REGISTERED NUMBER: |
Walters U.K. Limited |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 29 February 2024 |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
Highdale House |
7 Centre Court |
Treforest Industrial Estate |
Pontypridd |
Rhondda Cynon Taff |
CF37 5YR |
BANKERS: |
91 Taff Street |
Pontypridd |
CF37 4YA |
SOLICITORS: |
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: |
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 £ |
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. |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
Highdale House |
7 Centre Court |
Treforest Industrial Estate |
Pontypridd |
Rhondda Cynon Taff |
CF37 5YR |
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 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
4,491,819 | 1,206,357 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
5,404,056 | 1,588,388 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
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 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 13 | ( | ) | ( | ) |
PROVISIONS FOR LIABILITIES | 15 | ( | ) | ( | ) |
NET ASSETS |
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 |
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 |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
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. |
2024 | 2023 |
£ | £ |
Amounts recoverable on contracts | 2,062,601 | 1,855,0831 |
Contract accruals | 14,452,761 | 9,311,276 |
Foreseeable losses | 1,223,000 | 260,000 |
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 |
29.2.24 | 28.2.23 |
£ | £ |
Wages and salaries | 12,510,920 | 10,512,807 |
Social security | 1,235,465 | 1,146,344 |
Pension costs | 625,303 | 530,341 |
14,371,688 | 12,189,492 |
The average number of employees of the company during the year was: |
Production staff | 174 | 160 |
Administrative staff | 5 | 4 |
Directors | 2 | 2 |
181 | 166 |
Key management personnel's remuneration | 902,256 | 729,161 |
Key management personnel's pension contributions to money purchase schemes | 39,005 | 36,136 |
29.2.24 | 28.2.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
29.2.24 | 28.2.23 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
29.2.24 | 28.2.23 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
Taxation compliance services |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
29.2.24 | 28.2.23 |
£ | £ |
Interest payable |
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 |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( | ) | ( | ) |
Total tax charge | 1,338,221 | 325,833 |
9. | DIVIDENDS |
29.2.24 | 28.2.23 |
£ | £ |
Ordinary A shares of £1 each |
Interim |
Ordinary B shares of £1 each |
Ordinary B shares of £1 each |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 March 2023 |
and 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
and 29 February 2024 |
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 |
Amounts owed by group undertakings |
Other debtors |
Sales ledger retentions | 1,908,107 | 1,418,825 |
VAT |
Amounts recoverable on contracts |
Prepayments |
Amounts falling due after more than one year: |
Sales ledger retentions | 196,787 | 983,659 |
Aggregate amounts |
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 |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors | 174,095 | 132,947 |
Accrued expenses |
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 |
Between one and five years |
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 |
Provided during year |
Released during year |
Balance at 29 February 2024 |
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 | 12,250 |
Profit for the year |
Dividends | ( | ) | ( | ) |
At 29 February 2024 | 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 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. |