Company registration number 02146397 (England and Wales)
STEADFAST ROOFING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
STEADFAST ROOFING LIMITED
COMPANY INFORMATION
Directors
Mr C P Ridgway
Mr L L Mullen
Mr A W Ball
Company number
02146397
Registered office
Southern Office
The Old Embankment
Station Road
Sharnbrook
MK44 1PU
Auditor
Gravita Audit II Limited
Aldgate Tower
2 Leman Street
London
E1 8FA
STEADFAST ROOFING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
STEADFAST ROOFING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
The company will continue with its main activities of supplying and fixing new roofing to the major house builders.
The directors' key objective this year were to weather the current crisis, caused by a downturn in the housing market due to interest rates and inflation, by using retained cash to support the business interests. The industry remains strong and this should enable the company to continue to grow in the 2024 financial year.
The company has continued to be profitable, with a profit before tax of £1.0m in 2024, compared to £3.1m in 2023. The company also continues to be in a net asset position, and as at 30 September 2024 had net assets of £5.2m, which has increased from the prior year when this was £4.9m as at 30 September 2023. Profits have decreased due to difficult trading conditions.
Principal risks and uncertainties
The financial risks that the company is exposed to are reviewed by the directors, and the risk management strategy focuses on maximising the financial assets and minimising financial liabilities, whilst making sure these reduce the potential negative effect on the company’s performance. The directors regard recession-inflation as the principal risk. The directors monitor the market confidence and update strategy when required.
The directors regard the following to be the principal risks and uncertainties, which might affect the company:
a) Credit risk
The principal risk is considered to be in debt collection. The company has established and implemented credit check procedures, and has a tight credit control function, to help minimise bad debts.
b) Market risk
The directors consider there to be a risk from recession, resulting in potential uncertainties around market confidence. The directors monitor the market confidence around these areas and update strategy when required.
c) Liquidity risk
The company carefully manages the cash flow and debt to monitor liquidity risk, and ensures that it has sufficient cash reserves to ensure operations can continue and the company can continue to grow. The company has systems and procedures in place to ensure the working capital is in place to mitigate any significant liquidity risk.
d) Operations risk
There is a risk of retaining key employees in the business and replacing when appropriate.
Key performance indicators
The directors consider the key performance indicators for the company to be sales and gross profit margin. Sales have decreased to £18.4m for the year ended 30 September 2024, which compares to £22.1m for 2023.
The gross profit margins have decreased to 21.7% for 2024, compared with 26.3% for 2023. The profit margin has decreased due to difficult trading conditions.
Mr C P Ridgway
Director
21 January 2025
STEADFAST ROOFING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of roofing contractors.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £415,000. 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:
Mr C P Ridgway
Mr L L Mullen
Mr A W Ball
Future developments
The company intends to develop its existing activities, along with investment in training. Trading conditions are expected to improve with certainty in Government and expected planning reforms.
Auditor
In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company will be put at a General Meeting.
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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
STEADFAST ROOFING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
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 C P Ridgway
Director
21 January 2025
STEADFAST ROOFING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEADFAST ROOFING LIMITED
- 4 -
Opinion
We have audited the financial statements of Steadfast Roofing Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 30 September 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.
STEADFAST ROOFING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEADFAST ROOFING 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
STEADFAST ROOFING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEADFAST ROOFING LIMITED (CONTINUED)
- 6 -
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of roofing contractors. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including the SSIP Core Criteria, CDM Regulations 2015, Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the National House Building Council and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
STEADFAST ROOFING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEADFAST ROOFING LIMITED (CONTINUED)
- 7 -
Daniel Howarth (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited, Statutory Auditor
Chartered Accountants
Aldgate Tower
2 Leman Street
London
E1 8FA
21 January 2025
STEADFAST ROOFING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
18,355,564
22,052,140
Cost of sales
(14,380,146)
(16,259,894)
Gross profit
3,975,418
5,792,246
Administrative expenses
(3,019,114)
(2,812,903)
Other operating income
61,146
157,008
Operating profit
4
1,017,450
3,136,351
Interest receivable and similar income
8
59,626
23,813
Interest payable and similar expenses
9
(60,907)
(51,415)
Profit before taxation
1,016,169
3,108,749
Tax on profit
10
(286,704)
(710,809)
Profit for the financial year
729,465
2,397,940
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STEADFAST ROOFING LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
495,292
428,966
Current assets
Stocks
13
774,221
526,820
Debtors
14
4,279,156
3,734,016
Cash at bank and in hand
2,612,037
3,555,929
7,665,414
7,816,765
Creditors: amounts falling due within one year
15
(2,682,125)
(3,079,109)
Net current assets
4,983,289
4,737,656
Total assets less current liabilities
5,478,581
5,166,622
Creditors: amounts falling due after more than one year
16
(4,855)
(22,380)
Provisions for liabilities
Provisions
18
100,000
100,000
Deferred tax liability
19
115,427
100,408
(215,427)
(200,408)
Net assets
5,258,299
4,943,834
Capital and reserves
Called up share capital
21
80
80
Capital redemption reserve
50
50
Profit and loss reserves
5,258,169
4,943,704
Total equity
5,258,299
4,943,834
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 21 January 2025 and are signed on its behalf by:
Mr C P Ridgway
Director
Company registration number 02146397 (England and Wales)
STEADFAST ROOFING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
80
50
3,575,764
3,575,894
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
2,397,940
2,397,940
Dividends
11
-
-
(1,030,000)
(1,030,000)
Balance at 30 September 2023
80
50
4,943,704
4,943,834
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
729,465
729,465
Dividends
11
-
-
(415,000)
(415,000)
Balance at 30 September 2024
80
50
5,258,169
5,258,299
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information
Steadfast Roofing Limited is a private company limited by shares incorporated in England and Wales. The registered office is Southern Office, The Old Embankment, Station Road, Sharnbrook, MK44 1PU.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Steadfast Roofing Holdings Limited. These consolidated financial statements are available from Companies House.
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.
The company’s performance is carefully monitored by the directors, who carefully consider trading conditions such as interest rates, cost of living, inflation, supply etc. The company has again managed to perform well under difficult trading conditions this year. As a result of the above, planning restrictions, and a predicted fall in new builds, the directors are incorporating additional services to offset this and to comply with new regulations. Although the directors expect to encounter difficult trading conditions again this year, the company has good expertise which allows the business to be flexible and react quickly to developing situations.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Revenue from the sale of raw materials is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of roofing services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to subcontractor hourly rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
A proportion of revenue from contracts is also identified as retention income, where customers retain part of the contract fee over a maintenance period pending the satisfactory completion of any remedial work required by the contractor. This proportion of revenue is deferred and recognised only when receipt becomes virtually certain.
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:
Fixtures and fittings
Straight line over 4 years
Motor vehicles
Straight line over 4 to 5 years
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
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
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.
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
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 and bank loans, 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.
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.8
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.
1.9
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.
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
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.
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.
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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
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 lives of tangible fixed assets
The useful economic lives used by the company in respect of tangible fixed assets are straight line over 4 to 5 years. Details of this can be found in the accounting policies. These estimates are the best estimate based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of tangible fixed assets as at 30 September 2024 was £495,292 after a depreciation charge in the period of £164,888.
Provision for rectifications
Cost of rectifications include cost of labour, material and related overheads necessary to repair a product during the rectification period. The company accrue for the estimated cost of the rectifications on contracts upon recognition of the revenue. The costs are estimated based on actual historic expenses incurred on estimated future expenses related to current sales, and are updated periodically. Actual rectification costs are charged against the provision for rectifications. The actual rectification costs may differ from estimated costs, and the company adjust the provision for rectification accordingly. Future rectification costs may exceed the company's estimates, which could result in an increase in cost of sales.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of services
18,355,564
22,052,140
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,355,564
22,052,140
2024
2023
£
£
Other significant revenue
Interest income
59,626
23,813
Rental income arising from sublet office space
12,600
14,010
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
131,820
176,343
Depreciation of tangible fixed assets held under finance leases
44,523
-
Loss on disposal of tangible fixed assets
1
3,887
Operating lease charges
97,680
81,699
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
31,500
30,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and drivers
32
35
Directors
4
3
Total
36
38
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,702,866
1,761,677
Social security costs
193,276
200,824
Pension costs
166,254
52,699
2,062,396
2,015,200
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
326,668
278,001
Company pension contributions to defined contribution schemes
3,350
1,950
330,018
279,951
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Directors' remuneration
(Continued)
- 18 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
160,001
158,001
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
59,626
23,813
9
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
57,963
46,855
Interest on finance leases and hire purchase contracts
2,944
4,560
60,907
51,415
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
271,685
715,688
Adjustments in respect of prior periods
1,411
Total current tax
271,685
717,099
Deferred tax
Origination and reversal of timing differences
15,019
(6,290)
Total tax charge
286,704
710,809
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 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
1,016,169
3,108,749
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
254,042
777,187
Tax effect of expenses that are not deductible in determining taxable profit
77,254
79,624
Tax effect of income not taxable in determining taxable profit
(14,907)
(17,084)
Adjustments in respect of prior years
1,411
Effect of change in corporation tax rate
(97,290)
Permanent capital allowances in excess of depreciation
(58,605)
(30,895)
Deferred tax
15,019
(6,290)
Non-trade loan relationships
13,901
4,146
Taxation charge for the year
286,704
710,809
11
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary A shares
Final paid
5,333.33
13,333.33
400,000
1,000,000
Ordinary B shares
Final paid
3,000.00
6,000.00
15,000
30,000
Total dividends
Final paid
415,000
1,030,000
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
12
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 October 2023
199,668
930,392
1,130,060
Additions
2,248
228,967
231,215
Disposals
(15,500)
(15,500)
At 30 September 2024
201,916
1,143,859
1,345,775
Depreciation and impairment
At 1 October 2023
152,314
548,780
701,094
Depreciation charged in the year
23,608
141,280
164,888
Eliminated in respect of disposals
(15,499)
(15,499)
At 30 September 2024
175,922
674,561
850,483
Carrying amount
At 30 September 2024
25,994
469,298
495,292
At 30 September 2023
47,354
381,612
428,966
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
77,346
94,508
13
Stocks
2024
2023
£
£
Raw materials and consumables
774,221
526,820
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,744,370
3,062,008
Unpaid share capital
5
5
Other debtors
297,286
588,811
Prepayments and accrued income
47,149
83,192
4,088,810
3,734,016
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
14
Debtors
(Continued)
- 21 -
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
190,346
Total debtors
4,279,156
3,734,016
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
20,469
35,172
Trade creditors
1,611,126
1,351,172
Corporation tax
106,035
305,688
Other taxation and social security
151,167
162,444
Other creditors
597,266
1,083,682
Accruals and deferred income
196,062
140,951
2,682,125
3,079,109
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
4,855
22,380
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
20,469
35,172
In two to five years
4,855
22,380
25,324
57,552
Finance lease payments represent rentals payable by the company for various motor vehicles. 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
18
Provisions for liabilities
2024
2023
£
£
Rectification costs
100,000
100,000
Movements on provisions:
Rectification costs
£
At 1 October 2023 and 30 September 2024
100,000
The provision relates to the costs of labour, material and related overhead that might be necessary to repair a product during a warranty period. This is estimated based on the costing of jobs, and is provided for upon recognition of the revenue relating to contracts.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
116,163
101,552
Other timing differences
(736)
(1,144)
115,427
100,408
2024
Movements in the year:
£
Liability at 1 October 2023
100,408
Charge to profit or loss
15,019
Liability at 30 September 2024
115,427
The deferred tax liability set out above is expected to reverse over 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
166,254
52,699
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.
Liabilities due at the year end regarding the defined contribution pension scheme amounted to £6,750 (2023: £7,207).
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary A shares of £1 each
75
75
75
75
Ordinary B shares of £1 each
5
5
5
5
80
80
80
80
Ordinary A shares carry a right to dividends in preference to Ordinary B shares. Ordinary A shares carry the voting rights required to defeat any proposed resolutions in preference to Ordinary B shares.
At 30 September 2024, the 5 Ordinary B shares were unpaid.
22
Operating lease commitments
Lessee
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
68,747
62,420
Between two and five years
23,874
28,660
92,621
91,080
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
392,106
707,639
518,790
703,256
STEADFAST ROOFING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
23
Related party transactions
(Continued)
- 24 -
Management charge income
Rent
2024
2023
2024
2023
£
£
£
£
Other related parties
30,000
16,568
33,190
33,750
Remuneration paid to close family members
The aggregate of remuneration paid to close family members of the Directors amounted to £347,024 (2023: £288,554) during the year.
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
267,636
453,170
24
Directors' transactions
Dividends totalling £15,000 (2023 - £30,000) were paid in the year in respect of shares held by the company's directors.
At 30 September 2024, the Directors' loan accounts balances amounted to £590,516 (2023: £1,051,366) due to the Directors. Interest on the loans accrued at a rate of 7% per annum, however this was amended in the year to 6% with effect from January 2024 and 4% with effect from August 2024. Interest accruing on the loans for the year amounted to £53,941 (2023: £39,625).
25
Ultimate controlling party
The immediate and ultimate parent company is Steadfast Roofing Holdings Limited, a company incorporated in England and Wales with a registered office of Southern Office Station Road, Sharnbrook, Bedford, United Kingdom, MK44 1PU. Consolidated accounts of Steadfast Roofing Holdings Limited are publicly available from the registered office.
There was no single ultimate controlling party during the year.
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