Company registration number 04108771 (England and Wales)
LANDMARK BRICKWORK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
LANDMARK BRICKWORK LIMITED
COMPANY INFORMATION
Directors
G M Richardson
M Cockram
J N Bates
J P Vincent
C M Richardson
J Edwards
(Appointed 1 January 2024)
Secretary
D Willmont
Company number
04108771
Registered office
Willow Farm
Moor Lane
Staines
Middlesex
TW19 6EQ
Auditor
Goodman Jones LLP
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
LANDMARK BRICKWORK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
LANDMARK BRICKWORK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The directors present the strategic report for the year ended 31 August 2024.
Review of the business
The directors are pleased with the results for the year under review in what continues to be a difficult market.
The directors are excited about the company's future prospects and look forward to the future with confidence.
Financial Instruments and risk
The company uses financial instruments comprising borrowings and various net working capital items such as trade debtors and trade creditors, to finance its operations not funded by way of equity. The main risks identified with using these financial instruments are the management of cash flow and exposure to interest rate fluctuations.
Going concern
In determining the appropriate basis of preparation of the Financial Statements, the directors are required to consider whether the company can continue in operational existence for the foreseeable future.
In the annual review of the Company’s going concern, the Directors have considered the company's forecasts and projections, taking account of possible changes in trading performance, which show that the company will be able to operate within the level of its current cash balances.
Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Key Performance Indicators
2024 2023
Turnover £22,482k £26,601k
Operating Profit £1,821k £1,823k
Operating Profit % 8.1% 6.9%
Profit before tax £1,833k £1,827k
G M Richardson
Director
9 January 2025
LANDMARK BRICKWORK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company is that of brickwork construction.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £1,750,000 (2023: £1,138,234). The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G M Richardson
M Cockram
J N Bates
P J MacSweeney
(Resigned 31 December 2023)
J P Vincent
C M Richardson
J Edwards
(Appointed 1 January 2024)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Research and development
The company employs some of the most experienced stonemasons in the construction sector and carries out research and development activities on innovative projects. The company is able to combine standard techniques used in different sectors to deliver new solutions to the market.
Auditor
The auditor, Goodman Jones LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
LANDMARK BRICKWORK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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;
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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments, risks and going concern.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
G M Richardson
Director
9 January 2025
LANDMARK BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANDMARK BRICKWORK LIMITED
- 4 -
Opinion
We have audited the financial statements of Landmark Brickwork Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LANDMARK BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANDMARK BRICKWORK LIMITED (CONTINUED)
- 5 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Reading minutes of meetings of those charged with governance;
Obtaining and reading correspondence from legal and regulatory bodies including HMRC;
Identifying and testing journal entries;
Challenging assumptions and judgements made by management in their significant accounting estimates.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above. The further removed instances of non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
LANDMARK BRICKWORK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANDMARK BRICKWORK LIMITED (CONTINUED)
- 6 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Matthew Cook
Senior Statutory Auditor
For and on behalf of Goodman Jones LLP
9 January 2025
Chartered Accountants
Statutory Auditor
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
LANDMARK BRICKWORK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
22,481,549
26,600,603
Cost of sales
(17,942,333)
(22,111,858)
Gross profit
4,539,216
4,488,745
Distribution costs
(139)
Administrative expenses
(2,718,672)
(2,665,725)
Operating profit
4
1,820,544
1,822,881
Interest receivable and similar income
8
35,490
8,497
Interest payable and similar expenses
9
(22,986)
(4,564)
Profit before taxation
1,833,048
1,826,814
Tax on profit
10
(443,449)
(423,832)
Profit for the financial year
1,389,599
1,402,982
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
LANDMARK BRICKWORK LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
303,138
194,663
Investment property
13
691,309
994,447
194,663
Current assets
Debtors
15
5,834,924
9,577,331
Cash at bank and in hand
6,504,237
4,637,499
12,339,161
14,214,830
Creditors: amounts falling due within one year
16
(4,709,530)
(5,409,027)
Net current assets
7,629,631
8,805,803
Total assets less current liabilities
8,624,078
9,000,466
Creditors: amounts falling due after more than one year
17
(45,037)
(50,005)
Provisions for liabilities
Deferred tax liability
19
14,923
25,942
(14,923)
(25,942)
Net assets
8,564,118
8,924,519
Capital and reserves
Called up share capital
21
900
900
Capital redemption reserve
100
100
Profit and loss reserves
8,563,118
8,923,519
Total equity
8,564,118
8,924,519
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 9 January 2025 and are signed on its behalf by:
G M Richardson
Director
Company registration number 04108771 (England and Wales)
LANDMARK BRICKWORK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
1,000
9,125,771
9,126,771
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
1,402,982
1,402,982
Dividends
11
-
-
(1,138,234)
(1,138,234)
Own shares acquired
-
-
(467,000)
(467,000)
Redemption of shares
21
(100)
100
Balance at 31 August 2023
900
100
8,923,519
8,924,519
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
1,389,599
1,389,599
Dividends
11
-
-
(1,750,000)
(1,750,000)
Balance at 31 August 2024
900
100
8,563,118
8,564,118
LANDMARK BRICKWORK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
4,781,271
309,397
Interest paid
(22,986)
(4,564)
Income taxes paid
(348,929)
(201,823)
Net cash inflow from operating activities
4,409,356
103,010
Investing activities
Purchase of tangible fixed assets
(5,265)
(6,456)
Proceeds from disposal of tangible fixed assets
22,050
27,977
Purchase of investment property
(691,309)
Interest received
35,490
8,497
Net cash (used in)/generated from investing activities
(639,034)
30,018
Financing activities
Purchase of own shares
(467,000)
Payment of finance leases obligations
(153,584)
(91,165)
Dividends paid
(1,750,000)
(1,138,234)
Net cash used in financing activities
(1,903,584)
(1,696,399)
Net increase/(decrease) in cash and cash equivalents
1,866,738
(1,563,371)
Cash and cash equivalents at beginning of year
4,637,499
6,200,870
Cash and cash equivalents at end of year
6,504,237
4,637,499
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
1
Accounting policies
Company information
Landmark Brickwork Limited is a private company limited by shares incorporated in England and Wales. The registered office is Willow Farm, Moor Lane, Staines, Middlesex, TW19 6EQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
In determining the appropriate basis of preparation of the Financial Statements, the directors are required to consider whether the company can continue in operational existence for the foreseeable future.
In the annual review of the Company’s going concern, the Directors have considered the company's forecasts and projections, taking account of possible changes in trading performance, which show that the company will be able to operate within the level of its current cash balances.
Accordingly, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises the value of the contracting work executed during the year and the invoiced value of other sales net of VAT.
See also accounting policy 1.4 for details of how turnover is calculated with regard to long term construction contracts.
1.4
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant and machinery
25% Straight line
Fixtures, fittings & equipment
10% Straight line and 20% Straight line
Motor vehicles
25% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
Key sources of estimation uncertainty
Amounts recoverable on long term contracts
The company applies its policy on contract accounting when recognising revenue and profit on partially completed contracts. The application of this policy requires judgements to be made in respect of the total expected costs to complete for each site. The company has in place established internal control processes to ensure that the evaluation of costs and revenues is based upon appropriate estimates. Amounts recoverable on long term contracts recognised at the year end total £2,066,935 (2023: £3,674,800) with payments received on account in creditors at £629,537 (2023: £480,397).
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Brickwork and Construction
22,481,549
26,600,603
2024
2023
£
£
Turnover analysed by geographical market
UK
22,481,549
26,600,603
2024
2023
£
£
Other revenue
Interest income
35,490
8,497
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
71,997
6,593
Depreciation of tangible fixed assets held under finance leases
39,147
73,946
Profit on disposal of tangible fixed assets
(18,367)
(27,977)
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,000
25,000
For other services
Taxation compliance services
2,433
1,650
All other non-audit services
2,000
3,203
4,433
4,853
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Contract sales and labour
12
14
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,061,520
1,155,556
Social security costs
134,638
130,867
Pension costs
172,500
171,216
1,368,658
1,457,639
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
610,783
484,609
Company pension contributions to defined contribution schemes
167,243
165,563
778,026
650,172
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
7
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
247,918
225,042
Company pension contributions to defined contribution schemes
1,321
1,321
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
23,094
8,497
Other interest income
12,396
Total income
35,490
8,497
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
23,094
8,497
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
10,531
4,564
Other interest
12,455
22,986
4,564
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
454,468
397,631
Deferred tax
Origination and reversal of timing differences
(11,019)
26,201
Total tax charge
443,449
423,832
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
10
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,833,048
1,826,814
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
458,262
456,704
Tax effect of expenses that are not deductible in determining taxable profit
(14,813)
17,128
Effect of change in corporation tax rate
(50,000)
Taxation charge for the year
443,449
423,832
11
Dividends
2024
2023
£
£
Final paid
1,750,000
1,138,234
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
37,696
13,351
705,537
756,584
Additions
3,961
304
219,037
223,302
Disposals
(168,058)
(168,058)
At 31 August 2024
41,657
13,655
756,516
811,828
Depreciation and impairment
At 1 September 2023
29,080
8,389
524,452
561,921
Depreciation charged in the year
3,939
1,184
106,021
111,144
Eliminated in respect of disposals
(164,375)
(164,375)
At 31 August 2024
33,019
9,573
466,098
508,690
Carrying amount
At 31 August 2024
8,638
4,082
290,418
303,138
At 31 August 2023
8,616
4,962
181,085
194,663
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
12
Tangible fixed assets
(Continued)
- 20 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
178,890
181,086
Depreciation charge for the year in respect of leased assets was £39,147 (2023: £73,946).
13
Investment property
2024
£
Fair value
At 1 September 2023
Additions through external acquisition
691,309
At 31 August 2024
691,309
The fair value of the investment property was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
13,186,552
13,582,154
Carrying amount of financial liabilities
Measured at amortised cost
4,325,101
4,037,104
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,621,925
2,035,048
Gross amounts owed by contract customers
2,066,935
3,674,800
Other debtors
851,769
2,401,235
Prepayments and accrued income
96,283
98,634
4,636,912
8,209,717
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
15
Debtors
(Continued)
- 21 -
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
1,198,012
1,367,614
Total debtors
5,834,924
9,577,331
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18
120,114
50,693
Payments received on account
629,537
480,397
Trade creditors
1,051,543
1,698,412
Corporation tax
454,468
348,929
Other taxation and social security
216,286
278,586
Other creditors
1,579,343
2,014,399
Accruals and deferred income
658,239
537,611
4,709,530
5,409,027
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
45,037
50,005
Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
129,804
50,693
In two to five years
46,850
57,664
176,654
108,357
Less: future finance charges
(11,503)
(7,659)
165,151
100,698
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
14,923
25,942
2024
Movements in the year:
£
Liability at 1 September 2023
25,942
Credit to profit or loss
(11,019)
Liability at 31 August 2024
14,923
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
172,500
171,216
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
900
900
900
900
The company has one class of ordinary shares which carry no right to fixed income.
22
Related party transactions
Transactions with related parties
During the year the following transactions and purchases were made from related parties:
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
22
Related party transactions
(Continued)
- 23 -
Purchases
Purchases
2024
2023
£
£
Entities under common control
1,622
2,195
Management Fee
Rent Charges
2024
2023
2024
2023
£
£
£
£
Entities under common control
277,447
251,054
333,150
333,150
The following amounts included in other debtors were owed from related parties:
2024
2023
Amounts owed from (due to) related parties
£
£
Entities under common control
448,443
1,978,019
The following amounts included in other creditors were owed to related parties:
2024
2023
Amounts due from related parties
£
£
Entities under common control
-
506,416
LANDMARK BRICKWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
22
Related party transactions
(Continued)
- 24 -
Other information
During the year, dividends in total of £1,750,000 (2023: £1,138,234) were paid to directors of the company.
During the year, the company purchased an investment property from a director for £691,309. This purchase price was at arm's length.
At the year end the directors were owed £556,612 (2023: £508,135) by the company. This loan is unsecured and interest free.
The total remuneration for key management personnel for the year totalled £778,026 (2023: £650,172).
23
Ultimate controlling party
The company is under the control of G.M. Richardson.
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,389,599
1,402,982
Adjustments for:
Taxation charged
443,449
423,832
Finance costs
22,986
4,564
Investment income
(35,490)
(8,497)
Gain on disposal of tangible fixed assets
(18,367)
(27,977)
Depreciation and impairment of tangible fixed assets
111,144
80,539
Movements in working capital:
Decrease/(increase) in debtors
3,742,407
(2,360,782)
(Decrease)/increase in creditors
(874,457)
794,736
Cash generated from operations
4,781,271
309,397
25
Analysis of changes in net funds
1 September 2023
Cash flows
New finance leases
31 August 2024
£
£
£
£
Cash at bank and in hand
4,637,499
1,866,738
-
6,504,237
Obligations under finance leases
(100,698)
153,584
(218,037)
(165,151)
4,536,801
2,020,322
(218,037)
6,339,086
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