Company registration number 00581821 (England and Wales)
NEW MILTON SAND AND BALLAST LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
NEW MILTON SAND AND BALLAST LIMITED
COMPANY INFORMATION
Directors
Mr. M A Badcock
Mr. R Flower
Mr. P Francis
Mr. N Sacchetti
Mr. C Stubbs
Mr. R Lafargue
Mr. G R Gosden
(Appointed 1 January 2024)
Secretary
Mr. G R Gosden
Company number
00581821
Registered office
Caird Avenue
New Milton
Hampshire
United Kingdom
BH25 5PX
Auditor
Azets Audit Services
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
NEW MILTON SAND AND BALLAST LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 35
NEW MILTON SAND AND BALLAST LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 September 2023.

Review of the business

This year has been challenging for the business. Our performance for the year was impacted due to the Ukraine war and the subsequent cost impact on the UK in 2023. The cost of living and higher interest rates made it a challenge to recover our continually increasing costs, while pushing prices against a struggling economic climate. As per many businesses we have also faced additional challenges within staffing and higher salaries. An effect of this has been a push within the market on selling price to recover these costs, which have been highly reactive, although towards the end of the year activity levels were seen to start to reduce.

Despite this we are pleased to report a profit before tax of £580k, and an EBITDA of £3.36m (13.0%).

Principal risks and uncertainties

The group manages its finances predominantly through the cash generated in the normal course of trading, together with routine control of working capital. We are further supported by our banks through a mixture of finance agreements and loans.

We recognise the importance of the support from our banks and ensure that there are regular meetings to ensure that the business has the necessary funding to continually improve and take advantage of the latest technology available. As a business we have started the process of reviewing our strategic 5-year development plan, which will focus on key strengths within our core business to produce growth with targeted investment.

We remain fully focused on our commitment to the environment and the importance of developing a sustainable business which holds a high reputational value to the community and its stakeholders. We are regularly reviewing our responsibilities under current and future legislation and as a Quarry and Waste operator we understand of the need for good Health, Safety and Environmental management systems and cultural focus. However, to remain so requires us to continue to enhance and invest in our operational facilities to ensure that they remain suitably efficient and compliant with all the latest and changing regulations.

The Board recognises the risk of a changing legislative world, and as such we are reviewing and investing in new IT systems to support the necessary changes and reporting that will be required for the future.

Development and performance

The group has developed a long-term strategic development plan which is now under review and being extended. In the past year we have delivered several projects against our strategic plan and have started a mid plan review in order to develop the plan as projects continue into the year ahead, some of which require significant investment. We are looking to focus on key projects to enhance our existing core business but also continue with the diversification and growth of the business.

We have continued to invest in our people, equipment and sites throughout the year.

Through further investment into our existing business and in diversification, we believe we can expect to see improved margins and increased efficiencies.

Key performance indicators

 

2023

2022

Turnover

£26m

£24m

EBITDA

13.0%

20.9%

Number of Staff

170

155

 

NEW MILTON SAND AND BALLAST LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Future Developments

We consider our customers to be very important to us and we want to protect and reinforce the relationships that we have with them.

We are continuing with our capital expenditure programme which aims to secure our long-term profitability and competitiveness.

We would like to thank all our employees and stakeholders for their ongoing support in this, again challenging year.

On behalf of the board

Mr. R Flower
Director
21 November 2024
NEW MILTON SAND AND BALLAST LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The principal activity of the company and group continued to be primarily that of supplier to the building trade. This includes extraction, processing and distribution of aggregates, production and sale of bagged aggregates, sale of bulk fill materials and recycled products, landfill operators, operating cartaway from site service, supply of limestone and decorative products, supply of horticultural products, operators of a skip and waste disposal business, operators of ready mixed concrete plants and operation of builders merchant depots.

Results and dividends

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

Ordinary dividends were paid amounting to £200,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr. M A Badcock
Mr. R Flower
Mr. P Francis
Mr. N Sacchetti
Mr. C Stubbs
Mr. R Lafargue
Mr. G R Gosden
(Appointed 1 January 2024)
Qualifying third party indemnity provisions

The company has indemnified one or more directors of New Milton Sand and Ballast Limited against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision was in force during the year.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

On behalf of the board
Mr. R Flower
Director
21 November 2024
NEW MILTON SAND AND BALLAST LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -

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

 

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

 

 

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

NEW MILTON SAND AND BALLAST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW MILTON SAND AND BALLAST LIMITED
- 5 -
Opinion

We have audited the financial statements of New Milton Sand And Ballast Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

Conclusions relating to going concern

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

 

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

 

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

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:

NEW MILTON SAND AND BALLAST LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW MILTON SAND AND BALLAST LIMITED
- 6 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

NEW MILTON SAND AND BALLAST LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW MILTON SAND AND BALLAST LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Jon Noble (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
21 November 2024
Chartered Accountants
Statutory Auditor
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
NEW MILTON SAND AND BALLAST LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
25,926,439
23,728,537
Cost of sales
(15,430,118)
(13,414,667)
Gross profit
10,496,321
10,313,870
Distribution costs
(895,265)
(781,914)
Administrative expenses
(9,069,468)
(7,291,224)
Other operating income
111,071
123,950
Operating profit
3
642,659
2,364,682
Share of profits of joint ventures
427,081
386,005
Other interest receivable and similar income
-
0
103
Interest payable and similar expenses
7
(489,448)
(121,134)
Profit before taxation
580,292
2,629,656
Tax on profit
8
(314,255)
(601,144)
Profit for the financial year
266,037
2,028,512
Other comprehensive income
Revaluation of tangible fixed assets
1,871,678
-
0
Total comprehensive income for the year
2,137,715
2,028,512
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

NEW MILTON SAND AND BALLAST LIMITED
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
403,972
462,240
Tangible assets
11
22,321,849
19,671,430
Investments
12
1,659,690
1,539,606
24,385,511
21,673,276
Current assets
Stocks
15
3,097,662
2,654,157
Debtors
16
5,125,092
4,363,544
Cash at bank and in hand
856,762
680,419
9,079,516
7,698,120
Creditors: amounts falling due within one year
17
(8,392,851)
(7,436,563)
Net current assets
686,665
261,557
Total assets less current liabilities
25,072,176
21,934,833
Creditors: amounts falling due after more than one year
18
(6,485,006)
(5,285,104)
Provisions for liabilities
Provisions
22
556,227
963,257
Deferred tax liability
21
2,098,796
1,692,040
(2,655,023)
(2,655,297)
Net assets
15,932,147
13,994,432
Capital and reserves
Called up share capital
24
500,000
500,000
Revaluation reserve
1,871,678
-
0
Profit and loss reserves
13,560,469
13,494,432
Total equity
15,932,147
13,994,432
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:
21 November 2024
Mr. R Flower
Director
Company registration number 00581821 (England and Wales)
NEW MILTON SAND AND BALLAST LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
-
0
559
Tangible assets
11
9,817,453
14,775,482
Investments
12
3,572,952
3,452,868
13,390,405
18,228,909
Current assets
Stocks
15
2,970,541
2,498,616
Debtors
16
8,474,586
3,183,837
Cash at bank and in hand
132,123
388,928
11,577,250
6,071,381
Creditors: amounts falling due within one year
17
(8,197,286)
(8,920,665)
Net current assets/(liabilities)
3,379,964
(2,849,284)
Total assets less current liabilities
16,770,369
15,379,625
Creditors: amounts falling due after more than one year
18
(2,807,522)
(3,026,868)
Provisions for liabilities
Provisions
22
556,227
963,257
Deferred tax liability
21
1,188,542
781,025
(1,744,769)
(1,744,282)
Net assets
12,218,078
10,608,475
Capital and reserves
Called up share capital
24
500,000
500,000
Profit and loss reserves
11,718,078
10,108,475
Total equity
12,218,078
10,608,475

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £62,076 (2022 - £1,642,070 profit).

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:
21 November 2024
Mr. R Flower
Director
Company registration number 00581821 (England and Wales)
NEW MILTON SAND AND BALLAST LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
500,000
-
0
13,026,838
13,526,838
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
2,028,512
2,028,512
Dividends
9
-
-
(1,560,918)
(1,560,918)
Balance at 30 September 2022
500,000
-
0
13,494,432
13,994,432
Year ended 30 September 2023:
Profit for the year
-
-
266,037
266,037
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,871,678
-
1,871,678
Total comprehensive income
-
1,871,678
266,037
2,137,715
Dividends
9
-
-
(200,000)
(200,000)
Balance at 30 September 2023
500,000
1,871,678
13,560,469
15,932,147
NEW MILTON SAND AND BALLAST LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
500,000
-
0
10,027,323
10,527,323
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
1,642,070
1,642,070
Dividends
9
-
-
(1,560,918)
(1,560,918)
Balance at 30 September 2022
500,000
-
0
10,108,475
10,608,475
Year ended 30 September 2023:
Profit for the year
-
-
(62,075)
(62,075)
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,871,678
-
1,871,678
Gains reclassified to profit or loss
-
(1,871,678)
-
(1,871,678)
Total comprehensive income
-
-
(62,075)
(62,075)
Dividends
9
-
-
(200,000)
(200,000)
Transfers
-
-
1,871,678
1,871,678
Balance at 30 September 2023
500,000
-
0
11,718,078
12,218,078
NEW MILTON SAND AND BALLAST LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,013,107
2,466,254
Interest paid
(489,448)
(121,134)
Income taxes refunded/(paid)
8,247
(145,358)
Net cash inflow from operating activities
531,906
2,199,762
Investing activities
Purchase of tangible fixed assets
(1,922,307)
(4,636,696)
Proceeds from disposal of tangible fixed assets
1,256,286
2,072,813
Receipts from joint ventures
306,997
355,502
Interest received
-
0
103
Net cash used in investing activities
(359,024)
(2,208,278)
Financing activities
Proceeds from new bank loans
2,823,153
2,500,000
Repayment of bank loans
(1,418,485)
(635,075)
Payment of finance leases obligations
(940,289)
(702,026)
Dividends paid to equity shareholders
(460,918)
(1,612,000)
Net cash generated from/(used in) financing activities
3,461
(449,101)
Net increase/(decrease) in cash and cash equivalents
176,343
(457,617)
Cash and cash equivalents at beginning of year
680,419
1,138,036
Cash and cash equivalents at end of year
856,762
680,419
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
1
Accounting policies
Company information

New Milton Sand and Ballast Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Caird Avenue, New Milton, Hampshire, United Kingdom, BH25 5PX.

 

The group consists of New Milton Sand and Ballast Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

The 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 within FRS102 from disclosure requirements for parent company information presented within the consolidated financial statements.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the consideration given, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

The consolidated financial statements incorporate those of New Milton Sand and Ballast Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 30 September 2023.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Investments in joint ventures are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Going concern

In assessing whether the financial statements should be prepared on a going concern basis, the directors have 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 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 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 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.

 

The directors therefore consider it appropriate to continue to adopt the going concern basis in the preparation of these financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

 

Turnover is recognised when goods are despatched, skips are delivered or waste is received or collected for landfill.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is between 5 and 20 years.

1.6
Tangible fixed assets

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

NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Depreciation is provided on freehold gravel land by reference to the acreage worked in each year and its gravel content value. Land for infilling is depreciated over its expected use for that purpose. Other freehold land is not depreciated. Depreciation is recognised on all other assets so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
over 10 to 50 years
Leasehold land and buildings
over 15 years or life of lease
Plant and equipment
over 4 to 25 years
Fixtures and fittings
over 4 to 10 years
Motor vehicles
over 2 to 10 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

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

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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).

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow moving items. 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.

1.10
Financial instruments

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

 

Financial instruments are recognised in the group's statement of financial position when the group 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.

NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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 there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, 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.

1.11
Equity instruments

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

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.13
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Land restoration

The group aims to reinstate land following mineral extraction or industrial occupation to a beneficial use as soon as reasonably practicable. This is performed by consulting with interested parties to ensure that the after use is appropriate to both the needs of the local people and the natural environment.

 

Provision is made for all costs that would need to be incurred to restore the land to at least the minimum requirements set by planning permissions and relevant lease agreements at the year end. These charges are capitalised as part of the costs for the site and are amortised over the useful life of the site. The provision is recalculated at the end of every financial year.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

1.17
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.

NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
2
Judgements and key sources of estimation uncertainty

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

 

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

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.

Fixed asset useful lives

These are reviewed annually having regard to the outcomes following disposals and changes in specifications and manufacturing improvements to assets purchased.

Land restoration provision

The provision is based on the volume of land required to be restored to its original state following its use by the company. This provision includes the appropriate charges from the Environment Agency.

Recoverability of trade debtors

Trade debtors are reviewed monthly  and a provision made where appropriate based on payment history and third party credit rating information.

Stock valuation

Stocks of loose aggregates are valued based on tonnage estimated by third party surveyors at the year end and cost of production including labour and overhead costs.    Costs of production are reviewed on an annual basis and adjusted accordingly.  Provision is made for slow moving or obsolete stock based on historic and future sales.

 

3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
637
-
Depreciation of owned tangible fixed assets
1,613,698
1,721,459
Depreciation of tangible fixed assets held under finance leases
621,473
415,464
Profit on disposal of tangible fixed assets
(328,446)
(1,913,137)
Amortisation of intangible assets
58,268
64,509
Operating lease charges
402,217
417,248
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,000
17,450
Audit of the financial statements of the company's subsidiaries
7,400
6,550
27,400
24,000
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
293,033
504,045
Company pension contributions to defined contribution schemes
14,800
35,650
307,833
539,695

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
165,442
172,612
Company pension contributions to defined contribution schemes
14,800
24,400
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production operatives
106
95
91
80
Administration
64
60
63
58
Total
170
155
154
138
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,661,263
5,218,421
5,077,070
4,695,675
Social security costs
542,619
549,647
490,539
497,168
Pension costs
138,047
145,961
127,922
135,001
6,341,929
5,914,029
5,695,531
5,327,844
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
245,945
21,256
Interest on finance leases and hire purchase contracts
243,503
99,878
Total finance costs
489,448
121,134
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
535,308
Adjustments in respect of prior periods
(92,501)
-
0
Total current tax
(92,501)
535,308
Deferred tax
Origination and reversal of timing differences
406,756
65,836
Total tax charge
314,255
601,144
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
8
Taxation
(Continued)
- 22 -

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

2023
2022
£
£
Profit before taxation
580,292
2,629,656
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
127,722
499,635
Tax effect of expenses that are not deductible in determining taxable profit
21,902
86,450
Tax effect of utilisation of tax losses not previously recognised
108,441
-
0
Adjustments in respect of prior years
(92,500)
-
0
Effect of change in corporation tax rate
48,638
-
Depreciation on assets not qualifying for tax allowances
46,702
40,140
Amortisation on assets not qualifying for tax allowances
123
1,292
Other non-reversing timing differences
(1,082)
14,996
Release of exceptional provision
(18,217)
-
0
Capital allowances
(3,681)
(41,369)
Movement related to Mineral Extraction Allowance asset
76,207
-
Taxation charge
314,255
601,144
9
Dividends
2023
2022
£
£
Dividends paid and payable
200,000
1,560,918
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2022 and 30 September 2023
1,151,517
Amortisation and impairment
At 1 October 2022
689,277
Amortisation charged for the year
58,268
At 30 September 2023
747,545
Carrying amount
At 30 September 2023
403,972
At 30 September 2022
462,240
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
10
Intangible fixed assets
(Continued)
- 23 -
Company
Goodwill
£
Cost
At 1 October 2022 and 30 September 2023
547,204
Amortisation and impairment
At 1 October 2022
546,645
Amortisation charged for the year
559
At 30 September 2023
547,204
Carrying amount
At 30 September 2023
-
0
At 30 September 2022
559
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 October 2022
10,129,312
2,974,111
3,159,996
15,187,145
546,498
5,325,574
37,322,636
Additions
39,252
227,759
792,503
1,725,113
187,503
969,621
3,941,751
Disposals
(256,976)
(446,260)
(59,939)
(890,600)
-
0
(729,900)
(2,383,675)
Transfers
3,372,219
-
0
(3,372,219)
-
0
-
0
-
0
-
0
At 30 September 2023
13,283,807
2,755,610
520,341
16,021,658
734,001
5,565,295
38,880,712
Depreciation and impairment
At 1 October 2022
2,828,087
1,502,402
-
0
9,762,966
368,746
3,189,005
17,651,206
Depreciation charged in the year
192,241
202,943
-
0
964,070
90,428
785,489
2,235,171
Eliminated in respect of disposals
-
0
-
0
-
0
(766,393)
-
0
(689,442)
(1,455,835)
Revaluation
(1,805,183)
-
0
-
0
(66,496)
-
0
-
0
(1,871,679)
At 30 September 2023
1,215,145
1,705,345
-
0
9,894,147
459,174
3,285,052
16,558,863
Carrying amount
At 30 September 2023
12,068,662
1,050,265
520,341
6,127,511
274,827
2,280,243
22,321,849
At 30 September 2022
7,301,225
1,471,709
3,159,996
5,424,179
177,752
2,136,569
19,671,430
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
11
Tangible fixed assets
(Continued)
- 25 -
Company
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 October 2022
6,217,649
3,236,155
3,159,996
13,018,678
545,357
3,475,660
29,653,495
Additions
39,252
227,759
414,563
1,694,456
187,503
861,496
3,425,029
Disposals
(4,420,495)
(446,260)
(3,093,544)
(1,104,306)
-
0
(372,826)
(9,437,431)
At 30 September 2023
1,836,406
3,017,654
481,015
13,608,828
732,860
3,964,330
23,641,093
Depreciation and impairment
At 1 October 2022
2,466,593
1,624,089
-
0
8,470,381
367,605
1,949,345
14,878,013
Depreciation charged in the year
188,092
195,974
-
0
877,450
90,428
590,842
1,942,786
Eliminated in respect of disposals
-
0
-
0
-
0
(756,443)
-
0
(369,037)
(1,125,480)
Revaluation
(1,805,183)
-
0
-
0
(66,496)
-
0
-
0
(1,871,679)
At 30 September 2023
849,502
1,820,063
-
0
8,524,892
458,033
2,171,150
13,823,640
Carrying amount
At 30 September 2023
986,904
1,197,591
481,015
5,083,936
274,827
1,793,180
9,817,453
At 30 September 2022
3,751,056
1,612,066
3,159,996
4,548,297
177,752
1,526,315
14,775,482
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
11
Tangible fixed assets
(Continued)

The carrying value of land included in freehold land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
4,921,574
4,850,296
-
0
1,081,430

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
2,288,182
2,581,119
2,288,182
2,581,119
Motor vehicles
1,481,519
1,035,921
1,076,386
1,035,921
3,769,701
3,617,040
3,364,568
3,617,040

Land and buildings with a carrying amount of £1,395,667 were revalued by directors at 30 September 2023 based on their assessment of the recoverable amount given local market conditions.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts for the group would have been approximately £11,313,744 (2022 - £8,772,934) being cost £16,039,417 (2022 - £13,103,423) and depreciation £4,725,673 (2022 - £4,330,489). The carrying amounts for the company would have been been approximately £379,312 (2022 - £5,363,122) being cost £4,854,060 (2022 - £9,453,804) and depreciation £4,474,748 (2022 - £4,090,682).

12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,913,262
1,913,262
Investments in joint ventures
14
1,659,690
1,539,606
1,659,690
1,539,606
1,659,690
1,539,606
3,572,952
3,452,868
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
12
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Group
Shares in joint ventures
£
Cost or valuation
At 1 October 2022
1,539,606
Capitalised profit share from joint venture
120,084
At 30 September 2023
1,659,690
Carrying amount
At 30 September 2023
1,659,690
At 30 September 2022
1,539,606
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 October 2022
3,452,868
Capitalised profit share from joint venture
120,084
At 30 September 2023
3,572,952
Carrying amount
At 30 September 2023
3,572,952
At 30 September 2022
3,452,868
13
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
New Milton Concrete Limited
i
Concrete plant operators
Ordinary
100.00
Solent Industrial Estates Limited
i
Property and land management
Ordinary
100.00
W. G. Hibbs & Co. Limited
i
Non trading company
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

(i)
Caird Avenue, New Milton, Hampshire, BH25 5PX
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 28 -
14
Joint ventures

Details of joint ventures at 30 September 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Holme Sand & Ballast LLP
Caird Avenue, New Milton, Hampshire, BH25 5PX
Extraction and sale of aggregate products
Member Capital
50.00

At 30 September 2023, Holme Sand and Ballast LLP had net assets attributable to members of £3,185,661. The LLP's profit for the year before members' remuneration and profit shares was £770,240.

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
3,097,662
2,654,157
2,970,541
2,498,616
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,270,783
2,909,245
2,054,390
1,756,006
Corporation tax recoverable
-
0
8,830
-
0
-
0
Amounts owed by group undertakings
-
-
4,599,448
-
Amounts owed by undertakings in which the company has a participating interest
-
48,045
-
62,099
Other debtors
208,593
403,866
208,593
401,935
Prepayments and accrued income
552,564
297,480
519,003
267,719
4,031,940
3,667,466
7,381,434
2,487,759
Amounts falling due after more than one year:
Prepayments and accrued income
1,093,152
696,078
1,093,152
696,078
Total debtors
5,125,092
4,363,544
8,474,586
3,183,837
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 29 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
2,546,501
1,668,669
1,742,979
1,461,443
Obligations under finance leases
20
1,137,747
731,658
1,137,747
731,658
Trade creditors
3,136,761
2,881,618
2,513,745
2,300,828
Amounts owed to group undertakings
-
0
-
0
2,043,890
3,354,453
Amounts owed to undertakings in which the group has a participating interest
23,245
-
0
23,245
-
0
Corporation tax payable
442,224
535,308
-
0
93,611
Other taxation and social security
545,259
792,216
251,704
230,658
Dividends payable
-
0
260,918
-
0
260,918
Other creditors
98,032
289,775
88,865
289,775
Accruals and deferred income
463,082
276,401
395,111
197,321
8,392,851
7,436,563
8,197,286
8,920,665
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
4,008,500
3,481,664
331,016
1,223,428
Hire purchase
20
2,476,506
1,803,440
2,476,506
1,803,440
6,485,006
5,285,104
2,807,522
3,026,868
Amounts included above which fall due after five years are as follows:
Payable by instalments
2,927,764
2,003,188
-
-
2,927,764
2,003,188
-
-

Bank loans repayments due in more than one year relate to three bank loans with the following terms:

Repayment by 57 equal monthly instalments with an interest rate of 1.76% above the Bank of England base rate.

Repayment by 60 equal monthly instalments with an interest rate of 1.65% above the Bank of England base rate.

Repayment by 179 equal monthly instalments with an interest rate of 2.25% above the Bank of England base rate.

 

There is a fixed and floating charge over all assets of the company.

NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 30 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
6,555,001
5,150,333
2,073,995
2,684,871
Payable within one year
2,546,501
1,668,669
1,742,979
1,461,443
Payable after one year
4,008,500
3,481,664
331,016
1,223,428

The long-term loans are secured on the group's freehold land and buildings.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,137,747
731,658
1,137,747
731,658
In two to five years
2,476,506
1,803,440
2,476,506
1,803,440
3,614,253
2,535,098
3,614,253
2,535,098

Hire purchase liabilities are secured on the assets to which they relate.

21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
2,199,100
1,161,912
Short term timing differences
(2,882)
(2,943)
Restoration assets
(7,284)
(44,059)
Mineral deposit allowances
(49,119)
(79,606)
Losses
(41,019)
-
Revaluations
-
656,736
2,098,796
1,692,040
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
21
Deferred taxation
(Continued)
- 31 -
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
1,288,846
907,633
Short term timing differences
(2,882)
(2,943)
Restoration assets
(7,284)
(44,059)
Mineral deposit allowances
(49,119)
(79,606)
Losses
(41,019)
-
1,188,542
781,025
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 October 2022
1,692,040
781,025
Charge to profit or loss
406,756
407,517
Liability at 30 September 2023
2,098,796
1,188,542
22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Provision for land restoration
556,227
963,257
556,227
963,257
Deferred tax liabilities
21
2,098,796
1,692,040
1,188,542
781,025
2,655,023
2,655,297
1,744,769
1,744,282
Movements on provisions apart from deferred tax liabilities:
Provision for land restoration
Group and Company
£
At 1 October 2022
963,257
Additional provisions in the year
40,358
Reversal of provision
(447,388)
At 30 September 2023
556,227
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 32 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
138,047
145,961

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary Shares of £1 each
191,250
191,250
191,250
191,250
B Ordinary Shares of £1 each
63,750
63,750
63,750
63,750
C Ordinary Shares of £1 each
245,000
245,000
245,000
245,000
500,000
500,000
500,000
500,000

All share classes rank pari passu in all respects, but constitute separate classes of share.

25
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain of its properties. Leases are for an average term of 10 years and rentals are generally fixed for that term.

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
331,710
241,635
272,710
199,635
Between two and five years
832,451
836,690
759,201
759,690
In over five years
-
125,479
-
125,479
1,164,161
1,203,804
1,031,911
1,084,804
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 33 -
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
426,081
-

In the prior year, there were no key management personnel other than directors.

Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
-
16,268
358,304
274,774
Other related parties
83,326
305,960
452,778
819,268
Company
Entities over which the company has control, joint control or significant influence
-
16,268
258,013
190,699
Other related parties
83,326
305,960
452,778
541,628
Dividends and management charges paid:
Re-charges of salaries and haulage:
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the entity has control, joint control or significant influence
-
-
291,962
415,168
Other related parties
356,000
637,000
-
-
Company
Entities over which the entity has control, joint control or significant influence
-
-
291,962
415,168
Other related parties
356,000
764,850
-
-
NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
26
Related party transactions
(Continued)
- 34 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
23,245
14,054
Other related parties
201,331
176,619
Company
Entities with control, joint control or significant influence over the company
23,245
-
Entities over which the company has control, joint control or significant influence
-
3,354,453
Other related parties
201,331
133,841

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
-
44,097
Other related parties
305,463
205,472
Company
Entities over which the company has control, joint control or significant influence
1,180,860
44,097
Other related parties
305,463
205,472
27
Controlling party

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.

NEW MILTON SAND AND BALLAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 35 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
266,037
2,028,512
Adjustments for:
Share of results of associates and joint ventures
(427,081)
(386,005)
Taxation charged
314,255
601,144
Finance costs
489,448
121,134
Investment income
-
0
(103)
Gain on disposal of tangible fixed assets
(328,446)
(1,913,137)
Amortisation and impairment of intangible assets
58,268
64,509
Depreciation and impairment of tangible fixed assets
2,235,171
2,136,923
(Decrease)/increase in provisions
(407,030)
108,699
Movements in working capital:
Increase in stocks
(443,505)
(418,750)
Increase in debtors
(770,378)
(141,755)
Increase in creditors
26,369
265,083
Cash generated from operations
1,013,108
2,466,254
29
Analysis of changes in net debt - group
1 October 2022
Cash flows
New finance leases
30 September 2023
£
£
£
£
Cash at bank and in hand
680,419
176,343
-
856,762
Borrowings excluding overdrafts
(5,150,333)
(1,404,668)
-
(6,555,001)
Obligations under finance leases
(2,535,098)
940,289
(2,019,444)
(3,614,253)
(7,005,012)
(288,036)
(2,019,444)
(9,312,492)
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