Company registration number 02089946 (England and Wales)
TYNE INSULATION SUPPLIES LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
TYNE INSULATION SUPPLIES LTD
COMPANY INFORMATION
Directors
D McKenna
Mrs K McKenna
Secretary
Mrs K McKenna
Company number
02089946
Registered office
Unit 21 Orion Way
Orion Business Park
North Shields
Tyne And Wear
United Kingdom
NE29 7SN
Auditor
Azets Audit Services
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
TYNE INSULATION SUPPLIES LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
TYNE INSULATION SUPPLIES LTD
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
Tyne Insulation Supplies Limited had a challenging trading year, with results showing a downturn on the previous year.
Turnover for the year is down by 12% (2023: increase of 4.0%) with operating profit down by 21.7%.
The balance sheet continues to strengthen, with net assets at the financial year end increasing to 10.3m (2023: 9.7m).
The company will continue to control costs, whilst at the same time targeting new profitable business from creditworthy customers.
Principal risks and uncertainties
The company's activities expose it to a number of financial risks including cash flow risk, credit risk and price risk.
Cash flow risk
The liquidity of the company is monitored by the directors, who ensure that the company has sufficient working capital.
Credit Risk
The company's credit risk is primarily attributable to its trade customers. The company has no significant concentration of credit risk, with exposure being spread over a large number of customers. All risks are reduced by the company with the management of financial credit limits and creditworthiness procedures.
Price Risk
The company is exposed to risk due to product price fluctuations, and increased competition. The directors manage price risk on an ongoing basis by continually monitoring prices to ensure that we remain competitive. The insulation market continues to grow due to long term increases in overall demand, and the outlook remains positive.
Key performance indicators
The directors consider the key performance indicators (KPI's) to be turnover, operating profit and net assets, which based on continuing operations are the most effective measure of progress towards achieving the company's objectives.
D McKenna
Director
22 January 2025
TYNE INSULATION SUPPLIES LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
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 supply of insulation and associated materials to the construction industry.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £240,000. 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:
D McKenna
Mrs K McKenna
N Topping
(Resigned 28 November 2024)
Financial instruments
The company does not actively use financial instruments as part of its financial risk management. It has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are only conducted in sterling. The company does not enter into any hedging transactions.
Research and development
The company will continue to look at new products in markets associated with our business. The company intends to continue with the research and development required to bring new products to market, which will improve our overall profitability over the short to medium term.
Post reporting date events
On 28 November 2024, the company undertook a share buy back of 100 C ordinary shares for £1,000,000 and subsequently cancelled the 100 C ordinary shares.
Future developments
The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and remain confident that the company will continue to grow.
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services Limited be reappointed as auditor of the company will be put at a General Meeting.
TYNE INSULATION SUPPLIES LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
On behalf of the board
D McKenna
Director
22 January 2025
TYNE INSULATION SUPPLIES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TYNE INSULATION SUPPLIES LTD
- 4 -
Opinion
We have audited the financial statements of Tyne Insulation Supplies Ltd (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 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 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.
TYNE INSULATION SUPPLIES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TYNE INSULATION SUPPLIES LTD
- 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.
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.
TYNE INSULATION SUPPLIES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TYNE INSULATION SUPPLIES LTD
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and 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 indicators of potential bias. Inflo data analytics software was used to select journals from throughout the year to be tested, by assigning risk ratings to various characteristics of transactions based on our understanding of the company and its environment.
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 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. The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and its management.
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.
Joanne Regan FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
22 January 2025
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
TYNE INSULATION SUPPLIES LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,575,268
15,428,473
Cost of sales
(9,881,036)
(11,089,421)
Gross profit
3,694,232
4,339,052
Administrative expenses
(2,776,726)
(3,160,632)
Other operating income
47,586
54,407
Operating profit
4
965,092
1,232,827
Interest receivable and similar income
7
185,880
35,803
Interest payable and similar expenses
8
(8,535)
Profit before taxation
1,150,972
1,260,095
Tax on profit
9
(290,847)
(290,412)
Profit for the financial year
860,125
969,683
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TYNE INSULATION SUPPLIES LTD
BALANCE SHEET
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,022,445
4,965,052
Current assets
Stocks
12
1,306,529
1,227,379
Debtors
14
3,111,926
3,347,515
Cash at bank and in hand
3,768,534
3,306,355
8,186,989
7,881,249
Creditors: amounts falling due within one year
15
(2,778,915)
(3,036,463)
Net current assets
5,408,074
4,844,786
Total assets less current liabilities
10,430,519
9,809,838
Provisions for liabilities
Deferred tax liability
16
159,831
159,275
(159,831)
(159,275)
Net assets
10,270,688
9,650,563
Capital and reserves
Called up share capital
19
1,000
1,000
Profit and loss reserves
20
10,269,688
9,649,563
Total equity
10,270,688
9,650,563
The financial statements were approved by the board of directors and authorised for issue on 22 January 2025 and are signed on its behalf by:
D McKenna
Director
Company Registration No. 02089946
TYNE INSULATION SUPPLIES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
1,000
8,679,880
8,680,880
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
969,683
969,683
Balance at 30 June 2023
1,000
9,649,563
9,650,563
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
860,125
860,125
Dividends
10
-
(240,000)
(240,000)
Balance at 30 June 2024
1,000
10,269,688
10,270,688
TYNE INSULATION SUPPLIES LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
925,073
1,838,366
Interest paid
(8,535)
Income taxes paid
(45,646)
(662,846)
Net cash inflow from operating activities
879,427
1,166,985
Investing activities
Purchase of tangible fixed assets
(398,376)
(261,709)
Proceeds on disposal of tangible fixed assets
37,248
73,912
Loan repayments/(advances)
(62,000)
(231,563)
Interest received
185,880
35,803
Net cash used in investing activities
(237,248)
(383,557)
Financing activities
Payment of finance leases obligations
(28,056)
Dividends paid
(180,000)
Net cash used in financing activities
(180,000)
(28,056)
Net increase in cash and cash equivalents
462,179
755,372
Cash and cash equivalents at beginning of year
3,306,355
2,550,983
Cash and cash equivalents at end of year
3,768,534
3,306,355
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information
Tyne Insulation Supplies Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 21 Orion Way, Orion Business Park, North Shields, Tyne And Wear, United Kingdom, NE29 7SN.
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.
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 from the sale of goods 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.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Freehold land and buildings
2% on cost
Leasehold land and buildings
2% on cost
Plant and equipment
15% on reducing balance on assets purchased up to 30 June 2007 and 15% on cost on assets purchased on or after 1 July 2007
Computers
25% on cost
Motor vehicles
25% on cost
Freehold land is not depreciated.
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
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.
1.7
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.
Cost is calculated using the first in first out method
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction. 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.
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled.
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 are initially recognised at transaction price. 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.
Other financial liabilities
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
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.
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
13,575,268
15,428,473
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 15 -
2024
2023
£
£
Other revenue
Interest income
185,880
35,803
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,350
12,000
Depreciation of owned tangible fixed assets
294,261
255,933
Loss/(profit) on disposal of tangible fixed assets
9,474
(19,514)
Operating lease charges
64,497
63,709
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Staff
22
21
Directors
3
3
Total
25
24
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,201,667
1,753,651
Social security costs
117,281
203,009
Pension costs
175,971
22,925
1,494,919
1,979,585
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
250,118
892,586
Company pension contributions to defined contribution schemes
158,500
7,500
408,618
900,086
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Directors' remuneration
(Continued)
- 16 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
120,000
380,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
185,880
35,803
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
185,880
35,803
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
-
467
Other interest
8,068
8,535
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
290,291
250,488
Adjustments in respect of prior periods
9,726
Total current tax
290,291
260,214
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
2024
2023
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
556
21,284
Changes in tax rates
8,914
Total deferred tax
556
30,198
Total tax charge
290,847
290,412
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
1,150,972
1,260,095
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
287,743
258,268
Tax effect of expenses that are not deductible in determining taxable profit
3,104
3,435
Effect of change in corporation tax rate
3,832
Permanent capital allowances in excess of depreciation
(10,073)
Depreciation on assets not qualifying for tax allowances
16,310
Under/(over) provided in prior years
9,726
Deferred tax adjustments in respect of prior years
8,914
Taxation charge for the year
290,847
290,412
10
Dividends
2024
2023
£
£
Interim paid
240,000
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
3,379,440
1,536,847
794,622
46,642
761,181
6,518,732
Additions
5,699
67,452
4,720
320,505
398,376
Disposals
(97,832)
(6,020)
(110,223)
(214,075)
At 30 June 2024
3,385,139
1,536,847
764,242
45,342
971,463
6,703,033
Depreciation and impairment
At 1 July 2023
383,134
54,225
495,479
39,303
581,539
1,553,680
Depreciation charged in the year
54,062
30,737
85,289
3,983
120,190
294,261
Eliminated in respect of disposals
(51,126)
(6,007)
(110,220)
(167,353)
At 30 June 2024
437,196
84,962
529,642
37,279
591,509
1,680,588
Carrying amount
At 30 June 2024
2,947,943
1,451,885
234,600
8,063
379,954
5,022,445
At 30 June 2023
2,996,306
1,482,622
299,143
7,339
179,642
4,965,052
The carrying value of land and buildings comprises:
2024
2023
£
£
Freehold land
676,340
676,340
12
Stocks
2024
2023
£
£
Raw materials and consumables
1,306,529
1,227,379
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
6,271,049
6,059,799
Carrying amount of financial liabilities
Measured at amortised cost
2,285,126
2,314,069
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,249,159
2,702,611
Corporation tax recoverable
4,843
Other debtors
253,356
50,833
Prepayments and accrued income
609,411
589,228
3,111,926
3,347,515
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,194,316
2,206,801
Corporation tax
300,016
60,214
Other taxation and social security
193,773
662,180
Other creditors
3,452
2,210
Accruals and deferred income
87,358
105,058
2,778,915
3,036,463
16
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
159,831
159,275
2024
Movements in the year:
£
Liability at 1 July 2023
159,275
Charge to profit or loss
556
Liability at 30 June 2024
159,831
Deferred tax of £26,000 is expected to reverse in the next year and relates to accelerated capital allowances that are expected to mature within the same period.
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,971
22,925
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-based payment transactions
On 6 October 2016, under an Enterprise Management Incentives (EMI) scheme, the company granted an option to 1 employee to subscribe for 125 ‘B’ ordinary share of £1 in total. The option is exercisable on the happening of an Exercise Event, but lapses on the tenth anniversary of the grant of the option, or on the employee ceasing employment with the company, if earlier. There are no performance requirements or qualification criteria for the exercise of the option. There have been no lapses, cancellations or exercises during the year.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
''A' Ordinary of £1 each
600
1,000
600
1,000
''C' Ordinary of £1 each
100
-
100
-
''D' Ordinary of £1 each
300
-
300
-
1,000
1,000
1,000
1,000
A, C and D ordinary shares all have voting rights and a right to both dividend and income distributions.
On 16 October 2023, the company redesignated 1,000 A Ordinary shares of £1 into 100 C Ordinary shares of £1, 300 D Ordinary shares of £1 and 600 A Ordinary shares of £1.
20
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
9,649,563
8,679,880
Profit for the year
860,125
969,683
Dividends declared and paid in the year
(240,000)
-
At the end of the year
10,269,688
9,649,563
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
21
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
57,500
57,500
Between two and five years
23,958
81,458
81,458
138,958
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
365,034
-
23
Events after the reporting date
On 28 November 2024, the company undertook a share buy back of 100 C ordinary shares for £1,000,000 and subsequently cancelled the 100 C ordinary shares.
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Dividends declared
Property rental
2024
2023
2024
2023
£
£
£
£
Other related parties
180,000
-
57,500
57,500
TYNE INSULATION SUPPLIES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
25
Directors' transactions
Dividends totalling £60,000 (2023 - £0) were paid in the year in respect of shares held by the company's directors.
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan
-
8,000
62,000
(60,000)
10,000
8,000
62,000
(60,000)
10,000
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
860,125
969,683
Adjustments for:
Taxation charged
290,847
290,412
Finance costs
8,535
Investment income
(185,880)
(35,803)
Loss/(gain) on disposal of tangible fixed assets
9,474
(19,514)
Depreciation and impairment of tangible fixed assets
294,261
255,933
Movements in working capital:
(Increase)/decrease in stocks
(79,150)
377,712
Decrease in debtors
232,746
202,447
Decrease in creditors
(497,350)
(211,039)
Cash generated from operations
925,073
1,838,366
27
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
3,306,355
462,179
3,768,534
2024-06-302023-07-01falseCCH SoftwareCCH Accounts Production 2024.210D McKennaN ToppingN ToppingMrs K McKennafalsefalse020899462023-07-012024-06-3002089946bus:Director12023-07-012024-06-3002089946bus:CompanySecretaryDirector12023-07-012024-06-3002089946bus:CompanySecretary12023-07-012024-06-3002089946bus:Director22023-07-012024-06-3002089946bus:Director32023-07-012024-06-3002089946bus:RegisteredOffice2023-07-012024-06-30020899462024-06-30020899462022-07-012023-06-3002089946core:RetainedEarningsAccumulatedLosses2022-07-012023-06-3002089946core:RetainedEarningsAccumulatedLosses2023-07-012024-06-30020899462023-06-3002089946core:LandBuildingscore:OwnedOrFreeholdAssets2024-06-3002089946core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-06-3002089946core:PlantMachinery2024-06-3002089946core:ComputerEquipment2024-06-3002089946core:MotorVehicles2024-06-3002089946core:LandBuildingscore:OwnedOrFreeholdAssets2023-06-3002089946core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-3002089946core:PlantMachinery2023-06-3002089946core:ComputerEquipment2023-06-3002089946core:MotorVehicles2023-06-3002089946core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3002089946core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3002089946core:CurrentFinancialInstruments2024-06-3002089946core:CurrentFinancialInstruments2023-06-3002089946core:ShareCapital2024-06-3002089946core:ShareCapital2023-06-3002089946core:RetainedEarningsAccumulatedLosses2024-06-3002089946core:RetainedEarningsAccumulatedLosses2023-06-3002089946core:ShareCapital2022-06-3002089946core:RetainedEarningsAccumulatedLosses2022-06-3002089946core:ShareCapitalOrdinaryShares2024-06-3002089946core:ShareCapitalOrdinaryShares2023-06-3002089946core:RetainedEarningsAccumulatedLosses2023-06-30020899462023-06-30020899462022-06-3002089946core:LandBuildingscore:OwnedOrFreeholdAssets2023-07-012024-06-3002089946core:LandBuildingscore:LongLeaseholdAssets2023-07-012024-06-3002089946core:PlantMachinery2023-07-012024-06-3002089946core:ComputerEquipment2023-07-012024-06-3002089946core:MotorVehicles2023-07-012024-06-300208994612023-07-012024-06-300208994612022-07-012023-06-3002089946core:UKTax2023-07-012024-06-3002089946core:UKTax2022-07-012023-06-300208994622023-07-012024-06-300208994622022-07-012023-06-3002089946core:LandBuildingscore:OwnedOrFreeholdAssets2023-06-3002089946core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-3002089946core:PlantMachinery2023-06-3002089946core:ComputerEquipment2023-06-3002089946core:MotorVehicles2023-06-3002089946core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-07-012024-06-3002089946core:WithinOneYear2024-06-3002089946core:WithinOneYear2023-06-3002089946core:BetweenTwoFiveYears2024-06-3002089946core:BetweenTwoFiveYears2023-06-3002089946bus:PrivateLimitedCompanyLtd2023-07-012024-06-3002089946bus:FRS1022023-07-012024-06-3002089946bus:Audited2023-07-012024-06-3002089946bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP