Company registration number 02470129 (England and Wales)
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
COMPANY INFORMATION
Directors
Mr K Louch
Mr K T Lloyd
Mr D P Martin
Mr D Booth
Company number
02470129
Registered office
5 Richmond Street South
West Bromwich
West Midlands
United Kingdom
B70 0DG
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The directors of Stanford Industrial Concrete Flooring Limited aim to provide a balanced overview of the status and condition of the business during the last financial year.

 

Our review is comprehensive and consistent, taking into account the size and non-complex nature of our business and addresses the risks and uncertainties that our business may be exposed to. The result of our key clients expanding their business successfully, during the financial year, has led to significant growth of activities, increased levels of income and operating profit. The result for the year permitted further capital investment, primarily to re-invest in additional specialist floor laying machinery, giving us flexibility and versatility in the market without concerns over debt and financial restrictions.

 

The company made pre-tax profits of £7.2m despite the impact of bad debts totalling £2.7m following the collapse of Buckingham Group and Readie Construction.

 

The company's activities continue to remain competitive in the current market place, underlining the successful and efficient management of the business. Relationships with customers and key suppliers remain a constant focus and they are key to the company's success.

 

Maintaining strict controls over operating costs have ensured that we operate successfully in a very competitive market place and ensuring we deliver consistent pricing to our clients. The lack of reliance on key debt or borrowings, coupled with a positive cash reserve, has been instrumental in ensuring credit facilities are maintained with major suppliers.

 

The company continues to hold its market share by winning high profile projects, based on past performance, whilst maintaining efficient and competitive methods. Emphasis on customer relationships has paid dividends in ensuring we remain at the forefront of our sector. A sustained hands-on role by the management continues to uphold quality standards at each site.

 

Our long-term reputation and standing within the sector remains an important factor in our ethical trading nature. This gives confidence to our clients and supply chain and ensures continued trading momentum.

 

The company closely manages its financial position by continuous management reviews of the cash flow balances and levels of trading creditors and debtors. This continuous overview ensures the agility of the company is maintained and the successful and continued operation of the company.

 

As the majority of our projects are ultimately funded by property investment, we are sensitive to changes in global investment patterns. We continue to adapt our construction teams to remain flexible in both the nature and volume of work we can provide, thereby maintaining our success through diversification and market share.

 

The continued growth of e-commerce maintains the need for specialist warehousing in the distribution sector and this has ensured that the group remain in a strong position and is well placed technically and commercially to deliver.

 

We are aware that risks, uncertainties and unforeseen events outside our control may affect future plans for the development and running of the business. However, we remain confident we have the market profile, experience and capability to positively react to these events.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties

The directors consider that the principle risks and uncertainties faced by the company are in the following categories.

 

Economic risk

 

The risk of inflation having an adverse impact upon the construction market. The risk of unrealistic increases in subcontractor and other costs impacting adversely on the competitiveness of the company and its principal customers. The risks are managed by strict control of costs and a team of experienced contract managers.

 

Contract loss risk

 

The risk of making a loss on contracts is managed by utilising the skills and knowledge of experienced staff. This applies from the tendering stage through to completion of each contract. The progress of all contracts is reviewed by the director and contract managers on a regular basis so that issues can be identified and dealt with at an early stage.

 

People

 

The success of the company is largely dependent upon the retention of it's key employees.

Key performance indicators

The gross profit margin is considered to be the main key performance indicator used by the company. There has been an increase in the gross profit margin which has risen from 17.63% in the year ended 31 March 2023 to 21.72% in the year ended 31 March 2024. The company's sales have remained strong with turnover for the year of £70.2m for the year, with gross profit remaining consistent at £15.2m.

 

On behalf of the board

Mr K Louch
Director
4 November 2024
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of the design, supply and installation of specialist industrial concrete flooring.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £5,244,842. The directors do not recommend payment of a final dividend.

Directors

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

Mr K Louch
Mr K T Lloyd
Mr D P Martin
Mr D Booth
Auditor

In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.

On behalf of the board
Mr K Louch
Director
4 November 2024
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
- 5 -
Opinion

We have audited the financial statements of Stanford Industrial Concrete Flooring Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

 

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

 

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.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED (CONTINUED)
- 7 -

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Hession C.A.
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
4 November 2024
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
70,233,368
88,526,856
Cost of sales
(54,981,531)
(72,920,220)
Gross profit
15,251,837
15,606,636
Administrative expenses
(8,083,083)
(4,511,712)
Other operating income
22,386
13,009
Operating profit
4
7,191,140
11,107,933
Interest receivable and similar income
8
169,265
32,431
Interest payable and similar expenses
9
(69,112)
(4,982)
Profit before taxation
7,291,293
11,135,382
Tax on profit
10
(1,742,846)
(2,125,404)
Profit for the financial year
5,548,447
9,009,978

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

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
5,548,447
9,009,978
Other comprehensive income
-
-
Total comprehensive income for the year
5,548,447
9,009,978
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
5,204,544
4,043,592
Current assets
Debtors
13
9,827,979
20,893,478
Cash at bank and in hand
11,687,821
9,323,059
21,515,800
30,216,537
Creditors: amounts falling due within one year
14
(12,251,989)
(20,440,353)
Net current assets
9,263,811
9,776,184
Total assets less current liabilities
14,468,355
13,819,776
Provisions for liabilities
Deferred tax liability
15
1,244,076
899,102
(1,244,076)
(899,102)
Net assets
13,224,279
12,920,674
Capital and reserves
Called up share capital
17
240
240
Profit and loss reserves
13,224,039
12,920,434
Total equity
13,224,279
12,920,674
The financial statements were approved by the board of directors and authorised for issue on 4 November 2024 and are signed on its behalf by:
Mr K  Louch
Director
Company registration number 02470129 (England and Wales)
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
240
12,910,456
12,910,696
Year ended 31 March 2023:
Profit and total comprehensive income
-
9,009,978
9,009,978
Dividends
11
-
(9,000,000)
(9,000,000)
Balance at 31 March 2023
240
12,920,434
12,920,674
Year ended 31 March 2024:
Profit and total comprehensive income
-
5,548,447
5,548,447
Dividends
11
-
(5,244,842)
(5,244,842)
Balance at 31 March 2024
240
13,224,039
13,224,279
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
11,593,171
19,093,048
Interest paid
(69,112)
(4,982)
Income taxes paid
(1,802,508)
(344,406)
Net cash inflow from operating activities
9,721,551
18,743,660
Investing activities
Purchase of tangible fixed assets
(2,977,690)
(2,627,203)
Proceeds from disposal of tangible fixed assets
696,478
105,970
Interest received
169,265
32,433
Net cash used in investing activities
(2,111,947)
(2,488,800)
Financing activities
Dividends paid
(5,244,842)
(9,000,000)
Net cash used in financing activities
(5,244,842)
(9,000,000)
Net increase in cash and cash equivalents
2,364,762
7,254,860
Cash and cash equivalents at beginning of year
9,323,059
2,068,199
Cash and cash equivalents at end of year
11,687,821
9,323,059
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Stanford Industrial Concrete Flooring Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Richmond Street South, West Bromwich, West Midlands, United Kingdom, B70 0DG.

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 directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

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
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Tangible fixed assets

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

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

Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance

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.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.

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.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, 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.

 

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

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.

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.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.16
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets and depreciation

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, all relevant known factors are taken into account but there is inherent uncertainty in making this assessment.

Recoverability of trade debtors

The determination of whether trade debtors should be impaired requires the estimation of the expected cash flows and the relevant age of those debtors.

Estimation of stage of completion of construction contracts

The level of revenue recognised for each project is directly related to the stage of completion recognised by both the company's own internal quantity surveyors together with the customer's own agent.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales
70,233,368
88,526,856
2024
2023
£
£
Turnover analysed by geographical market
UK
70,233,368
88,526,856
2024
2023
£
£
Other revenue
Interest income
169,265
32,431
Grants received
8,150
7,920
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
4,760
3,609
Government grants
(8,150)
(7,920)
Depreciation of owned tangible fixed assets
1,353,132
796,839
(Profit)/loss on disposal of tangible fixed assets
(232,872)
10,262
Operating lease charges
90,822
75,947
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,000
13,000
6
Employees

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

2024
2023
Number
Number
62
59

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,203,128
3,779,123
Social security costs
391,427
340,861
Pension costs
31,639
32,140
4,626,194
4,152,124
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,385,586
909,130
Company pension contributions to defined contribution schemes
3,963
2,752
1,389,549
911,882

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
666,706
478,150
Company pension contributions to defined contribution schemes
-
1,320
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
169,265
32,431
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
169,265
32,431
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
69,112
4,982
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,464,774
1,667,509
Adjustments in respect of prior periods
(66,902)
(96,096)
Total current tax
1,397,872
1,571,413
Deferred tax
Origination and reversal of timing differences
344,974
553,991
Total tax charge
1,742,846
2,125,404
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 21 -

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
7,291,293
11,135,382
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,822,823
2,115,723
Tax effect of expenses that are not deductible in determining taxable profit
35,942
21,801
Group relief
(49,017)
(3,197)
Permanent capital allowances in excess of depreciation
-
0
(128,611)
Under/(over) provided in prior years
(66,902)
(96,096)
Deferred tax adjustment from 19% to 25%
-
0
215,784
Taxation charge for the year
1,742,846
2,125,404
11
Dividends
2024
2023
£
£
Interim paid
5,244,842
9,000,000
12
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
5,636,531
305,917
1,557,747
7,500,195
Additions
1,493,695
196,411
1,287,584
2,977,690
Disposals
(1,554,317)
-
0
(528,045)
(2,082,362)
At 31 March 2024
5,575,909
502,328
2,317,286
8,395,523
Depreciation and impairment
At 1 April 2023
2,738,736
88,387
629,480
3,456,603
Depreciation charged in the year
883,970
75,364
393,798
1,353,132
Eliminated in respect of disposals
(1,289,699)
-
0
(329,057)
(1,618,756)
At 31 March 2024
2,333,007
163,751
694,221
3,190,979
Carrying amount
At 31 March 2024
3,242,902
338,577
1,623,065
5,204,544
At 31 March 2023
2,897,795
217,530
928,267
4,043,592
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
8,644,452
18,541,833
Other debtors
1,152,231
2,323,825
Prepayments and accrued income
31,296
27,820
9,827,979
20,893,478

Included within other debtors is VAT recoverable due to the reverse charge scheme of £1,152,231

The trade debtors figure includes the amount due from customers for contract work of £1,806,897 (2023 : £12,105,051).

14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
6,296,707
15,454,297
Amounts owed to group undertakings
4,090,715
2,293,308
Corporation tax
1,164,774
1,569,410
Other taxation and social security
88,472
134,935
Other creditors
21,036
20,954
Accruals and deferred income
590,285
967,449
12,251,989
20,440,353
15
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
1,244,076
899,102
2024
Movements in the year:
£
Liability at 1 April 2023
899,102
Charge to profit or loss
344,974
Liability at 31 March 2024
1,244,076
STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
31,639
32,140

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.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
240
240
240
240
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
33,763
33,763
Between two and five years
34,159
64,306
67,922
98,069
19
Related party transactions

The company has taken advantage of the exemption available not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

20
Ultimate controlling party

The ultimate parent company and immediate parent company is Louch Holdings Limited, a company incorporated in England and Wales.

 

Louch Holdings Limited prepares group financial statements which can be obtained from Companies House.

 

The ultimate controlling party is Mr K Louch by virtue of his 90% shareholding in the parent company.

STANFORD INDUSTRIAL CONCRETE FLOORING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
5,548,447
9,009,978
Adjustments for:
Taxation charged
1,742,846
2,125,404
Finance costs
69,112
4,982
Investment income
(169,265)
(32,431)
(Gain)/loss on disposal of tangible fixed assets
(232,872)
10,262
Depreciation and impairment of tangible fixed assets
1,353,132
796,839
Movements in working capital:
Decrease/(increase) in debtors
11,065,499
(614,247)
(Decrease)/increase in creditors
(7,783,728)
7,792,261
Cash generated from operations
11,593,171
19,093,048
22
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
9,323,059
2,364,762
11,687,821
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.100Mr K LouchMr K T LloydMr D P MartinMr D Boothfalsefalse024701292023-04-012024-03-3102470129bus:Director12023-04-012024-03-3102470129bus:Director22023-04-012024-03-3102470129bus:Director32023-04-012024-03-3102470129bus:Director42023-04-012024-03-3102470129bus:RegisteredOffice2023-04-012024-03-31024701292024-03-31024701292022-04-012023-03-3102470129core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3102470129core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31024701292023-03-3102470129core:PlantMachinery2024-03-3102470129core:FurnitureFittings2024-03-3102470129core:MotorVehicles2024-03-3102470129core:PlantMachinery2023-03-3102470129core:FurnitureFittings2023-03-3102470129core:MotorVehicles2023-03-3102470129core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3102470129core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3102470129core:CurrentFinancialInstruments2024-03-3102470129core:CurrentFinancialInstruments2023-03-3102470129core:ShareCapital2024-03-3102470129core:ShareCapital2023-03-3102470129core:RetainedEarningsAccumulatedLosses2024-03-3102470129core:RetainedEarningsAccumulatedLosses2023-03-3102470129core:ShareCapital2022-03-3102470129core:RetainedEarningsAccumulatedLosses2022-03-31024701292023-03-31024701292022-03-3102470129core:PlantMachinery2023-04-012024-03-3102470129core:FurnitureFittings2023-04-012024-03-3102470129core:MotorVehicles2023-04-012024-03-310247012912023-04-012024-03-310247012912022-04-012023-03-3102470129core:UKTax2023-04-012024-03-3102470129core:UKTax2022-04-012023-03-310247012922023-04-012024-03-310247012922022-04-012023-03-3102470129core:PlantMachinery2023-03-3102470129core:FurnitureFittings2023-03-3102470129core:MotorVehicles2023-03-3102470129core:WithinOneYear2024-03-3102470129core:WithinOneYear2023-03-3102470129core:BetweenTwoFiveYears2024-03-3102470129core:BetweenTwoFiveYears2023-03-3102470129bus:PrivateLimitedCompanyLtd2023-04-012024-03-3102470129bus:FRS1022023-04-012024-03-3102470129bus:Audited2023-04-012024-03-3102470129bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP