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REGISTERED NUMBER: 02707042 (England and Wales)
















Walters U.K. Limited

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 29 February 2024







Walters U.K. Limited (Registered number: 02707042)








Contents of the Financial Statements

for the Year Ended 29 February 2024





Page




Company Information  

1




Strategic Report  

2




Report of the Directors  

4




Report of the Independent Auditors  

6




Statement of Comprehensive Income

9




Statement of Financial Position  

10




Statement of Changes in Equity  

11




Notes to the Financial Statements

12





Walters U.K. Limited



Company Information

for the Year Ended 29 February 2024









DIRECTORS:

S C Llewellyn


C Chambers


M E R Llewellyn


P H Richards





SECRETARY:

M E R Llewellyn





REGISTERED OFFICE:

Hirwaun House


13th Avenue


Hirwaun Industrial Estate


Aberdare


Rhondda Cynon Taff


CF44 9UL





REGISTERED NUMBER:

02707042 (England and Wales)





AUDITORS:

Xeinadin Audit Limited


Chartered Accountants


& Statutory Auditors


Highdale House


7 Centre Court


Treforest Industrial Estate


Pontypridd


Rhondda Cynon Taff


CF37 5YR





BANKERS:

Barclays Bank plc


91 Taff Street


Pontypridd


CF37 4YA





SOLICITORS:

Hugh James


Two Central Square


Central Square


Cardiff


CF10 1FS



Walters U.K. Limited (Registered number: 02707042)



Strategic Report

for the Year Ended 29 February 2024


The directors present their strategic report for the year ended 29 February 2024.


REVIEW OF BUSINESS

The annexed financial statements indicate the results for the year along with the financial standing and accounting details of the company.


The company has successfully continued to secure new workload and safely and efficiently deliver this and existing contracts. With the management team showing that, as with previous years, the company's success and the wellbeing of its staff is born from continual investment in the right people and innovation.


During the year the UK government continued its strategy of investment in new and improved infrastructure projects across the regions.  The company has continued its success in being awarded, undertaking, and completing UK wide schemes within the infrastructure sector and within both the Welsh and the southwest regions, working for local authorities through frameworks agreements and competitive tenders, National Resources Wales along with private developers and house builders. All of these have contributed to the company's profitability and turnover.


High value "Early Contractor Involvement" projects from both repeat business and the growth of new relationships with Tier 1 UK contractors and National Highways continues, this gives a continued forward projection of works for the coming years. The company's continued growth through the regions in general civil engineering, remediation and new development works has further increased its market share and forward order book.


FINANCIAL HIGHLIGHTS

The company can again report little to no borrowings, robust reserves and continuing profits for the financial year.  The financial position of the company remains strong. The company has a robust trading position that instils confidence in clients and enables the company to be attractive to trade with. The company's strength is demonstrated by the gearing ratio that follows:



2024

2023


2022


2021




£'000

£'000


£'000


£'000



Turnover


109,239

98,344


56,890


38,910



Gross profit


7,563

4,087


4,105


6,164




Profit ratio Gross profit:Turnover


6.92%

4.16%


7.22%


15.84%




GearingTotal borrowing:Total assets


0%


0%


0%


0%





PRINCIPAL RISKS AND UNCERTAINTIES

The key current risks are generally born from the forward uncertainties arising from national budgetary pressures, inflation and interest rates, which are affecting all aspects of the construction industry.


At present the UK government and regional administrations have continued to invest in long term infrastructure projects and local improvements but with the change of government and its budgetary pressures, certain future investment may be uncertain. The company's continued resilience planning and in-house capability and resources, with its highly proactive approach to managing risk, puts the company in a good position to move forward.


SECTION 172(1) STATEMENT

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefit of its members as a whole.  In doing this, section 172 requires a director to have regard, amongst other matters, to the:


- likely consequences of any decisions in the long-term;

- interests of the company's/group's employees;

- need to foster the company's/group's business relationships with suppliers, customers and others;

- impact of the company's/group's operations on the community and environment;

- desirability of the company/group maintaining a reputation for high standards of business conduct;

- need to act fairly as between members of the company/group,


In discharging our section 172(1) duties we have regard to the factors set out above


Through an open and transparent dialogue with our key stakeholders, we have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture.  As part of the Board's decision making process, the Board considers the potential impact of decisions on relevant stakeholders whilst also having regard to a number of broader factors, including the impact of the Company's operations on the community and environment, responsible business practices and the likely consequences of decisions in the long-term.




Walters U.K. Limited (Registered number: 02707042)



Strategic Report

for the Year Ended 29 February 2024


ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

We continue to focus on excellent customer services whilst maintaining a reputation for being fair and transparent in dealing with clients and suppliers.


CORPORATE RESPONSIBILITY

The company is proud to continue its record of achievements to date but is always looking to build further and enhance its reputation as a company that takes its corporate responsibility very seriously. The continual review and updating of company initiatives have proven to show an improvement in the safety, health and wellbeing of our employees and stake holders. With an increased emphasis on environmental and carbon management coming to the fore. These initiatives will help to further enhance the company's reputation with clients, regulators, workers, and the general public.


ON BEHALF OF THE BOARD:






M E R Llewellyn - Director



29 November 2024



Walters U.K. Limited (Registered number: 02707042)



Report of the Directors

for the Year Ended 29 February 2024


The directors present their report with the financial statements of the company for the year ended 29 February 2024.


PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineering within the Wales region and greater UK.

DIVIDENDS

The total distribution of dividends for the year ended 29 February 2024 will be £ 643,297 .


RESEARCH AND DEVELOPMENT

The company continues to invest heavily into research and development across all its activities, especially in the data workplace and personnel training, to improve and develop on safety and efficiencies.


FUTURE DEVELOPMENTS

Regionally in South Wales and the Southwest of England the company continues to successfully increase its market share of civil engineering and road network improvement opportunities.


This includes works direct for local authorities, Welsh Government, National Resources Wales, local regional frameworks and regional private developers.


Nationally the company continues to successfully deliver its secured workload on the High Speed 2 works in central England on Section C23, with this contract programmed to continue to at least 2027. Five major National Highways road schemes across the UK continue to be constructed and delivered with a forward workbook through Early Contractor Involvement.


Over the recent year the company has continued its investment heavily in innovation and technology to achieve added efficiencies in delivery and procurement which in turn improves outturn costs and margins.


DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report.


S C Llewellyn

C Chambers

M E R Llewellyn

P H Richards


Other changes in directors holding office are as follows:


K Llewellyn - resigned 31 July 2023


FINANCIAL INSTRUMENTS

Company policy is to use retained profits to maintain a positive bank balance and to minimise borrowing, however, a generous bank overdraft facility is also available to the company.


Due to the nature of the financial instruments used by the company there is no exposure to price risk.  The company's approach to managing other risks applicable to the financial instruments concerned is shown below.


The company operates systems to monitor, review and efficiently administer trade debtors and creditors.  The purpose of the systems is to ensure the company maintains a positive cash flow.


As a further instrument the company has the facility to enjoy group inter company loans.  These can be used for short, medium and long term funding as and when necessary.


Such financial instruments enable the company to efficiently manage financial risk, particularly liquidity.  The instruments collectively sustain company liquidity, thereby ensuring the company operates and trades in a free and unencumbered way.


DONATIONS AND EXPENDITURE

During the year the company made charitable donations totalling £22,470 (2023:£13,983)


DIRECTORS' LIABILITY INSURANCE

A liability insurance policy was in force during the financial year for the benefit of the directors of the company.




Walters U.K. Limited (Registered number: 02707042)



Report of the Directors

for the Year Ended 29 February 2024


STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.  In preparing these financial statements, the directors are required to:


-

select suitable accounting policies and then apply them consistently;

-

make judgements and accounting estimates that are reasonable and prudent;

-

state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the

financial statements;

-

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


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


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors,  Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.


ON BEHALF OF THE BOARD:






M E R Llewellyn - Director



29 November 2024


Report of the Independent Auditors to the Members of

Walters U.K. Limited


Opinion

We have audited the financial statements of Walters U.K. Limited (the 'company') for the year ended 29 February 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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


Conclusions relating to going concern

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


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


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


Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.


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.


In connection with our audit of the financial statements, 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 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 the audit:

-

the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.


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

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of directors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.


Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Report of the Independent Auditors to the Members of

Walters U.K. Limited



Auditors' 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 a Report of the Auditors 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.


The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:


In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:


-


The nature of the industry and sector, control environment and business performance;


-


Results of the enquiries of management about their own identification and assessment of the risks of



irregularities;


-


Any matters we have identified having obtained and reviewed the company's documentation of their



policies and procedures relating to:



--


identifying, evaluating and complying with laws and regulations and whether they were aware of any



instances of noncompliance;



--


detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected



or alleged fraud;



--


the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;



--


the matters discussed among the audit engagement team regarding how and where fraud might occur in  



the financial statements and any potential indicators of fraud.



As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income.. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.


We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, health and safety and tax legislation.


In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.


Audit response to risks identified

Our procedures to respond to risks identified included the following:

-


reviewing the financial statement disclosures and testing to supporting documentation to assess compliance



with provisions of relevant laws and regulations described as having a direct effect on the financial statements;


-


enquiring of management concerning actual and potential litigation and claims;


-


performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of



material misstatement due to fraud;


-


reviewing correspondence with HMRC; and


-


in addressing the risk of fraud through management override of controls, testing the appropriateness of journal



entries and other adjustments; assessing whether the judgements made in making accounting estimates are



indicative of a potential bias; and evaluating the business rationale of any significant transactions that are



unusual or outside the normal course of business.



We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.


No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.


As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.


Report of the Independent Auditors to the Members of

Walters U.K. Limited



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 a Report of the Auditors 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.





Tania Cregg FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Chartered Accountants

& Statutory Auditors

Highdale House

7 Centre Court

Treforest Industrial Estate

Pontypridd

Rhondda Cynon Taff

CF37 5YR


29 November 2024



Walters U.K. Limited (Registered number: 02707042)



Statement of Comprehensive

Income

for the Year Ended 29 February 2024



29.2.24


28.2.23


Notes

£   

£   



TURNOVER

4

109,238,711


98,344,467




Cost of sales

101,676,117


94,257,515



GROSS PROFIT

7,562,594


4,086,952




Administrative expenses

3,070,775


2,880,595



4,491,819


1,206,357




Other operating income

131,337


260,545



OPERATING PROFIT

6

4,623,156


1,466,902




Interest receivable and similar income

780,900


121,486



5,404,056


1,588,388




Interest payable and similar expenses

7

1,779


-



PROFIT BEFORE TAXATION

5,402,277


1,588,388




Tax on profit

8

1,338,221


325,833



PROFIT FOR THE FINANCIAL YEAR

4,064,056


1,262,555




OTHER COMPREHENSIVE INCOME

-


-



TOTAL COMPREHENSIVE INCOME FOR THE

YEAR

4,064,056


1,262,555





Walters U.K. Limited (Registered number: 02707042)



Statement of Financial Position

29 February 2024



29.2.24


28.2.23


Notes

£   

£   


CURRENT ASSETS

Debtors

11

8,794,811


10,189,662



Cash at bank

22,313,589


12,000,865



31,108,400


22,190,527



CREDITORS

Amounts falling due within one year

12

21,811,449


16,490,463



NET CURRENT ASSETS

9,296,951


5,700,064



TOTAL ASSETS LESS CURRENT LIABILITIES

9,296,951


5,700,064




CREDITORS

Amounts falling due after more than one year

13

(196,787

)

(983,659

)



PROVISIONS FOR LIABILITIES

15

(1,223,000

)

(260,000

)


NET ASSETS

7,877,164


4,456,405




CAPITAL AND RESERVES

Called up share capital

16

37,750


37,750



Capital redemption reserve

17

12,250


12,250



Retained earnings

17

7,827,164


4,406,405



SHAREHOLDERS' FUNDS

7,877,164


4,456,405




The financial statements were approved by the Board of Directors and authorised for issue on 29 November 2024 and were signed on its behalf by:






M E R Llewellyn - Director




Walters U.K. Limited (Registered number: 02707042)



Statement of Changes in Equity

for the Year Ended 29 February 2024



Called up


Capital



share


Retained


redemption


Total


capital


earnings


reserve


equity

£   

£   

£   

£   


Balance at 1 March 2022

37,750


4,173,297


12,250


4,223,297




Changes in equity

Dividends

-


(1,029,447

)

-


(1,029,447

)


Total comprehensive income

-


1,262,555


-


1,262,555



Balance at 28 February 2023

37,750


4,406,405


12,250


4,456,405




Changes in equity

Dividends

-


(643,297

)

-


(643,297

)


Total comprehensive income

-


4,064,056


-


4,064,056



Balance at 29 February 2024

37,750


7,827,164


12,250


7,877,164





Walters U.K. Limited (Registered number: 02707042)



Notes to the Financial Statements

for the Year Ended 29 February 2024


1.

STATUTORY INFORMATION



Walters U.K. Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.


The presentation currency of the financial statements is the Pound Sterling (£).


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.  



Financial Reporting Standard 102 - reduced disclosure exemptions


The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":




the requirements of Section 7 Statement of Cash Flows;



the requirement of paragraph 3.17(d);



the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);



the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;



the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;



the requirement of paragraph 33.7.



Turnover


Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of discounts and rebates allowed by the company and excluding value added tax.



Long term contract retention income is only recognised as turnover if received by the date of approval of the company's financial statements for that financial year.



Contract turnover is calculated as that proportion of total contract value which revenue generated to date bears to total expected revenue for that contract.  Revenues derived from variations on contracts are recognised only when they have been accepted by the customer.



Tangible fixed assets


Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.


Plant and machinery

-

15% on cost


Fixtures and fittings

-

15% on cost


Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.


Government grants

Grant income is recognised as it is receivable, to the extent it has been spent in the financial year. Unspent, or unreceived income is recognised in the balance sheet as a liability.


Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.



Walters U.K. Limited (Registered number: 02707042)



Notes to the Financial Statements - continued

for the Year Ended 29 February 2024


2.

ACCOUNTING POLICIES - continued


Taxation and deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.


Research and development

Expenditure on research and development is written off in the year in which it is incurred.



Employee benefits

Employee benefits such as paid holiday arrangements and contributions to defined contribution pension schemes are recognised as an expense in the period in which they are incurred.


Leasing commitments


Rentals paid under operating leases are charged to the profit and loss account as incurred.



Contract work in progress


Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of work carried out at the year end by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which revenue generated to date bears to total expected revenue for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first foreseen.




Provisions


Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.



Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.  The increase in the provision due to passage of time is recognised as a finance cost.


3.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY


In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the current and future periods.

The critical judgements made by the management that have a significant effect on the amounts recognised in the financial statements are described below.

20242023
£   £   
Amounts recoverable on contracts2,062,6011,855,0831
Contract accruals14,452,7619,311,276
Foreseeable losses1,223,000260,000

The company uses qualified and experienced Quantity Surveyors to calculate the values earned on contracts and the contract costs to the balance sheet date.



Walters U.K. Limited (Registered number: 02707042)



Notes to the Financial Statements - continued

for the Year Ended 29 February 2024


4.

TURNOVER


The turnover for the year was derived from the company's principal activity. The whole of the turnover is attributable to the UK market.


5.

EMPLOYEES AND DIRECTORS



29.2.2428.2.23
££
Wages and salaries12,510,92010,512,807
Social security1,235,4651,146,344
Pension costs625,303530,341
14,371,68812,189,492
The average number of employees of the company during the year was:
Production staff174160
Administrative staff54
Directors22
181166

Key management personnel's remuneration902,256729,161
Key management personnel's pension contributions to money purchase schemes39,00536,136




29.2.24


28.2.23

£   

£   



Directors' remuneration

313,437


421,958




Directors' pension contributions to money purchase schemes  

23,248


28,937





The number of directors to whom retirement benefits were accruing was as follows:



Money purchase schemes

2


2





Information regarding the highest paid director is as follows:


29.2.24


28.2.23

£   

£   



Emoluments etc

240,584


231,730




Pension contributions to money purchase schemes

18,448


17,773




6.

OPERATING PROFIT



The operating profit is stated after charging:



29.2.24


28.2.23

£   

£   



Depreciation - owned assets

-


2,913




Auditors' remuneration

20,000


17,250




Taxation compliance services

5,508


5,050




7.

INTEREST PAYABLE AND SIMILAR EXPENSES



29.2.24


28.2.23

£   

£   



Interest payable

1,779


-





Walters U.K. Limited (Registered number: 02707042)



Notes to the Financial Statements - continued

for the Year Ended 29 February 2024


8.

TAXATION



Analysis of the tax charge


The tax charge on the profit for the year was as follows:


29.2.24


28.2.23

£   

£   



Current tax:


UK corporation tax

1,338,221


325,833




Tax on profit

1,338,221


325,833





UK corporation tax has been charged at 24.49% (2023 - 19%).



Reconciliation of total tax charge included in profit and loss


The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:



29.2.24


28.2.23

£   

£   



Profit before tax

5,402,277


1,588,388




Profit multiplied by the standard rate of corporation tax in the UK of 24.490% (2023 -

19%)  

1,323,018


301,794





Effects of:


Expenses not deductible for tax purposes

16,037


24,828




Capital allowances in excess of depreciation

(834

)

(789

)



Total tax charge

1,338,221


325,833




9.

DIVIDENDS


29.2.24


28.2.23

£   

£   



Ordinary A shares of £1 each



Interim

501,772


689,730




Ordinary B shares of £1 each



Ordinary B shares of £1 each

141,525


339,717



643,297


1,029,447




10.

TANGIBLE FIXED ASSETS


Fixtures



Plant and


and



machinery


fittings


Totals

£   

£   

£   



COST


At 1 March 2023


and 29 February 2024

129,486


141,497


270,983




DEPRECIATION


At 1 March 2023


and 29 February 2024

129,486


141,497


270,983




NET BOOK VALUE


At 29 February 2024

-


-


-




At 28 February 2023

-


-


-




Tangible fixed assets are measured at cost less accumulated depreciation.



Walters U.K. Limited (Registered number: 02707042)



Notes to the Financial Statements - continued

for the Year Ended 29 February 2024


11.

DEBTORS


29.2.24


28.2.23

£   

£   



Amounts falling due within one year:


Trade debtors

2,437,047


3,794,535




Amounts owed by group undertakings

1,065,241


891,075




Other debtors

629,678


676,946




Sales ledger retentions

1,908,107


1,418,825




VAT

189,518


293,079




Amounts recoverable on contracts

2,062,601


1,855,083




Prepayments

305,832


276,460



8,598,024


9,206,003





Amounts falling due after more than one year:


Sales ledger retentions

196,787


983,659





Aggregate amounts

8,794,811


10,189,662




Trade debtors are shown net of a bad debt provision of £Nil (2023: £Nil).

Amounts owed by group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



29.2.24


28.2.23

£   

£   



Trade creditors

2,089,838


4,327,747




Amounts owed to group undertakings

1,641,930


1,400,168




Tax

882,985


200,597




Social security and other taxes

368,636


381,607




Other creditors

174,095


132,947




Accrued expenses

16,653,965


10,047,397



21,811,449


16,490,463




Amounts owed to group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR



29.2.24


28.2.23

£   

£   



Sales ledger retentions

196,787


983,659




14.

LEASING AGREEMENTS



Minimum lease payments under non-cancellable operating leases fall due as follows:


29.2.24


28.2.23

£   

£   



Within one year

206,230


52,940




Between one and five years

899,295


1,146,235



1,105,525


1,199,175




15.

PROVISIONS FOR LIABILITIES


29.2.24


28.2.23

£   

£   



Other provisions


Provision for foreseeable losses

1,223,000


260,000





Walters U.K. Limited (Registered number: 02707042)



Notes to the Financial Statements - continued

for the Year Ended 29 February 2024


15.

PROVISIONS FOR LIABILITIES - continued



Foresee-



able



losses


£   



Balance at 1 March 2023

260,000




Provided during year

963,000




Released during year



Balance at 29 February 2024

1,223,000




16.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

29.2.24


28.2.23


value:

£   

£   



33,666

Ordinary A

£1

33,666


31,624




4,084

Ordinary B

£1

4,084


6,126



37,750


37,750




There are two classes of ordinary shares, during the year 2,042 Ordinary B shares were reclassified as Ordinary A shares.. There are no restrictions on the distribution of dividends and the repayment of capital.

17.

RESERVES


Capital



Retained


redemption



earnings


reserve


Totals

£   

£   

£   




At 1 March 2023

4,406,405


12,250


4,418,655




Profit for the year

4,064,056


4,064,056




Dividends

(643,297

)

(643,297

)



At 29 February 2024

7,827,164


12,250


7,839,414




Called up share capital - represents the nominal value of shares that have been issued.

Capital redemption reserve - arose on the historic redemption of share capital.

Retained earnings - includes all current and prior period retained profits and losses.

18.

PENSION COMMITMENTS


The company operates a defined contribution pension scheme for certain directors and contributes to separate individual defined contribution schemes for some employees. The assets of all schemes are held separately from those of the company in independently administered funds.

The pension cost charge represents contributions payable by the company to the fund and amounted to £625,303 (2023: £530,341). There were outstanding contributions of £68,511 at 29 February 2024 (2023: £62,561).

19.

ULTIMATE PARENT COMPANY



The company's ultimate parent undertaking at the balance sheet date was G Walters (Holdings) Limited, a company incorporated in

the United Kingdom. Copies of the group accounts can be obtained from the registered office of Walters UK Limited.



Walters U.K. Limited (Registered number: 02707042)



Notes to the Financial Statements - continued

for the Year Ended 29 February 2024


20.

GUARANTEES


At 29th February 2024, the company and its fellow subsidiaries had active contract bonds of £1,891,201 (2023:£1,891,201). The company has a joint and several cross counter indemnity facility in respect of contract bonds. This indemnity was in relation to G Walters (Holdings) Limited, the ultimate parent undertaking, Walters UK Limited, G Walters (Leasing) Limited, Walters Resources Limited, Walters Plant Hire Limited, Walters Environmental Limited, Walters Land Limited and Headaway (Europe) Limited. It was also in relation to three companies outside the group: G Walters (Consultancy) Limited, Ffos Las Limited and Walters Land (Rogerstone) Limited.

21.

RELATED PARTY DISCLOSURES



During the year the company had the following transactions with its parent company: Walters Plant Hire Limited and with its fellow subsidiary and associated undertakings:-




29.2.24


28.2.23





£  


£  




Walters Land Limited - sales and recharges


395,079


618,949




Walters Plant Hire Limited - sales and recharges


7,025,682


3,402,714




Walters Environmental Limited - sales and recharges


2,529,776


139,041




Walters Resources Limited - sales and recharges


18,820


18,647




Pennant Walters Holdings Limited - sales and recharges


227,789


163,714




Pennant Walters Hirwaun Limited - sales and recharges


6,624


734




Gorrel Equipment Solutions Limited- sales and recharges


7,928


5,579




Walters Resources Limited - purchases and recharges


103,454


97,359




Walters Plant Hire Limited - purchases and recharges


30,704,243


25,877,430




Walters Environmental Limited - purchases and recharges


742,983


605,204




G Walters (Leasing) Limited - purchases and recharges


1,166,800


1,031,450




Gorrel Equipment Solutions Limited - purchases and recharges


6,995


6,405




Walters Land Limited - purchases and recharges


62,898


58,649




Walters Asset Management Limited- purchases and recharges


15,291,450


12,828,361





At the year end, the following amounts were due to the company:



29.2.24


28.2.23





£  


£  




Walters Plant Hire Limited


639,961


879,257




Pennant Walters Holdings Limited


172,620


112,270




Walters Land Limited


172,886


10,783




Walters Environmental Limited


251,567


-





At the year end, the following amounts were owed by the company:



29.2.24


28.2.23





£  


£  




Walters Plant Hire Limited


966,619


235,8551




Walters Resources Limited


42,213


20,343




G Walters (Leasing) Limited


253,860


210,385




Walters Land Limited


1,040


-




Walters Environmental Limited


53,208


68,013




Walters Asset Management Limited


324,990


864,372





The company operates rent free from premises owned by its parent company Walters Plant Hire Limited.



The company loaned money in an earlier year to Walters Regeneration Limited, an associated company to the group.  Walters Regeneration Limited owed the company £497,433 (2023: £497,433)  at the year end.


22.

ULTIMATE CONTROLLING PARTY



The ultimate controlling parties at the year end were the trustees: Gweirydd Walters, Sarah Llewellyn, Richard Walters and Peter Hurn, of the Gweirydd Walters (Discretionary) Settlement, the major shareholder of G Walters (Holdings) Limited.