Company registration number 01317158 (England and Wales)
WESTSHIELD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
WESTSHIELD LIMITED
COMPANY INFORMATION
Directors
Mr P J Waldron
Mr Scott McGowan
(Appointed 1 November 2024)
Mr Iain Hoodless
(Appointed 22 November 2024)
Company number
01317158
Registered office
52 Chorley New Road
Bolton
BL1 4AP
Auditor
Independent Auditors LLP
Emstrey House North
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG
WESTSHIELD LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 26
WESTSHIELD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
Westshield Limited is a civil engineering company based in the Northwest of England, specialising in groundworks, roads and sewers, foundations, and related construction activities. The company continues to focus on framework agreements to foster long-term relationships with key customers and suppliers, enabling operational stability and consistent project delivery.
During the year ended 30 June 2024, the company reported a turnover of £14,216,916 (2023: £17,098,015), reflecting a year-on-year decrease of £2,881,099. Despite the decline in revenue, gross profit increased significantly to £2,263,772 (2023: £1,302,031), improving the gross profit margin from 7.62% in 2023 to 15.92% in 2024.
This improvement was achieved through tighter cost controls, operational efficiencies, and favourable project mix.
Profit before taxation for the year was £224,157, compared to a loss of £685,631 in the prior year. This represents a notable turnaround, driven by effective cost management and improved gross margins. Shareholders’ funds increased to £1,630,271 (2023: £1,142,179), underlining the company’s stronger financial position.
Operational highlights for the year included:
The company faced challenges from high inflation and material cost volatility, partly attributable to the conflict in Ukraine and elevated energy prices. However, proactive procurement strategies and close collaboration with the supply chain mitigated these impacts.
Looking forward, Westshield Limited is poised for growth with a robust order book, including opportunities in the water utilities and social housing sectors. The directors remain optimistic about the company’s ability to deliver value for stakeholders while navigating economic uncertainties.
Business review
The results for the year and key performance indicators for the Company were as follows:
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Gross profit as % Turnover | | | |
Profit/Loss before taxation | | | |
Profit before taxation as a % of turnover | | | |
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Average number of employees | | | |
WESTSHIELD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties
Credit Risk
The company faces potential credit risks from customers, which could impact cash flow and profitability. To mitigate this, strict credit checks and due diligence are applied before entering into contracts. Management closely monitors debtors, ensuring timely collections and minimising exposure to bad debts.
Financial Risk Management
The company no longer has a secured overdraft facility. While this reduces borrowing costs, it necessitates tighter cash flow management to ensure liquidity during periods of high operational demand. According to recent economic indicators, the construction sector is experiencing modest growth, with new infrastructure projects driving demand.
However, high interest rates and persistent inflation continue to impact margins across the industry. The company remains vigilant in monitoring these trends and adapting its financial strategies to align with market conditions. To ensure robust financial oversight, the directors tightly manage cash flow and regularly review forecasts and management information, enabling proactive decision-making and timely responses to financial challenges.
Supply Chain Risks
Inflationary pressures on materials and labour, exacerbated by geopolitical events, remain a key risk. The company actively monitors market trends and works closely with suppliers to secure favourable pricing and ensure timely project delivery.
Sectoral Expansion
Entering the social housing sector introduces new operational and financial risks. The company is addressing these through dedicated project management resources and careful contract selection.
Health and Safety
Maintaining a safe working environment is critical. The company’s health and safety team ensure compliance with regulations and provides ongoing training to all staff and subcontractors.
IT and Cybersecurity
The company’s upgraded IT systems, implemented in 2023, provide improved resilience. Regular monitoring and updates are conducted to mitigate cybersecurity risks.
WESTSHIELD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Other information and explanations
Failure to attract and maintain key employees
The company’s employees are critical to its ability to deliver to its customers. The company needs to identify, retain and motivate people with the right skills, experience and behaviours.
The company has a low turnover of senior management staff and has an experienced team. The director monitors staff performance closely on a regular basis with regular face to face performance reviews. This allows him to listen to employee feedback and create an effective and inclusive work environment.
Health and Safety Risk
The company aims to create a stable working environment which ensures the health and safety of its employees. A safety culture is fostered and is effectively the company’s licence to operate as there is a recognition that its most important asset is its people.
In order to continue to operate the company must comply with all applicable legislation and regulation. To win high quality work from the client base the company must also demonstrate compliance. There are penalties for failure to adhere to legislation or regulation this is coupled with increasing costs, loss of business and reputational damage.
The company mitigates risk by adopting appropriate policies which are regularly reviewed and undertaking relevant training and awareness programmes which support policy awareness. The Health and Safety manager regularly monitors and plans for the impact of new legislation and regulations and fosters collaborative engagement with the clients and suppliers.
Supply chain impacts
The company fosters positive relationships with its supply chain as maintaining close working relationships is a key priority. Positive relationships with the supply chain and subcontractors are risk assessed and vetted for good financial and reputational standing.
Environmental
The company continues to monitor activities which could have an environmental impact.
Mr P J Waldron
Director
20 January 2025
WESTSHIELD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of civil engineering subcontractor
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P J Waldron
Mr Scott McGowan
(Appointed 1 November 2024)
Mr Iain Hoodless
(Appointed 22 November 2024)
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
Mr P J Waldron
Director
20 January 2025
WESTSHIELD LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
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.
WESTSHIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WESTSHIELD LIMITED
- 6 -
Opinion
We have audited the financial statements of Westshield Limited (the 'company') for the year ended 30 June 2023 which comprise the profit and loss account, balance sheet and the related notes, 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 FRS 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 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. 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.
We have nothing to report in this regard.
WESTSHIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WESTSHIELD LIMITED (CONTINUED)
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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 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:
.
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.
WESTSHIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WESTSHIELD LIMITED (CONTINUED)
- 8 -
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
WESTSHIELD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WESTSHIELD LIMITED (CONTINUED)
- 9 -
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Jonathon Dale BA(Hons) FCA
Senior Statutory Auditor
For and on behalf of Independent Auditors LLP
21 January 2025
Accountants
Statutory Auditor
Emstrey House North
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG
WESTSHIELD LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
14,216,916
17,098,015
Cost of sales
(11,953,144)
(15,795,984)
Gross profit
2,263,772
1,302,031
Administrative expenses
(2,158,740)
(1,997,756)
Other operating income
149,448
39,294
Operating profit/(loss)
4
254,480
(656,431)
Interest payable and similar expenses
7
(30,323)
(29,200)
Profit/(loss) before taxation
224,157
(685,631)
Tax on profit/(loss)
8
263,935
(718,093)
Profit/(loss) for the financial year
488,092
(1,403,724)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WESTSHIELD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
£
£
Profit/(loss) for the year
488,092
(1,403,724)
Other comprehensive income
-
-
Total comprehensive income for the year
488,092
(1,403,724)
WESTSHIELD LIMITED
BALANCE SHEET
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
360,752
460,125
Investment property
10
580,000
493,881
940,752
954,006
Current assets
Debtors
11
3,462,558
3,144,724
Cash at bank and in hand
742,309
1,086,571
4,204,867
4,231,295
Creditors: amounts falling due within one year
12
(3,464,746)
(3,872,520)
Net current assets
740,121
358,775
Total assets less current liabilities
1,680,873
1,312,781
Creditors: amounts falling due after more than one year
13
(50,500)
(170,500)
Net assets
1,630,373
1,142,281
Capital and reserves
Called up share capital
18
102
102
Profit and loss reserves
1,630,271
1,142,179
Total equity
1,630,373
1,142,281
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 20 January 2025 and are signed on its behalf by:
Mr P J Waldron
Director
Company registration number 01317158 (England and Wales)
WESTSHIELD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2022
102
2,545,903
2,546,005
Year ended 30 June 2023:
Loss and total comprehensive income
-
(1,403,724)
(1,403,724)
Balance at 30 June 2023
102
1,142,179
1,142,281
Year ended 30 June 2024:
Profit and total comprehensive income
-
488,092
488,092
Balance at 30 June 2024
102
1,630,271
1,630,373
WESTSHIELD LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(179,195)
646,766
Interest paid
(30,323)
(29,200)
Income taxes paid
(2,903)
Net cash (outflow)/inflow from operating activities
(209,518)
614,663
Investing activities
Purchase of tangible fixed assets
(40,768)
(846)
Proceeds from disposal of tangible fixed assets
97,250
7,501
Repayment of loans
(29,787)
Net cash generated from investing activities
26,695
6,655
Financing activities
Repayment of bank loans
(120,000)
(120,000)
Payment of finance leases obligations
(40,563)
(97,183)
Net cash used in financing activities
(160,563)
(217,183)
Net (decrease)/increase in cash and cash equivalents
(343,386)
404,135
Cash and cash equivalents at beginning of year
1,085,695
681,560
Cash and cash equivalents at end of year
742,309
1,085,695
Relating to:
Cash at bank and in hand
742,309
1,086,571
Bank overdrafts included in creditors payable within one year
(876)
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
1
Accounting policies
Company information
Westshield Limited is a private company limited by shares incorporated in England and Wales. The registered office is 52 Chorley New Road, Bolton, BL1 4AP.
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 under 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
Atruet 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 is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue is recognised when the services provided have been agreed and it is therefore probable that all the economic benefits will flow to the company. As the outcome of contracts cannot be estimated reliably, costs are expensed in full when incurred and revenue is only recognised to the extent that it is probable that it will be recoverable
1.4
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% Reducing balance
Fixtures and fittings
25% Reducing balance
Motor vehicles
25% Reducing balance
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.
1.5
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.
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.6
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.
1.7
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.
1.8
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. Financial assets classified as receivable within one year are not amortised.
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.
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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.
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. Financial liabilities classified as payable within one year are not amortised.
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.
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.13
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Government Grants in respect of the Job Retention Scheme income are recognised in the period to which the underlying furloughed staff costs relate to
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful economic life of plant and equipment
The Company estimates useful economic life of plant an equipment and applies a depreciation rate to each item of plant and equipment accordingly. The company uses past experience and knowledge of current market conditions to ensure that this estimate is correct
Investment property
The company has investment property which is held at the fair value based upon the market price at the reporting date.
3
Turnover and other revenue
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,216,916
17,098,015
2024
2023
£
£
Other revenue
Grants received
16,272
12,427
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Government grants
(16,272)
(12,427)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
10,500
Depreciation of owned tangible fixed assets
109,077
176,912
Profit on disposal of tangible fixed assets
(66,186)
(3,134)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
1
3
Administration
7
3
Direct
20
31
Total
28
37
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,398,663
1,512,514
Social security costs
153,034
140,668
Pension costs
23,421
25,285
1,575,118
1,678,467
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
194,124
192,444
Company pension contributions to defined contribution schemes
1,431
1,321
195,555
193,765
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
19,536
15,645
Other finance costs:
Interest on finance leases and hire purchase contracts
10,787
13,555
30,323
29,200
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(263,935)
Write down or reversal of write down of deferred tax asset
718,093
Total deferred tax
(263,935)
718,093
The actual (credit)/charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
224,157
(685,631)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
56,039
(140,554)
Tax effect of expenses that are not deductible in determining taxable profit
19,510
11,209
Tax effect of utilisation of tax losses not previously recognised
(84,751)
Unutilised tax losses carried forward
119,444
Permanent capital allowances in excess of depreciation
9,202
9,901
Deferred tax adjustments in respect of prior years
(263,935)
718,093
Taxation (credit)/charge for the year
(263,935)
718,093
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
9
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
1,506,033
3,321
331,742
1,841,096
Additions
40,768
40,768
Disposals
(185,200)
(49,684)
(234,884)
At 30 June 2024
1,320,833
3,321
322,826
1,646,980
Depreciation and impairment
At 1 July 2023
1,165,985
1,466
213,520
1,380,971
Depreciation charged in the year
75,918
447
32,712
109,077
Eliminated in respect of disposals
(172,856)
(30,964)
(203,820)
At 30 June 2024
1,069,047
1,913
215,268
1,286,228
Carrying amount
At 30 June 2024
251,786
1,408
107,558
360,752
At 30 June 2023
340,048
1,855
118,222
460,125
10
Investment property
2024
£
Fair value
At 1 July 2023
493,880
Net gains or losses through fair value adjustments
86,120
At 30 June 2024
580,000
Investment property comprises a former commercial building that has been converted into 4 self contained residential lettings. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 5 June 2024 by Longden & Cook Real Estate Limited. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The carrying value of land and buildings comprises:
2024
2023
£
£
Long leasehold
201,336
115,296
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1
Other debtors
146,483
117,382
Prepayments and accrued income
3,052,139
3,027,342
3,198,623
3,144,724
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
263,935
Total debtors
3,462,558
3,144,724
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
120,000
120,876
Obligations under finance leases
15
65,361
105,924
Trade creditors
2,825,455
3,211,701
Taxation and social security
64,375
87,197
Other creditors
125,289
315,872
Accruals and deferred income
264,266
30,950
3,464,746
3,872,520
Included within other creditors is £108,074 due in respect of finance leases and hire purchase creditors which is secured against the fixed assets to which they relate.
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
50,500
170,500
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
14
Loans and overdrafts
2024
2023
£
£
Bank loans
170,500
290,500
Bank overdrafts
876
170,500
291,376
Payable within one year
120,000
120,876
Payable after one year
50,500
170,500
The long-term loans are not secured by fixed charges
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
65,361
105,924
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Profit
263,935
-
2024
Movements in the year:
£
Liability at 1 July 2023
-
Credit to profit or loss
(263,935)
Asset at 30 June 2024
(263,935)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,421
25,285
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.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 10p each
1,000
1,000
100
100
Preferred of 1p each
249
249
2
2
1,249
1,249
102
102
19
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
60,000
60,000
Between two and five years
60,000
60,000
120,000
120,000
20
Ultimate controlling party
The ultimate controlling party is PJ Waldron who owns 100% of all the issued share capital.
WESTSHIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
21
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
488,093
(1,403,724)
Adjustments for:
Taxation (credited)/charged
(263,935)
718,093
Finance costs
30,323
29,200
Gain on disposal of tangible fixed assets
(66,186)
(3,134)
Fair value gain on investment properties
(86,120)
Depreciation and impairment of tangible fixed assets
109,077
133,218
Movements in working capital:
Increase in stocks
(115,296)
(Increase)/decrease in debtors
(24,112)
2,185,870
Decrease in creditors
(366,335)
(897,461)
Cash (absorbed by)/generated from operations
(179,195)
646,766
22
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,086,571
(344,262)
742,309
Bank overdrafts
(876)
876
1,085,695
(343,386)
742,309
Borrowings excluding overdrafts
(290,500)
120,000
(170,500)
Obligations under finance leases
(105,924)
40,563
(65,361)
689,271
(182,823)
506,448
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