WW Martin Ltd
Consolidated statement of cash flows
For the year ended 29 February 2024
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
WW Martin Ltd is a limited liability company incorporated in England. The company's registered office is Dane Park Road, Ramsgate, Kent, CT11 7LT. The company's registered number is 00504927.
The company's principal activity continues to be that of building contractors.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.
The group's functional and presentational currency is Pounds Sterling.
The group's financial statements are presented to the nearest Pound. The following principal accounting policies have been applied:
Merger accounting
On 1 June 2023, WW Martin Ltd purchased the share cpaital of WWM Civils Limited, WWM Plant Hire Ltd, East Kent Brickwork Ltd and K R S Interiors Limited as part of a group reorganisation. he consolidated financial statements present the results of WW Martin Ltd and its subsidiaries (together referred to as the "Group") as if they form a single entity. The directors have adopted the merger accounting principles in drawing up these financial statements which is which is accounted for as if the entities had always been combined. The assets, liabilities, and reserves of the combining entities are brought together at their existing carrying values prior to the merger. Comparative information of the group Comparative information for the Group has been restated as if the entities had always been combined. Elimination of Intra-group transactions All intra-group transactions, balances, income, and expenses are eliminated in full on consolidation.
In the opinion of the directors, there are no factors in existence that would result in the Group not being considered as a going concern. As such, the financial statements have been prepared on a going concern basis.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
2.Accounting policies (continued)
Revenue is only recognised on a construction contract where the outcome can be estimated reliably. Revenue and costs are recognised by reference to the stage of completion of contract activity at the balance sheet date. This is measured by surveys of work performed to date. Contracts are only treated as construction contracts when they have been specifically negotiated for the construction of a development or property. When it is probable that the total costs on a construction contract will exceed total contract revenue, the expected loss is recognised as an expense in the profit and loss account immediately. The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'Administrative expenses' in the profit and loss account. Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use and reclassified to freehold property.
Revaluation of tangible fixed assets
As permitted by Financial Reporting Standard 102, the company has elected not to adopt a policy of revaluation of tangible fixed assets. The company will retain the book value of land and buildings, previously revalued at 28 February 2011 as deemed cost. Under the cost model, land and buildings will not be subject to any further revaluations.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
2.Accounting policies (continued)
The company recognises costs that relate to future activity on a construction contract, such as for materials or labour, as an asset in work in progress if it is probable that the costs will be recovered.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
2.Accounting policies (continued)
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Grants of a revenue nature are recognised in the Consolidated profit and loss account in the same period as the related expenditure.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
2.Accounting policies (continued)
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
The following judgements have had the most significant impact on amounts recognised in the financial statements: Lease commitments The group has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the group has acquired the risks and rewards associated with the ownership of the underlying assets. The following are the group's key sources of estimation uncertainty: Construction contracts As a building contractor, the group has entered into a number of construction contracts in the year. When the outcome of a construction contract can be estimated reliably, the group has recognised contract revenue and contract costs associated with the construction contract as revenue and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period (often referred to as the percentage of completion method). Reliable estimation of the outcome requires reliable estimates of the stage of completion, future costs and collectability of billings. The group determines the stage of completion of a construction contract using surveys of work performed. Taxation A deferred tax liability has been recognised in the financial statements and is detailed in note 24. This is based upon estimates of the availability of future taxable profits, the timing of the reversal of timing differences upon which the provision is based and the tax rates that will be in force at that time together with an assessment of the impact of future tax planning strategies.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
12.Taxation (continued)
Deferred taxes have been measured using rates substantively enacted at the reporting date and reflected in these financial statements.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
The company has revalued its freehold property in the past which now represents deemed cost as permitted by FRS102.
The company's freehold property was independently revalued at 28 February 2011 to open market value of £508,298 by Somersby Estates Limited, who are members of the Royal Institute of Chartered Surveyors. Subsequent additions and depreciation charged on freehold land and buildings has resulted in a carrying value of £1,458,133 at 29 February 2024.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
14.Tangible fixed assets (continued)
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
14.Tangible fixed assets (continued)
The company has revalued its freehold property in the past which now represents deemed cost as permitted by FRS102.
The company's freehold property was independently revalued at 28 February 2011 to open market value of £508,298 by Somersby Estates Limited, who are members of the Royal Institute of Chartered Surveyors. Subsequent additions and depreciation charged on freehold land and buildings has resulted in a carrying value of £1,458,133 at 29 February 2024.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
Subsidiary undertakings (continued)
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
Finance leases and hire purchase contracts are secured on the assets to which they relate.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
23.Deferred taxation (continued)
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss account
The group operates a money purchase scheme for its present directors. The assets of the scheme
are held separately from those of the company in an independently administered fund. The group operates a defined contributions scheme for present employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £39,503 (2023: £33,942) were payable to the funds at the balance sheet date, and are included in creditors.
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WW Martin Ltd
Notes to the financial statements
For the year ended 29 February 2024
In the opinion of the directors, there is no overall controlling party.
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