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Registration number: 10309472

Barkwell Plumbing & Heating Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2024

image-name
 

Barkwell Plumbing & Heating Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Financial Statements

12 to 24

 

Barkwell Plumbing & Heating Limited

Company Information

Directors

C Barkwell

R Bowden

M Domaille

Registered office

Unit 2 Brayhams Yard
North Road
Okehampton
Devon
EX20 1AB

Auditors

Westcotts (SW) LLP
Chartered Accountants
80 Oxford Street
Burnham-On-Sea
Somerset
TA8 1EF

 

Barkwell Plumbing & Heating Limited

Strategic Report for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

Fair review of the business

The performance of the company is as detailed in the Statement of Comprehensive Income on page 8. The directors are pleased to report turnover of £16.3m (2023: £15.7m) for the year.

Loss for the year after tax was reported as £95k (2023: £248k) after an amortisation charge relating to the acquired goodwill of £342k (2023: £342k).

The directors are satisfied with the performance of the company during the year.

The net assets of the company as at 30 June 2024 are set out on page 9 and show a net asset position of £3.1m (2023: £3.2m).

The gross profit margin of the company was 15.5% (2023: 16.3%).

Subsequent to 30 June 2024 the company has been profitable for the quarter to September 2024. The directors have considered the company's funding for the next 12 months and beyond by preparing profit and cashflow forecasts which show that adequate funding is in place.

Principal risks and uncertainties

The directors consider that the nature of the business carried on by the company is straightforward and are of the opinion that further analysis using key performance indicators, over and above the information already presented in these financial statements, is not necessary to gain an understanding of the development, performance or position of the company.

The company assesses its opportunities and risks in the market place including areas such as competition, market trends and health and safety policies in order to maintain and extend its business activities.

Non-financial and sustainability information

Environmental matters

Information about environmental matters, the company's employees, social community and human rights issues has not been provided as the directors do not believe that this is material to gain an understanding of the business.

Company employees

Of the three Directors of the company, one is female and two are male.

Approved and authorised by the Board on 19 December 2024 and signed on its behalf by:
 


C Barkwell
Director

 

Barkwell Plumbing & Heating Limited

Directors' Report for the Year Ended 30 June 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Directors of the company

The directors who held office during the year were as follows:

R Barkwell (until 26 September 2024)

C Barkwell

The following directors were appointed after the year end:

R Bowden (appointed 23 August 2024)

M Domaille (appointed 23 August 2024)

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 19 December 2024 and signed on its behalf by:
 


C Barkwell
Director

 

Barkwell Plumbing & Heating Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Barkwell Plumbing & Heating Limited

Independent Auditor's Report to the Members of Barkwell Plumbing & Heating Limited

Opinion

We have audited the financial statements of Barkwell Plumbing & Heating Limited (the 'company') for the year ended 30 June 2024, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, 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 30 June 2024 and of its loss 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Barkwell Plumbing & Heating Limited

Independent Auditor's Report to the Members of Barkwell Plumbing & Heating Limited (continued)

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor Responsibilities for the audit of the financial statements

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

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit.

 

Barkwell Plumbing & Heating Limited

Independent Auditor's Report to the Members of Barkwell Plumbing & Heating Limited (continued)

The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements including health and safety laws and regulations, employment laws and regulations and certain aspects of companies legislation.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with the auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omission, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.





David Wright FCA (Senior Statutory Auditor)
For and on behalf of Westcotts (SW) LLP, Statutory Auditor

80 Oxford Street
Burnham-On-Sea
Somerset
TA8 1EF

23 December 2024

 

Barkwell Plumbing & Heating Limited

Statement of Comprehensive Income for the Year Ended 30 June 2024

Note

2024
£

2023
£

Turnover

3

16,314,267

15,667,213

Cost of sales

 

(13,785,058)

(13,105,432)

Gross profit

 

2,529,209

2,561,781

Administrative expenses

 

(2,601,451)

(2,785,823)

Operating loss

5

(72,242)

(224,042)

Other interest receivable and similar income

6

57,696

-

Interest payable and similar expenses

7

(7,941)

(14,285)

   

49,755

(14,285)

Loss before tax

 

(22,487)

(238,327)

Tax on loss

10

(72,540)

(9,661)

Loss for the financial year

 

(95,027)

(247,988)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Barkwell Plumbing & Heating Limited

(Registration number: 10309472)
Statement of Financial Position as at 30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

11

768,897

1,110,629

Tangible assets

12

611,865

369,441

 

1,380,762

1,480,070

Current assets

 

Stocks

13

104,000

175,300

Debtors

14

5,024,671

4,778,817

Cash at bank and in hand

 

2,317,696

684,905

 

7,446,367

5,639,022

Creditors: Amounts falling due within one year

16

(5,525,924)

(3,701,881)

Net current assets

 

1,920,443

1,937,141

Total assets less current liabilities

 

3,301,205

3,417,211

Creditors: Amounts falling due after more than one year

16

(63,335)

(122,047)

Provisions for liabilities

17

(100,452)

(62,719)

Net assets

 

3,137,418

3,232,445

Capital and reserves

 

Called up share capital

100

100

Share premium reserve

19

3,999,900

3,999,900

Profit and loss account

19

(862,582)

(767,555)

Shareholders' funds

 

3,137,418

3,232,445

Approved and authorised by the Board on 19 December 2024 and signed on its behalf by:
 


C Barkwell
Director

 

Barkwell Plumbing & Heating Limited

Statement of Changes in Equity for the Year Ended 30 June 2024

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 July 2023

100

3,999,900

(767,555)

3,232,445

Loss for the year

-

-

(95,027)

(95,027)

At 30 June 2024

100

3,999,900

(862,582)

3,137,418

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 July 2022

100

3,999,900

(519,567)

3,480,433

Loss for the year

-

-

(247,988)

(247,988)

At 30 June 2023

100

3,999,900

(767,555)

3,232,445

 

Barkwell Plumbing & Heating Limited

Statement of Cash Flows for the Year Ended 30 June 2024

Note

2024
£

2023
£

Cash flows from operating activities

Loss for the year

 

(95,027)

(247,988)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

421,099

437,677

Loss/(profit) on disposal of tangible assets

4

10,175

(14,207)

Finance income

6

(57,696)

-

Finance costs

7

7,941

14,285

Income tax expense

10

72,540

9,661

 

359,032

199,428

Working capital adjustments

 

Decrease in stocks

13

71,300

61,100

(Increase)/decrease in trade debtors

14

(245,854)

1,794,600

Increase/(decrease) in trade creditors

16

1,817,307

(1,678,002)

Cash generated from operations

 

2,001,785

377,126

Income taxes received

10

-

13,811

Net cash flow from operating activities

 

2,001,785

390,937

Cash flows from investing activities

 

Interest received

6

57,696

-

Acquisitions of tangible assets

(337,466)

(149,567)

Proceeds from sale of tangible assets

 

5,500

29,627

Net cash flows from investing activities

 

(274,270)

(119,940)

Cash flows from financing activities

 

Interest paid

7

(7,941)

(14,285)

Proceeds from bank borrowing draw downs

 

(18,750)

(19,182)

Payments to finance lease creditors

 

(68,033)

52,915

Net cash flows from financing activities

 

(94,724)

19,448

Net increase in cash and cash equivalents

 

1,632,791

290,445

Cash and cash equivalents at 1 July

 

684,905

394,460

Cash and cash equivalents at 30 June

 

2,317,696

684,905

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Unit 2 Brayhams Yard
North Road
Okehampton
Devon
EX20 1AB

Principal activity

The principal activity of the company is the provision of plumbing and heating services.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

Subsequent to 30 June 2024 the company has been profitable for the quarter to September 2024. The directors have considered the company's funding for the next 12 months and beyond by preparing profit and cashflow forecasts which show that adequate funding is in place. The directors have thus continued to adopt the going concern basis of accounting in preparing the annual statements.

Going concern

The financial statements have been prepared on a going concern basis.

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

2

Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Contract revenue recognition

Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end.

Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred.

The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

2

Accounting policies (continued)

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Short leasehold property

Over term of lease

Fittings, fixtures and equipment

15% reducing balance

Plant and machinery

15% reducing balance

Motor vehicles

25% reducing balance

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Business combinations

Business combinations relating to acquiring control of trade and assets to form one or more businesses are accounted for using the purchase method.

The cost of a business combination is measured at the aggregate of the fair values, at the acquisition date, of assets given, liabilities incurred or assumed, and equity instruments issued plus any costs directly attributable to the business combination.

Where control is achieved in stages, the cost of the business combination is the aggregate of the fair values of the assets given, liabilities incurred or assumed, and equity instruments issued at the date of each transaction in the series.

Where the business combination requires an adjustment to the cost contingent on future events, the estimated amount of that adjustment is included in the cost of the combination at the acquisition date providing it is probable and can be measured reliably. Where it is not recognised at the acquisition date but subsequently becomes probable and can be measured reliably, the additional consideration is treated as an adjustment to the cost of the combination.

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

2

Accounting policies (continued)

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

2

Accounting policies (continued)

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the statement of comprehensive income and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

16,314,267

15,667,213

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

4

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

(Loss)/gain on disposal of tangible assets

(10,175)

14,207

5

Operating loss

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

79,367

95,945

Amortisation expense

341,732

341,732

Operating lease expense - plant and machinery

11,293

11,621

Loss/(profit) on disposal of property, plant and equipment

10,175

(14,207)

6

Other interest receivable and similar income

2024
£

2023
£

Other finance income

57,696

-

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

2,544

11,115

Interest on obligations under finance leases and hire purchase contracts

5,397

3,170

7,941

14,285

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

5,295,257

5,627,227

Redundancy costs

-

22,360

Other employee expense

29,570

10,702

5,324,827

5,660,289

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

8

Staff costs (continued)

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

75

95

Administration and support

30

35

105

130

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

13,000

13,000


 

10

Taxation

Tax charged/(credited) in the statement of comprehensive income

2024
£

2023
£

Current taxation

UK corporation tax

34,807

-

Deferred taxation

Arising from origination and reversal of timing differences

37,733

9,661

Tax expense in the income statement

72,540

9,661

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

10

Taxation (continued)

2024
£

2023
£

Loss before tax

(22,487)

(238,327)

Corporation tax at standard rate

(5,622)

(45,282)

Effect of expense not deductible in determining taxable profit (tax loss)

(2,124)

(6,725)

Deferred tax expense on origination and reversal of timing differences

37,733

9,661

Tax increase from effect of capital allowances and depreciation

72,299

58,908

Tax decrease from tax losses utilised

(29,746)

(6,901)

Total tax charge

72,540

9,661

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

11

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 July 2023

3,417,320

3,417,320

At 30 June 2024

3,417,320

3,417,320

Amortisation

At 1 July 2023

2,306,691

2,306,691

Amortisation charge

341,732

341,732

At 30 June 2024

2,648,423

2,648,423

Carrying amount

At 30 June 2024

768,897

768,897

At 30 June 2023

1,110,629

1,110,629

12

Tangible assets

Short leasehold property
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2023

-

118,467

152,727

820,033

1,091,227

Additions

321,625

14,508

500

833

337,466

Disposals

-

(67,728)

(2,769)

(7,238)

(77,735)

At 30 June 2024

321,625

65,247

150,458

813,628

1,350,958

Depreciation

At 1 July 2023

-

81,821

80,323

559,642

721,786

Charge for the year

-

3,310

10,860

65,197

79,367

Eliminated on disposal

-

(52,751)

(2,769)

(6,540)

(62,060)

At 30 June 2024

-

32,380

88,414

618,299

739,093

Carrying amount

At 30 June 2024

321,625

32,867

62,044

195,329

611,865

At 30 June 2023

-

36,646

72,404

260,391

369,441

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

12

Tangible assets (continued)

Included within the net book value of land and buildings above is £321,625 (2023 - £Nil) in respect of short leasehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant and machinery

28,209

33,187

Motor vehicles

94,326

140,417

122,535

173,604

13

Stocks

2024
£

2023
£

Raw materials and consumables

104,000

175,300

14

Debtors

Current

2024
£

2023
£

Trade debtors

3,175,172

2,760,782

Amounts owed by group undertakings

1,156,033

1,177,364

Other debtors

623,121

750,375

Prepayments

7,000

7,000

Gross amount due from customers for contract work

63,345

83,296

 

5,024,671

4,778,817

15

Cash and cash equivalents

2024
£

2023
£

Cash at bank

2,317,696

684,905

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

16

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

20

59,156

87,227

Trade creditors

 

4,851,499

3,198,950

Social security and other taxes

 

281,185

172,148

Other payables

 

123,977

147,001

Accruals

 

175,300

96,555

Corporation tax liability

10

34,807

-

 

5,525,924

3,701,881

Due after one year

 

Loans and borrowings

20

63,335

122,047

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 July 2023

62,719

62,719

Increase (decrease) in existing provisions

37,733

37,733

At 30 June 2024

100,452

100,452

18

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

19

Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

20

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

36,076

56,914

Hire purchase contracts

27,259

65,133

63,335

122,047

Current loans and borrowings

2024
£

2023
£

Bank borrowings

21,288

19,200

Hire purchase contracts

37,868

68,027

59,156

87,227

Bank borrowings

The bank facilities are secured by a debenture including fixed charge over all present freehold and leasehold property, first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future, and first floating charge over all assets and undertaking both present and future dated 28 February 2018.

Bank loans have been guaranteed up to 100% of the capital value by the UK Government.

Obligations under finance leases are secured against the asset to which they relate.

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

89,213

11,621

Later than one year and not later than five years

207,824

8,715

Later than five years

175,500

-

472,537

20,336

The amount of non-cancellable operating lease payments recognised as an expense during the year was £42,543 (2023 - £11,621).

 

Barkwell Plumbing & Heating Limited

Notes to the Financial Statements for the Year Ended 30 June 2024 (continued)

22

Related party transactions

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

91,490

75,000

Transactions with directors

2023

At 1 July 2022
£

Advances to director
£

Repayments by director
£

At 30 June 2023
£

R Barkwell

-

287,873

(287,873)

-

Other transactions with directors

During the year the company made sales of £Nil (2023: £50,000) to R Barkwell, a director of the company.

Summary of transactions with entities with joint control or significant interest

R Barkwell was a director of Moor Training Limited in the year. During the year the company made sales of goods, services and assets of £Nil (2023: £9,796) to Moor Training Limited and made purchases of goods and services of £Nil (2023: £63,308) from Moor Training Limited. Creditors at 30 June 2024 include £53,185 (2023: £78,362) owed to Moor Training Limited.

C Barkwell is a director of Made Well Community Interest Company. During the year the company made sales of goods and services of £Nil (2023: £15,000) to Made Well Community Interest Company. Debtors at 30 June 2024 include £Nil (2023: £3,304) due from Made Well Community Interest Company.

 

23

Parent and ultimate parent undertaking

The company's immediate parent is Barkwell Properties Limited, incorporated in England.

 At the 30 June 2024, the ultimate controlling parties were R Barkwell and C Barkwell by virtue of their combined holding of 100% of the issued share capital in Barkwell Properties Limited.

The parent of the largest group in which these financial statements are consolidated is Barkwell Properties Limited, incorporated in England.

The address of Barkwell Properties Limited is:
Unit 2 Brayhams Yard
North Road
Okehampton
Devon
EX20 1AB