The company's directors closely monitor essential KPIs to gauge the company's performance, including:

· A 3.0% increase in Company Turnover in YE 04/24

· Gross profit remained consistent – YE 04/24 - 19.6%, YE 04/23 - 18.6%

Future prospects

The company will consolidate its position in the market, despite uncertainty in the sector, and will increase further its financial resilience.

On behalf of the board

Mr VC McNulty
Director
22 October 2024
CIRRUS TRADING LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

The director presents his annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of the wholesale of construction materials.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £100,000. The director does not recommend payment of a final dividend.

Director

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

Mr PA Hughes
(Retired 7 June 2024)
Mr VC McNulty
Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Donations

During the year the company made donations to non-UK political parties totalling £10,937.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

CIRRUS TRADING LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
On behalf of the board
Mr VC McNulty
Director
22 October 2024
CIRRUS TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CIRRUS TRADING LIMITED
- 4 -
Opinion

We have audited the financial statements of Cirrus Trading Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

CIRRUS TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CIRRUS TRADING LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

CIRRUS TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CIRRUS TRADING LIMITED (CONTINUED)
- 6 -

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

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

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

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

A further description of our responsibilities 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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Callum Veasey ACA
Senior Statutory Auditor
For and on behalf of Cottons Accountants LLP
29 October 2024
Chartered Accountants
Statutory Auditor
1 Billing Road
Northampton
United Kingdom
NN1 5AL
CIRRUS TRADING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,170,630
12,786,207
Cost of sales
(10,585,112)
(10,415,449)
Gross profit
2,585,518
2,370,758
Administrative expenses
(1,409,566)
(1,452,144)
Operating profit
4
1,175,952
918,614
Interest receivable and similar income
7
2,236
-
0
Interest payable and similar expenses
8
(7,610)
(9,542)
Profit before taxation
1,170,578
909,072
Tax on profit
9
(287,950)
(189,845)
Profit for the financial year
882,628
719,227

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CIRRUS TRADING LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
605,472
490,021
Investments
12
35,418
11,223
640,890
501,244
Current assets
Stocks
13
899,660
920,698
Debtors
15
3,858,702
3,688,838
Cash at bank and in hand
1,896,051
1,118,542
6,654,413
5,728,078
Creditors: amounts falling due within one year
16
(1,727,208)
(1,369,773)
Net current assets
4,927,205
4,358,305
Total assets less current liabilities
5,568,095
4,859,549
Creditors: amounts falling due after more than one year
17
(19,247)
(105,898)
Provisions for liabilities
Deferred tax liability
19
135,074
122,505
(135,074)
(122,505)
Net assets
5,413,774
4,631,146
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
5,412,774
4,630,146
Total equity
5,413,774
4,631,146

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 22 October 2024 and are signed on its behalf by:
Mr VC McNulty
Director
Company registration number 04320396 (England and Wales)
CIRRUS TRADING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
1,000
4,010,919
4,011,919
Year ended 30 April 2023:
Profit and total comprehensive income
-
719,227
719,227
Dividends
10
-
(100,000)
(100,000)
Balance at 30 April 2023
1,000
4,630,146
4,631,146
Year ended 30 April 2024:
Profit and total comprehensive income
-
882,628
882,628
Dividends
10
-
(100,000)
(100,000)
Balance at 30 April 2024
1,000
5,412,774
5,413,774
CIRRUS TRADING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,506,709
955,300
Interest paid
(7,610)
(9,542)
Income taxes paid
(163,212)
(225,525)
Net cash inflow from operating activities
1,335,887
720,233
Investing activities
Purchase of tangible fixed assets
(367,492)
(44,702)
Proceeds from disposal of tangible fixed assets
35,366
667
Purchase of investments
(24,195)
(8,223)
Interest received
2,236
-
0
Net cash used in investing activities
(354,085)
(52,258)
Financing activities
Payment of finance leases obligations
(104,293)
(117,183)
Dividends paid
(100,000)
(100,000)
Net cash used in financing activities
(204,293)
(217,183)
Net increase in cash and cash equivalents
777,509
450,792
Cash and cash equivalents at beginning of year
1,118,542
667,749
Cash and cash equivalents at end of year
1,896,051
1,118,542
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information

Cirrus Trading Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cirrus Building Lodge Way, Lodge Farm Industrial Estate, Northampton, Northamptonshire, UK, NN5 7US.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% on Cost
Computers
25% on Cost
Motor vehicles
25% 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 credited or charged to profit or loss.

CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

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

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.

1.7
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.

CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
1.8
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.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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.

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

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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
2024
2023
£
£
Turnover analysed by class of business
Sale of construction materials
13,170,630
12,786,207
2024
2023
£
£
Other revenue
Interest income
2,236
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
12,000
Depreciation of owned tangible fixed assets
183,759
169,879
Depreciation of tangible fixed assets held under finance leases
68,112
61,622
Profit on disposal of tangible fixed assets
(35,196)
(667)
Operating lease charges
154,571
159,492
5
Employees

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

2024
2023
Number
Number
Directors
2
2
Driver/Forecourt
22
20
Office
10
10
Total
34
32
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,143,144
1,088,325
Social security costs
112,959
115,682
Pension costs
127,620
69,075
1,383,723
1,273,082
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
114,250
109,750
Company pension contributions to defined contribution schemes
62,214
32,214
176,464
141,964

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

 

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,236
-
0
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,236
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
7,610
9,542
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
275,381
163,212
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
12,569
26,633
Total tax charge
287,950
189,845

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

2024
2023
£
£
Profit before taxation
1,170,578
909,072
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
292,645
177,178
Tax effect of expenses that are not deductible in determining taxable profit
-
0
45,120
Tax effect of income not taxable in determining taxable profit
-
0
(130)
Effect of change in corporation tax rate
-
0
25
Permanent capital allowances in excess of depreciation
(16,300)
(49,100)
Unpaid pension contributions
(964)
(9,881)
Change in recognised deferred tax liabilities
12,569
26,633
Taxation charge for the year
287,950
189,845
10
Dividends
2024
2023
£
£
Interim paid
100,000
100,000
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
11
Tangible fixed assets
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2023
252,966
41,254
1,361,311
1,655,531
Additions
51,702
600
315,190
367,492
Disposals
(18,552)
(833)
(240,519)
(259,904)
At 30 April 2024
286,116
41,021
1,435,982
1,763,119
Depreciation and impairment
At 1 May 2023
194,723
33,329
937,458
1,165,510
Depreciation charged in the year
35,853
2,845
213,173
251,871
Eliminated in respect of disposals
(18,552)
(663)
(240,519)
(259,734)
At 30 April 2024
212,024
35,511
910,112
1,157,647
Carrying amount
At 30 April 2024
74,092
5,510
525,870
605,472
At 30 April 2023
58,243
7,925
423,853
490,021

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

2024
2023
£
£
Motor vehicles
117,435
185,547
12
Fixed asset investments
2024
2023
£
£
Unlisted investments
35,418
11,223
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 May 2023
11,223
Additions
24,195
At 30 April 2024
35,418
Carrying amount
At 30 April 2024
35,418
At 30 April 2023
11,223
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
899,660
920,698
14
Financial instruments
Debt instruments measured at amortised cost
3,753,818
3,654,896
Equity instruments measured at cost less impairment
35,418
11,223
Carrying amount of financial liabilities
Measured at amortised cost
1,272,529
1,143,480
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,695,027
2,722,525
Other debtors
1,058,791
932,371
Prepayments and accrued income
104,884
33,942
3,858,702
3,688,838
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18
86,652
104,295
Trade creditors
1,099,238
774,916
Corporation tax
275,521
163,352
Other taxation and social security
198,405
168,839
Other creditors
5,078
112,630
Accruals and deferred income
62,314
45,741
1,727,208
1,369,773

The bank overdraft and hire purchase liabilities are secured by fixed and floating charges over the assets of the Company.

17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
19,247
105,898
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
86,652
104,295
In two to five years
19,247
105,898
105,899
210,193

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
135,074
122,505
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
19
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£
Liability at 1 May 2023
122,505
Charge to profit or loss
12,569
Liability at 30 April 2024
135,074

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

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
127,620
69,075

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At the end of the period £13,521 (2023 - £13,083) was owing to the scheme and included in creditors.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Name of related party
Nature of relationship
GM Plastics Limited
Common control
McNulty Properties Lanacre Ltd
Common control
McNulty Properties Ltd
Common control
Other related parties
Close Family
Description of
Income
Payments
transaction
2024
2023
2024
2023
£
£
£
£
GM Plastics Limited
Purchases
-
0
-
0
260,251
42,137
McNulty Properties Lanacre Ltd
Lending
-
0
-
0
-
0
10,000
McNulty Properties Ltd
Lending
100,000
-
0
-
0
260,000
Other related parties
Lending
5,400
-
0
225,000
-
0
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
22
Related party transactions
(Continued)
- 23 -
Balances with related parties
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
GM Plastics Limited
-
0
-
0
85,914
42,137
McNulty Properties Lanacre Ltd
230,000
230,000
-
0
-
0
McNulty Properties Ltd
600,000
700,000
-
0
-
0
Scott McNulty
221,835
-
0
-
0
-
0
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
882,628
719,227
Adjustments for:
Taxation charged
287,950
189,845
Finance costs
7,610
9,542
Investment income
(2,236)
-
0
Gain on disposal of tangible fixed assets
(35,196)
(667)
Depreciation and impairment of tangible fixed assets
251,871
231,501
Movements in working capital:
Decrease in stocks
21,037
60,185
(Increase)/decrease in debtors
(169,864)
19,820
Increase/(decrease) in creditors
262,909
(274,153)
Cash generated from operations
1,506,709
955,300
24
Analysis of changes in net funds
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
1,118,542
777,509
1,896,051
Obligations under finance leases
(210,193)
104,295
(105,899)
908,349
881,804
1,790,152
CIRRUS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
25
Auditor's liability limitation agreement

Upon appointment of Cottons Accountants LLP as auditors, the company entered into a liability limitation agreement with the auditors and this was approved by resolution on 8 August 2024. Liability is limited to £190,000. In accordance with section 537 of CA06, if the effect of the liability limitation agreement is to limit the auditor's liability to less than such a mount as is fair and reasonable, as determined by that section, the agreement shall have effect as if it limited the liability to such amount as is fair and reasonable, as so determined.

 

The agreement limits the liability owed to the company by the auditors in respect of any negligence, default or breach of duty, or breach of trust, occurring in the course of the audit of the accounts for the year ending 30 April 2024.

 

The agreement does not limit liability for any instance of fraud or dishonesty on behalf of the auditor or any other liability that cannot be excluded or restricted by applicable laws or regulations.

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