Company registration number 04502723 (England and Wales)
NEW MILTON CONCRETE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
NEW MILTON CONCRETE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
NEW MILTON CONCRETE LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,349,095
1,508,915
Current assets
Stocks
127,121
155,541
Debtors
5
3,097,984
1,653,307
Cash at bank and in hand
22,496
274,554
3,247,601
2,083,402
Creditors: amounts falling due within one year
6
(1,681,032)
(1,275,082)
Net current assets
1,566,569
808,320
Total assets less current liabilities
2,915,664
2,317,235
Provisions for liabilities
7
(243,308)
(254,279)
Net assets
2,672,356
2,062,956
Capital and reserves
Called up share capital
8
700
700
Profit and loss reserves
2,671,656
2,062,256
Total equity
2,672,356
2,062,956
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 November 2024 and are signed on its behalf by:
Mr. R Flower
Director
Company Registration No. 04502723
NEW MILTON CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
1
Accounting policies
Company information
New Milton Concrete Limited is a private company limited by shares incorporated in England and Wales. The registered office is Caird Avenue, New Milton, Hampshire, United Kingdom, BH25 5PX.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
NEW MILTON CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern
The company is a subsidiary of New Milton Sand and Ballast Limited and has entered into guarantees in relation to certain group borrowings and liabilities. It also trades with and has balances due to and from group undertakings.true
In assessing the going concern status of the company the directors have therefore considered the outlook of the group and company and in so doing have given consideration to the current and future operating results and cashflow requirements of the business. The directors continue to assess the group’s cashflow requirements and expect its current and future banking and asset finance facilities to be sufficient to provide the group with the resources necessary.
Trading conditions continue to be challenging, and the directors have put in place a number of cost saving and business improvement measures that they expect to lead to improved trading conditions moving forward. There are a number of business opportunities that will improve capacity capabilities in key areas and some significant new business enquiries.
The directors are confident that that the value of the land and building portfolio held within the group is significantly in excess of the borrowings of the group and that they will be able to further strengthen the short term cashflow position of the company and group by identifying cash generation opportunities from non operating assets if required.
Capital expenditure continues to be managed carefully and asset finance obtained as far as possible for essential capital expenditure.
The group has continued to clear down loan liabilities in line with the banking agreements and several loans will be fully repaid in early 2025, reducing the monthly repayments significantly. The directors are in regular contact with their bankers and are working closely with them to agree on the most appropriate future funding model for the business.
Therefore, the directors believe that based on budgeted future trading, the continued support of its bankers, support from its shareholders and known commitments, the company and group has adequate resources to meet its liabilities as they fall due and the ability to operate as a going concern for a period of at least 12 months from the date of approval of these financial statements. In this regard the directors of this company have received a letter of support from the group confirming this ongoing support for a period of 12 months from the signing of these accounts.
The directors therefore consider it appropriate to continue to adopt the going concern basis in the preparation of these 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.
Turnover is recognised on collection or delivery of concrete.
1.4
Tangible fixed assets
Tangible fixed assets are measured at cost, 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:
Land and buildings Leasehold
Straight line over 10 years
Plant and machinery
Straight line over 6 to 20 years
Motor vehicles
Straight line over 2 to 10 years
NEW MILTON CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
1.6
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.
1.7
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
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.
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, and loans from fellow group companies 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
1.8
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.
1.9
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.
NEW MILTON CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
3
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
17
NEW MILTON CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2022
175,361
3,244,447
3,419,808
Additions
33,104
138,782
171,886
Disposals
(367,024)
(367,024)
At 30 September 2023
208,465
3,016,205
3,224,670
Depreciation and impairment
At 1 October 2022
152,582
1,758,311
1,910,893
Depreciation charged in the year
13,770
281,267
295,037
Eliminated in respect of disposals
(330,355)
(330,355)
At 30 September 2023
166,352
1,709,223
1,875,575
Carrying amount
At 30 September 2023
42,113
1,306,982
1,349,095
At 30 September 2022
22,779
1,486,136
1,508,915
Hire purchase contracts relating to certain items of plant and machinery are held by the company's parent company and are secured on the assets to which they relate.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,198,565
1,151,912
Amounts owed by group undertakings
1,865,858
462,804
Other debtors
33,561
38,591
3,097,984
1,653,307
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
629,332
Trade creditors
618,067
543,746
Amounts owed to group undertakings
14,054
Taxation and social security
371,937
644,677
Other creditors
61,696
72,605
1,681,032
1,275,082
There are fixed and floating charges over all assets of the company. Bank loans relate to amounts drawn down under an invoice discounting facility secured on outstanding trade debtors.
NEW MILTON CONCRETE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
7
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
243,308
254,279
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
700
700
700
700
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Jon Noble
Statutory Auditor:
Azets Audit Services
10
Financial commitments, guarantees and contingent liabilities
The company is a member of a VAT group and has a joint and several liability for the creditor, held in another group company at the balance sheet date, of £334,197 (2022: £219,471).
11
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
132,250
119,000
12
Parent company
The ultimate parent undertaking is Drew Group Holdings Limited, a company incorporated in England and Wales, and whose registered office is shared with the company.
The accounts of New Milton Sand and Ballast Limited are those of the largest and smallest group of which the company is a member and for which group accounts are prepared. Copies of the accounts of New Milton Sand and Ballast Limited can be obtained from Companies House.