Company Registration No. 11215848 (England and Wales)
TRINITY SURFACING LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Affinia
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
TRINITY SURFACING LTD
COMPANY INFORMATION
Directors
Mr D J Smith
Mr A D Winter
Company number
11215848
Registered office
Unit 15
Kingsnorth Industrial Estate
Hoo
Rochester
ME3 9ND
Auditor
Affinia (Chelmsford)
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
TRINITY SURFACING LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 28
TRINITY SURFACING LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

The directors present the strategic report for the year ended 31 July 2024.

Review of the business

Turnover has increased by £3,956,776 from £15,942,485 in 2023 to £19,899,261 in 2024, a 25% increase.

 

Gross profit has increased by £1,086,951 from £2,581,571 in 2023 to £3,668,520 in 2024, a 42% increase. Gross profit margin has increased from 16.2% in 2023 to 18.4%.

 

Operating profit has increased by £251,815 from £669,026 in 2023 to £920,841, a 38.9% increase.

 

Profit after tax for 2024 was £562,803 compared to profit after tax of £385,358 in 2023.

 

The net assets of the company at the year-end were £1,417,824 compared to £1,152,521 in 2023, an increase of £265,303.

Principal risks and uncertainties

Many of our clients are now seeing the impacts of the recent economic turmoil. Whilst this does not effect out current order book, it is highly likely that the upcoming years will be affected. We are fortunate that we have a diverse market including commercial clients as well as local authority clients to enable our work portfolio to be spread and dampen any industry shocks.

Development and performance

We maintain a strong reputation for providing our clients with completed projects on time, budget and to the quality required. This enables us to win repeat work with a loyal client base.

 

We continue to invest in modern plant and machinery to serve our workforce and clients.

Key performance indicators

 

 

 

 

2024

 

2023

 

 

£'000

 

£'000

Turnover

19,899

 

15,942

Percentage increase

25%

 

 

 

 

 

 

 

Gross Profit

3,669

 

2,582

Gross Profit Margin

18%

 

16%

 

 

 

 

 

EBITDA

 

1,288

 

1,010

Percentage increase

28%

 

 

Percentage of sales

6%

 

6%

On behalf of the board

Mr D J Smith
Director
14 February 2025
2025-02-14
TRINITY SURFACING LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 July 2024.

Principal activities

The principal activity of the company continued to be that of construction of road surfaces.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £297,500. 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 B Bridges
(Resigned 22 November 2024)
Mr D J Smith
Mr A D Winter
Financial instruments

The company's financial instruments at the balance sheet date comprised the company credit cards and invoice discounting facilities, cash and liquid resources. The main purpose of these financial instruments is for direct use in the company's operations. The company has various other financial instruments such as trade debtors and trade creditors, that arise directly from its operations.

 

The main risks arising from the company's financial instruments are interest rate and liquidity risk.

Liquidity risk

The company's objective is to maintain a balance between continuing of funding and flexible use of funding by way of invoice discounting arrangement, company credit cards and similar arrangements. Short term flexibility is achieved by overdrafts facilities.

Interest rate risk

The company has a policy to manage any exposure to interest rate fluctuations so as to finance its operations through retained profits.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Financial assets

The company has no financial assets other than short-term debtors and cash at bank.

Auditor

Affinia (Chelmsford) were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

TRINITY SURFACING LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
On behalf of the board
Mr D J Smith
Director
14 February 2025
TRINITY SURFACING LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 4 -

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:

 

 

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.

TRINITY SURFACING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRINITY SURFACING LTD
- 5 -
Opinion

We have audited the financial statements of Trinity Surfacing Ltd (the 'company') for the year ended 31 July 2024 which comprise the profit and loss account, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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.

 

Other matter

 

In the previous accounting period the directors of the company took advantage of the audit exception under S477 of the Companies Act. Therefore the comparative 2023 corresponding figures are unaudited.

Other information

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.

TRINITY SURFACING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY SURFACING LTD
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

TRINITY SURFACING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY SURFACING LTD
- 7 -

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

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 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.

TRINITY SURFACING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRINITY SURFACING LTD
- 8 -

Use of our report

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

Andrew Runicles
Senior Statutory Auditor
For and on behalf of Affinia (Chelmsford)
14 February 2025
Chartered Accountants
Statutory Auditor
Ground Floor
Swift House
18 Hoffmanns Way
Chelmsford
CM1 1GU
TRINITY SURFACING LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
Unaudited as restated
Notes
£
£
Turnover
3
19,899,261
15,942,482
Cost of sales
(16,230,741)
(13,360,913)
Gross profit
3,668,520
2,581,569
Administrative expenses
(2,747,679)
(1,922,904)
Other operating income
-
0
10,361
Operating profit
4
920,841
669,026
Interest receivable and similar income
8
-
0
379
Interest payable and similar expenses
9
(114,435)
(101,089)
Profit before taxation
806,406
568,316
Tax on profit
10
(243,603)
(182,958)
Profit for the financial year
562,803
385,358

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TRINITY SURFACING LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
2024
2023
Unaudited as restated
£
£
Profit for the year
562,803
385,358
Other comprehensive income
-
-
Total comprehensive income for the year
562,803
385,358
TRINITY SURFACING LTD
BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 11 -
2024
2023
Unaudited as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,663,820
1,638,306
Current assets
Debtors
13
5,363,853
3,927,538
Cash at bank and in hand
317,799
90,601
5,681,652
4,018,139
Creditors: amounts falling due within one year
14
(4,627,323)
(3,132,981)
Net current assets
1,054,329
885,158
Total assets less current liabilities
3,718,149
2,523,464
Creditors: amounts falling due after more than one year
15
(1,820,012)
(1,085,320)
Provisions for liabilities
Deferred tax liability
18
480,313
285,623
(480,313)
(285,623)
Net assets
1,417,824
1,152,521
Capital and reserves
Called up share capital
20
3
3
Profit and loss reserves
1,417,821
1,152,518
Total equity
1,417,824
1,152,521

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 14 February 2025 and are signed on its behalf by:
Mr D J Smith
Director
Company registration number 11215848 (England and Wales)
TRINITY SURFACING LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2022 (Unaudited)
3
880,660
880,663
Year ended 31 July 2023 (Unaudited as restated)
Profit and total comprehensive income
-
385,358
385,358
Dividends
11
-
(113,500)
(113,500)
Balance at 31 July 2023 (Unaudited as restated)
3
1,152,518
1,152,521
Year ended 31 July 2024:
Profit and total comprehensive income
-
562,803
562,803
Dividends
11
-
(297,500)
(297,500)
Balance at 31 July 2024
3
1,417,821
1,417,824
TRINITY SURFACING LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
2024
2023
Unaudited as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,218,245
726,941
Interest received
-
0
379
Interest paid
(114,435)
(101,089)
Income taxes paid
(59,139)
(111,783)
Net cash inflow from operating activities
1,044,671
514,448
Investing activities
Purchase of tangible fixed assets
(1,507,420)
(584,513)
Proceeds from disposal of tangible fixed assets
29,776
(5,200)
Interest received
-
0
379
Net cash used in investing activities
(1,477,644)
(589,334)
Financing activities
Repayment of bank loans
(9,999)
(11,001)
Payment of finance leases obligations
967,670
234,244
Dividends paid
(297,500)
(113,500)
Net cash generated from financing activities
660,171
109,743
Net increase in cash and cash equivalents
227,198
34,857
Cash and cash equivalents at beginning of year
90,601
55,744
Cash and cash equivalents at end of year
317,799
90,601
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
1
Accounting policies
Company information

Trinity Surfacing Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 15, Kingsnorth Industrial Estate, Hoo, Rochester, ME3 9ND.

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 company has early adopted the 31 March 2024 amendments to FRS 102 within these financial statements for the current accounting period. The previous accounting period has also been adjusted to reflect this early amendment both in relation to the impacts to revenue and lease accounting.

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

Due to the level of reserves and the profitability of the company, attrue the time of approving the financial statements and the time the company has been in existence, 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 represents net invoiced sales. The amount recorded as turnover in respect of long term contracts is ascertained by reference to the output method for applying the percentage of completion method.

 

Revenue is recognised once work that has been performed has been certified for approval based on the stage of completion of the contract’s activity by the customer in relation to the total work to be completed on the contract. Once the application and invoice for works performed have been approved by the customer, amounts are then paid to the entity by the customer.

 

As included in Note 1.1 above, the company has early adopted the amendments of the 31 March 2024 FRS 102 within these financial statements (both the current and previous accounting period). Contract costs are as a result, charged to profit and loss as incurred irrespective of the stage of completion

 

Turnover is measured at the fair value of the consideration received or receivable, excluding value added tax.

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:

Leasehold land and buildings
10% reducing balance
Right of Use Asset
Shorter of the lease term and the useful life of the asset
Plant and equipment
20% reducing balance
Fixtures and fittings
20% reducing balance
Computers
20% reducing balance
Motor vehicles
20% reducing balance
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

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.

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.

TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
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.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -
1.12
Leases
As per note 1.1, The company has early adopted the 31 March 2024 amendments to FRS 102 within these financial statements for the current accounting period. The previous accounting period has also been adjusted to reflect this early amendment in relation to the impacts to accounting for leases.

At inception of a contract, the company assesses whether the contract is or contains a lease. A contract is, or contains, a lease if it conveys the right to control the use of the identified asset for a period of time and in exchange for consideration.

The company as a lessee:
At the commencement of the lease term, a right-of-use asset and a lease liability is recognised on the statement of financial position.
The right-of-use asset is measured at cost comprising the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date less any lease incentives received, any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories.
The lease liability is measured at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the incremental borrowing rate is utilised.

At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:  
(a) fixed payments less any lease incentives receivable;  
(b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;  
(c) amounts expected to be payable by the lessee under residual value guarantees;  
(d) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option and;  
(e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

Right-of-use assets are accounted for as property, plant and equipment. They are depreciated using the straight-line or unit of production basis at rates considered appropriate to reduce the carrying value over the estimated useful lives to the estimated residual values. Where it is not certain that an asset will be taken over by the company at the end of the lease, the asset is depreciated over the shorter of the lease period and the estimated useful life of the asset.

Lease payments are allocated between the lease finance cost and the capital repayment using the effective interest rate method. Lease finance costs are charged to the statement of profit and loss as they become due. The carrying amount of the lease liability is remeasured to reflect any reassessment, lease modifications or revised in-substance fixed payments. The amount of the remeasurement is recognised as an adjustment to the right of-use asset and any further reduction required is recognised in profit or loss.

Short-Term and Low Value Leases
Leases with a lease term of less than 12 months or leases of assets which are low value in nature are not recognised on the statement of financial position. The lease payments on these leases are recognised as an expense on a straight-line basis over the lease term.
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Bad debt provision

Provision is made for bad debts. This requires management's best estimate of the value of payments expected to be received in the future. In addition, the timing of the cash flows requires management's judgement.

3
Turnover and other revenue
2024
2023
Unaudited
£
£
Turnover analysed by class of business
Construction of road surfacing
19,873,936
15,924,015
Other income
25,323
18,471
19,899,260
15,942,484
2024
2023
Unaudited
£
£
Turnover analysed by geographical market
United Kingdom
19,899,260
15,942,484
2024
2023
Unaudited
£
£
Other revenue
Interest income
-
379
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
4
Operating profit
2024
2023
Unaudited as restated
Operating profit for the year is stated after charging:
£
£
Depreciation of tangible fixed assets
367,492
341,314
Loss on disposal of tangible fixed assets
84,637
2,797
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
15,000
-
0
For other services
Taxation compliance services
800
1,000
Preparation of financial statements
850
3,200
1,650
4,200
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Unaudited
Number
Number
Directors
3
3
Administration
16
19
Production
20
26
Total
39
48

Their aggregate remuneration comprised:

2024
2023
Unaudited
£
£
Wages and salaries
2,193,621
1,824,705
Social security costs
248,745
206,881
Pension costs
24,352
32,187
2,466,718
2,063,773
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
7
Directors' remuneration
2024
2023
Unaudited
£
£
Remuneration for qualifying services
60,019
54,000
Social security costs
4,523
3,805
64,542
57,805

Key management personnel is regards as comprising the board of directors and the total remuneration of key management personnel is disclosed above.

8
Interest receivable and similar income
2024
2023
Unaudited
£
£
Interest income
Interest on bank deposits
-
0
379
2024
2023
Unaudited
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
0
379
9
Interest payable and similar expenses
2024
2023
Unaudited as restated
£
£
Other finance costs:
Interest on lease liability and hire purchase contracts
110,216
101,070
Other interest
4,219
19
114,435
101,089
10
Taxation
2024
2023
Unaudited
£
£
Current tax
UK corporation tax on profits for the current period
48,913
59,139
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
10
Taxation
2024
2023
Unaudited
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
194,690
123,819
Total tax charge
243,603
182,958

On 1st April 2023 the rate of corporation tax for UK limited companies increased from 19% to 25%.

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
Unaudited as restated
£
£
Profit before taxation
806,406
568,316
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.00%)
201,602
119,346
Tax effect of expenses that are not deductible in determining taxable profit
115,769
82,857
Effect of change in corporation tax rate
-
0
11,872
Permanent capital allowances in excess of depreciation
(266,601)
(156,967)
Effect of capitalisation of operating leases
1,862
2,031
Other permanent differences
(3,719)
-
0
Measurement of deferred tax
194,690
123,819
Taxation charge for the year
243,603
182,958
11
Dividends
2024
2023
£
£
Final paid
297,500
113,500
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
12
Tangible fixed assets
Leasehold land and buildings
Right of Use Asset
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 August 2023 as previously stated
12,087
-
0
1,392,637
6,345
15,548
453,334
1,879,951
Lease restatement
-
540,628
-
-
-
-
540,628
As restated at 1 August 2023
12,087
540,628
1,392,637
6,345
15,548
453,334
2,420,579
Additions
-
0
-
0
903,901
45,810
15,539
542,170
1,507,420
Disposals
-
0
-
0
(179,622)
(1,410)
-
0
(89,690)
(270,722)
At 31 July 2024
12,087
540,628
2,116,916
50,745
31,087
905,814
3,657,277
Depreciation and impairment
At 1 August 2023 as previously stated
2,417
-
0
525,306
2,653
7,393
190,023
727,792
Lease restatement
-
54,482
-
-
-
-
54,482
As restated at 1 August 2023
2,417
54,482
525,306
2,653
7,393
190,023
782,274
Depreciation charged in the year
967
54,781
221,551
3,188
2,993
84,012
367,492
Eliminated in respect of disposals
-
0
-
0
(114,336)
(508)
-
0
(41,465)
(156,309)
At 31 July 2024
3,384
109,263
632,521
5,333
10,386
232,570
993,457
Carrying amount
At 31 July 2024
8,703
431,365
1,484,395
45,412
20,701
673,244
2,663,820
At 31 July 2023 (Unaudited as restated)
9,670
486,146
867,332
3,693
8,155
263,311
1,638,306
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
12
Tangible fixed assets
(Continued)
- 24 -

The net carrying value of the tangible fixed assets includes plant and machinery amounting to £1,436,799 (2023: £867,331) as well as motor vehicles amounting to £674,972 (2022: £263,311) that are held under finance leases or hire purchase contracts.

13
Debtors
2024
2023
Unaudited
Amounts falling due within one year:
£
£
Trade debtors
4,573,872
3,474,665
Other debtors
578,739
307,406
Prepayments and accrued income
211,242
145,467
5,363,853
3,927,538

Included within trade debtors are retentions due from customers. The company performs regular reviews of the recoverability of these amounts. The total amount of retentions included within trade debtors at the balance sheet date is £531,788 (2023: £333,457). The impairment charges amounted to £54,890 (2023: £44,744).

 

Included in other debtors is a loan of £12,176 (2023: £12,554) due from the group company. Loan is interest free and repayable on demand.

14
Creditors: amounts falling due within one year
2024
2023
Unaudited as restated
Notes
£
£
Bank loans
16
10,000
10,000
Obligations under finance leases
17
487,137
267,075
Lease liabilities
17
50,247
47,330
Trade creditors
3,140,108
1,988,068
Corporation tax
48,913
59,139
Other taxation and social security
111,566
72,024
Other creditors
298,348
428,169
Accruals and deferred income
481,004
261,176
4,627,323
3,132,981
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
14
Creditors: amounts falling due within one year
(Continued)
- 25 -

As at 31 July 2024 the outstanding balance owed to Bibby Financial Services included within 'Other creditors' was £nil (2023: £45,046).

 

After the reporting period, the charge with Bibby Financial Services was satisfied and a new charge was raised on 12 April 2024 by Lloyds Bank PLC. As at 31 July 2024, the outstanding balance owed by Lloyds Bank Commercial Finance Limited included within other debtors was £11,406 (2023: £nil).

 

There was a new charge was raised on 30 July 2024 by Lloyds Bank PLC. The facility is secured by a debenture over all the assets of the company and a joint and several personal guarantee from the directors and shareholders.

 

The bank loan is repayable over a term over of 5 years and is secured by the Government guarantees.

 

The finance leases are secured on the assets concerned.

15
Creditors: amounts falling due after more than one year
2024
2023
Unaudited as restated
Notes
£
£
Bank loans and overdrafts
16
8,341
18,340
Obligations under finance leases
17
1,413,430
618,492
Lease liabilities
17
398,241
448,488
1,820,012
1,085,320
16
Loans and overdrafts
2024
2023
£
£
Bank loans
18,341
28,340
Payable within one year
10,000
10,000
Payable after one year
8,341
18,340
17
Lease obligations
2024
2023
Unaudited as restated
Future minimum lease payments due under finance and previously recognised operating leases:
£
£
Within one year
537,384
314,405
In two to five years
1,811,671
1,066,980
2,349,055
1,381,385
TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
17
Lease obligations
(Continued)
- 26 -

The finance leases included above as per notes 14 and 15 are secured on the assets concerned.

 

The company has a 10 year operating lease for unit 15 Kingsnorth Industrial Estate Kent which terminates in March 2032 and has been included above as per noted 14 and 15.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Unaudited
Balances:
£
£
Accelerated capital allowances
480,313
285,623
2024
Movements in the year:
£
Liability at 1 August 2023
285,623
Charge to profit or loss
194,690
Liability at 31 July 2024
480,313
19
Retirement benefit schemes
2024
2023
Unaudited
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
24,352
32,187

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.

TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
20
Share capital
2024
2023
2024
2023
Unaudited
Unaudited
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
3
3
3
3
21
Prior Year Restatement

As referred in note 1.1 above, the company has early adopted the 31 March 2024 amendments to FRS 102 within these financial statements for the current accounting period. The previous accounting period has also been adjusted to reflect this early amendment.

 

The only restatement resulting in this early adoption is in relation to accounting for operating leases leading to a right of use asset at 31 July 2023, cost £540,628, depreciation in the period £54,482 and hence net book value at £486,146. Refer to Note 12.

 

Corresponding lease liabilities have also been included at 31 July 2023, £47,330 due within one year and £448,488 falling due after more than one year. Refer to Notes 14 and 15. The prior year impact to Profit before taxation as a result of the restatement is immaterial with a decrease to Profit before taxation at £9,671.

22
Directors' transactions

Dividends totalling £297,500 (2023 - £113,500) were paid in the year in respect of shares held by the company's directors.

23
Ultimate controlling party

The immediate parent company is Trinity Surfacing Group Limited by virtue of its shareholding. Trinity Surfacing Group Limited is registered in Great Britain and produces group accounts which have not been signed.

The entity and in the parent company, Trinity Surfacing Group Limited has been controlled throughout the year by Mr B Bridges and Mr D Smith, directors of the company, by virtue of their shareholding in the parent company Trinity Surfacing Group Limited.

TRINITY SURFACING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
24
Cash generated from operations
2024
2023
Unaudited as restated
£
£
Profit for the year after tax
562,803
385,358
Adjustments for:
Taxation charged
243,603
182,958
Finance costs
114,435
101,089
Investment income
-
0
(379)
Loss on disposal of tangible fixed assets
84,637
2,797
Depreciation and impairment of tangible fixed assets
367,492
341,314
Movements in working capital:
Increase in debtors
(1,436,314)
(313,442)
Increase in creditors
1,281,589
27,246
Cash generated from operations
1,218,245
726,941
25
Analysis of changes in net debt
1 August 2023
Cash flows
31 July 2024
Unaudited as restated
£
£
£
Cash at bank and in hand
90,601
227,198
317,799
Borrowings excluding overdrafts
(28,340)
9,999
(18,341)
Obligations under leases
(1,381,385)
(1,015,000)
(2,396,385)
(1,319,124)
(777,803)
(2,096,927)
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